How Much Does an Outsourced Call Center Cost?

Businesses considering outsourcing customer service usually have one question near the top of their list: How much does an outsourced call center cost?

There isn’t one universal price.

Call center costs depend on how much support you need, when you need it, the complexity of your calls and whether agents are shared across accounts or dedicated specifically to your business.

Understanding these variables can help you compare providers and determine whether outsourcing makes financial sense for your organization.

What Determines the Cost of an Outsourced Call Center?

Two companies can outsource the same number of calls and still have very different requirements.

A business that needs agents to answer basic questions and route callers, for example, has a different program from a healthcare organization requiring specialized workflows or a technology company needing technical support.

Some of the biggest factors affecting price include:

• Monthly call volume
• Average call duration
• Hours of coverage
• 24/7 versus business-hours support
• Shared versus dedicated agents
• Complexity of the calls
• Training requirements
• Scripting requirements
• Required integrations
• Reporting requirements
• Industry and compliance requirements
• Seasonal fluctuations in volume

Before comparing quotes, make sure you’re comparing similar levels of service.

Common Call Center Pricing Models

Call centers don’t all charge the same way. Understanding the pricing structure is just as important as understanding the rate itself.

Per-Minute Pricing

With per-minute pricing, businesses pay based on the amount of agent time they actually use.

This can be particularly attractive when call volume fluctuates because you aren’t necessarily paying for a full-time employee or agent seat during periods when there are no calls.

Per-minute plans are often appropriate for:

• After-hours answering
• Overflow calls
• Appointment scheduling
• Reservations
• Lead capture
• Customer service
• Order taking
• Seasonal programs

TeleDirect’s shared-agent model uses flexible prepaid minute blocks. Unused minutes can roll over, allowing companies to purchase capacity without having to maintain the same call volume every month.

Dedicated-Agent Pricing

A dedicated agent works specifically on your account rather than handling calls for multiple businesses.

Dedicated agents may be appropriate when your program requires extensive knowledge of your products, procedures, systems or customers.

They can be particularly useful for:

• Complex customer service
• Technical support
• High-volume programs
• Specialized workflows
• Programs requiring extensive brand knowledge

Because you’re reserving dedicated resources, the economics are naturally different from a shared environment.

Per-Call Pricing

Some answering services charge a fixed amount for every call handled.

This sounds simple, but businesses should understand exactly what constitutes a billable call.

A 30-second message and a 10-minute customer-service interaction can require very different amounts of work. That’s one reason per-call pricing isn’t necessarily the best comparison for more complex customer-service programs.

Hourly Pricing

Other providers charge for the number of agent hours assigned to the account.

Hourly pricing can make sense when staffing requirements are predictable, but businesses should determine whether they’re paying for productive customer interactions or simply reserved staffing capacity.

Shared Agents vs. Dedicated Agents: How Does the Cost Differ?

One of the biggest pricing decisions is whether you need shared or dedicated agents.

Shared agents support multiple client programs. They can be an efficient option when your business needs professional call handling but doesn’t generate enough volume to keep one or more agents continuously occupied.

Dedicated agents work specifically on your account and can develop deeper knowledge of your business, products and processes.

The better choice isn’t necessarily the cheapest hourly option. It is the model that gives your business the appropriate level of support without paying for unnecessary capacity.

Why Call Volume Matters

Volume has a major impact on the economics of outsourcing.

Imagine a company receiving calls sporadically throughout the day. Hiring an employee to wait for those calls means paying for the employee’s entire shift regardless of how much productive call time occurs.

A shared call center can distribute that staffing capacity across multiple programs.

As volume grows and becomes more predictable, however, dedicated staffing may become more practical.

This is why an accurate estimate of your current call volume is one of the most useful pieces of information you can provide when requesting call center pricing.

Don’t Forget About Average Handle Time

Call count alone doesn’t tell the entire story.

One business may receive 1,000 calls lasting one minute each. Another may receive 1,000 calls averaging eight minutes.

Those programs require dramatically different amounts of agent time.

When evaluating outsourcing costs, look at:

• Number of calls
• Average talk time
• After-call work
• Transfers
• Hold time
• Seasonal peaks

This gives providers a much more accurate picture of your actual staffing needs.

