Key Takeaways
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Taking the time to thoroughly vet call center vendors will avoid unfortunate, costly mistakes while safeguarding your own business reputation.
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Always ask for specific, actionable responses on how they will help meet performance metrics. Then require access to intuitive, transparent reporting tools.
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Watch out for hidden fees hidden within contracts. Find a partner whose contract terms are flexible to accommodate evolving business requirements.
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Check on security certifications and data privacy practices to ensure strong customer data protection.
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Verify vendor reputation—look for reviews and request references from other clients to ensure their reliability and service quality meets your expectations.
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If something feels off, listen to your gut. High-pressure tactics, vague responses, and a rushed vendor vetting process should all be red flags.
During the vendor vetting process, look for this red flag right away. Watch out for inadequate employee training and lack of data security. Specifically, I look for vagueness around service offerings or delayed responses while in initial discussions.
Such red flags can sometimes be found within third party reviews or when vendors avoid offering demonstrable evidence of compliance with regulations. If a vendor can’t provide a list of client references or tries to dodge questions related to their technological capabilities—that’s a huge red flag.
Finally, I look out for a red flag of high staff turnover or lack of reporting tools. Catching these in advance saves you a world of headache and protects your business.
Coming up, I’ll take each red flag one by one. This guide will give you the knowledge you need to identify them early, and ensure you make the right decision for your call center needs.
Why Careful Vendor Vetting Matters
Taking time to research potential BPO companies before you issue an RFP can help you avoid major headaches in the future. Manufacturer’s history and portfolio are crucial aspects to consider. Do your homework and really vet a vendor’s installed project history. You’ll find concrete evidence of their impact and the amazing outcomes they produce.
A good track record will have tangible case studies and client testimonials to present. This is the compelling evidence to show that one BPO provider gets the job done right, every time. Judging solely by surface details, like trailer design and cost, can lead you to the wrong partner. Otherwise, you might be stuck with a vendor who’s unable to deliver, leading to bad service and unsatisfied customers.
Once you’ve earned a bad reputation, it’s very hard to save your brand’s good name. Repairing it takes an enormous throughput of time, energy, and money. Fisher found that top vendors reach first call resolution rates over 90%. Such great customer service record undoubtedly carries over to your personal customer base.
Low FCR rates signify that callers aren’t getting their issues resolved on the first contact, which leads to annoyed customers who eventually churn. If a BPO call center company cannot demonstrate strong metrics in this area, it’s cause for major concern. Responsive vendors are always on top of what’s happening with the newest technology, systems, and innovations.
That way, you won’t find yourself painted into a corner with antiquated solutions that hinder everyone’s progress. Great communication is your next favorite vendor indicator. The most quality BPO vendors ensure that you are always in the loop with timely and consistent updates, never allowing you to be surprised with unexpected news.
To add to that, security is key. Data breaches are a surefire way to destroy your brand’s trust, and the remediation efforts can take anywhere from three months to over a year. You don’t want to engage with a vendor where your critically sensitive information isn’t protected when transmitted.
This means that understanding their security controls is a key component to careful vendor vetting and due diligence.
Key Red Flags During Vetting
Choosing a call center vendor requires more than a cursory review of their sales materials. Now, you’re able to get a better sense of their trust quotient. Consider how they communicate, how they address your inquiries, how they set expectations for the contract.
By keeping an eye out for these key red flags during vetting, you’ll save yourself from expensive mistakes and better position yourself for a successful collaboration.
1. Vague Answers on Performance Metrics
When you ask about how they track call times, first-call resolution, or customer satisfaction, a good vendor gives numbers, not guesses. If you receive responses such as “we perform great all the time” or “my clients are satisfied,” those don’t cut it.
To evaluate alternatives and establish achievable targets, you need quantifiable metrics—something like average response time or service performance per month.
2. Lack of Transparent Reporting Access
An honest partner will give you access to up-to-the-minute, daily, or weekly reports. Access to dashboards that illustrate call volume, average wait times, overall customer satisfaction, etc., is crucial.
If a vendor can’t show how their reports match your business needs, you could be left in the dark later.
3. Poor Communication During Sales Process
Delayed or evasive responses from a bpo call center company can reflect their overall service culture and commitment to customer support. If their team skips details or fails to follow up, it reveals their reliability as a potential outsourcing partner.
4. Inflexible or Opaque Contract Terms
Contracts loaded with complex legal language, excessive penalties, or undisclosed fees restrict your freedom. Pay attention to language that defines the terms under which you can hit pause, ramp up, or call off the agreement with your potential outsourcing partner.
