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How much does a dedicated call center cost?

Call Center Pricing: How Much Does Outsourcing Cost?

How much does a dedicated call center cost

Call Center Pricing

Price for call center services is an important aspect in the efficiency of any outsourcing project. A variety of factors such as the location, size of the agency as well as the level of skill, languages and the amount of seats affect the price estimates of call centers that our partners provide. These variables can have a massive range and can impact the cost of a call center by as much as 50 percent. The Senior Advisors at our firm are available to assist every new customer learn about these issues and get the most affordable costs for the call center that fit the specific service they require. How much does a dedicated call center cost? What are the types of Call centers?

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What is the price of a dedicated call center

How much does a dedicated call center cost?

How much does a dedicated call center cost? A dedicated US-based call center will typically charge between $26-$30/hour for basic services.
Some call centers charge per the minute, based on the occupancy. The cost will usually be equal as $0.59-0.75/minute and 75 percent (which implies associates in a state of billable status for 45 minutes of each hour). If you are taking $0.59 (45 minutes) equals $26.55. This is how you earn the hourly rate.

Call Center Outsourcing Prices

Price for call center services is one of the most important factors in the efficiency of any outsourcing project. A variety of factors such as the location, size of the agency as well as the level of skill, language and the number of seats affect the cost estimates for call centers offered by our partners. These factors can cause a significant variation and could affect the cost of a call center by as much as 50 percent. The Senior Advisors at our firm are available to assist each client to understand these issues and ensure the most affordable costs for the call center that fit the specific service they require.

General factors influencing call center outsourcing costs

  1. Location:
    The location of the outsourcing service provider plays an important influence on the cost of call centers. Service companies in regions that have less costs for labor, such as India and The Philippines, Eastern Europe, or Latin America, typically offer lower rates than those in United States or Western Europe.
  1. Labor and Infrastructure Costs:
    The total cost of operating an office is affected by the cost of labor along with technology infrastructure as well as property costs. Call center providers with the latest technology may offer higher calls center estimates however, they usually provide higher quality services and enhanced customer experience.
  1. Skill and Expertise:
    Call centers that have experienced agents who have specialized knowledge of particular fields or areas typically have higher costs. The amount of education and experience provided by outsourcing companies will directly impact the quality of interactions with customers.
  1. Service Level Agreements (SLAs):
    SLAs define the benchmarks for performance and obligations that outsourcing companies must meet. Higher levels of service and more strict commitments typically result in higher costs for call centers but also higher quality service.
  1. Language and Cultural Compatibility:
    Agents that provide services in multiple languages or have personnel who are familiar with certain local nuances can charge premium rates for call centers. This is crucial for companies catering to a wide range of customers.
  1. Volume and Duration:
    The number of calls as well as the length of the contract can affect pricing in a significant way. Contracts with long-term terms or large call volumes can provide the opportunity to negotiate more favorable pricing for call center services.

Types of Call Centers

The services you require will determine which call center best suits your needs. This will allow you to estimate your outsourcing costs as well as other information. Apart from that, each call center will require various kinds of tools and levels of expertise based on the kind of service. Call centers are classified into two major types:

Inbound and Outbound. They could be the result from an internal call center, an outsourcing call center or an online call center, where agents operate from their homes or other locations, and handle calls from the cloud.

Types of Call Centers
  • Outsourced call centers

Are usually more cost-effective than their in-house counterparts. These hubs handle current and potential customers’ telephone calls which may be inbound or outbound.
  • Inbound Call Centers

Receive calls initiated by the customer. Companies typically use inbound call centers to offer great customer service, handle queries about their products or services, manage customer accounts, receive complaints, and even process orders. Inbound agents, or center representatives, are better trained to provide support and resolve queries to the best of their abilities.
  • Outbound Call Centers

Are usually used to make sales calls to prospects to sell them products or services. Besides sales, outbound call centers are used to update/verify database information, telemarketing, lead generation, conduct surveys, follow up on clients, and provide important other information.

The majority of call centers manage both outbound and inbound calls. What determines the type of center you choose to work with is inbound and outgoing volume of calls.

Call center prices based on the major service types and locations

A. Inbound:

Call center services inbound are likely to cost in three distinct ways:

  • Shared – “Shared Inbound” is defined as a service in which agents in a pool generally handle calls for a couple dozen customers. The customer pays only for the amount of time spent in a per-minute manner. The rates vary between $.35-$.55/minute for low-cost international agencies, and up to $.75-$1.25/minute in Canada and the United States. Shared services are perfect for situations with high fluctuation in volume or with lower overall activity.
  • Dedicated – This kind of service consists of a specific team of agents who handle calls solely for a specific client. The call centers we work with typically charge this service on an hourly basis. They generally charge between around $8 to $15 globally, up to $27-$35 within the United States and Canada for standard agents. The dedicated services are great for complex applications or when the amount is substantial and reliable.
  • Monthly – This kind of pricing for call centers is essentially a subset of dedicated services. It merely combines the service into a monthly cost in lieu of an hourly cost. A lot of low-cost international call centers provide this kind of service. It is however difficult to locate this on the continents of North America or Europe.

