Customer service outsourcing cost: A complete guide

It’s a tale as old as time: When you can’t get everything done yourself, you outsource some of it — and customer care is no exception. According to our recent survey, 60% of support teams are outsourcing in some capacity.

Considering outsourcing customer service in your own business? There are plenty of things to think through as you search for the right outsourcing partner, but money is undoubtedly one of the biggest.

This guide takes a closer look at the typical cost of outsourcing, the different factors that impact that price tag, and why finding an outsourcing provider could be a smart (and cost-effective) move for your business.

How much does customer service outsourcing cost?

It goes without saying that there’s a lot of nuance here. Everything from pricing models to your specific needs will influence how much you can expect to spend.

But, let’s try our best to start with a simple answer: Estimates state that you can expect an average cost of $2,000 to $3,500 per agent per month. That price includes service fees and any other potential hidden costs.

It might seem like an eye-popping number. However, think about it this way: It’s still significantly lower than what you’d need to pay in-house call center agents — especially once you factor in benefits like paid time off, healthcare plans, and retirement contributions. According to a recent Deloitte survey, cost savings were the primary driver behind traditional outsourcing.

4 factors that influence the cost of customer service outsourcing

An estimated customer service cost is helpful for building a basic understanding of how working with a third-party service provider can impact your bottom line. But you can’t build your company budget on a best guess. Here are the other factors to consider to get a firmer idea of how much you can expect to spend.

1. Location of vendor

Location, location, location. It doesn’t just matter for real estate — it holds significance for outsourcing too, as labor rates vary widely between different regions. For example:

• Outsourcing to India or the Philippines costs $8-$11 per hour
• Outsourcing to Eastern Europe or Latin America costs between $10-$15 per hour
• Outsourcing to North America or Western Europe can cost $28-$38 per hour

Again, these are only estimates. Be aware that different outsourcing locations also come with other considerations — such as alignment with your service time zones, language barriers, and cultural compatibility — that can impact your customer experience and the quality of your service. 

2. Service level agreements

Your service level agreement (SLA) is the contractual agreement you establish with your outsourced call center that dictates service standards and how performance will be measured.

Your SLA might define how quickly customer service agents will respond to your customers (e.g. “90% of contacts will be answered within 30 seconds”). Or, it can incorporate other metrics like resolution time or customer satisfaction scores (CSAT).

Higher SLA requirements will increase your expected customer service outsourcing cost. More complex expectations often require more experienced agents, faster response rates, or round-the-clock availability — all of which come at a higher price.

3. Service scope

The complexity of services is another pricing lever. If you need basic support for answering FAQs or password resets, that’s understandably less expensive than more advanced or technical support that includes troubleshooting, refunds, or legal compliance questions.

Additionally, while omnichannel support often leads to smoother and easier customer interactions, agents need to work across various support channels. That can further increase your outsourcing costs.

4. Number of customer interactions

It’s fairly simple math: your contact or call volume determines your outsourcing vendor’s staffing requirements. Higher volumes need more agents, while sporadic or low volumes need fewer agents (or even shared teams).

More agents mean more cost, while fewer agents mean lower costs. This is why accurate forecasting is so important. Forecasting helps you identify interaction patterns to predict staffing needs and better keep your costs in check.

Inbound vs. outbound customer support costs: Is there a difference?

Another factor that will impact your costs? Whether you need inbound or outbound customer support. Both of these handle customer interactions, just in different ways — and with different pricing structures too.

Inbound customer support pricing

What it is: An inbound call center handles incoming questions and requests from customers, including order updates, technical troubleshooting, account management, or other assistance. Inbound support is usually priced based on the way agents allocate their time. Here’s a look at the most common pricing models.

Shared

Agents handle customer interactions for multiple companies and charge on a per-minute basis.

• Best fit for: Businesses with simple queries and low contact volumes

Dedicated

Dedicated agents focus solely on your business and charge on an hourly basis.

• Best fit for: Businesses with high interaction volumes and complex support needs that require deep familiarity with the brand

Monthly flat rate

This model sets a price based on a predetermined number of hours or interactions. This helps businesses maintain a consistent cost regardless of minor fluctuations in contact volumes.

• Best fit for: Businesses with predictable interaction volumes

Outbound customer support pricing

On the other side of the spectrum, you have outbound call centers. These call center services handle proactive customer interactions where the support team reaches out to the customer (and not the other way around).

This can involve sales outreach, customer surveys, follow-ups, and lead generation. The pricing structures for outbound support are typically related to the complexity of tasks as well as performance incentives that are built into agreements.

Hourly

For more straightforward, outbound customer support tasks like telemarketing or conducting customer surveys, customer service outsourcing companies typically charge an hourly rate. Again, this rate can vary based on your location and the skill level of the agents.

Commission

For phone calls and interactions that can directly generate revenue — like sales calls or check-ins focused on customer retention — outsourced team members can earn a percentage of the money they generate. While commission rates can vary widely (usually between 5-20% of sales), this model incentivizes high performance among call center agents.

Hourly plus commission

Some vendors offer a hybrid of both pricing models. Agents are paid a base rate and then can achieve additional earnings that hinge on their sales or other key performance indicators. This model allows partners and BPOs to maintain more consistent staffing costs while also rewarding high-quality customer care.

5 benefits of outsourcing your customer support

No matter which way you go — with full-time, in-house customer service representatives or with an outsourced contact center — providing customer support does have a cost attached to it. 

Here’s the good news: that investment is more than worth it. And there are several compelling reasons why businesses might opt for an outsourced call center over an internal team:

1. 24×7 support: Outsourced agents can be available to customers round-the-clock. This is particularly beneficial in industries like e-commerce, travel, and healthcare.

2. Multilingual and omnichannel support: Vendors often have more resources — particularly when compared with a small business. This means they can interact with customers in multiple languages and across various channels like chat, phone, social media, and email support.
   
   
3. Scalability: With outsourcing, you can scale your support operations up or down based on demand, such as during seasonal surges. You have far more wiggle room to adapt than you would with an internal team. 

4. Cost savings: While it’s easy to get hung up on your expected call center outsourcing costs, remember that in-house teams are an expense too. By outsourcing, you eliminate the costs associated with hiring, onboarding, training, and necessary infrastructure like equipment and office space. Plus, the flexibility to adapt to changes in demand helps you cut costs even further.
   
   
5. Specialized expertise: You can find outsourced agents that are trained in specific industries or support channels. This means you can offer top-notch service without having to invest in extensive internal training.

Ultimately, both in-house and outsourced support have their pros and cons. However, the above advantages should serve as a nudge not to readily dismiss third-party providers based on your assumptions about outsourced call center pricing. In reality, outsourcing can help you streamline your business processes — and save some money too.

Outsource with confidence (and the right tools)

Outsourcing your customer support can be a strategic move to manage costs and meet your business needs. Ideally, outsourcing will lighten your load — but that only happens if you have the right tools in place.

Assembled can help. With Assembled’s purpose-built vendor management solution, you can ensure the efficiency and quality of your outsourced agents.

And, whether you go in-house or outsourced (or both), Assembled Assist can automate ticket handling and guide agents to the best replies with generative AI. This reduces your agents’ workload, improves response times, and ensures consistent quality assurance across all interactions — all of which can help further drive your costs down and your revenue up.

‍Ready to reduce your customer service costs without compromising quality? Book a demo today and see how Assembled can revolutionize your support operations.