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Cost of Call Center Outsourcing

The ever-changing business environment has brought about a new way of operating customer service with call center outsourcing. Now, companies have expanded outsourcing to include call center outsourcing and business process outsourcing contact center services.

Call center outsourcing has a two-way benefit of reducing operational costs and gaining access to more talent. Despite the obvious benefits of call center outsourcing, most businesses are still unaware of the actual cost of outsourcing.

This article expands on this idea by delving into the various call center outsourcing costs and other potential variables you need to understand.

Why You Should Outsource Your Call Center Operation

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Very often, we hear about keeping your company focused on core competencies. This is not just an ordinary phrase; it is the focus of outsourcing entirely.

However, we might have to look into the reasons for outsourcing your call center operations. Therefore, let's take a closer look at the benefit of outsourcing your call center operations.

1. Help in Cost Reduction

Most businesses focus on cost reduction nowadays due to various factors bordering on the need for sustainability and long-term running. Thanks to call center outsourcing, businesses can now subcontract their call center operations to external companies.


This means that companies can avoid purchasing call center equipment, hiring agents, setting up office space, and other overhead costs. The resultant effect of this type of endeavor is cost reduction and access to a pool of worldwide talents without restrictions.

2. Enhanced Scalability

Scalability in business is as important as any other process because you can not gauge the extent or the exact level of fluctuation in demands from your customers.


In the context of call center operations, scalability issues are a prevailing concern because most call centers are not equipped with the capacity to handle large call volumes during peak periods of the day.


This is where Helport's call center outsourcing solutions (for business process outsourcing companies) can help you. We are equipped with advanced technology and a comprehensive knowledge base to manage all customer needs so that your organization is not overwhelmed during peak business times.

3. Access to Specialized Knowledge and Expertise

Call center outsourcing provides you with the skills and experience required to consistently offer your customers a reliable and effective customer service experience.


Call center outsourcing companies have enormous human resources that cut across various industries. It's much easier to select from this pool of talent to suit the specific needs of your customers, such as those who require assistance in other languages.

4. 24/7 Availability

Nothing beats being available whenever customers demand. This is an important feature required for multinational companies that sell products and services to customers in different time zones.


Outsourcing their call center provides the launchpad to cater to every customer's needs irrespective of the time they call. This is possible because of the extensive network of agents on the books of call center outsourcing partners dispersed worldwide.

5. Efficient Monitoring and Reporting

You will enjoy swift tracking and reporting of your call center efficiency when outsourcing your operations. Helport call center solutions excel in this regard with the help of our AI assistant, which gives you access to real-time reporting on the direction of your entire customer service operations.

Types of Call Center Pricing Plan

Understanding call center pricing plans has long been an unclear trend for companies and business leaders trying to outsource their call centers. The following is a comprehensive breakdown of the different types of call center pricing plans to help you make informed decisions.

Hourly Billing Model

When discussing call center pricing plans, the hourly billing model is the most common and straightforward for companies with large call volumes.


The hourly pricing model is more natural and straightforward to understand because you only pay for the total number of hours that each agent spends handling your call center operations.


For instance, if your one call center agent spends 40 hours per week at 30$ per hour. You multiply the rate by the total hours spent in one week to get each agent's cost.


The only underside of this model is that you can not accurately keep a tab of the total billable hours used during fluctuating call volumes.

Pay Per Minute Billing Model

The pay-per-minute billing model charges you based on the duration of each call that agents handle. This model is suitable for businesses with fluctuating call volumes that need their cost to align with actual call volume.

For instance, you are allocated three agents, each using 200 minutes on call per month with your customer; you will be charged based on the total number of minutes used (200x3=600).


Let's assume your agreed rate is 0.55$ per minute multiplied by 600 minutes, which will give you the total billing for that month. The pay-per-minute billing method is a cost-effective model that allows for easy scalability and flexibility if you have low or high call volume.

Pay Per Performance Pricing Plan

The pay-per-performance call center pricing plan is a fully outcome-based model that allows your company to pay for only the achieved stated goals or milestones. This call center pricing plan incentivizes quality service delivery and aligns costs based on the expected outcomes.


For example, an outbound call center outsourcing partner will not charge you based on the number of leads generated or the number of customers acquired after calls.


Or inbound call center outsourcing service provider bills you based on the number of customer problems resolved per week. Pay-per-performance pricing plans are a good option for companies with specific business needs that need to be met.

What is The Cost of Call center Outsourcing

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Call center outsourcing has become a strategic option for companies that intend to get off the hook of budget-sucking in-house call center operations.

Various factors influence the cost of call center outsourcing, including location, add-ons, and a service fee. Before we delve into the cost of call center outsourcing, let's look at the key factors that influence it.

Location

This is the most important factor influencing your spending on call center outsourcing. Outsourcing your call center operations to agents in countries with lower costs of living, such as China, India, the Philippines, and some Eastern European countries, will cost you less than those in America, Britain, and Canada.

Experience and Skills

More experienced call center agents with more than five years of experience will typically charge you higher than entry-level agents with six months to 2 years of experience.

Service Fee

Apart from the hourly fee, some call center outsourcing partners might charge additional costs, such as call recording fees, software usage fees, management fees, and other operational expenses.

Average Outsourced Call Center Pricings in 2024 (Per Region)

As we've stated, your call center outsourcing cost is wholly region-specific. Based on existing data and research over the years, we have curated the average agent cost per region and their potential service charge.

Region

Agent Cost per Hour ($)

Service Fee

Example Pricing Model

North America (US/Canada)

20-30

Included or Additional

Hourly Billing ($25/hour + $500 service fee)

Western Europe

40+

Included or Additional

Per-Minute Billing ($0.10/minute + included service fee)

Eastern Europe

12-25

Included or Additional

Subscription Model ($2,000/month for 10 agents + service fee)

Latin America

8-18

Included or Additional

Pay-Per-Performance (Base rate + bonus for exceeding sales targets)

Asia (Philippines)

8-14

Included or Additional

Hourly Billing ($12/hour + $30/month service fee per agent)

Asia (India)

6-12

Included or Additional

Per-Minute Billing ($0.08/minute + additional service fee)

Africa & Middle East

12-30

Included or Additional

Varies (Consider Hourly, Per-Minute, or Hybrid Models)

Cost You Should Avoid When Outsourcing Call Center Services

Outsourcing should be a means of cost reduction and increased efficiency. The euphoria of these perks can make you fall prey to unwarranted extra costs and charges that might eat deep into your budget.

Unnecessary Service Charge

If care is not taken, you might exhaust all your call center outsourcing budget on unnecessary service charges that add zero value to your business needs. This is why you have to go for a customized call center outsourcing plan such as those that Helport is offering to save you from such instances.

Inefficiency

Often, inefficient and wasted hours make up the large chunk of hours that some outsourcing partners invoice you for payment. You should only partner with call center outsourcing companies that have efficient call routing systems and experienced agents who can sort customer issues without wasting time.

Lack of Transparency

It's the gold standard that calls center outsourcing service providers give you the full breakdown of the entire cost and the performance metric that you will expect every month. You should shy away from partnering with any outsourcing service provider that deviates from this standard.

Final Thought: cost of call center outsourcing

Outsourcing your call center can be cost-effective in improving customer service and efficiency. However, it's essential to consider all the factors that impact the final cost.


You can make informed decisions about your outsourcing needs by understanding the range of pricing models (per minute, per hour, flat rate) and additional fees (management, service, languages).


Remember, the cheapest option isn't always the best. Look for a provider that offers quality service, agent expertise, and a good fit for your company culture, all at a competitive price.

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Josha(Author)

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