Outsourcing Your IT Service Desk

As business users’ expectations for technical support grow, outsourcing service desks has become a practical solution for cost control and enhanced support.

Over the years, there’s been a trend to outsource technical support to offshore locations like Asia and Eastern Europe. However, dissatisfaction is rising due to issues like language barriers, cultural differences, and the loss of client knowledge.

Despite these challenges, outsourcing remains beneficial. It offers financial advantages like lower fixed costs, improved NIPE, and savings on office space and recruitment. Outsourcing also helps businesses focus on core competencies while delegating non-essential tasks.

Challenges of Offshore Service Desk Outsourcing

1. Client Knowledge: Offshore agents often lack detailed knowledge of a business’s internal workings, which affects their ability to provide effective support.
2. High Turnover: Offshore locations experience higher staff turnover, leading to inconsistency in service quality.
3. Cultural Differences: Differences in communication styles may cause misunderstandings, affecting service quality.
4. Language Dialects: Even with training, offshore staff may use formal language that can frustrate customers, further reducing satisfaction.

The In-House Shift

As a result of these issues, many organisations are now bringing their service desks back in-house. This shift is partly driven by the need for service providers to align with business goals and understand the customer service aspect better. Many outsourcing providers focus too much on technical solutions and fail to deliver the required service levels.

Benefits of Outsourcing

Despite some poor experiences, outsourcing remains a viable option for many organisations. Key benefits include:

• Better Financial Leverage: Reduced fixed costs and a known financial outlay.
• No Training or Recruitment Costs: Outsourcers handle staff training and recruitment, saving the company both time and money.
• Management Relief: By outsourcing, companies no longer have to manage staff churn or progression, freeing up internal resources to focus on business growth.
• Improved Customer Perception: If done correctly, outsourcing can improve customer satisfaction and the overall perception of the IT department.

Drawbacks to Consider

However, outsourcing is not without challenges:

1. Loss of Control Over Training: Companies may feel they lose control over staff skills and training.
2. Cultural Misalignment: Offshore providers can struggle with cultural differences that affect customer service.
3. Remote Work Challenges: Businesses may need to adjust to remote personnel and the potential disconnect this creates.

In summary, outsourcing service desks can still offer significant financial and operational benefits. However, it’s essential to address common issues, especially around offshore support, and consider alternatives such as in-house solutions or partnering with providers closer to home, like South Africa, which offers better cultural alignment.