Call Center Pricing
Call Center Outsourcing Prices
Call center pricing is certainly a very important factor in the effectiveness of any outsourcing effort. Many variables such as location, agency size, skill level, languages, and the number of seats influence the call center price quotes provided by our partners. These items have a huge variance and can affect call center proposals by up to 50%. Our Senior Advisors are ready to help each new client understand these factors and secure the lowest possible call center rates for their specific application. Please see the following discussion of the general factors influencing call center outsourcing costs in our industry:
The geographical location of the outsourcing provider plays a significant role in call center prices. Service agencies in regions with lower labor costs, such as India, the Philippines, Eastern Europe, or Latin America, typically offer more competitive rates compared to their counterparts in the United States or Western Europe.
2. Labor and Infrastructure Costs:
The overall cost of running a call center is impacted by labor costs, technology infrastructure, and real estate expenses. Providers with advanced technological capabilities might provide higher call center proposals, but they often deliver better services and improved customer experiences.
3. Skill and Expertise:
Call centers equipped with experienced agents and specialized knowledge in specific industries or domains often command higher fees. The level of training and expertise offered by the outsourcing company can directly influence the quality of customer interactions.
4. Service Level Agreements (SLAs):
SLAs define the performance benchmarks and commitments that the outsourcing provider must adhere to. Higher service levels and more stringent commitments generally lead to higher call center pricing, but they ensure better service quality.
5. Language and Cultural Compatibility:
Agencies that offer services in multiple languages or provide agents familiar with specific cultural nuances may charge premium call center rates. This is especially important for businesses catering to a diverse customer base.
6. Volume and Duration:
The volume of calls and the contract duration can impact pricing significantly. Long-term contracts or high call volumes often provide leverage for negotiating more favorable call center pricing.
Our Senior Advisors shared the following call center prices seen recently based on the major service types and locations:
Inbound call center services tend to be priced in three different ways:
- Shared – “Shared Inbound” is defined as services in which a pool of agents generally answer calls for a couple dozen clients. The client then pays only for the time used on a per-minute basis. These rates range from $.35-$.55/minute at low cost international agencies to $.75-$1.25/minute in the US/Canada. Shared services are ideal for applications with wild volume swings or low overall activity.
- Dedicated – This type of service involves a dedicated group of agents that handle calls exclusively for one client. Our call centers typically price this service on a per-hour basis. These rates generally range from $8-$15 internationally to $27-$35 in the US/Canada for standard agents. Dedicated services are ideal for complicated applications or when the volume is significant and predictable.
- Monthly – This type of call center pricing is basically a subset of dedicated services. It simply compiles the service into a monthly rate instead of an hourly rate. Many low-cost international call centers offer this type of pricing. However, it is rare to find it in North America or Europe.
Outbound call center services are typically priced as follows:
- Hourly – Call center price quotes from our agencies will typically include hourly rates for outbound sales, lead generation, and appointment setting. Rates generally vary based on the location of the agency. Smaller agencies in India or The Philippines normally charge from $8-$11 per hour. Furthermore, call centers in Eastern Europe or Latin America normally feature rates from $10-$15/hour. Finally, call centers in mature western countries (like the US, UK, Germany & Canada) typically charge $28-$38. Very specialized, high-level agencies in these countries can will typically provide call center pricing in the $40-$55 per hour range.
- Commission – On certain sales or lead generation applications, a full commission structure makes sense for both parties involved. The amount of commission is completely dependent on the situation. However, the amount earned per hour by the call center should provide at least a 10% to 20% premium over their normal hourly rates to account for the additional risk to the call center.
- Hourly + Commission – This might actually be our favorite call center pricing structure for sales programs. Just like you pay an internal salesperson in this manner, a combination structure provides that both parties have “skin in the game” and often works quite well to maximize performance.
The single largest call center cost variable is location. Therefore, selecting a call center located in the US or Europe versus India or Latin America will have a huge impact on your call center prices. Here is a general guideline to call center price quotes by geographic location:
- 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
While cost reduction is a significant motivation for outsourcing, focusing solely on the cheapest option may compromise service quality. Customer satisfaction and retention are directly impacted by call center performance. Striking the right balance between cost and quality is crucial for long-term success. Businesses should consider their unique requirements, customer expectations, and the reputation of the outsourcing provider before finalizing a pricing model.
In conclusion, call center outsourcing pricing varies based on a multitude of factors. It’s essential for businesses to evaluate their specific needs, consider the expertise and reputation of potential outsourcing partners, and negotiate a pricing model that aligns with their budgetary constraints while maintaining the desired level of service quality. By making informed decisions, businesses can leverage call center outsourcing as a powerful tool to enhance customer support and overall operational efficiency.
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