Call center outsourcing can be an effective way to reduce costs, enhance efficiency, and increase customer satisfaction. However, before reaping the benefits, businesses must first navigate the complexities of outsourcing pricing. As you research your options, you may notice that many third-party providers price their services differently. For instance, while some charge flat rates, others offer tiered or per-call pricing structures. Understanding how these models work and their associated costs is key to making an informed decision.
In this guide, we’ll help you uncover the actual costs of outsourcing. You’ll also learn how to compare call center outsourcing services so that you can find the best AI answering service for your business. Droxy AI’s AI agent for your business answering service can assist you with this process by clearly outlining these costs and providing a transparent pricing model, allowing you to find the best fit for your business.
Table of Contents
What Is Call Center Outsourcing?
Call center outsourcing is the practice of hiring an external service provider to manage a company's customer communication tasks. This means that instead of handling calls internally, a business contracts a third party to manage customer interactions, often from a remote location. There are two main types of services in call center outsourcing:
Inbound services focus on handling calls coming into the business, including customer inquiries, support requests, and complaints.
Outbound services involve the call center making calls on behalf of the company, commonly used for sales, marketing campaigns, or follow-ups.
When outsourcing, businesses can choose between:
Dedicated agents who work exclusively for one company. They become deeply familiar with that company’s brand, values, and processes, providing consistent and personalized service. This model is ideal for businesses that prioritize quality, brand alignment, and accountability, although it usually comes at a higher cost.
Shared agents serve multiple clients simultaneously. They split their time among different businesses, which makes this option more cost-effective and flexible, especially for companies with lower call volumes or simpler customer service needs. However, shared agents may not offer the same level of brand-specific expertise or consistency as dedicated agents.
In addition to traditional outsourcing models, businesses are increasingly turning to AI-powered solutions, such as Droxy AI, to enhance their customer service capabilities. Droxy AI offers a no-code platform that enables companies to quickly create and deploy AI agents across multiple communication channels, such as:
Websites
WhatsApp
Instagram
Phone calls
This technology complements outsourced call center services by:
Automating routine interactions
Reducing wait times
Allowing human agents to focus on more complex tasks
Transform your customer experience with Droxy, our AI platform that handles inquiries across your website, WhatsApp, phone, and Instagram channels, all while maintaining your unique brand voice. Say goodbye to missed opportunities as our agents work 24/7 to:
Convert visitors into leads
Answer questions
Provide exceptional support at a fraction of the cost of human staff
Deploy your custom AI agent in just five minutes and watch as it:
Seamlessly engages with customers in any language
Escalates conversations to your team only when necessary
Allows you to maintain complete visibility and control over every interaction
Create an AI agent for your business within 5 minutes!
Related Reading
Call Center Outsourcing vs. In-House Costs
When evaluating whether to maintain an in-house call center or outsource the function, understanding the full cost implications is critical. While the hourly wage of agents is often the starting point, a comprehensive cost comparison must include all direct and hidden expenses associated with each model.
1. Hourly Cost of Agents
In-House Agents
The base wage for in-house call center agents typically ranges from $15 to $20 per hour, but this is only part of the picture. When factoring in all associated costs (management, benefits, technology, recruitment, training, office space, and overhead), the all-in hourly cost rises to approximately $30 to $40 per hour or more.
Outsourced Agents
Nearshore outsourcing typically offers agents around $15 per hour, while offshore options can be even lower, ranging from $8 to $14 per hour. These rates often include infrastructure and management costs bundled by the provider, leading to potentially significant savings.
2. Hidden Costs of In-House Call Centers
Beyond wages, in-house call centers incur several often-overlooked expenses:
Recruitment and Hiring
Recruiting qualified agents involves advertising, agency fees, and internal HR time. The cost to hire a single mid-level employee can range from $4,000 to $7,000 per year.
Training and Onboarding
New hires require extensive training, which consumes time and resources. This includes developing standard operating procedures and providing ongoing coaching to ensure quality maintenance.
