How to Match Your Customer Service Strategy with the Right Contact Center Model

January 29, 2025 | Contact Center Industry | Blog

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In today’s competitive business landscape, delivering exceptional customer service is non-negotiable. Companies striving to maintain a competitive edge must optimize their customer service strategies to align with organizational goals and exceed customer expectations.  

A critical part of achieving this is selecting the precise contact center model that fits your needs. Let’s explore how to make the right choice and why a flexible, scalable solution often rises to the top.  

Understanding Contact Center Models: Internal Teams, Traditional BPOs, and Flexible Workforces 

According to a PwC article, 73% of consumers say customer experience is a key factor in their purchasing decisions, making it vital for internal teams to deliver consistently high-quality support.  

However, every organization has unique customer service requirements, and selecting the right contact center model is essential to meeting those demands. Below, we dive deeper into the primary models, offering insight into their benefits and challenges. 

Hiring Internal Teams to Support Your Customers 

Many companies choose to hire and maintain internal customer support teams. This model involves recruiting, training, and managing a dedicated workforce that operates either on-site or remotely, solely focused on the organization’s customer service needs. 

While this approach provides full control over processes, team culture, and performance standards, it also comes with significant overhead costs and operational challenges. Companies must invest heavily in hiring, infrastructure, technology, and ongoing training to keep internal teams efficient and aligned with organizational goals. 

Pros: 

  • Complete control over customer interactions and processes. 
  • Seamless alignment with company culture and values. 
  • Higher levels of accountability and performance management. 
  • Potential for deep expertise and knowledge retention within the team. 

Cons: 

  • High operational and staffing costs. 
  • Limited scalability during peak periods or unexpected surges. 
  • Resource-intensive recruiting, training, and management processes. 
  • Requires investment in infrastructure, technology, and compliance. 

Partnering with Traditional BPOs 

Business Process Outsourcing (BPO) providers offer an alternative to managing customer support internally. Traditional BPOs operate as external partners, handling customer service functions on behalf of the organization. These providers often operate on a large scale, using established processes to manage customer interactions efficiently. 

Gartner reports that 81% of companies see customer experience as a competitive differentiator, underscoring the importance of selecting a BPO that aligns with your brand’s customer service vision. 

BPO partnerships can be advantageous for organizations seeking to offload operational burdens and reduce costs. However, traditional models may lack the agility or customization required for unique business needs, and companies must ensure alignment with their brand values and customer expectations.  

Pros: 

  • Cost savings through economies of scale. 
  • Reduced operational complexity and resource allocation. 
  • Access to experienced teams and established processes. 
  • Ability to focus on core business objectives. 

Cons: 

  • Limited flexibility and customization options. 
  • Potential misalignment with brand identity and customer expectations. 
  • Communication and quality control challenges. 
  • Lengthy onboarding processes for integrating with the BPO. 

Flexible Workforces or Gig-Powered “Gig CX” Model 

The gig-powered model, also commonly known as the “gig cx” model, leverages a network of independent contractors to provide customer support. This model offers unmatched flexibility, allowing companies to scale their workforce quickly during peak periods or seasonal surges. It’s an ideal choice for organizations looking to balance cost efficiency with scalability.  

Gig-powered agents work remotely, which reduces overhead costs associated with maintaining physical office spaces. Moreover, access to a geographically diverse talent pool allows companies to provide 24/7 support across time zones. However, this flexible workforce model also comes with challenges, such as ensuring consistent quality with a fully remote and flexible network of agents. 

Pros: 

  • Unparalleled scalability for planned and unplanned surges. 
  • 30-minute schedule increments to better align staffing to call volumes. 
  • Cost-effective operations (often over 25% cost savings). 
  • Sustainable and environmentally friendly. 
  • Global access to highly skilled talent. 

Cons: 

  • Hard to accomplish without a partner and advanced technology. 
  • All training, onboarding, and quality control need to be done in a fully remote environment. 
  • Extra steps are needed to ensure agents have proper technology and are working in a secure and compliant manner. 
  • Best for short training programs (6 weeks or less).

Explore Liveops’ Flexible Customer Service Solutions

Geographical Contact Center Models: Onshore, Nearshore, Offshore 

In addition to operational models, deciding where your contact center operates is a key factor in crafting an effective customer service strategy. Each geographical model offers distinct advantages and challenges, depending on your organizational needs. 

Onshore Call Centers

Onshore call centers are located within your home country, offering strong cultural and language alignment with your customer base. This proximity makes collaboration easier and ensures real-time communication during regular business hours.  

For industries that require nuanced understanding—such as healthcare or financial services—onshore agents can provide a seamless customer experience. However, the primary drawback of this option is cost. Labor and operational expenses are often significantly higher compared to nearshore or offshore alternatives. 

Pros: 

  • Strong cultural alignment. 
  • Seamless real-time communication. 

Cons: 

  • High operational costs. 

Nearshore Call Centers

Nearshore call centers operate in neighboring or nearby countries, offering a balance between cost efficiency and cultural alignment. For example, U.S.-based companies might opt for nearshore centers in Mexico, where agents share some cultural similarities and time zones are closer.  

Nearshore options can provide more affordable solutions without compromising quality. However, businesses must carefully evaluate providers to ensure that language proficiency and service standards meet customer expectations. 

Pros: 

  • Cost-effective alternative to onshore. 
  • Closer cultural and time zone alignment. 