Digging Deeper: Essential Verification Steps
Choosing a good call center vendor takes more than a quick read of a pretty brochure or website. Cyber risk management is crucial, as eighty percent of companies have a data breach caused by a third-party vendor. This deeply concerning truth challenges you to dig deeper and see past shiny new claims.
A risk-based due diligence process is the most effective approach, one that addresses the entire lifecycle of your relationship with a vendor. Here are the key steps to check if a vendor is the real deal:
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Get client references that you can call and check.
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Request detailed case studies demonstrating how the vendor operates.
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Review ownership, finances, and compliance documents.
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Verify the vendor’s address. Contact the vendor’s physical office directly or visit the address in person if possible.
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Look into the staff, conflicts of interest, and background.
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Understand and implement code of conduct, anti-corruption, and anti-bribery policy.
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Create periodic audits and performance reviews to monitor long-term impacts.
Request Verifiable Client References
In fact, securing legitimate client references will provide the whole picture. Request names and contact information of companies they’ve partnered with—not just references in the form of testimonials.
When you do inquire, be sure to ask about the vendor’s quality of work, communication, and if there were any hiccups throughout the process. This way you can get a more accurate picture of how the vendor actually performs over time.
Ask for Detailed Performance Case Studies
Case studies demonstrate how the vendor solves tangible issues. Watch for case studies that detail the work done, methods used, and outcomes achieved.
For instance, an effective study will walk you through the steps they took to manage a last-minute spike in call volume or a quick turnaround deadline. This type of evidence wins out over jargon every single time.
Inquire About Past Issue Resolution
Inquire bluntly about situations where they dropped the ball. Learn how the supplier addressed issues, updated customers proactively, and improved their platform as a result.
That tells you whether they’re designed to tackle problems quickly and maintain the status quo.
Assessing Operational Transparency and Reporting
When you shop around for call center vendors, you don’t want to see a bunch of fluff—you want direct, understandable responses outlining how processes work. Transparent reporting and operational processes ensure no one is left in the dark about what’s going on with your service on a daily basis.
76% of people think that technology partners should be transparent about problems, releases and patches. When vendors disclose this kind of information, it allows you to better evaluate their security. Finally, you can find out if their performance lives up to your standards.
Beyond improving transparency, you identify gaps before they develop into actual threats.
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Vendor |
Average Handle Time |
First Call Resolution |
Customer Satisfaction |
Security Transparency |
|---|---|---|---|---|
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Vendor A |
6 min |
85% |
90% |
Regular updates |
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Vendor B |
7 min |
80% |
87% |
Quarterly reviews |
|
Vendor C |
5.5 min |
88% |
92% |
Immediate alerts |
How Are Key KPIs Tracked?
Inquire as to what systems they might have in place to monitor metrics such as average wait time or first call resolution. The mark of a great vendor is one who has the same system, but ensures it fits and functions perfectly each time.
If they plug it into a third-party risk management tool or machine learning, you’re receiving much quicker, more precise feedback. That’s an easy, professional way to determine up front how their service aligns with your goals.
Review Sample Performance Dashboards
Request to view actual dashboards. You’re looking to identify key metrics, obvious trends and insights, not just a mass of data points.
An intuitive dashboard lets you track call flow and customer satisfaction at a glance. You’ll be able to understand what the data really shows!
Understand Escalation Procedures Clearly
Expect to see a detailed plan of action if something goes awry. All it takes are quick, straightforward steps for raising and fixing issues.
First, you want to get an understanding of who is working on what and how quickly they are getting it resolved.
Ask About Peak Volume Management
Discuss how you plan to address if phones get overloaded. Inquire about their strategies for peak period planning and maintaining high quality service over time and history.
A solid vendor will demonstrate previous wins and communicate how they’re able to stay on top during times of high demand.
Evaluating Agent Training and Quality
For me, evaluating call center vendors, agent training and quality loom large at the center of service excellence. The method and quality with which a vendor trains and supports agents directly influences my customer’s experience. The best training systems go above and beyond the minimum requirements.
It is constantly evolving in response to new products and changing expectations of customers. Here are some key things I look at when I size up agent training:
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Thorough onboarding for all new hires
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Regular, scheduled ongoing training for current agents
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Clear and simple materials for learning
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How to ensure agents are current on product knowledge and most efficient work practices
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A feedback loop that helps agents grow
What Does Agent Onboarding Cover?
I don’t mean torturing them—I mean putting them to the test! I request a detailed description of how new agents are trained on their duties. It needs to include the company, products, tools, front facing soft skills such as phone manners, as well as back end soft skills like problem solving.
