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The true outsourced customer service cost: is it cheaper?
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Not always, to be honest.
Although, as a customer service outsourcing company, we'd want to believe that outsourcing is always the best option, this isn't always true.
Let us begin with a brief answer to your question: the cost of outsourcing customer service varies depending on your business needs, the type of support team required (shared or dedicated), and the team's location. But here are some approximate figures: The average rate is $10 per hour.
However, before you close this article, keep in mind that the average cost may differ significantly from yours. It's critical to understand what influences pricing, what pricing models exist, and when hiring customer support isn't the best strategic decision (surprisingly) and when it is.
In this article, we will answer all of your questions about the true cost of outsourced customer service in 2024.
FYI: The best way to learn is to schedule a quick phone consultation with a customer service outsourcing partner. When clients call us, we listen to their specific business needs and recommend various pricing models that will work best for them.
Factors that affect outsourcing customer service cost
Let's start with the exact factors influencing how much you'll pay for customer service outsourcing.
Number of agents and service hours
The number of agents required and their working hours will have a direct impact on the cost. Higher volume usually means higher costs, but some providers offer economies of scale for larger teams. Also, the cost varies depending on whether you require customer service in the evening, at night, or during business hours. Holiday seasons are also usually more expensive.
Languages required
English language support is typically the most affordable option. However, if your target audience speaks other languages, multilingual support is essential. The more languages your support agents must be fluent in, the higher the cost will be. It's a balancing act: cater to a larger audience with more languages but be prepared for potentially higher costs.
Provider’s location
Although this is not always the case in today's global economy, the outsourcing destination has a significant impact on how much it costs to outsource customer services. If your outsourced customer service team is located in a region with lower labor costs, such as India, the Philippines, or Pakistan, the overall cost of running an in-house team can be significantly lower than outsourcing to a provider in a more expensive location, such as the United Kingdom or the United States. However, outsourcing from developing countries can cost you as little as $10.
FYI: In some cases, without compromising quality.
Services required
This factor also greatly impacts the price. Customer service outsourcing can cover various services, depending on your specific business requirements.
Here are a few examples:
- Inbound vs. Outbound Support: Are you looking for agents to handle incoming customer inquiries (inbound) or to contact prospective customers (outbound)? Inbound calls are generally less expensive than outbound sales calls.
- Omnichannel support: Do you require customer service via various channels such as phone, email, chat, and social media? Offering omnichannel support is typically more expensive than providing phone support alone.
Product complexity
If your product or service is relatively simple and does not require extensive technical knowledge or training for customer service representatives, outsourcing will be slightly less expensive. However, if there are numerous technical details and customer support agents require specialized training, consider the additional costs.
Training and quality control
Providers who invest heavily in agent training and quality control will likely charge more, but this can result in higher customer satisfaction and fewer repeat inquiries, potentially lowering overall costs.
Types of customer service outsourcing pricing models
There are several common pricing models for customer support outsourcing, each with its own advantages and disadvantages. It's important to carefully compare different models and choose the one that best suits your requirements.
Billing per ticket
This model involves paying for each ticket that the outsourcing company handles.
Advantages:
- Simple and transparent pricing model
- You only pay for what you get
- Suitable for companies with unpredictable support volume
Disadvantages:
- It may be expensive for companies with a high volume of inquiries
Billing per hour
This model involves paying for the hourly rate of the support agents.
Advantages:
- A flexible model that suits companies with fluctuating support volume
- It can be cheaper than other models if you have a low support volume
Disadvantages:
- It can be difficult to predict costs
- Doesn't incentivize the outsourcing company to use time efficiently
Dedicated team
This model involves dedicating a fixed number of support agents to work exclusively for your company.
Advantages:
- Greater control over support quality
- Ability to personalize support for your brand
- Suitable for companies with consistent support volume
Disadvantages:
- It can be more expensive than other models
- Not flexible if your support needs to change
Shared Team - 24/7
This model involves sharing a team of support agents with other clients.
Advantages:
- The cheapest pricing model
- Suitable for companies with a low budget
- Access to 24/7 support
Disadvantages:
- Less control over support quality
- Possibility of your clients being served by agents unfamiliar with your brand
- May have longer wait times for responses
Costs of in-house customer service team
In-house customer service involves costs spent on sourcing the right staff, training, equipment, and management. Let’s start with sourcing the right staff. This is an obvious cost.
The number of people you need to hire to build a sustainable customer service team depends on the size of your business.
Here’re the average salary, based on the Indeed’s research 2024 for the USA:
Also, to monitor customer service quality and essential customer satisfaction metrics, you’ll need a Quality Analyst (with an average salary of $4,766)
Beyond that, working with an internal customer service team involves other, less obvious costs. Consider the following things when planning your budget:
- Hiring & onboarding processes costs: mind the costs spent on the education of new support agents, the creation of databases with guides, and recruitment.
- Ongoing trainings: the ongoing training for the whole team is a must since customer service always develops, especially in today’s AI-driven market. Solid training programs come at a high price.
- Infrastructure: things like office equipment, software solutions, customer data management tools, AI bots, benefit systems for new employees. All these things are must if you want to build a sustainable and result-driven team of customer service agents.
- Administrative costs: additional costs like the money spent on regular quality control and management, subscriptions for tools, etc.
Finding the time and money to invest in all these things can often result in businesses spending more than expected to provide adequate customer service.
When outsourcing customer service is the best financial decision
As you can see, outsourcing can be a more cost-effective option than establishing an in-house team, especially for businesses with a high volume of customer support requests.
Here’re are some cases where customer support might be the best cost-saving decision:
- You want to know clear costs per month
- Your business has high seasonal peaks that are difficult to manage
- Your rapid growth requires quick support and scalability
- You need to handle diverse support needs in different languages
- You struggle with finding, hiring, and retaining qualified employees.
Customer service outsourcing companies can offer greater flexibility in responding to changes in workload or customer demands. It can be challenging for your company to scale your team up or down as needed quickly.
Also, we recommend checking the pros and cons of customer service outsourcing to make a well-grounded decision.
So, how to get the precise outsourced customer service cost
While this guide provides a roadmap for understanding customer support outsourcing pricing models, a personalized consultation is the most effective way to determine your exact cost.
EverHelp's customer service outsourcing experts are dedicated to understanding your business requirements. We'll pay close attention to your specific needs, the volume and complexity of your support interactions, and your preferred level of service. By considering these factors, we can recommend the best pricing model, whether per ticket, dedicated team, or price-per-hour.
Our consultations extend beyond basic models. We'll delve deeper, considering language requirements, support hours, and your agents' level of technical expertise. This comprehensive approach ensures transparency and prevents future hidden costs.
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