Businesses today are consistently on the lookout for ways to cut down on operational costs, save on time and offer better customer support to their dear customers. Call centers play a crucial role in providing support to customers and strengthening the bond between them and the business that serves them.
However, maintaining an in-house call center is a challenging job. Away from
the man hours needed to ensure everything runs smoothly, the costs can be
limiting to businesses and eat into profits.
Outsourcing these services not only provides an avenue for offering excellent customer support but to also make significant savings on the business costs front. If you are looking for a guide on what it costs on average to outsource your call center needs to a Philippines call center, this blog will offer all the information you need and draw comparisons with choosing an in-house alternative.
In-house Vs. Outsourced Call Center Costs
Having an in-house call center is an expensive undertaking requiring your
business to invest in the latest technology, employee training programs,
salaries and benefits, overhead costs, and insurance.
Additional costs will include taxes, recruiting, onboarding, training, supervisory, HR, and IT costs. On average, call agents in the US earn $39,821 yearly. When factored together, the salaries and additional costs make having an in-house call center not an economically-sound decision in the modern business world.
For small businesses, setting up an in-house call center means redirecting resources that could be used to grow the company otherwise. On the other hand, large enterprises may find scaling their in-house call centers challenging.
Outsourcing is an ideal option for small and large businesses to free up in-house experts to focus on other value-creating tasks and save time and money while delivering exceptional customer support.
Why does The Average Cost of Call Center Outsourcing Matter?
The average cost of call center outsourcing is at the heart of cost-benefit
analysis for businesses like yours looking to offer exceptional customer support
and scale their operations.
Knowing the average cost of outsourcing your company calls helps you determine whether working with a given company in a specific country is cheaper. Moreover, you learn what it would cost to have the operations in-house.
In today’s world of call center outsourcing, many BPO companies focus on ways to enhance the customer experience for each customer they contact on your behalf. As a result, we here at Loop Contact Solutions have invested in the latest infrastructure and agent training models to ensure your business competes favorably in your industry.
These investments factor into the overall average cost of call center outsourcing. While the demands of each specific business will determine how much they pay, you can expect your costs to range from $1500 to $8000, depending on where the BPO company is located.
European-based BPOs are the most expensive, followed by Australia and the USA. Hence, outsourcing your call center operations to the Philippines is the best option at an average cost of $2600 to $3800 per month, excluding management and service fees.
The sections below will delve deeper into how call center outsourcing is priced and how to get the best value for your company’s money.
Factors Affecting The Average Cost of Call Center Outsourcing
What you will pay for call center outsourcing will depend on two main variables:
- Type of Call Center
- Inbound Call Centers -
- Outbound Call Centers -
- Call Center Pricing Model
- Shared Pricing -
- Dedicated Pricing -
- Monthly Flat Rate -
- Hourly Rate -
- Commission-based -
- Blended/Hybrid -
All call centers are not made equal, and it is essential to understand the type of BPO company you are working with to manage your calls. There are two main types of call centers, namely;
As the name suggests, these call centers handle incoming calls into your business, although it is not rare for them to make calls on your behalf. Their scope encompasses order-taking, customer support, and IT and technical support for software companies.
The main concern of outbound call centers is making calls for your company. Some of the tasks you may assign an outbound call center include telemarketing, lead generation, appointment setting, and mail follow-up.
Call centers offer diverse pricing models that cater to inbound and outbound
call outsourcing needs.
The most common pricing model you will encounter when working with inbound call centers are;
With shared pricing, you are essentially working with a call center that handles different companies simultaneously. The calls will usually be billed per minute, and your average call outsourcing costs will depend on how many calls your company receives. Expect the shared pricing model to start at $0.50 per minute up to $0.90.
In the dedicated pricing model, your call center provider dedicates a team to handle all your inbound calls with no time split between other companies. This model charges a little higher than shared pricing. It is best suited for companies that expect a predictable amount of inbound calls over a given period. An hourly rate is more common when using a dedicated pricing model, with average costs varying between $6 and $30 an hour.
A monthly flat rate is another popular pricing option for companies that can
substantially predict the volume of calls they expect over a given period.
Average monthly flat rates range between $2,000 and $4,000, but the cost can
increase significantly when you factor in management and service fees.
Outbound call centers try to have a performance-based pricing model that can motivate agents to deliver better results. These models include;
The call center bills you for each hour an agent handles outbound calls for your business. $6-$30/hr is the standard rate you can expect to pay.
In the commission-based pricing model, you will pay between 1% and 5% of the total cost of sales generated from outbound calls. The commission rate can go higher for more expensive goods and services.
This pricing model combines an hourly rate and commissions to offer more motivation to the call agents.
Essential Considerations To Make When Outsourcing Call Center Services
- Call Volume and Duration
- Support Channels
- Multi-lingual Support
The volume of incoming and outgoing calls significantly impacts the average cost of call center outsourcing. Additionally, consider how long each call is on average to ensure that hourly and per-minute costs stay manageable.
Your business may require more than just call outsourcing services. Most call outsourcing centers charge extra for each additional support channel, including social chat. It is also worth noting that 24/7 availability may also attract further costs.
Your average call center outsourcing costs will vary greatly if you need multi-lingual support compared to one-language call support. To make the right decision, it is crucial to study your customer base keenly and understand their location and the language they interact with when contacting your business.
Why Loop Contact Solutions Is The Best Call Center Outsourcing Partner
At Loop Contact Solutions, we are dedicated to helping your business achieve
its goals with top-of-the-shelf call center services. Our English-speaking
agents specialize in different industries, ensuring your customers get
exceptional and knowledgeable support to help them use your product and
We offer custom services to help you with customer acquisition, support, retention, and growth with our inbound and outbound call center outsourcing packages. At Loop Contact Solutions, we’ve trained our call agents to be highly skilled and capable of handling multiple support channels, including live chat and email.
Seeing your business succeed is our dearest motivation. At the core of our operations is the need to deliver exceptional service to you and your customers. With average call center outsourcing prices at $2,000 to $4,000, Loop Contact Solutions can help you provide a unique experience to your customers without breaching your business budget.
Contact our team today for a custom quote that meets your specific inbound and outbound call outsourcing needs.
The main reason outsourcing call center needs is a viable idea is the
significant cost savings it allows your business to make. With a reliable call
center outsourcing partner like Loop Contact Solutions, you can get a custom
pricing model suited to your business needs, whether large or small.
Doing due diligence on the average industry costs will help you avoid spending too exorbitantly and ensure you get the right services package that meets your business needs. It is also essential to know what pricing model a call center outsourcing firm uses to help you narrow down to one that is conveniently scalable as your business grows.
The importance of call outsourcing for business success is impossible to ignore. Modern businesses that want to gain a competitive edge must consistently offer the best customer support, routinely acquire new customers, and formulate long-term strategies to retain them. A call center partner like Loop Contact Solutions helps you outsource these tasks conveniently and focus your in-house team on improving your product.