Management Overhead
Supervisors, team leads, quality assurance staff, and workforce managers add to payroll and operational expenses, increasing the fully loaded cost per agent.
Technology and Infrastructure
Maintaining hardware (such as computers, headsets, and phones), software licenses, network services, and IT support is costly. These investments must be continually updated and integrated to support efficient operations.
Employee Turnover
High turnover rates in call centers lead to repeated recruitment and training cycles, resulting in increased costs and reduced productivity.
Operational Inefficiencies and Opportunity Costs
Time spent managing internal support functions detracts from strategic business initiatives, which can have an indirect impact on growth and customer satisfaction.
3. Cost Benefits of Outsourcing
Outsourcing call center operations can mitigate many of the hidden costs associated with in-house setups:
Lower Hourly Rates
Outsourcing providers leverage economies of scale and lower labor costs in nearshore or offshore locations, offering agents at rates often half or less than fully loaded in-house costs.
Reduced Overhead
Outsourcing eliminates the need for companies to invest in infrastructure, technology, and management for their call centers, as the vendor handles these responsibilities.
Scalability and Flexibility
Outsourced call centers allow businesses to scale operations quickly in response to fluctuating call volumes without the capital expenditure or delays associated with hiring and training in-house staff.
Productivity Efficiency
Outsourcing contracts typically bill for productive agent time only. For example, if in-house agents spend time on breaks or non-call activities, companies still pay full wages, whereas outsourcing providers optimize agent utilization, often achieving around 85% productivity.
4. Potential Hidden Costs in Outsourcing
While outsourcing offers cost advantages, it is not without challenges:
Quality Control and Communication
Differences in culture, language, and time zones can impact service quality, necessitating additional oversight or retraining, which may result in increased costs.
Additional Fees
Some outsourcing contracts include charges for extra support, higher call volumes, or services beyond the base agreement, which must be carefully reviewed.
Factors That Affect Outsourced Call Center Costs
1. Location of the Call Center
The geographical location of the outsourced call center is one of the most significant cost drivers. Onshore centers in countries such as the U.S., Canada, or Western Europe generally have the highest rates due to higher labor costs and stricter regulatory requirements. Nearshore locations, such as those in Latin America or Eastern Europe, offer a balance between price and proximity. Meanwhile, offshore centers in countries such as India and the Philippines offer the most budget-friendly options due to lower wages and operational expenses.
2. Labor Costs and Agent Expertise
Labor expenses vary widely depending on the skill level, experience, and language proficiency of the agents. Highly trained agents who handle specialized or technical support command higher wages. Additionally, local labor laws, benefits, taxes, and employment policies (such as Saudization or Emiratization in the GCC) can impact pricing.
3. Type of Service Provided
The nature of the call center service has a significant impact on costs. Basic customer support or order processing is generally less expensive than sales, technical support, or services requiring specialized knowledge. More complex services require longer call handling times and higher levels of agent expertise, which increases costs.
4. Call Volume and Hours of Operation
The volume of calls and required hours of operation impact pricing models. Businesses that require 24/7 support or handle high call volumes often face higher costs due to the need for additional agents and infrastructure. Conversely, limited business-hour operations or lower call volumes may reduce expenses. Some providers offer flexible pricing based on call minutes or agent hours, allowing them to accommodate fluctuating demand.
5. Technology and Infrastructure
Advanced technology investments add to outsourcing costs. This includes CRM systems, AI-powered tools, call analytics, security protocols, and telecommunications infrastructure. While these technologies can improve efficiency and reduce labor costs in the long term, the initial and ongoing expenses can be substantial.
6. Quality Assurance and Management
Costs related to monitoring, training, and managing agents also affect the total price. Higher levels of quality control, performance metrics, and service level agreements (SLAs) that guarantee faster response times or higher resolution rates typically come with premium pricing. Businesses must balance cost with the desired quality of customer experience.
7. Regulatory Compliance and Legal Factors
In regions such as the GCC, compliance with local employment laws, data protection regulations, and licensing requirements can add complexity and increase the cost of outsourcing arrangements. Penalties for non-compliance and the need for cybersecurity measures also contribute to overall expenses.
