
Concept
|Feb 15th 2025
3 min
Outsourcing Support: The Good, The Bad & The Reality
Outsourcing support can be a game-changer, but it’s not all smooth sailing. Here’s a look at the real pros and cons to help you decide if it’s the right move.
Written by: Karl Evans
CEO
Growth is the goal, but the path isn’t always clear. Should you build a bigger in-house team? Invest in automation? Or bring in an external partner to handle support? The answer depends entirely on where your company is today and where you want to be tomorrow.
Let’s break it down.
Scaling your support team in-house has clear advantages – you get full control over quality, culture, and long-term growth. If you’re a large, established company with global operations, upscaling might be the easiest move. You already have the processes and structure in place, so adding more people simply expands your existing system.
But scaling comes with challenges. You might need to introduce shifts, open new sites, or rethink your hiring strategy to ensure you find and retain the right people. And what happens if demand fluctuates? Over-hiring can lead to unnecessary overhead, while under-hiring leaves your customers underserved.
The Key Question:
AI-driven automation is everywhere, and for good reason. It can add flexibility, improve cost control, and even enhance service when used correctly. But here’s the problem – too many companies rush to automate before they have the right foundation in place.
Without well-structured processes and clear workflows, automation only scales inefficiency. Worse, if it’s forced onto customers in ways that don’t improve their experience, it can actively drive them away.
For example, Daily Harvest successfully leveraged AI to enhance customer service by implementing chatbots that offer rapid responses and self-service options, leading to higher customer satisfaction scores and cost savings. This works because they had the right operational foundation before introducing automation.
The Key Question:
Outsourcing often gets a bad reputation. Too many companies see it as a quick way to cut costs, which leads to low-quality service that doesn’t align with the brand. But done right, outsourcing can be a strategic advantage – allowing companies to scale faster, increase flexibility, and maintain high-quality service.
The key is finding a partner, not just a provider. The right outsourcing model isn’t about handing off work – it’s about extending your business with a team that understands your brand, aligns with your standards, and works with you to improve.
For instance, Insignia Financial outsourced administrative services not just to reduce costs, but to improve customer service and leverage modern technology – proving that outsourcing can be a strategic tool for growth, not just a cost-cutting measure.
The Key Question:
Choosing the wrong approach – whether upscaling, automating, or outsourcing – can damage your brand more than anything else. If your service fails to live up to your promise, you’re not just losing customers – you’re losing trust. And when customers feel neglected, they don’t just leave; they take their opinions with them, impacting your reputation and future growth.
Support done right turns your existing clients into your marketing force (Read more about how customer experience drives brand advocacy). Done wrong, and you’ll be forever chasing new customers to replace the ones you lost.
Every company’s path is different. A fast-growing startup might see upscaling as an expensive distraction from core growth, while outsourcing allows them to stay lean. A well-established enterprise might use automation to optimize processes, outsourcing to handle flexibility, and upscaling for long-term control.
If your business is resistant to change, ask yourself one simple question:
Will your current way of working get you where you want to go, or is it the very thing holding you back?
Growth isn’t about following a set formula. It’s about choosing the right approach at the right time – before your own limitations become the reason you don’t move forward.
Deciding whether to upscale automate or outsource depends on your company’s current position and future goals. Upscaling offers control but requires heavy investment. Automation can improve efficiency, but only if built on a strong foundation. Outsourcing, when done right, extends your capabilities without sacrificing quality. The biggest mistake? Choosing the wrong approach and damaging your customer experience. The right path is the one that helps you grow without breaking what makes your business great.