What Does 24/7 Customer Service Cost?

Providing customer service around the clock internally can become expensive because 24/7 coverage requires more than simply hiring one additional employee.

Businesses have to account for multiple shifts, weekends, holidays, PTO, absences, supervision and unexpected staffing gaps.

Outsourcing can allow a company to obtain 24/7 coverage without building an entire round-the-clock internal operation.

TeleDirect provides U.S.-based live-agent support 24 hours a day, 365 days a year.

What Costs Should You Compare With an In-House Team?

When businesses compare outsourcing with hiring internally, salary is often the first number considered.

But salary is only one component of employment cost.

An internal customer-service operation can also involve:

• Employer payroll taxes
• Health and other benefits
• Paid time off
• Recruiting
• Background checks
• Training
• Management and supervision
• Turnover and replacement costs
• Computers and headsets
• Telephone systems
• Software
• Quality assurance
• Reporting systems
• Compliance infrastructure
• Overtime
• Coverage for nights, weekends and holidays

The relevant comparison is therefore not simply outsourced agent rate versus employee wage.

It is the total cost of delivering the same level of service.

Watch for Hidden Call Center Fees

A low advertised rate doesn’t necessarily mean a lower total cost.

Before selecting a provider, ask about:

• Setup fees
• Monthly minimums
• Monthly account fees
• Holiday surcharges
• After-hours rates
• Training charges
• Script-change fees
• Reporting fees
• Technology charges
• Cancellation fees
• Long-term commitments

Understanding the entire pricing structure makes it much easier to compare proposals fairly.

How TeleDirect’s Pay-As-You-Go Model Works

TeleDirect offers a flexible shared-agent pricing model based on prepaid minutes.

Businesses can purchase the amount of support they need without a monthly contract or monthly fee. Unused prepaid minutes can roll over for up to two years.

This approach can be particularly useful for businesses with fluctuating volume because support can scale with demand rather than requiring a fixed internal staffing level.

For organizations requiring agents assigned specifically to their program, TeleDirect also offers dedicated-agent solutions.

Is the Cheapest Call Center the Best Choice?

Usually, price should be evaluated alongside performance.

A provider that costs slightly less but has longer answer times, weaker quality controls or poorly trained agents can ultimately cost a business more through lost customers and missed opportunities.

When comparing providers, consider:

• Agent location
• Agent training
• Quality assurance
• Average speed to answer
• Availability
• Scalability
• Reporting
• Security
• Compliance
• Experience in your industry
• Customer-service quality

The objective isn’t simply to find the lowest rate. It’s to find the most cost-effective way to deliver the customer experience your business requires.

Get Call Center Pricing Based on Your Actual Needs

The most useful call center quote is based on your actual call volume, workflows and service requirements.

TeleDirect provides 100% U.S.-based live-agent support 24/7/365, with both shared and dedicated agent solutions.

Instead of paying for unnecessary capacity, you can build a program around the support your business actually needs.

Contact TeleDirect to request custom pricing and determine which call center model makes the most sense for your organization.

Frequently Asked Questions

How much does an outsourced call center cost?

Costs vary according to call volume, average handle time, hours of coverage, agent model, complexity and other program requirements. A customized quote is generally more useful than an advertised generic rate.

Is outsourcing customer service cheaper than hiring employees?

It can be, particularly when businesses need extended hours, fluctuating capacity or specialized staffing. A proper comparison should include benefits, payroll taxes, PTO, recruiting, technology, supervision and other internal employment costs.

Are shared call center agents cheaper than dedicated agents?

Shared agents can be more economical for businesses that don’t have enough continuous volume to require full-time dedicated staffing. Dedicated agents may make more sense for high-volume or complex programs.

Can I outsource only my after-hours calls?

Yes. Businesses can outsource after-hours, overflow or peak-period calls while continuing to handle normal business-hours calls internally.

Does TeleDirect require a monthly contract?

TeleDirect’s shared-agent pricing uses flexible prepaid minute blocks without monthly contracts or monthly fees. Unused minutes can roll over for up to two years.