Is It Possible to Balance In-House and Outsourced Customer Support Teams for Chicago Businesses?

In-house customer support operations and business process outsourcing (BPO) have advantages and disadvantages. Finding the balance between these two practices can help your organization scale in the Chicago scene.

If you want to leverage in-house and outsourced customer support teams for your Chicago business but need help figuring out where to start, this article is for you.

It explores the pros and cons of each strategy and why a hybrid approach can be a practical choice. It also provides tips for ensuring a harmonious balance between your internal team and that of a Chicago BPO company.

Defining in-house vs. outsourced customer support

Two options take center stage when discussing call center and customer service operations: in-house and outsourcing. In-house customer service refers to support processes handled and performed within a company by its employees and resources. Meanwhile, outsourcing involves delegating these functions to a third-party team.

While both aim to deliver stellar service, their approaches and implications differ vastly. Let’s examine the differences between these two strategies.

Pros and cons of operating customer support internally

Operating customer support processes in-house comes with unique characteristics. Compared to outsourcing, managing an internal support team offers the following benefits for your Chicago business:

• Direct control. Having an on-site team grants you total authority over day-to-day business operations. You can ensure that employees are assigned tasks they have experience with and training in, avoiding delays and errors.
• Deep product knowledge. In-house staff experience the company’s culture and learn about its goals throughout the hiring and training processes. Thus, they become experts on your offerings, leading to quicker and more accurate resolution of complex issues.
• Better brand alignment. In-house teams are fully immersed in your company’s culture and values, ensuring consistent brand representation in customer interactions. With Chicago’s competitive business landscape, a solid company brand is vital to standing out.
  
• Improved employee engagement. Agents often feel a stronger connection to the company and its mission through face-to-face collaboration and communication. Such arrangements lead to higher employee engagement and motivation.
• Enhanced security. With more control over your quality assurance measures, you reduce the risk of leaking sensitive data or intellectual property (IP). An office space also enables additional security measures such as physical data storage, access control systems, and security cameras.

However, several factors can make managing in-house customer support agents more challenging than outsourcing to a team of experts. One is Chicago’s high cost of living, which exceeds the national average by 20%. Here is a quick rundown of its common disadvantages:

• Higher costs. Office rent, utilities, and equipment are additional overhead expenses you must worry about when operating in-house. Surging compensation costs in Chicago also make local hiring more expensive.
• Limited expertise. The City of Big Shoulders’ low unemployment rate makes attracting and retaining qualified labor difficult. Consumer support requires agents who are compassionate and well-versed in process etiquette and best practices.
• Fixed workforce. Overstaffing and understaffing are costly risks of having an in-house team. You must continue paying agents’ salaries even if they are less active at work. Meanwhile, higher task volumes require you to hire more talent.

Pros and cons of outsourcing customer support processes

Compared to in-house staff, outsourcing teams sometimes handle multiple client accounts simultaneously. This strategy covers businesses of all sizes and industries in Chicago, increasing demand. According to Deloitte, 60% of companies expanded the scope of their outsourcing initiatives.

Outsourcing offers many benefits, especially for customer support, due to its use of state-of-the-art contact center as a service (CCaaS) solutions. According to 360 Research Reports, the global contact and call center outsourcing market can grow to $107.2 billion by 2027.

Here are a few reasons why you should consider outsourcing call center services:

• Cost savings. Outsourcing to other countries lets you cut on overhead expenses due to remote arrangements. It also enables you to save on labor costs by up to 70% due to differences in living expenses and compensation rates.
• Access to expertise. Call center BPO providers employ a diverse global talent pool at lower costs. These teams are trained in customer support best practices and are well-versed in the various regulations covering Chicago businesses. 
• Leverage technology. Purchasing customer support tools can be expensive. Partnering with a BPO provider grants you access to artificial intelligence (AI), helpdesk software, and computer telephony integration (CTI) at reduced cost.
• Scalability. Unlike in-house staff, customer support outsourcing teams are readily available, allowing your Chicago business to meet surging call volumes. You can also add or remove BPO staff while employing their technologies to aid this effort.
• 24/7 availability. Many call center outsourcing firms offer round-the-clock support, ensuring total customer support coverage. This availability helps reduce downtime and increase customer satisfaction and loyalty.

Nevertheless, partnering with a BPO provider comes with risks. Inadequate preparation and integration could lead to setbacks, such as:

• Loss of control. Subcontracting tasks means delegating some control to the provider, running the risk of poor quality assurance measures. Such conditions can lead to costly errors and delays, repairs and restorations, and reputational damage.
  
• Communication difficulties. Outsourcing to a team with a different timezone, culture, and language can cause collaboration challenges. Without clear communication strategies, you risk misunderstandings and reduced productivity.
  
• Brand disconnect. Customer support outsourcing agents might have difficulty grasping your brand’s nuances without adequate training. They may also have a hard time building comprehensive product expertise.

Why you should maximize the strengths of both approaches

Many organizations, including corporate giants and small to medium-sized businesses, manage in-house and outsourced operations. Google, Alibaba, Meta, Microsoft, Amazon, and Apple maximize the benefits of these two approaches.

This hybrid approach lets you tap into the benefits and features of both in-house and outsourcing teams. It provides your Chicago business with a system that delivers efficiency and a positive customer experience.

Finding the right balance when managing in-house and outsourcing teams

The City of Big Shoulders is considered the top metro for businesses. It boasts diverse industries and organizations, making every consumer interaction crucial. Stellar customer support can help you stand out, generating positive word-of-mouth, organic growth, and increased loyalty.

