How to Determine Whether the Outsourcing Quote Offered by a Call Center Is Worth It

Call center outsourcing quote

Call centers have become indispensable to businesses in today’s fast-paced and competitive landscape. They are valuable assets for customer support, lead generation, lead nurturing, and sales. 

Call centers help businesses in several ways. They provide a convenient and efficient way for customers to communicate with the company. This can be for several purposes, including general queries and technical customer support. Efficient call center services help improve customer satisfaction and loyalty, which ultimately results in increased revenue for your business.

Moreover, most call centers give businesses the power to deliver 24/7 support to their customers. With such a level of availability to address client queries and complaints, businesses can easily enhance their reputation in the market. After all, nothing says “customer-centric business” better than ensuring you’re there to answer their queries at all times. 

Call centers also offer valuable insights into customer needs and preferences. It happens through data-based lead generation. Call center agents can score leads and convert qualified ones into customers. They can even help you understand customer behavior patterns and harness emerging trends.

All these benefits highlight that call center services are integral to any business, especially if you’re committed to offering top-notch customer support. However, when choosing between in-house and outsourced call center services, businesses often fail to decide which one will be better in terms of cost efficiency. 

For that, as a business owner, you have to be the judge and break down the costs or quotes for each type of this service.

Costs of Running an In-House Call Center Services

When it comes to running an in-house call center, your costs depend on the type of service you aim to provide. For ease of understanding, we’ll break down our estimates into three categories based on the quality of service and highlight the costs associated with each of them. All estimates for the call centers are provided on a yearly basis.

#1 High-End Call Center Service

  • Hiring costs: $20,000
  • Office space rent: $45,000
  • Technology expenses: $5,000
  • Management costs: $40,000
  • Employee salaries and benefits: $140,000

#2 Mid-Range Call Center Service

  • Hiring costs: $12,000
  • Office space rent: $25,000
  • Technology expenses: $3,000
  • Management costs: $20,000
  • Employee salaries and benefits: $90,000

#3 Low-End Call Center Service

  • Hiring costs: $6,000
  • Office space rent: $15,000
  • Technology expenses: $3,000
  • Management costs: $20,000
  • Employee salaries and benefits: $55,000

Based on the above estimates, it’s easy to understand that the best in-house call center services will cost you $250,000 a year. The mid-range ones will cost you $150,000 a year, and the low-end ones will cost $100,000 a year.  

These costs can vary from place to place, but the numbers put forward here can serve as average estimates. 

Additionally, you should note that these costs don’t factor in a few important details, like costs of training programs, office equipment costs, shrinkage, and attrition. When you include these call center costs, the yearly estimates can easily climb upwards of $125,000 a year for a low-end call center and $300,000 a year for a high-end call center. 

Costs Associated With Outsourcing Your Call Center Services

If you’re looking to work with a third-party call center service provider, expect outsourcing quotes anywhere between $15 and $70 per hour, depending on the type of service, call durations, support level, availability, and multilingual support. 

In this situation, an agent who’s paid $20 an hour for eight hours every day and seven days a week will need to be paid $1,120 a week. For five such employees, you have to spend $5,600 a week and $291,000 a year. 

Of course, you can opt for other payment options for different types of outsourced services. In such cases, the costs will vary depending on your need or expectations from them. 

For instance, outsourcing to a dedicated team means you should expect a higher quote. That’s because they work more closely with you and might also need specific training for your service requirements. 

At the same time, contractual work might be project-based. Here, you’ll set up targets for your service provider and give them the budget to meet those targets. How they do that is up to them. A contractual arrangement usually last for a specific period, which is less expensive than having a dedicated team. 

Lastly, a monthly flat-rate model will lower the outsourcing quote. However, the service you receive might fail you in terms of your expectations. 

Figuring Out Whether the Costs Associated with Outsourcing Your Call Center Services Are Worth It

Understanding whether the call center outsourcing quotes you receive are worth it or not depends on your requirements and the service provider’s expertise, experience, and reputation. 

For instance, if your aim is to generate 1,000 leads a month, you can opt for a dedicated team, which will cost more. Or, you can go for a contractual option, where they’ll meet your targets one way or another but will cost less. The former, of course, will be more efficient in getting the results you want. However, the latter will save you more money. 

In Conclusion

As you can tell, there’s a trade-off in every scenario here. The outsourcing quote you should opt for ultimately depends on your expectations from the call center service provider. 

At the end of the day, however, outsourcing still comes out as the better solution here because of its cost-efficiency. You will always get what you’re paying for by outsourcing to a third-party provider. In the case of in-house call centers, the same isn’t always guaranteed. 

If you’re looking to see how cost-efficient and high-quality call center outsourcing services can impact your business, don’t hesitate to get in touch with us at Blue Valley Marketing

From e-commerce to telecom, Blue Valley Marketing covers grounds across all types of businesses. Our ability to make the most of data to provide customer support and lead generation services helps us meet your expectation. If nothing else, even a simple consultation session with us will help you gain valuable insights regarding various types of call center services, outsourcing quotes, and how impactful a call center can be. Feel free to reach out to us today.

Last Updated on April 4, 2023 by Ronen Ben-Dror

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