Call Center Outsourcing

With increased globalization and communication, many companies now outsource their customer call center services. These companies first began to outsource to other locations and countries when they realized that it was a way to save money. If the call centers were located in an area where the average wage and cost of living was lower, they did not need to pay their workers as much. This gives them a comparative advantage, the ability to have the same effect with less cost. This decrease in spending gave them an advantage over their competitors.

At the same time, international outsource centers also gave many companies an absolute advantage. As companies expand overseas, their customer base grows and includes many different cultures, languages, and references to popular media. By having local call centers where their customers were in many places around the world, they are able to better connect with the customers and provide greater quality and quantity of service with the same number of employees.

Although outsourcing is a good way to gain advantages on competitors, there are still many things to consider before a company should begin outsourcing. Depending on where the centers are located, communication may sometimes be an issue because of natural accidents or foreign accents. In addition, the cultural difference may make it difficult for customers to trust the company and the distance from the base may create a lack of knowledge on the product and services the company offers.


Amadeo, Kimberly. “How Call Center Outsourcing Affects the U.S. Economy.” The Balance, The Balance, 9 Jan. 2019, www.thebalance.com/how-does-call-center-outsourcing-affect-the-u-s-economy-3306191.

“Guest Blog: 5 Reasons Why Outsourcing Your Customer Service Can Be a Smart Move.” Shep Hyken, 23 July 2019, hyken.com/customer-care/guest-blog-5-reasons-outsourcing-customer-service-smart-move/.