Before agents take calls, I make sure they’ve completed training and are confident. For instance, a 3rd party vendor would involve shadowing, practice calls and written testing prior to allowing agents to answer live calls.
How Is Ongoing Training Conducted?
Then, I examine ongoing training and education. I am very interested to learn more about how often these sessions are conducted and whether they are in-person and hands-on or virtual.
Tip #4 – Good vendors conduct regular, typically monthly or quarterly training and provide updates and refreshers when products are updated. This prevents agents from getting stale and ensures that they are providing current answers.
Examine Quality Monitoring Practices
Quality, formatively, is king. When I inquire as to their process of monitoring call quality, I find it crucial to understand their approach. After all, most only score around 1-2% of calls and a five minute call can take significantly longer to grade.
I ask for frequent scoring, feedback, and commentary on what they knocked out of the park as well as what fell short. Scores by themselves don’t illustrate the specific areas agents are struggling with, which is why actionable feedback is imperative.
Ask About Agent Attrition Impact
I further inquire about the effect of turnover on call center agents. High turnover is damaging to the continuity of service in a reliable BPO provider. Vendors who offer effective retention strategies, such as personnel coaching and development opportunities, retain top talent and ensure consistent service.
Scrutinizing Contracts and Hidden Costs
When you’re on the hunt for a call center vendor, you need to know what you’re getting into, simple terms, and no hidden costs. Most of them, nearly 7 out of 10, report discovering hidden costs only after signing contracts. These can manifest as hidden fee charges, lack of clarity on service level expectations, or onerous termination policies.
Minor costs such as onboarding fees, per-agent activation, or pro services billed at vendor hourly rates can add up quickly. Telephony costs can consume a large chunk of your costs and need to be spelled out clearly upfront. The table below outlines some common hidden costs to look out for.
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Cost Type |
Example |
|---|---|
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Activation Fees |
Setup charge, per-agent fees |
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Professional Services |
Fees for custom work, billed by the hour |
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Telephony Charges |
Per-minute or per-call costs |
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License Type |
Named vs. concurrent (overpaying for unused seats) |
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Payment Penalties |
Late payment fees or interest |
Look Carefully for Hidden Fees
You want to catch hidden fees in the contract. Vendors can place them in the fine print, such as with late payment charges or pro services fees. When vendor responses leave you with questions or confusion, this is a red flag.
Beware of language that allows vendors to invoice you for costly alterations or technical support on basic modifications.
Understand All Service Level Costs
Look at what the proposed service level agreement (SLA) includes. It’s easy to assume that all support is part of your base price. Some vendors exclude certain support or resources from that fee.
Their named licenses bill you per user, and that stacks up fast. If your staff work in shifts, these licenses can be significantly more costly than concurrent licenses. Nothing wrong with paying for what you want—just be careful you’re not paying for what you don’t need.
Check Contract Flexibility and Exit Clauses
An effective contract with a reliable BPO provider will offer you the flexibility to make changes as your priorities evolve. Ensure that exit clauses are mutual and not vendor-friendly; this way, if you need to change BPO partners or scale back, smooth exits reduce stress significantly.
Checking Security and Compliance Measures
When evaluating call center vendors, ensure you’re scrutinizing their security and compliance practices and procedures. These vendors will be privy to customer PII and PHI. If they’re not adhering to the correct standards, your company risks incurring hefty fines or worse stakes.
This helps you hold vendor partners accountable to the FTC’s Red Flags Rule. It further helps them stay informed about emerging trends even as identity theft protections evolve in their ITPP. More than 90% of the data stored by organizations is unstructured, so the dangers can accumulate quickly.
Verify Relevant Security Certifications
First, check for evidence of security compliance certification. Providers frequently get asked for SOC 2 Type II, PCI DSS, ISO/IEC 27001, and HIPAA, particularly for work in healthcare. These standards are NOT the most common.
Request paper copies, or at minimum written assurances. This is an indication that the vendor adequately protects personally identifiable information, following legal and industry best practices for data handling. Further, ensure that the vendor’s policies are in alignment with compliance requirements for financial institutions or creditors, such as the GLBA or ECOA.
If your company processes covered accounts, ensure that the vendor revises their ITPP as needed. That brings us to the third part of the process — having the board or at least one senior staffer involved is necessary.
Ask About Data Privacy Training
Next, turn your attention to how a vendor educates their team. Responsible vendors have robust training programs to educate temporary workers on the importance of data privacy and what laws they may be subject to.
