Call centers play a vital role in supporting businesses around the world. In fact, according to the World Bank, the global market for call center outsourcing reached $63 billion in 2018. In addition to saving money, outsourcing call centers can help companies improve efficiency and increase productivity.
This allows them to focus on core competencies while providing customers with high-quality support. However, how much does outsourcing actually cost? In this article, we look at different types of call centers as well as call center outsourcing costs and contact center pricing structures.
What Are the Benefits of Outsourcing Your Call Center?
Outsourcing your call center provides numerous advantages such as lower costs, greater flexibility, improved customer satisfaction, and increased productivity.
Types of Call Centers
Outsourced call centers are usually more cost-effective than their internal counterparts as customer service agents and their hubs handle incoming and outgoing phone conversations:
- Inbound call centers, also known as contact centers, are where customers can reach an agent who can help them with any questions they may have regarding your product or service. These agents are typically qualified professionals who have undergone extensive training in order to answer questions and solve problems. They’re also able to provide advice and guidance to customers on how to operate your product or service.
- Outbound call centers are similar to inbound call centers except they are focused on selling your product or service rather than providing assistance. Typically these types of contact centers are found within larger companies such as banks, telecoms, utilities, insurance firms, and so forth.
In-House vs Outsourced Call Center Costs
In-House Call Centre Costs
A company may choose to leverage in-house customer service, but a customer service department can be costly to run. For example, the average hourly rate in America for a Customer Service Representative (CSR) is $29,922 plus $5,000 in benefits. Multiplying that for five people, depending on how many you need on your staff, and you have a huge outgoing cost on call center salaries alone. There are other costs not mentioned above that include training, phones, office supplies, etc.
Outsourced Call Center Costs
Outsourcing costs for outbound call centers can vary based on your business needs. For example, if you expect high volumes of calls, then you may need an agent who can answer questions around the clock. However, if you’re not expecting much traffic, then you might consider outsourcing only during regular working times.
In addition, you should also think about whether you need someone who speaks multiple languages or just English. You’ll likely need someone who understands your industry and your product so they can provide the best service possible and can deal with all incoming calls in a professional manner. A managed service provider (MSP) typically offers different services to meet your needs.
How Much Does It Cost to Outsource a Call Center Cost?
Call centers are often thought of as expensive endeavors. However, outsourcing a call center operation does not necessarily mean paying high prices. In fact, it may actually save money over time. A good call center staffing model will help you determine whether outsourcing makes sense.
The most important thing to consider when evaluating the costs associated with outsourcing a call center is the type of staffing model employed. This includes both the number of agents hired and the level of training required. There are almost limitless ways to structure a call center staffing model, including having one agent handle multiple roles, or having several agents work together to provide better customer care.
Another factor to consider is what happens during peak times. Some companies choose to hire additional agents during busy periods, while others prefer to scale down staffing levels during slower times. While some organizations do not want to pay extra fees to keep up with demand, others see outsourcing as a great opportunity to cut costs.
Here are different factors that can affect the costs of outsourcing a call center:
- Agent factors: The first issue you will encounter with outsourcing is agent quality. Domestic call centers are generally staffed with inexperienced agents, many of whom do not speak English well enough to communicate effectively with customers. This leads to high rates of turnover among agents. As a consequence, some companies hire foreign nationals to fill out call centers because it costs less to train and retain those workers.
- Location: Because it is cheaper to operate offshore, there are fewer restrictions on what vendors can do. This allows companies to save money while still providing high-quality customer service. For example, some vendors offer free calls to certain numbers, whereas others charge per call. In addition, some vendors allow agents to work remotely, while others require agents to be physically present. These differences mean that offshore vendors often provide lower rates than onshore vendors.
- Type of work: If you only need your call center to function as an answering machine, you usually pay by the minute but if you want a dedicated call center agent or customer service representative, you can pay up to $35 per hour. This cost includes salary, benefits, equipment, training, etc. You may also need to consider whether you want to use a virtual assistant or a full-time employee.
Why Is Outsourcing Your Call Center Cheaper?
Outsourcing a call center is often less expensive than having an internal team. Why? Because there are many factors involved in running an effective call center, including equipment costs, employee salaries, benefits, training, and ongoing operations. In addition, outsourcing allows companies to scale up or down quickly based on demand.
If you’re not sure whether or not to outsource, here’s what to consider:
1. No infrastructure or software costs
You won’t have to spend money on buying computers, phones, routers, switches, servers, etc. because call center outsourcing providers take care of all of that for you. They even provide you with equipment like headsets, microphones, speakers, etc.
2. Lower operating costs
When you hire someone to run your call center, you usually have to pay them salaries, benefits, insurance, etc. This can add up quickly over time and eat into your profits. Outsourcing call center operations eliminates all of those expenses.
3. More flexibility
Because you aren’t tied down to having to use certain technologies, you can use whatever works best for you. For example, if you want to switch to VoIP technology, you can easily make the transition without worrying about whether you’ll lose customers because of it.
4. Reduced risk
There’s always the chance that something could go wrong with your call center operations. Thankfully, when you outsource call center operations, you eliminate the risk that you’ll encounter problems. Why? Because you’ve already paid for everything.
5. Better customer satisfaction
When you outsource your call center, you leave customer management in the hands of trained professionals with many years of experience in customer support. After all, a strong telemarketing team and an efficient call center can be powerful tools for businesses to reach out to potential clients, create a personalized customer experience, and schedule meetings.
If you are looking to grow your business at an exponential rate without having to put in a huge amount of effort, outsourcing your call center is the way to go. At TELUP, we have dedicated agents who can effortlessly deal with a large volume of calls. By working with our call center company, businesses of all sizes benefit from a qualified team of telemarketers that possess extensive experience, high motivation, and are performance-driven. Let us help you reach your highest potential!