The Benefits of Outsourcing Field Service Management

Many service organizations have found that it simply does not make sense to provide direct field technician support to their entire customer installed base. This is especially true as companies expand geographically. A common example is a company with headquarters in the Midwest of the US that must support an ever-expanding installed base concentrated on the East and West coasts with customers scattered everywhere in between.

That is why outsourcing has become a key operations tactic in field service management.

Research has shown that most customers do not care who performs their basic service and support activities as long as their problems are resolved with great service. They simply want problem resolution performed on schedule by a qualified and competent field technician.

Choosing a third-party service partner

The selection of the best qualified third-party service provider relies less on location, and more on an evaluation of the prospect’s ability to:

• Maintain a high level of performance quality
• Decrease the costs associated with performing field service
• Increase existing levels of customer satisfaction

3 key factors to a successful outsourcing relationship

1. Triage the division of labor

What does this mean? Triaging is a form of prioritization—but it focuses on urgency alongside importance. For example, an appliance repair company receives two calls: one for a broken refrigerator and another for a malfunctioning washing machine.

The fridge is no longer cooling, but there's no immediate risk of spoilage as the customer just went grocery shopping. The washing machine is overflowing with water, potentially causing damage to the floor and surrounding areas.

Prioritizing might involve scheduling the refrigerator repair first since refrigerators are typically considered more essential appliances. But in a triage situation, the washing machine repair takes priority.

While a broken refrigerator is inconvenient, especially with groceries, it doesn't pose an immediate threat. The overflowing washing machine, however, is causing active damage to the customer's property.

By triaging the calls, the appliance repair company can minimize potential water damage and the associated costs for the customer. Outsourcing is an effective tactic for triaging, freeing up certain techs to attend to more urgent matters and outsourcing calls/ tasks with less urgency to a third party.

2. Integrate with your outsourced partner

Ideally, your outsourced partner should result in growth for your organization. Integrating the third party’s field technicians into your overall support team is the best way to achieve a level of consistency in the work being done and in the technician completing it. This helps build stronger relationships with customers and meet all of their service needs in a timely, consistent manner.

3. Teamwork is critical

Third-party service partners provide companies with substantial benefits, allowing them to deploy the most qualified and seasoned technicians to support large, complicated installations. The outsourced field techs, meanwhile, can focus on a company’s core services, such as preventative maintenance and smaller, less complex installations. But the only way the model can truly work is if both field workforces work together toward the same mission. That is why it is important to have a strategy in place and a set of SOPs to keep everyone on the same page and achieve consistency throughout the entire workforce.

What are the benefits of outsourcing field service management?

Outsourcing field service management is a strategic move for businesses that want to streamline operations and optimize service delivery.

Increased flexibility and scalability

Adapting quickly to changing market demands is a crucial advantage in today's fast-paced business environment. Outsourcing field service management empowers companies with the flexibility to scale their workforces up or down without the constraints of fixed resources.

This creates flexibility for timely adjustments needed in the case of unexpected changes, ensuring that resources are optimized and customer satisfaction can remain high.

Reduced overhead costs and variable labor

One of the most compelling reasons for outsourcing is the potential for cost savings. By leveraging external specialists, businesses can significantly cut overhead costs related to hiring, training, and maintaining an in-house field service team.

Outsourcing transitions fixed labor costs to variable costs, aligning expenses more closely with revenue. This means you pay for services as needed, rather than carrying the weight of full-time salaries, benefits, and resources during slower periods.

Higher margins for your field service technicians

Outsourcing can lead to higher profit margins for your field service technicians by allowing them to focus on their core competencies and higher-value tasks. With routine, time-consuming activities managed by a third-party or software like ServiceMax, technicians can concentrate on complex issues and service delivery, improving efficiency and productivity.

This strategic allocation of tasks and responsibilities can translate into better service for customers and ultimately, greater profitability for your business.

Start outsourcing your field service management

By delegating field service management to experts, you not only enhance service quality but also free up internal resources to focus on strategic growth initiatives. This approach can speed up your time-to-market for new services and enable you to tap into new customer segments or geographic areas.

We understand the importance of having a responsive, scalable, and cost-effective field service operation. Our field service management software supports your outsourcing strategy by enhancing service delivery and operational excellence. With ServiceMax by your side, your company can reach new heights—get the results you’re looking for and have happier customers.