Related Reading
How Outsourced Call Centers Charge
Outsourced call centers offer various pricing models tailored to meet the diverse needs and budgets of businesses. Understanding these pricing structures is crucial for selecting the most cost-effective and efficient service that aligns with your company’s call volume and operational goals. Below are the common ways outsourced call centers typically charge for their services.
Per-Minute Pricing
The per-minute pricing model charges businesses based on the actual time agents spend handling calls. This approach is particularly advantageous for companies with fluctuating or low call volumes, as it directly ties payment to usage. You only pay for the minutes your customers are actively engaged, making it a flexible and scalable option.
Rates for per-minute pricing vary depending on the call center’s location. For example, international agencies often charge between $0.35 and $0.55 per minute, while agencies based in the U.S., Canada, or Europe tend to have higher rates, typically ranging from $0.75 to $1.35 per minute. This model helps businesses avoid fixed costs when call volumes are unpredictable.
Per-Agent (Hourly) Pricing
In the per-agent pricing model, businesses pay a fixed hourly rate for each agent assigned to their account. This pricing structure is ideal for companies with steady and predictable call volumes, as it simplifies budgeting and can lead to long-term cost savings. You essentially rent the agent’s time, regardless of call activity during those hours.
Hourly rates fluctuate based on geographic location. U.S.-based call centers usually charge between $28 and $40 per hour per agent, reflecting higher labor costs. Offshore centers in countries like India and the Philippines offer more affordable rates, typically ranging from $7 to $16 per hour per agent, making this an attractive option for businesses seeking to reduce expenses while maintaining consistent service.
Per-Call Pricing
Per-call pricing charges a fixed fee for each call, regardless of its duration. This model simplifies billing by focusing on the volume of interactions rather than their duration, which can be beneficial for businesses that require uniform and concise call handling. Though less common, per-call pricing may come at a premium compared to other models because it guarantees a set cost per interaction. This model is ideal for companies that prioritize predictable call costs and want to avoid variability in billing due to call length.
Flat Monthly Fees
The flat monthly fee model involves a predetermined monthly charge for a specific package of services. This pricing approach offers excellent cost predictability, making it suitable for businesses with stable call volumes and well-defined service needs. Flat monthly fee plans provide businesses with the advantage of predictable budgeting and simplified expense management. This model allows companies to focus on their core operations without worrying about fluctuating costs, fostering a stable partnership with the call center provider. With a clear understanding of included services, businesses can confidently plan their customer support strategy and scale as needed.
Create an AI Agent for Your Business within 5 Minutes
Droxy AI transforms the way companies interact with their customers. This AI platform handles inquiries across your website, social media, and over the phone, all while maintaining your unique brand voice. Droxy eliminates missed opportunities, converting visitors into leads, answering questions, and providing exceptional support. Best of all, this happens 24/7 at a fraction of the cost of human staff.
Benefits of Deploying Droxy for Your Business
Droxy AI creates a custom AI agent for your business in just five minutes. From there, your new virtual employee seamlessly engages with customers in any language, escalating conversations to your team only when necessary. This means you maintain complete visibility and control over every interaction while your customers enjoy a smooth experience.
Related Reading
Call center outsourcing can be an effective way to reduce costs, enhance efficiency, and increase customer satisfaction. However, before reaping the benefits, businesses must first navigate the complexities of outsourcing pricing. As you research your options, you may notice that many third-party providers price their services differently. For instance, while some charge flat rates, others offer tiered or per-call pricing structures. Understanding how these models work and their associated costs is key to making an informed decision.
In this guide, we’ll help you uncover the actual costs of outsourcing. You’ll also learn how to compare call center outsourcing services so that you can find the best AI answering service for your business. Droxy AI’s AI agent for your business answering service can assist you with this process by clearly outlining these costs and providing a transparent pricing model, allowing you to find the best fit for your business.
Table of Contents
What Is Call Center Outsourcing?