B. Outbound:

Call center outbound services usually priced according to:

  • Hourly – Call center cost estimates from our agencies typically contain hourly prices for sales outbound as well as lead generation and appointment scheduling. Prices generally vary according to the geographical location and the location of the agency. Smaller companies located in India as well as The Philippines normally charge from $8 to $11 per hour. Additionally, call centers located in Eastern Europe or Latin America typically charge between $10 and $15 per hour. In addition, call centers located in Western countries with mature economies (such as the US, UK, Germany and Canada) typically charge between $28 and $38. Specialized, high-level agencies in these countries could typically offer pricing for call centers within the $40-$55 hour.
  • Commission – On specific lead generation or sales applications, a complete commission structure is beneficial for both participants. Amount of the commission paid is entirely dependent on the particular situation. However, the amount that is earned per hour for the call center must be at least 10 20 to 20% discount over their usual hourly rates to cover the extra risk that the call center faces.
  • Hourly + Commission –  This could be our preferred pricing structure for call center sales programs. Like you pay a salesperson within the company using this method it is a good idea to have a structure that ensures the parties with “skin in the game” and can be quite effective to increase the effectiveness of your sales team.

C. Location:

The primary cost element for call centers is the location. So, choosing an office within Europe or the US or Europe or Europe versus India or Latin America will have a significant impact on the costs of your call center. Here’s an overall guideline for cost estimates for call centers based on geographical place:

  • United States/Canada: $28-$38 per hour
  • Eastern Europe: $12 – $15 per hour
  • Western Europe: $35-$45 per hour
  • South Africa: $12-$15 per hour
  • Australia: $35-$55 per hour
  • Africa/Middle East: $15-$20 per hour
  • Latin America: $10-$15 per hour
  • Asia/Philippines: $8-$14 per hour
  • India: $8-$11 per hour
  • Pakistan: $8-$11 per hour

Call Center Pricing Breakdown

1. One-Off Costs

When you’re first starting out with a brand new call center You’re likely to experience on-off costs. Although it’s more usual to get one-off fees during the time of setup, based on the needs of your customers the fees may be repeated occasionally.

Common on-off fees that call centers may charge:                   

  • Setup Fee: Whenever you begin your new relationship with a service, you’ll generally be charged a setup cost. This will cover the equipment and software the call center has to purchase before they can begin functioning for you.
  • Training Fee: The number of agents you require can differ according to the season. Like any other work, there’s always a chance of change in the call center. Training fees are used to fund the training of new employees. It’s also crucial to know that reputable call centers don’t charge an expense for training to cover general turnover. They’ll only charge this cost if you want to hire more agents than they normally do.

2. Ongoing Rates

In-continuing rates are the most significant rates to consider when you’re getting your breakdown of pricing. These are the rates you’ll be charged on a regular basis.

In general, there are two kinds of continuing rates:

  • Hourly: The amount you pay will be per hour based on the time you were working.
  • Fixed: You’ll be charged a fixed amount, which typically is tied to a KPI. Whether it’s time, sales or any other thing depends on the contract you sign to the contact center.

What the Call Center Pricing Covers

If your call center outsourced costs you fairly it is not a good idea to be charged for:

  • Management: Unless the management of your own to manage smaller teams you should not hire managers or supervisors.
  • Client support: Call centers have a representative who is dedicated to the relationship you have with them.
  • Turnover costs: Although the cost of training is normal at the beginning and if you ask for additional support from the agent, expenses for training and turnover should not be the burden of your business.

Frequently Asked Questions

The cost of owning the call center may vary in relation to several variables, including:

  • The size of the call center
  • The type of call center
  • The location of the call center
  • The technology used in the call center
  • The staffing costs

 

It can be profitable to operate an office call center. In reality the call center industry is a multi-billion-dollar industry. There are however several aspects that impact the financial viability of a call center such as:

  • The types of call centers
  • The magnitude of the Call Center
  • The place for the center
  • The industry was served
  • The services provided
  • The effectiveness of the call center’s performance.

In general, call centers that provide premium services, like sales or technical support, are more profitable than those that offer less valuable services, like customer service. Call centers that are larger tend to earn more than small call centers due to the fact that they profit from the economics of scale. Call centers located in low-cost locations generally have higher profits than centers located in areas with high costs. Call centers that provide services to industries with high demand are much more lucrative than those that service industries that have low demand. Call centers that provide an array of services are much more lucrative than centers offering an exclusive selection of services. Call centers that are well-run and efficient are much more successful than centers which are not as well-managed.

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