How Much Does It Cost To Outsource Customer Service?

Businesses of all sizes need to provide quality customer service, but many don’t have the in-house resources to do so. Outsourcing customer service can be a great way to save money and improve customer satisfaction. But how much does it cost to outsource customer service?

The answer depends on a number of factors, including the size of your business, the type of customer service you need, and the country you outsource to. In this article, we’ll explore the cost of outsourcing customer service and give you some tips on how to get started.

Outsourcing customer service can help your business by providing a higher level of service than you could provide on your own.

What is Outsourced Customer Service?

Outsourcing customer service is the process of hiring a third-party company to handle all or some customer service inquiries and tasks on behalf of your business.

When done correctly, outsourcing can be a great way to improve your customer service while saving money. One of the biggest benefits is that you can tap into a larger pool of talent and improve your efficiency. When you outsource customer service, you can free up your own staff to focus on other tasks. This can lead to better overall customer service and a more streamlined operation.

Of course, there are also some risks to consider when outsourcing customer service. One of the biggest is the potential for language barriers. If you’re not careful, you could end up with customer service representatives who don’t speak your language fluently. This can lead to miscommunication and frustration on both sides. This is why it’s important to do your research and choose a reputable outsourcing partner.

What is the average cost of a customer service call?

A lot of factors come into play when determining the cost per customer service call, such as the nature of the call, the company involved, and their pricing model. However, a general estimate would put the average cost of a customer service call at around 9 to $11.00 per hour.

Is It Cheaper to Outsource a Customer Call Center or to Keep it In-House?

It depends on the size of the company and the nature of the customer call center, and the company’s overall budget. If the company is large and the customer call center is complex, it may be cheaper to outsource. If the company is small and the customer call center is simple, it could be cheaper to keep it in-house.

In general, however, it is usually cheaper to outsource a customer call center than to keep it in-house as it helps companies make a lot of cost savings.

The Cost Savings of Customer Service Outsourcing

The cost savings of customer service outsourcing can be significant. By outsourcing customer service, businesses can avoid the costs associated with hiring, training, and managing customer service staff.

When you outsource customer service, you are only paying for productive time. This is opposed to in-house customer service, where you are paying your customer service representatives, even when they are not on the phone.

Additionally, businesses can benefit from the economies of scale that come with outsourcing, as customer service providers can spread the fixed costs of running a customer service operation across a large number of clients. They may also have access to technology and software that is more sophisticated and less expensive than what you could provide in-house. As a result, businesses can save a significant amount of money.

Why Outsourcing Customer Service Costs Are Lower

The lower cost of outsourcing customer service is due to a number of factors:

• HR and infrastructure:

The HR and infrastructure of an outsourced customer service provider help businesses cut down on costs related to customer service by simplifying the process and providing a more efficient way to handle customer inquiries. By outsourcing customer service, businesses are able to focus on their core competencies and leave the customer service function to a team of experts. This not only saves the business money but also allows them to provide a higher level of customer service.

• Scope of work

An outsourced customer service provider has a larger scope of work than any in-house team. This includes tasks such as handling customer inquiries, managing customer complaints, providing customer support, and more. By outsourcing customer service, businesses can save on the cost of hiring and training customer service staff, as well as the cost of managing and maintaining a customer service department.

• The customer support team size

When businesses outsource their customer service needs, they are able to take advantage of the team size that the customer service provider has to offer. This can help businesses cut down on the costs associated with customer service, as they will not need to hire and train their own customer service staff. Additionally, the customer service provider will likely have a more efficient system in place for handling customer service inquiries, which can further reduce the costs for businesses.

• Salaries

When businesses outsource their customer service to an external provider, they can cut down on a number of costs related to customer service. One of the most significant cost savings comes from the salaries of the customer service representatives.

Customer service representatives working for an outsourced customer service provider are typically paid lower wages than those working for the business itself. This is because the customer service provider is able to take advantage of economies of scale and can spread the cost of salaries across a larger number of employees.

Factors that can influence the costs of an outsourced customer service

Not all third-party customer service providers charge the same for their services. And it is for a number of reasons. Some of which we can mention:

• Quality

One of the factors that can influence the costs of outsourced customer service is quality. This is because companies that provide excellent outsourced customer service need to ensure that their employees are able to provide a high level of service as well in order to maintain their clients.

As a result, these companies often invest in training and quality assurance programs which adds up to their billing amounts.

• Language

When a company outsources its customer service, one of the main factors that can influence the costs is language. The primary language of the customer service provider can add to the cost, as can the need for bilingual customer service representatives.

If the customer service reps are not fluent in the language of the country they are servicing, it can lead to longer call times, more misunderstandings, and ultimately, risks of losing clients. It is wise then to invest in a customer service provider whose employees speak your language fluently.

• Channels

The customer service channels include telephone, email, chat, and social media. The company has to pay for the customer service agent’s time, and the cost will be different based on the channel used.

For example, the cost of a customer service agent who provides telephone support will be higher than the cost of a customer service agent who provides chat support. The company has to decide which channels to use based on the needs of the customers and the cost.

• Labor costs

The cost of labor for customer service representatives can vary depending on their location. The wage rates in different countries can vary widely, and this can have a big impact on the overall cost of the service.

In addition, the number of customer service representatives needed to staff a call center can also influence the cost of outsourced customer service. A call center with a high volume of calls may need to hire more customer service representatives to handle the increased call volume.

Conclusion

If you’re considering outsourcing customer service, this article is a great starting point. We’ve explored the cost of outsourcing customer service and offered some tips on how to get started. Don’t forget to factor in the size of your business, the type of customer service you need, and the country you outsource to when making your decision.