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A few years ago, there was a big buzz about companies that outsourced their customer service reps to India and China to save money. The verdict is still out on whether it's effective or not. If you're considering outsourcing, assess your business and your customers to decide if it's right for you.
It's All About the Customers: Forget saving money; the truth about your business is that it's all about your customers. What do they want? Will it bother them to speak to someone with a thick accent (many companies like Dell found this to their detriment) when they're calling with a frustrating situation?
Although you're happy to save money, your customers don't see anything but a slip in your otherwise quality service. If outsourcing causes your customers stress, and you start to lose them, it's not worth the cost savings.
Consider Outsourcing Locally: Many of the companies that have been burned from outsourcing customer service overseas have found a better option: outsourcing locally. If you live in a high cost-of-living metropolis, you can save money by locating your customer service center in a cheaper city or town. All you have to worry about in this case is the North Carolina drawl that may greet customers calling!
No matter what you decide to do, make your decision based on what is right for your customer, not your bank account.