When Is It Time To Outsource?

Happy customers are repeat customers. But they may be happier if someone else does customer service.

- Deirdre Van Dyk

CUSTOMER SERVICE IS critical, yet delivering it can be expensive, particularly as companies grow larger. “Where do I base the reps? How do I stagger time zones? Do I provide live chat? Or text?” says Scott Carr, CEO of Modria, which makes dispute-resolution software. Do you forge ahead on your own, as Modria does,or do you outsource?

“If customer service is not your core competency, if it’s not a strategic differentiator, and if you can’t do it cheaper,you should outsource,” says Tom Lewis,a former Deloitte partner who has headed its call-center advisory practice.

Cost isn’t the only consideration. Arccos Golf, a platform that allows golfers to track their performance, decided that in-house was not a problem but an opportunity. The company, which sells sensors that attach to clubs and send shot analytics to a smartphone, chose to hire PGA pros and tech obsessed golfers to handle calls. “It puts us at a different level,” says Sal Syed, CEO and co-founder. “We’re not selling a product, but rather an experience.”