Optimizing the stability of in-house customer support staff and a BPO team’s cost-efficiency can help you succeed. However, the ideal mix depends on your needs and business context. You must consider several key factors and take vital steps to ensure your integration runs smoothly.

Below, we explore how your Chicago business can manage and balance in-house and outsourcing customer support teams.

1. Assess your customer support goals and needs

Determining the ideal ratio between the two approaches is the first step in balancing in-house and outsourced operations. What do you want to achieve through this hybrid practice, and what do you need to succeed?

Do you want to reduce wait times and churn? Or do you want to implement a seamless customer support system? When you have figured that out, consider factors such as:

• Budget. What customer support processes can you afford to operate in-house? Which do you prefer to pour your budget into?
  
• Scalability. How often do you experience seasonal fluctuations, and how flexible does your team need to be?
  
• Expertise. Which interactions require deep product knowledge and brand awareness, and which can be done without?
  
• Technology. Do you have the tools and software to perform specific customer support tasks internally?
  
• Customer demographics. Is round-the-clock support crucial to serving your global audience, or is your primary market within one time zone?

Answering these questions lets you determine which tasks are best performed in-house or outsourced to providers in Chicago or other hubs. This information also helps you draft a transition and management plan and a comprehensive service-level agreement (SLA) with your BPO partner.

2. Establish clear communication strategies

Once you have your teams, the next step is to specify communication efforts. Juggling an in-house and BPO team is challenging, but you can easily overcome obstacles with adequate communication.

For efficient and seamless management, keep both teams informed about company updates, product changes, and customer trends. Discuss essential topics during regularly scheduled touchpoints, such as:

• Daily stand-up meetings
• Weekly team check-ins
• Monthly company updates
• Regular team syncs
• Online team buildings
• Open communication through instant messaging

These meetings facilitate seamless information exchange and maintain a unified approach to customer support. Virtual collaboration tools such as Slack, Google Suite, and Skype are vital to managing both teams efficiently.

3. Foster collaboration and integration

Creating a unified and effective workflow can help you manage in-house and outsourcing customer support teams more efficiently. It can boost productivity, employee engagement, and motivation.

Consider the following steps to foster improved collaboration:

• Establish joint goals and metrics. Align both teams on the same objectives and key performance indicators (KPIs), such as customer satisfaction, resolution times, and first contact resolution. This step creates a shared sense of purpose and drives collaboration.
• Conduct cross-training and knowledge sharing. Allow in-house customer support agents to learn from outsourcing teams and vice versa. Cross-training and collaboration projects in your Chicago business build mutual respect, understanding, and cohesion.
• Encourage joint problem-solving and innovation. Set up joint task forces or working groups to tackle complex customer issues. Establishing these systems can lead to innovative solutions and improve overall service quality.
  
• Develop standardized knowledge bases and processes. Keep in-house and BPO agents consistent through centralized systems. Ensure your knowledge base and processes for all customer support interactions are accessible to both teams.

With in-house and outsourcing customer support staff working together, management becomes more straightforward. Nurturing a culture of cooperation and communication unlocks the full potential of your combined resources, helping you scale in the long run.

4. Ensure cultural alignment

A clash of cultures negatively affects both your company and its consumers. It can lead to friction, misinterpretations, conflicting approaches, and a poor customer experience.

Thus, you must integrate BPO agents into your company culture. Share brand values, mission statements, and internal documents to solidify their understanding of the business. At the same time, develop a joint style guide to ensure both teams maintain a consistent tone across all customer support channels.

Another step to avoid conflict is to train both teams in active listening, cultural sensitivity, and emotional intelligence. These skills help ensure smooth interactions between in-house and outsourcing teams and between your Chicago business’s agents and customers.

5. Prioritize feedback and training

Your in-house and BPO teams must constantly learn and improve to deliver the best possible service. Regular monitoring and training help ensure the success of this hybrid approach.

Establish mechanisms for collecting feedback from agents and customers. This approach fosters trust and transparency between in-house and outsourced customer support teams. Share important data transparently with both teams, including:

• Performance metrics
• Customer feedback and reviews
• Customer 
• Product updates
• Escalation guidelines

Consecutively, organize cross-team and individual training sessions to upskill agents from both teams. Remember, the “perfect” balance of in-house and outsourcing teams is a moving target. Consistently evaluating your approach and adapting your strategies are the keys to an effective initiative.

Extra tips for effective integration

Once you have the fundamentals down, you can further ensure the success of your hybrid model through the following methods:

• Embrace technology. Use cloud-based technologies for centralized knowledge bases and repositories. Project management software, cloud documents, and instant messaging platforms help facilitate seamless communication and collaboration.
  
• Ensure performance synergy. To foster a sense of shared ownership, offer joint rewards to in-house and outsourcing teams for achieving goals. Your Chicago business can also implement a program where in-house experts mentor newer BPO agents.
  
• Celebrate small wins and big successes. Recognizing the efforts and awarding the achievements of both teams builds morale, reinforces the value of collaboration, and strengthens their bond. Encourage further interactions through virtual social events.

The bottom line

Achieving a harmonious blend of in-house and outsourced customer support can be the key to achieving long-term success in Chicago. While both have advantages and disadvantages, implementing a hybrid approach allows you to bridge gaps and overcome issues.

You can enjoy more control and brand alignment with an in-house team while benefiting from the cost-efficiency outsourcing offers. However, to fully maximize their strengths, you must find the right balance in managing them.

Let’s connect if you are looking for a customer support provider to unify the in-house and outsourcing teams’ efforts for your Chicago business! Unity Communications has been in the contact center outsourcing industry for over a decade.