Every employee, from the C-Suite down, needs to be aware of what constitutes customer data and how to protect it. Request verification of regular training and find out if they notify you about changes as new laws take effect.
Understand Data Breach Response Plan
Finally, understand how the vendor plans to treat a data breach should one occur. They need a plan that sets out who they tell, how fast they act, and what steps they take to stop harm.
This plan must have guidelines for notifying you and your clients if a data breach occurs. Effective communication underpins trust every time.
Trust Your Gut: Subtle Warning Signs
After that first day with call center vendors, some red flags don’t seem so obvious at first. These warning signs may appear in subtle forms, but they’re critical to identify at an early stage. Trusting your gut means you can identify problems before they have a chance to escalate.
Here’s a quick list of subtle signs to watch for:
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Vendors who use hard sales tactics
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Evasive answers to simple questions
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Feeling rushed to make choices
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High turnover on their team
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Late to the first meeting
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Reluctance to sign contracts
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Unclear project needs or details
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Changes to agreed prices mid-project
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No upfront payment agreement
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Requests for 24/7 access
High-Pressure Sales Tactics Encountered
A vendor pressuring you to hurry up and decide is a red flag. Give yourself time to take a step back and slow down before moving forward. It may signal that they have issues in their background that they’d prefer to obscure.
A vendor who continually calls or emails you every day or week isn’t listening to what you want. If they insist on giving you a “special one-time price” to get you to sign today—run away! Most good vendors give you space, answer questions, and respect the time you need.
Evasive Answers to Direct Questions
When you inquire about fees, number of employees or their plans for when staff leaves, pay attention to how they react. If you receive non-committal answers or the subject continues to move around, that is a red flag.
A good partner goes beyond pretty pictures to inform you what’s really happening on the ground. If they can’t give you a straightforward answer, it’s reasonable to ask what other things they would hide from you.
Feeling Rushed Through Vetting Process
Although many vendors would prefer the process to go at lightning speed, they don’t have time to wait for you to verify credentials, sift through contracts, or request references. That can result in misjudgment or overlooked specifications.
If your vendor is pushing to expedite, it’s in your best interest to take a step back and ensure that you’re addressed all your needs.
Conclusion
Identifying red flags with a call center vendor becomes simple once you know what to keep your eyes peeled for. I drive precision by knowing how to spot missing information in reports. I include red flags here like poor agent training and funky fees creeping into the agreement. A good vendor puts it all on the table—transparent accounting, tangible evidence, reasonable rates. My team and I get dirty, challenge our subjects, and know when to trust our gut when it doesn’t feel right. First-hand experiences from other people are extremely valuable and educational for me to understand what works and doesn’t work.
How You Can Identify Fly-By-Night Vendors
You can catch the dubious vendors by following these easy rule-outs. Looking to share your own vendor win or failure? Submit your experiences and advice in the comments and get the rest of the industry smart on their next call center selection.
Frequently Asked Questions
What are common red flags when choosing a call center vendor?
Red flags to watch for in a potential BPO partner include vague pricing, unclear details on their business process outsourcing models, poor communication, lack of references, and lack of transparency, as these can lead to poor service or unforeseen expenses.
Why does vendor transparency matter in call center outsourcing?
Transparency means you have complete visibility into what you’re paying for and how your customers are being treated by your chosen bpo company. Transparent reporting fosters trust and keeps you informed of performance, ensuring you partner with a reliable bpo provider.
How can I verify a call center vendor’s compliance and security?
Request current certifications, evidence of data protection policies, and copies of compliance audits from potential BPO partners. Trustworthy BPO providers will provide documentation on how they protect clients’ and customers’ information.
What should I look for in agent training and quality controls?
Inquire whether potential BPO partners provide regular training, a quality assurance program, or call monitoring to maintain consistency and attention to detail. Highly-trained call center agents not only deliver exceptional service but also reflect the quality standards of your brand and presence.
Are hidden fees a concern in call center vendor contracts?
Yes. Never sign a contract with a potential BPO partner that includes ambiguous language, hidden fees, or unclear lines of billing. Require clear, upfront pricing and a comprehensive Statement of Work before entering into an agreement.
How do I spot if a vendor might be overpromising results?
Beware if a potential bpo provider is willing to guarantee performance that’s too good to be true, claims they can achieve results overnight, or won’t answer hard questions. Reliable bpo providers will establish realistic expectations that they can meet.
Can my instincts help in vendor selection?
Huge, massive, and gigantic yes. If it just doesn’t seem right or a potential BPO partner sidesteps tough questions, trust your intuition. That gut feeling, combined with solid due diligence, will save you from making a seven-figure mistake.