Question

Your company wants to hire a third-party vendor to handle all of the customer service calls because they are a well-known leader in the industry with many clients. You are the manager of the customer service department for your company and have consistently reduced expenses over the past three years. Which of the following is an argument you could present to your employer to not hire a third-party vendor to handle customer service calls?

1. Let your employer know that you will resign if they pursue this option
2. Convince your employer that although the third party has many clients, not all are satisfied.
3. Impose strict new customer service policies on your department
4. Show your employer where you could cut costs even further, making it more cost effective to keep customer service in house.

Answer 1

The correct answer is option 4, Show the employer where one could cut costs even further, making it more cost-effective to keep customer service in house.

Step-by-step explanation

• The concept of outsourcing has become extremely popular owing to the various benefits and advantages it offers by way of cutting cost and getting the work done efficiently.

• By handing over bulk work to a third party, companies can reduce costs as well as add efficiency to the work. It means getting maximum profit by incurring fewer expenditures.

• In this case , however one has to convince the employer that there is a possibility of cutting costs even further and subsequently making it more cost-effective by keeping the customer service department in-house. This means by not outsourcing it to the third party sometimes it is possible to earn maximum benefits. This is an instance of in-house customer service of a company.