Third-party vendor

Name
Institution affiliation
Date
Introduction
Hiring a third-party vendor to handle all customer
service has advantages and disadvantages
The aim of department is to reduce expenses
Third-party vendor could reduce the expenditure of the
company
Fallacious statement
The argument that the third party vendor is well
known and works for most companies might not be
entirely true.
There is no guarantee that the vendor will provide
quality service
Hiring the vendor could therefore result in reduced
customer satisfaction
pros
Minimizing the cost of establishing and managing a
customer care centre
Minimize staffing issue since the vendor manages of
all the processes of hiring and staffing the centre
Easy to handle overflow of customer issues
Customer services is available throughout the day
While hiring third-party vendor might have some pros,
the disadvantages outweigh them.
Reasoning against hiring the vendor
The third party vendor might not handle customers
with quality that the organization would have which
might lead to lower rates of customer satisfaction
The vendor may not be dedicated or devoted to the
customer like the staff members of the organization
would be.
Cont’
Reduction of business control
Vital business operations are put in a third party’s
individual.
This makes it difficult to monitor or access the quality of
the service provide.
They make it difficult to enact polices
 In case of a need to change some policies it require a long
process.
Limited knowledge of the company
Third party vendor have limited knowledge of the
company’s way of operation like culture and values.
Vendor might have divided attention
While it is a good thing that the vendors work for more
companies it could also pose problems argues Allan
(2015).
The main problem is that the vendor might have divided
attention since it is managing various other
organizations.
Security concerns
Hiring a third-party vendor could easily result in
mishandling of customer information.
The vendor might not be careful with client’s
information (Allan, 2015).
Limited collaboration
There could be a limited collaboration between the
vendor and company departments (Allan, 2015)
The third party vendor will be working as an external
department
collaboration and communication between them and the
company employees could be limited
Summary
Hiring a third-party vendor could result in various
advantages
Minimizes the cost of staffing and managing the centre
Increased customer attention
There could also result in disadvantages
 there is a chance that hiring a vendor might lead to
reduced customer satisfaction
References
Allan, R. (2015). The pros and cons of third party
outsourcing. Appita Journal: Journal of the Technical
Association of the Australian and New Zealand Pulp
and Paper Industry, 68(1), 18.