Call center outsourcing is the practice of hiring an external service provider to manage a company's customer communication tasks. This means that instead of handling calls internally, a business contracts a third party to manage customer interactions, often from a remote location. There are two main types of services in call center outsourcing:
Inbound services focus on handling calls coming into the business, including customer inquiries, support requests, and complaints.
Outbound services involve the call center making calls on behalf of the company, commonly used for sales, marketing campaigns, or follow-ups.
When outsourcing, businesses can choose between:
Dedicated agents who work exclusively for one company. They become deeply familiar with that company’s brand, values, and processes, providing consistent and personalized service. This model is ideal for businesses that prioritize quality, brand alignment, and accountability, although it usually comes at a higher cost.
Shared agents serve multiple clients simultaneously. They split their time among different businesses, which makes this option more cost-effective and flexible, especially for companies with lower call volumes or simpler customer service needs. However, shared agents may not offer the same level of brand-specific expertise or consistency as dedicated agents.
In addition to traditional outsourcing models, businesses are increasingly turning to AI-powered solutions, such as Droxy AI, to enhance their customer service capabilities. Droxy AI offers a no-code platform that enables companies to quickly create and deploy AI agents across multiple communication channels, such as:
Websites
WhatsApp
Instagram
Phone calls
This technology complements outsourced call center services by:
Automating routine interactions
Reducing wait times
Allowing human agents to focus on more complex tasks
Transform your customer experience with Droxy, our AI platform that handles inquiries across your website, WhatsApp, phone, and Instagram channels, all while maintaining your unique brand voice. Say goodbye to missed opportunities as our agents work 24/7 to:
Convert visitors into leads
Answer questions
Provide exceptional support at a fraction of the cost of human staff
Deploy your custom AI agent in just five minutes and watch as it:
Seamlessly engages with customers in any language
Escalates conversations to your team only when necessary
Allows you to maintain complete visibility and control over every interaction
Create an AI agent for your business within 5 minutes!
Related Reading
Call Center Outsourcing vs. In-House Costs
When evaluating whether to maintain an in-house call center or outsource the function, understanding the full cost implications is critical. While the hourly wage of agents is often the starting point, a comprehensive cost comparison must include all direct and hidden expenses associated with each model.
1. Hourly Cost of Agents
In-House Agents
The base wage for in-house call center agents typically ranges from $15 to $20 per hour, but this is only part of the picture. When factoring in all associated costs (management, benefits, technology, recruitment, training, office space, and overhead), the all-in hourly cost rises to approximately $30 to $40 per hour or more.
Outsourced Agents
Nearshore outsourcing typically offers agents around $15 per hour, while offshore options can be even lower, ranging from $8 to $14 per hour. These rates often include infrastructure and management costs bundled by the provider, leading to potentially significant savings.
2. Hidden Costs of In-House Call Centers
Beyond wages, in-house call centers incur several often-overlooked expenses:
Recruitment and Hiring
Recruiting qualified agents involves advertising, agency fees, and internal HR time. The cost to hire a single mid-level employee can range from $4,000 to $7,000 per year.
Training and Onboarding
New hires require extensive training, which consumes time and resources. This includes developing standard operating procedures and providing ongoing coaching to ensure quality maintenance.
Management Overhead
Supervisors, team leads, quality assurance staff, and workforce managers add to payroll and operational expenses, increasing the fully loaded cost per agent.
Technology and Infrastructure
Maintaining hardware (such as computers, headsets, and phones), software licenses, network services, and IT support is costly. These investments must be continually updated and integrated to support efficient operations.
Employee Turnover
High turnover rates in call centers lead to repeated recruitment and training cycles, resulting in increased costs and reduced productivity.
Operational Inefficiencies and Opportunity Costs
Time spent managing internal support functions detracts from strategic business initiatives, which can have an indirect impact on growth and customer satisfaction.
3. Cost Benefits of Outsourcing
Outsourcing call center operations can mitigate many of the hidden costs associated with in-house setups:
Lower Hourly Rates
Outsourcing providers leverage economies of scale and lower labor costs in nearshore or offshore locations, offering agents at rates often half or less than fully loaded in-house costs.
