Once you make the decision to outsource your customer service department, you will then have to decide whether to keep operations on U.S. soil or explore the international market.

There are countless reasons to go the domestic route, and in this article I will focus on one in particular: You will save a great deal of money. The fact is that it’s much more affordable to keep your customer service department here in the U.S. than it is to outsource to an international provider in a place like India or the Philippines.

Businesses often outsource to international providers thinking they will save money, but fail to consider some of the many hidden costs that can arise during the process.

Some of these hidden expenses can include:

Selecting a vendor: Selecting a contact center solutions provider is a big decision, especially if when searching for long-term contract. You will be outsourcing a major part of your business, which requires placing a tremendous amount of trust in another company. It’s therefore very important to meet with your new team before you sign any agreements, possibly even several times. Hidden costs can therefore arise during the vendor selection process, especially if you are travelling back and forth and spending a great deal of time performing research and negotiating contracts.

Transition costs: Outsourcing your contact center to an international provider will not be an overnight process. Your department will have to transition over to its new facility, a process that can take several months or even years. And during this time period, significant costs can accrue. Your team, for instance, may have to spend a fair amount of time communicating and working with the new overseas service team to eliminate cultural differences and educate them about your brand. You could also face higher telecommunications costs, and information technology-related expenses. For instance, certain countries now have strict data privacy laws that may require you to purchase new security technologies or update existing systems.

Lower-quality interactions: Even the best overseas agents will have a much harder time connecting with local customers. There is a cultural disconnection that your customers will immediately pick up on, and some customers may even view your brand negatively if they see you are supporting foreign workers instead of American workers.

Legal complications: Foreign contact centers tend to be much more aggressive in reaching their key performance indicators (KPIs), so they can look good and keep generating repeat sales. In doing so, many organizations are likely to bypass Telephone Consumer Protection Act (TCPA) protocols, which limit how businesses can communicate with consumers. This can lead to expensive and damaging class action lawsuits. The safer alternative is to work with a domestic provider offering rapid response legal advice.