For growing businesses, the true cost of hiring an in-house employee goes well beyond the hourly wage.
Payroll taxes, healthcare benefits, paid vacation, sick leave, holidays, and other employment-related expenses can significantly increase the actual cost of maintaining an internal team.
A reputed growing U.S.-based eCommerce company faced exactly this challenge. The business needed dependable customer support coverage but wanted a more cost-efficient way to expand operations without compromising the quality of customer service.
By working with Visionary Solutions Inc., the company was able to reduce the estimated annual cost of the role from $70,065.20 to $25,344, creating an estimated $44,721.20 in annual savings.
Client Overview
The client was a growing U.S.-based eCommerce business handling a steady volume of customer questions, order-related requests, product inquiries, and general support issues. As the business expanded, customer service demands increased as well.
The company initially considered hiring a full-time U.S.-based customer support team. However, management wanted to understand the real cost of adding an employee before committing to another internal hire.
The advertised wage was only one part of that calculation.
The Business Challenge
At an hourly wage of $25, the base annual salary for the position was estimated at $52,800. But an employee’s salary does not represent the full cost to the employer.
Once mandatory payroll expenses and employee benefits were included, the estimated annual cost increased significantly.
Why In-House Hiring Became Expensive
The company’s estimated employment costs were:
| Employment Cost | Estimated Annual Cost |
| Base annual salary | $52,800.00 |
| Social Security tax | $3,273.60 |
| Medicare tax | $765.60 |
| Federal unemployment expense | $42.00 |
| State unemployment expense | $400.00 |
| Employee cost including payroll taxes | $57,281.20 |
| Healthcare and employee benefits | $8,184.00 |
| Employer cost including healthcare and benefits | $65,465.20 |
Healthcare and employee benefits pushed the estimated employer cost to $65,465.20 before paid time off was even considered. Paid vacation, sick days, and holidays represented an additional estimated cost of $4,600.
After accounting for salary, employer taxes, healthcare, benefits, and paid time off, the total estimated annual cost of the U.S.-based employee reached $70,065.20 per year
For the client, this created a difficult decision. Customer support capacity needed to increase, but continuing to scale exclusively through domestic hiring would put additional pressure on operating expenses.
The Visionary Solutions Inc. Approach
Instead of adding another full-time position in-house, the company partnered with Visionary Solutions Inc. for a more cost-efficient customer support model. We structured the support around the client’s existing operations and customer service requirements, including:
- Dedicated customer support assistance for day-to-day inquiries
- Alignment with the client’s existing workflows and internal processes
- Support based on established brand and communication guidelines
- Clear escalation procedures for issues requiring internal attention
- Flexible staffing capacity without the same in-house employment overhead
- A cost model of $12 per hour
- An estimated annual staffing cost of $25,344
Because we handled the staffing structure, the client did not carry the same direct costs associated with a traditional U.S.-based hire, including payroll taxes, healthcare benefits, and paid employee leave.
Cost Comparison: In-House vs. Visionary Solutions Inc.
The difference was substantial.
| Cost Comparison | U.S. In-House Employee | Visionary Solution Inc. Outsourced Support |
| Base hourly cost | $25/hour | $12/hour |
| Base annual salary/wage | $52,800 | $25,344 |
| Cost including employer payroll taxes | $57,281.20 | $25,344 |
| Cost including healthcare/benefits | $65,465.20 | $25,344 |
| Total estimated annual cost including paid time off | $70,065.20 | $25,344 |
| Estimated annual savings | $44,721.20 |
By moving the role to us, the company reduced the estimated annual staffing cost by approximately 63.8%. That translates to approximately $3,726.77 in savings per month compared with the fully loaded cost of maintaining the equivalent position in-house.
More Than Just Lower Labor Costs
The biggest lesson from the comparison was that staffing decisions should not be made on salary alone. A $25-per-hour employee may initially appear to cost roughly $52,800 annually, but once employer-related expenses are included, the estimated annual cost in this scenario reached $70,065.20.
That gap matters for businesses trying to scale.
Outsourcing allowed the client to maintain dedicated support capacity while reducing the financial burden associated with employment taxes, healthcare costs, paid time off, and other employee-related expenses.
It also gave management a simpler staffing model that could support future growth without requiring every additional customer service function to become another internal hire.
Why the Outsourcing Model Worked
Our approach focused on more than reducing labor costs. The support model was built around the client’s existing operation so the outsourced resource could function as an extension of the business rather than a disconnected third-party service.
Clear processes, communication standards, defined responsibilities, and escalation procedures helped ensure that customers continued receiving consistent support while the company benefited from a significantly lower staffing cost.
For the client, the result was a more sustainable way to expand customer service capacity while keeping operating expenses under control.
The Bottom Line
When this company compared the complete cost of hiring internally with outsourcing through Visionary Solutions Inc., the financial difference became clear.
- Estimated annual in-house cost: $70,065.20
- Estimated annual Visionary Solutions Inc. cost: $25,344
- Estimated annual savings: $44,721.20
- Estimated cost reduction: 63.8%
For companies evaluating customer service outsourcing, the right comparison isn’t simply one hourly wage against another. It is the total cost of maintaining the role compared with the total cost of an outsourced solution.
If you’re looking to reduce customer support costs without sacrificing service? Visionary Solutions Inc. helps U.S. businesses build dedicated outsourced teams for customer support, sales, virtual assistance, back-office operations, and other business functions.
Talk with Visionary Solutions Inc. to explore what an outsourced staffing model could look like for your business.
FAQs
Q1. Can Outsourced customer support work with a company’s existing process?
Yes, Visionary Solutions Inc. can structure outsourced customer support around a company’s existing workflows, communication guidelines, escalation procedures, and customer service processes. This way, the outsourced team works as an extension of the client’s operation.
Q2. What types of businesses can benefit from customer service outsourcing?
Customer service outsourcing can be useful for growing businesses that need additional support capacity while controlling staffing overhead. This can include eCommerce companies, service businesses, healthcare organizations, law firms, real estate businesses, hospitality companies, and other customer-focused organizations.
Q3. Is outsourcing customer support only about reducing labour costs?
No, while cost savings can be an important benefit, outsourcing is not limited to just that. It can also give businesses greater staffing flexibility, additional support capacity, and a simpler way to scale operations without adding the full overhead associated with every new in-house employee.
Q4. Can businesses outsource only one role or function?
Yes, businesses can outsource a single role, a specific department function, or build a larger dedicated team depending on their operational needs.
Q5. What services does Visionary Solutions Inc. provide?
Visionary Solutions Inc. provides outsourced business support services, including customer service, sales support, virtual assistants, back-office support, personal injury support, and other operational services for growing businesses.
