Pros and Cons of Outsourcing Your Business Contact Center

Pros and Cons of Outsourcing Your Business Contact Center

Outsourcing your contact center solution is generally best for small and medium-sized businesses without the resources readily available to build an in-house contact center, to outsource their contact center needs.

Outsourcing takes the pressure off a business and enables the business to focus on its products and other services. Outsourcing a contact center is also a suitable alternative to an in-house contact center for international companies with customers worldwide. Global enterprises need a contact center with 24 / 7 customer support services to address all customer needs in all time zones.

Benefits of an Outsourced Contact Center

Cost Savings

Outsourced contact centers can be much cheaper than building and maintaining an in-house center, especially for SMEs. This can be an excellent option for businesses with limited budgets, as they can focus on their core business operations instead of spending a large number of resources on contact centers.


Outsourced contact centers are staffed by trained and experienced professionals who can provide high-quality customer service without worrying about recruiting the best. These contact center professionals are often specialists in the field of customer service and are equipped with the latest contact center technology and tools to handle customer queries and complaints effectively. This can result in higher customer satisfaction and a better brand image for the business.


Outsourced contact centers can provide a flexible solution that can easily be scaled up or down as the business grows or reduces in size. This is beneficial for businesses that experience seasonal fluctuations in demand for their contact center, as they can quickly adjust the number of staff members to meet the changing needs of their customers.

Access to Technology

Outsourced contact centers often use the latest technology and tools to improve the customer experience. Contact centers include state-of-the-art call centers, omnichannel contact center support, and access to advanced data analytics. This can help businesses provide high-quality customer service and make more informed decisions about their operations.

Disadvantages of Outsourcing Contact Centers

Disadvantages of outsourcing contact center functions to a third party. 

Loss of Control

Outsourcing a contact center means a business will rely on a third-party provider to manage a critical aspect of its operations. This can result in a loss of control over the quality of customer service, which can negatively impact the business's brand image.

When outsourcing a contact center, communication issues can be challenging, mainly if the business and the provider are located in different countries. This can result in misunderstandings, miscommunication, and a lack of coordination, which can negatively impact customer service.

Quality Control

Quality control can be challenging to maintain when outsourcing a contact center, as the provider may have different standards and procedures than the business. This can result in poor customer service, damaging the business's brand image.

Dependence On the Provider

Outsourcing a contact center means the business will depend on the provider for its customer service operations. This can result in a loss of control over the customer service experience and a lack of flexibility in the event of changes to the business or customer service requirements.

Contact Center Outsourcing Vendor Checklist

There are many outsourcing options available to businesses. When researching contact center outsourcing vendors, it’s a good idea to ask for references. Every call center outsourcer is different, so take the time to explore as many as possible.


A vendor with a proven track record of delivering quality customer service for other businesses is likelier to have the same results for your company. Look for a vendor with experience in your industry and a good reputation.


Make sure the vendor can scale their services as your business grows. A vendor with a flexible and scalable model can accommodate your changing needs and support the growth of your business.


The contact center solution vendor’s technology should be up-to-date and secure, with features such as real-time reporting, call recording to improve agent productivity, and a self-service portal. This allows you to monitor the quality of the service and make data-driven decisions.


Choose a contact center system vendor who communicates regularly and openly with their clients. A responsive and proactive contact center systems vendor addressing your needs and concerns will help ensure a positive outsourcing experience.


Outsourced contact centers may be a good alternative for businesses that don’t have the funding or resources to build an in-house contact center. Building an in-house contact center means a company must invest in infrastructure. In-house contact centers require hardware, software, facilities, networking, equipment, and employees. Outsourced contact center pricing tends to be lower and alleviates these costs.

Outsourcing may only be profitable for some types and sizes of businesses. Suppose a company has the funding and resources to build an in-house contact center. A cost-benefit analysis should examine the best return on investment (ROI) option.

Consider the cost of outsourcing compared to building and maintaining an in-house contact center. Make sure to compare the total cost of ownership, including technology, contact center workforce management, and training.

Customer Feedback

Ask for references and check with other businesses that have outsourced their contact center to the given vendor. Collecting customer feedback will give you a good idea of the vendor’s strengths and weaknesses and help your organization make an informed decision about a contact center.

Businesses can choose the right partner to help them deliver exceptional customer service, enhance their brand image, and drive sales and revenue with these criteria.

Pros and Cons of Cloud-Based vs. On-Premise Contact Center Solutions

On-premise solutions offer businesses greater control over their technology and data but require more time and resources for setup, maintenance, and support. Meanwhile, hosted or cloud-based solutions are often faster and easier to set up and maintain. Still, they can also require businesses to cede some control over their technology and data to the provider. 


Reduced Upfront Costs

Hosted or cloud-based solutions typically have lower upfront costs than on-premise solutions, as they do not require the same level of investment in hardware and infrastructure.


Hosted or cloud-based solutions are often more scalable than on-premise solutions, allowing businesses to add or remove users and features as needed.

Easy Maintenance

Hosted or cloud-based solutions are often easier to maintain than on-premise solutions, as the provider is responsible for managing software updates, security, and other technical aspects.


Hosted or cloud-based solutions are often more flexible than on-premise solutions, as they can be accessed from anywhere with an internet connection.


Dependence on the Provider

Hosted or cloud-based solutions can make businesses more dependent on their provider, as they may need to rely on the provider for technical support and access to their data.

Security Concerns

Cloud-based contact center solutions can raise security concerns, as businesses may share their data and technology with the provider.

Limited Control

Cloud-based solutions can offer limited control over the technology and data, as businesses may need more support in their ability to customize the solution or access their data.

Compare the best contact center software using our convenient comparison guides.  

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