Key considerations to make before outsourcing customer service Many companies operate under the misconception that outsourcing customer service to a third party is more expensive than keeping it in-house, but in most cases this couldn't be further from the truth. "Traditionally outsourced solutions are 10-15 percent lower cost than existing in-house operations," explains Bill Pieper, president of contact center consulting and outsourcing firm EPIC Connections, in the company's monthly newsletter. "Outsourcing puts you in a much better position to deliver on technical capabilities because the resources will be dedicated to getting the work done. Outsourcing more effectively handles immediate business need fluctuations…they are built to handle ramp up much better than a traditional in-house center." That being said, in order to make a successful transition to a domestic inbound customer service call center, Pieper recommends considering the following: Existing operating costs, including technology, labor and all service-related expenses Hidden costs involved in transitioning to a domestic inbound call center, such as equipment replacement, anticipated inflation, training of outsourcing staff and severance Ongoing oversight of the outsourcing partner you select Retained costs, such as network costs on existing contracts, outsourcing management costs and routine projects. Once you've evaluated the above topics of consideration, Pieper says that it's in your best interest to move forward with outsourcing customer service if you're certain that it's the ideal solution for your company and if you're willing to put time and money into making this long-term change. Keep in mind that switching to an outsourced call center means relinquishing control of certain aspects of your company processes and adjusting to this change internally. In most cases, companies find that, in spite of the transition process, which if well planned, doesn't need to be painful, domestic outsource call centers are more cost-effective and efficient than keeping customer service operations in-house.