Comparing Outsourced and In-House Call Center Costs
Always consider the call center costs that come with hiring an internal team, from recruiting and training to salary, benefits, and equipment before adding one to your business for customer support.
Different Types of Call Centers
Before discussing call center costs, let’s take a look at the different types of call centers to give you a better idea of their differences:
- Nearshore call centers are contact centers located in a different country than their customers but in a nearby region and similar time zone. For example, for US-based businesses, nearshore call centers may be located in Canada, Puerto Rico, or Mexico.
- Onshore call centers are located in the same country as the businesses they’re servicing. However, onshore contact centers aren’t necessarily located in the same time zone as their customers.
- Offshore call centers are located in a different country than their customers, typically somewhere quite far from the businesses they’re servicing. For example, a business in the US may use an offshore call center in India or the Philippines.
- In-house call centers are located within the company. The business owner hires new employees to manage, run, and perform contact center operations or relies on existing employees to answer customer calls.
In-House Call Center Costs
There are a wide range of call center costs associated with hiring employees to manage, run, and perform contact center operations in-house. For example, according to Glassdoor, the average salary in the US for a customer service representative is $30,688 plus $4,633 in benefits. Multiply that number by how many team members you need. Then, there’s the cost of hiring a manager to lead the team, and Glassdoor says that customer service managers in the US make $39,694 plus $6,032 of benefits a year.
Review the breakdown below to get an idea of potential in-house call center costs to employ four representatives and one customer service manager:
- Salaries and Benefits: $141,284
- Customer Service Manager: $45,726
- Hiring costs: $20,645
- Office space: $48,000
- Software and Hardware: $3,600
- Total in-house call center cost: $259,955 per year
Other in-house call center costs include training, office supplies, fees, commissions, and the costs of hiring other team members, like quality assurance coaches.
Outsourced Call Center Costs
Now that you have an idea of what it costs to run an in-house call center, let’s look at outsourced call center costs. Offshore, onshore, and nearshore call centers are considered outsourced contact centers and pricing is dependent on the region, call volume, duration of calls, and level of support. However, the average outsourced customer service cost is $2,600 – $3,400 per agent per month.
Review the call center services pricing models below to help you get an idea of how much call centers charge based on your needs and company size.
Different Call Center Services Pricing Models
Inbound call centers use different call center services pricing models based on your business needs and size:
Shared Pricing Model
The shared pricing model means agents handle incoming calls for more than one company. This model is typically priced per agent per minute, ranging from $0.40 to $0.90 per minute.
Dedicated Pricing Model
The dedicated pricing model works by agents handling incoming calls for only one business and charging an hourly rate from $8 to $30 per agent. This model is well-suited for companies with a steady influx of incoming calls from customers who need assistance.
Monthly Flat Rate Model
The monthly flat rate model charges a monthly service fee starting at $100. Some outsourced contact centers have an additional limit on monthly talk time.
There are different types of call centers that operate in unique ways to help businesses grow, from inbound and outbound to automated centers
The Benefits of Outsourcing Your Company’s Call Center
The benefits of outsourcing your company’s call center support services are endless, from lowering operating costs and improving customer service to boosting productivity. Let’s take a deeper dive into some of the advantages of outsourcing your contact center needs.
Professional call centers are equipped with the latest technology, so you can save money on training, office supplies, fees, commissions, and other team members like quality assurance coaches. Call centers also hire highly-trained agents who work faster and more efficiently than newly hired employees, reducing your costs further.
Exceptional Customer Service
Outsourced call centers employ trained customer service experts with the skills to handle a wide range of customer issues with grace and professionalism. They also have proven processes and training programs designed to help their representatives understand your business and customer pain points. Many centers can even suggest customer engagement strategies for your company.
If your staff is overwhelmed by critical customer service functions, they cannot focus on growing your business. Call centers are designed to easily handle enormous call volumes so your internal team can focus on growth and success.
Studies show that 67 million American-based consumers speak a second language at home, and only 63 million are bilingual with English language skills. Although the US is an English-speaking country, there are a significant number of non-English speaking customers in need of support. Working with an outsourced call center that employs multilingual customer service reps creates an environment of trust and easy communication between your business and customers, both domestic and international.
Partner With Us To Reduce Call Center Costs
When you partner with ListenTrust, we reduce your hard and soft call center costs of operating an in-house call center. Headquartered in Portland, Maine, and operating in Mexico, our nearshore call center employs over 800 highly skilled English and Spanish speaking live agents. For an affordable, hourly rate, we take on the soft costs of running a call center, like recruiting the right candidates and onboarding and training new employees.
We also take on the hard costs of operating an in-house contact center. Our technology supports remote agent expansion, and existing strategic partnerships can provide overflow capacity of up to an additional 2,000 bilingual agents. We have the team, facility space, IT support, and phone service solutions to take care of your customer service needs. At the end of the day, you save a lot of time, money, and hassle. Contact us today to learn more about our services that help you reduce call center costs.