Cons: 

  • Requires thorough vetting for quality assurance. 

Offshore Call Centers

Offshore call centers, typically located in distant countries, are known for their cost savings and scalability. Regions like the Philippines are popular for their large talent pools and lower labor costs.  

While this model offers significant financial advantages, it comes with potential challenges, such as cultural and language barriers. Time zone differences can also make real-time collaboration more difficult, which may impact service for time-sensitive industries. 

Pros: 

  • Significant cost savings. 
  • Large, scalable talent pools. 

Cons: 

  • Potential cultural and communication barriers. 
  • Time zone challenges. 

Combining Operational and Geographical Contact Center Models 

To optimize your customer service strategy, consider how different operational models—internal teams, traditional BPOs, and flexible gig-powered workforces—combine with geographical models to meet your business needs. Here are the nine most effective combinations tailored to specific goals: 

1. Onshore-Internal Employees 

  • Why It Works: Onshore internal teams provide complete control and alignment with company culture while addressing sensitive or high-value customer needs. 
  • Ideal For: Industries like healthcare, finance, or luxury goods that require highly specialized, real-time support. 
  • Challenges: High operational costs and resource-intensive management make this option less viable for businesses with limited budgets. 

2. Onshore-BPO Partners 

  • Why It Works: Onshore BPOs offer cultural alignment and local expertise while alleviating operational burdens. 
  • Ideal For: Businesses needing large-scale operations but prefer local customer interaction. 
  • Challenges: Higher cost structure compared to offshore or nearshore options, with less flexibility for customized processes. 

3. Onshore-Flexible Workforce 

  • Why It Works: A gig-powered onshore workforce offers scalability and local expertise while optimizing cost efficiency. 
  • Ideal For: Seasonal businesses or those experiencing frequent demand fluctuations that need to keep operations domestic. 
  • Challenges: Dependence on advanced technology and reliable partners for seamless operations and quality control. 

4. Nearshore-Internal Employees 

  • Why It Works: Nearshore internal teams combine cultural proximity with reduced operational costs. 
  • Ideal For: Companies needing moderate customization without incurring onshore costs. 
  • Challenges: Establishing and maintaining nearshore teams independently requires significant investment and management oversight. 

5. Nearshore-BPO Partners 

  • Why It Works: Nearshore BPOs provide cost savings and multilingual support with reasonable cultural alignment. 
  • Ideal For: Retail, e-commerce, or businesses with a significant multilingual customer base. 
  • Challenges: Potential issues with cultural nuances and limited availability for certain languages or skill sets. 

6. Nearshore-Flexible Workforce 

  • Why It Works: A nearshore gig-powered workforce delivers cost-effective scalability and cultural alignment for routine inquiries. 
  • Ideal For: Companies experiencing seasonal surges or daily/weekly call fluctuations and need to reduce costs beyond that of traditional BPOs. 
  • Challenges: Ensuring consistent quality and agent engagement in fully remote environments. 

7. Offshore-Internal Employees 

  • Why It Works: Offshore internal teams provide cost savings for businesses with the resources to manage and maintain operations directly. 
  • Ideal For: Enterprises prioritizing cost control while managing simple or routine customer needs. 
  • Challenges: Managing operations across time zones and ensuring compliance with data protection standards. 

8. Offshore-BPO Partners 

  • Why It Works: Offshore BPOs offer cost savings and scalability for high-volume operations. 
  • Ideal For: Industries requiring 24/7 multilingual support or handling large call volumes, such as telecommunications. 
  • Challenges: Cultural and language barriers may impact customer satisfaction, and quality control requires constant oversight. 

9. Offshore-Flexible Workforce 

  • Why It Works: Offshore gig-powered workforces enable extreme scalability for peak seasons and offer the best cost savings. 
  • Ideal For: Companies managing expected as well as unexpected call fluctuations and high-volume surges like holiday retail or travel. 
  • Challenges: Fully remote management requires robust technology and coordination to maintain quality and security. 

By leveraging these combinations, businesses can tailor their customer service strategies to meet specific goals, ensuring efficiency, scalability, and exceptional customer experiences. This approach also supports customer experience optimization, enabling companies to enhance every touchpoint in the customer journey. 

Why Flexibility Matters Most 

Modern customer service demands flexibility—the ability to scale quickly, adapt to market trends, and meet customer needs in real time. A rigid contact center model can hinder your ability to respond effectively to unexpected challenges, such as seasonal demand spikes or market disruptions. 

Scalability is a cornerstone of flexible solutions, allowing businesses to ramp resources up or down as needed. This adaptability ensures that companies remain agile, even during periods of uncertainty.  

Additionally, flexible models help optimize cost management by tailoring resources to actual demand, avoiding unnecessary expenditure. Ultimately, flexibility empowers businesses to stay ahead of customer expectations and industry trends. 

Conclusion: Liveops—Your Partner in Flexible Customer Service Solutions 

When it comes to matching your customer service strategy with the right contact center model, flexibility is paramount. At Liveops, we specialize in scalable, agile, and high-quality customer service solutions.  

Whether you need to integrate onshore, nearshore, or offshore operations with a tailored approach, we deliver results that enhance customer experiences and drive business success. 

Discover how Liveops can help you match the right contact center model with your customer service strategy. From specialized agents to gig-powered teams and omnichannel solutions, we provide scalable and flexible options designed to meet your business needs and exceed customer expectations. 

Talk With Our Team

 

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