Outsourcing fees can add up seemingly fast. How much does it cost to outsource a call center service? Read our comprehensive overview of your organization’s main fees it is likely to incur for outsourcing customer service with RDI.
Is your organization looking to expand its in-house call center by outsourcing to an external call center? Do you need a guide to help you determine the costs for an outsourced call center? RDI has you covered.
Today, companies are always looking for services, including office space for call center outsourcing. Additionally, they’ve begun searching for outsourcing the working services, including call center services and customer services.
Follow the ever-increasing trend by outsourcing your call center services by partnering with RDI Connect. When you partner with our team, our third-party call center services can help you boost productivity while also saving on costs. Before making the decision, it is always essential to understand the total costs of a third-party call center service.
Our informational page will help your organization understand the estimated costs of call center services. Read on to explore the different call centers, their costs, and potential details you may have missed when planning yourself. Make more informed and educated decisions by learning about the cost of outsourcing your business’s call center services.
Types of Call Center Outsourcing
The call center services you will need to outsource entirely depend on what type of call center fits your unique business needs. Knowing the ins and outs of various call center types will help you calculate your outsourcing costs, amongst other important factors.
Additionally, each call center requires different types of tools and employee expertise depending on the service it utilizes. Call centers are often placed into three primary categories:
- Inbound Call Center. Inbound call centers receive calls that the client initiates. Businesses often use inbound call centers to provide technical support and hand queries concerning their products and services. They also handle customer accounts, take complaints, and even process customer orders. Inbound professionals are highly skilled, providing support and resolving queries as requested.
- Outsourced Call Center. Outsourcing your call center services may be the most cost-effective method than inbound and outbound call centers in-house. Outsource hubs tackle existing and potential customers through telephone calls that can be both inbound and outbound.
- Outbound Call Center. Outbound call centers are used to make calls to prospects to generate sales of a product or service. Besides generating sales, outbound call centers update and verify information, telemarketing, lead generation, conduct surveys, follow-up with customers, and provide other services and information. Call centers mostly handle inbound and outbound calls depending on the prioritized services.
The cost of your customer service department may depend on factors such as the work that your customer service representatives complete, including:
- Social Media
- Lead Generation
- Technical Support
- Customer Retention
Call Center Outsourcing Costs?
Whether you decide to hire in-house customer support services for inbound or outbound call center services or pay for outsourced call center services, you are paying each agent’s hourly rate, salary, training, or benefits. However, outsourced support agents may require you to pay much less for their rates.
Outsourced call center services can be a remarkable aspect of handling alternative customer service initiatives. An in-house call center can be expensive when handling customer support and sales generation. For instance, Contact Center Representatives average a yearly salary of roughly $31,200 plus more in benefits.
In-House Call Center Service Cost Breakdown
The following is a potential breakdown of costs associated with employing an in-house inbound/ outbound call center team of only four contact center representatives (CCRs):
|Cost Item||Incremental Cost||% Increase||Cumulative Per Hour||Notes|
|Benefits||$3.45||23%||$18.45||See Document for cost drivers|
|Supervision||$1.54||10%||$19.99||Supervisor paid 25% more than rep = $23.06 per hour/15 reps per team=$1.54|
|Shrinkage||$4.00||27%||$23.99||Assumes fully loaded cost of $19.99 per hour * 20% =$4.00|
|Utilization||$2.00||13%||$25.98||10% of $19.99 (fully loaded agent rate)|
|Training/QA||$0.23||2%||$26.21||Assumes one FTE per 100 CCR’s for Training/QA. Training/QA earn 25% more than CCR = $23.06 per hour/100 CCR’s|
|Attrition||$5.00||33%||$31.21||25% additional cost burden due to 25% attrition with a base cost of $23.06. $23.06 *25%=$5.00|
|Facilities||$1.11||7%||$32.32||At a cost of $17 per square foot for base rent, NNN $10, utility $5 =$32 per square foot per employee* 72 square feet per employee=$2,304 annual cost for Facilities per person / 2,080 payroll hours per year=$1.11 per hour cost per person/ work station.|
|Overhead (Equipment and Management)||$1.44||10%||$33.76||Equipment: Assumes 1,000 employees and $1MM in annual costs (licenses, telecommunication usage costs, hardware and software purchases)=$1,000 per employee/2,080 hours per employee= $.48 per payroll hour incremental cost due to Equipment..Management Cost:estimated $2MM in Management Support for 1,000 employees. =$2,000 per employee/2,080 payroll hours=$.96 per hour of incremental cost.|
Other costs that are not included in the above calculations include phone systems, office supplies, commissions, and fees. Additionally, other team members are required for training, analytics, and quality assurance. Outside factors can cost up to nearly $200,000 per year in addition to the running total above.
Outsourced Call Center Pricing Breakdown
Outsourcing call center pricing depends on many factors, including:
- Expected Call Volume
- Duration of Calls
- Level of Support
Consider whether or not your services require 24/7 availability or office hours only. Do you need bilingual, multilingual, or only English-speaking customer service representatives? Lastly, will you need multichannel customer service connections, including email, chat, and social media points of contact? Managed service providers (MSPs) will typically offer tailored packages to meet your specific needs.
If you search across the internet, you will find that an outsourced call center costs $25 to $65 per hour for each representative. For a team including four representatives, call center operations at around $30 per hour from 9 am to 5 pm every weekday per representative can calculate to be approximately $1,680 every week. This totals roughly $349,500 per year.
An easy solution to understand what outsourcing companies may offer you is to consider the options below:
Shared Call Center Agents
If you have low call activity, outsourcing a pool of agents to take calls may be your best option to cut costs.
Outsourced customer service agents can be dedicated to your services and nobody else’s. Note that engagement in your sole company often comes at a price hike compared to shared agent plans. Fortunately, you are typically only paying per productive hour in your call center pricing.
Monthly Flat Rates
Even though it may be difficult to find service providers in the US to find monthly flat rates for your calls, this option does exist. Monthly flat rates are a subset of the dedicated agent option where you and the customer service agency agree to a flare rate. Although this seems enticing, remember that you may end up paying for non-productive work hours. You may also get a large number of hours from your customer service agents for free.
After deciding which method of outsourcing companies is best for your call center service plan, thoroughly read your outsourced contract. With many large enterprises, leaving an agreement can come with hefty fees and penalties. Even those who realize their customer service needs have changed may be stuck with too many services for their current business needs. Always search for tricky wording, hidden costs, quotas, and charges that may end up costing you more than expected.
Not every customer service outsourcing company provides the same benefits across the board. Some may end up charging you for add-ons, including:
- Recording Calls
- Quality Assurance
- Consultation Meetings
- Analytical Programs
- Managerial Training
Before choosing the outsourced call center service that fits your needs, always review the terms of the agreement. Check for any additional services that you need to take off. Many organizations find it easier to choose an all-in package than picking and selecting specific add-ons. Take the time to create a custom-fit plan for your call center service to yield a higher return on investments.
Outsourcing Call Center Services with RDIConnect
Outsourcing your contact center service with RDIConnect can save you many headaches. Forget dealing with taxes, HR paperwork, payroll, vacation days, and other unexpected factors that affect your company’s bottom line.
Our team of skilled, tenured professionals dedicates themselves to understanding your needs. The main differentiating factor between RDI and other outsourced contact center services is our dedication and expertise through exceptional customer service. Our team of experts enjoys working with RDI, becoming professionals with any client they serve. We genuinely impact our clients using our core values: SERVE, IMPACT, GRIT, HUSTLE, and THINK.