{"id":1233,"date":"2023-06-23T15:46:11","date_gmt":"2023-06-23T15:46:11","guid":{"rendered":"https:\/\/www.confiebpo.com\/knowledge-center\/?p=1233"},"modified":"2023-06-23T15:46:13","modified_gmt":"2023-06-23T15:46:13","slug":"call-center-outsourcing-costs-explained","status":"publish","type":"post","link":"https:\/\/www.confiebpo.com\/knowledge-center\/bpo-call-center\/call-center-outsourcing-costs-explained\/","title":{"rendered":"Call Center Outsourcing Costs Explained"},"content":{"rendered":"\n

Businesses often prefer to outsource or nearshore their call center operations<\/a> to avoid making high capital expenditures and incurring heavy fixed costs associated with leasing new facilities, purchasing equipment, and hiring teams.<\/p>\n\n\n\n

In this guide, you will learn about call center pricing and outsourcing costs and how nearshoring can provide the \u201cbest of both worlds\u201d with respect to the quality of service and decreased operational expenses.<\/p>\n\n\n\n

Hourly Costs<\/h2>\n\n\n\n

This is the primary call center cost and can range from $10 to $50 per hour. The amount depends on where the service provider is based, the skill level of its staff, and the complexity of the tasks.<\/p>\n\n\n\n

Outsourcing or nearshoring<\/a> services in countries with lower labor costs will tend to be toward the lower end of this cost spectrum, while North America will tend toward the higher end.<\/p>\n\n\n\n

Initial Setup and Training<\/h2>\n\n\n\n

Some providers charge for setting up your call center. This covers hardware and software systems setup, staff training, and integration with your existing operations.<\/p>\n\n\n\n

In certain sectors, it\u2019s essential that your call center staff have specialist knowledge. If this is the case, you\u2019ll need to factor in the cost of training.<\/p>\n\n\n\n

Other sources of upfront costs include things like software licenses and legal services if you choose to use a BPO call center<\/a> in a different jurisdiction than that of your corporation.<\/p>\n\n\n\n

Staffing Levels and Availability<\/h2>\n\n\n\n

Other factors to consider include the designated availability of your outsourced call center. Requiring 24\/7 staffing requires additional incentive pay for staff and additional management costs for operating around the clock.<\/p>\n\n\n\n

Additionally, if your business needs to scale its staffing levels based on increased demand or customer contacts, your outsource call center pricing could fluctuate as the call center restaffs to accommodate your firm\u2019s new needs.<\/p>\n\n\n\n

Transportation<\/h2>\n\n\n\n

If your management team opts to visit<\/a> the call center in-person, location can make a big difference. For offshore services in remote locales like India, flights can be expensive, especially if your firm\u2019s headquarters are not located near major international airports.<\/p>\n\n\n\n

On the other hand, nearshore call centers can make it easier for management teams to fly in to visit. By setting up shop in an adjacent country, your firm can enjoy the benefits of lower labor costs while still maintaining a strong sense of what\u2019s happening from an \u201con-the-ground\u201d perspective.<\/p>\n\n\n\n

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Predictability With a Fixed Rate Cost Model<\/h2>\n\n\n\n

One way to increase the predictability of your outsourced call center expenditures revolves around a concept known as \u201cfixed-rate pricing.\u201d As one of the more common call center pricing models, this approach usually involves the establishment of a fixed rate per head.<\/p>\n\n\n\n

Factors influencing this fixed rate can include:<\/p>\n\n\n\n