Costs to Outsource a Call Center: 5 Things You Should Know

How Much Does It Cost To Outsource A Call Center?

Are you searching for an answer to the question “How Much Does It Cost To Outsource A Call Center?” Perhaps you are grappling with the choice between building or expanding an in-house call center and outsourcing one? Well, in this article, we aim to shed light on call center outsourcing and help you estimate your cost to outsource call center operations.

In recent times, many companies have expanded their outsourcing horizons beyond traditional realms. Apart from outsourcing mundane tasks like office space hunting, businesses are now exploring avenues like contact centre outsourcing and BPO call center services, especially in regions offering competitive call centre services like India.

Outsourcing your call center has emerged as a pragmatic trend many companies have embraced to potentially pare down costs and elevate productivity. The quintessential question, however, remains: what’s the actual cost of outsourcing a call center?

This article endeavors to elucidate call center pricing across the globe, delving into various types of call centers, cost structures, and additional pertinent details to empower you with an informed decision.

5 Things to know before outsource a call center

Types of Call Centers

The nature of services you necessitate will dictate the type of call center that aligns with your needs. This, in turn, aids in calculating your outsourcing costs. Each call center demands distinct tools and expertise levels contingent on the services provided. Broadly, call centers are bifurcated into two categories: Inbound Call Centers and Outbound Call Centers. 

These could be anchored in an in-house call center, an outsourced call centre, or a virtual setup where agents operate from disparate locations, fielding calls through cloud-based customer service phone systems.

Outsourced call centers usually present a more cost-efficient alternative compared to in-house setups. These hubs manage both existing and potential customers’ telephone interactions, encompassing inbound or outbound calls.

Inbound Call Centers predominantly receive customer-initiated calls. Businesses employ inbound centers to render exemplary customer service, address product or service queries, manage customer accounts, process orders, and receive complaints. The center representatives or answering service agents in inbound call centers are adeptly trained to provide support and resolve inquiries proficiently.

Outbound Call Centers are commonly utilized for making sales calls to prospects, besides other functions like database verification/update, telemarketing, lead generation, client follow-ups, and disseminating crucial information.

Often, call centers are equipped to handle both inbound and outbound calls. The determining factor is the ratio of incoming versus outgoing call volume.


Building Your Call Center In-house 

Establishing an in-house call center could be a hefty investment for handling sales and customer support, particularly during normal business hours.

For instance, the average salary in the US for a Customer Service Representative is $30,688 plus $4,633 in benefits. Multiply that by four or more, depending on your team size. Additionally, there’s the Customer Service Manager at $39,694 plus $6,032 of benefits annually.

Here’s a breakdown of some potential costs for an in-house team of 4 customer service reps:

  • Salaries and Benefits: $141,284
  • Customer Service Manager: $45,726
  • Hiring costs: $20,645
  • Office space: $48,000
  • Software and Hardware: $3,600

Total = $259,955 per year

Other costs not included above encompass training, phone systems, office supplies, fees, commissions, alongside other team members like trainers, analysts, and quality assurance coaches, potentially adding up to an additional $200K annually.


How Much Does It Cost To Outsource A Call Center?

Outsourcing costs are influenced by myriad factors such as expected call volume, call duration, and the level of support required. Think about whether you require 24/7 availability or just during business hours. Do you need multilingual support or is English-only support sufficient? Do you prefer phone-only support or multichannel support (email, chat, social media)?

Managed service providers often offer diverse packages to cater to your needs.


Locally outsourced call center

If you look around the web, you’ll find that call center outsourcing in the US can cost between $25 to $65 per hour for each rep, all else included. If you have 4 reps operating at $30 per hour from 9am to 5pm, Monday to Friday, it would be around $1,680 per week or $349,440 per year. 


Average Outsourced Call Center Pricing In 2021

Syrow published the following information showcasing the average outsourced call center pricing by region:

  • United States/Canada: $20 – $30 per hour
  • Western Europe: $40+ per hour
  • Eastern Europe: $12 – $25 per hour
  • Australia: $35 – $55 per hour
  • Africa/Middle East: $15 – $20 per hour
  • Latin America: $8 – $18 per hour
  • Asia/Philippines: $8 – $14 per hour
  • India: $6 – $10 per hour

These prices serve as a guide for estimating how much it costs to outsource a call center for your company. Nonetheless, when venturing into call center outsourcing, it’s prudent to select a provider who transcends being merely a service provider to becoming a valuable partner, enriching the relationship with data insights, training, innovation, and expertise.


Outsourcing A Call Center Outside The USA

Outsourcing a call center outside the US would bring down the cost per hour per representative. Rates in South America and South Eastern Asia are between $8 and $18.

For instance, one of the reasons CloudTask decided to run operations from Medellin, Colombia, is the availability of local fluent bilingual talent in the LATAM market. And because the cost of living is cheaper in Colombia and other countries in Central and South America when compared to the US, you can find more competitive salaries than what you would need to pay in California or New York, for example.

CloudTask marketplace offers an array of sales professionals whose services start at $1,000 USD per month. If you’re considering this route for your business. Explore the options in the CloudTask marketplace for free.

A specialist can assist you in navigating the selection process, helping to align your company’s requirements with a suitable sales rep. To access the CloudTask Marketplace Available Candidates click here.