Reduced Overhead
Outsourcing eliminates the need for companies to invest in infrastructure, technology, and management for their call centers, as the vendor handles these responsibilities.
Scalability and Flexibility
Outsourced call centers allow businesses to scale operations quickly in response to fluctuating call volumes without the capital expenditure or delays associated with hiring and training in-house staff.
Productivity Efficiency
Outsourcing contracts typically bill for productive agent time only. For example, if in-house agents spend time on breaks or non-call activities, companies still pay full wages, whereas outsourcing providers optimize agent utilization, often achieving around 85% productivity.
4. Potential Hidden Costs in Outsourcing
While outsourcing offers cost advantages, it is not without challenges:
Quality Control and Communication
Differences in culture, language, and time zones can impact service quality, necessitating additional oversight or retraining, which may result in increased costs.
Additional Fees
Some outsourcing contracts include charges for extra support, higher call volumes, or services beyond the base agreement, which must be carefully reviewed.
Factors That Affect Outsourced Call Center Costs
1. Location of the Call Center
The geographical location of the outsourced call center is one of the most significant cost drivers. Onshore centers in countries such as the U.S., Canada, or Western Europe generally have the highest rates due to higher labor costs and stricter regulatory requirements. Nearshore locations, such as those in Latin America or Eastern Europe, offer a balance between price and proximity. Meanwhile, offshore centers in countries such as India and the Philippines offer the most budget-friendly options due to lower wages and operational expenses.
2. Labor Costs and Agent Expertise
Labor expenses vary widely depending on the skill level, experience, and language proficiency of the agents. Highly trained agents who handle specialized or technical support command higher wages. Additionally, local labor laws, benefits, taxes, and employment policies (such as Saudization or Emiratization in the GCC) can impact pricing.
3. Type of Service Provided
The nature of the call center service has a significant impact on costs. Basic customer support or order processing is generally less expensive than sales, technical support, or services requiring specialized knowledge. More complex services require longer call handling times and higher levels of agent expertise, which increases costs.
4. Call Volume and Hours of Operation
The volume of calls and required hours of operation impact pricing models. Businesses that require 24/7 support or handle high call volumes often face higher costs due to the need for additional agents and infrastructure. Conversely, limited business-hour operations or lower call volumes may reduce expenses. Some providers offer flexible pricing based on call minutes or agent hours, allowing them to accommodate fluctuating demand.
5. Technology and Infrastructure
Advanced technology investments add to outsourcing costs. This includes CRM systems, AI-powered tools, call analytics, security protocols, and telecommunications infrastructure. While these technologies can improve efficiency and reduce labor costs in the long term, the initial and ongoing expenses can be substantial.
6. Quality Assurance and Management
Costs related to monitoring, training, and managing agents also affect the total price. Higher levels of quality control, performance metrics, and service level agreements (SLAs) that guarantee faster response times or higher resolution rates typically come with premium pricing. Businesses must balance cost with the desired quality of customer experience.
7. Regulatory Compliance and Legal Factors
In regions such as the GCC, compliance with local employment laws, data protection regulations, and licensing requirements can add complexity and increase the cost of outsourcing arrangements. Penalties for non-compliance and the need for cybersecurity measures also contribute to overall expenses.
Related Reading
How Outsourced Call Centers Charge
Outsourced call centers offer various pricing models tailored to meet the diverse needs and budgets of businesses. Understanding these pricing structures is crucial for selecting the most cost-effective and efficient service that aligns with your company’s call volume and operational goals. Below are the common ways outsourced call centers typically charge for their services.
Per-Minute Pricing
The per-minute pricing model charges businesses based on the actual time agents spend handling calls. This approach is particularly advantageous for companies with fluctuating or low call volumes, as it directly ties payment to usage. You only pay for the minutes your customers are actively engaged, making it a flexible and scalable option.
Rates for per-minute pricing vary depending on the call center’s location. For example, international agencies often charge between $0.35 and $0.55 per minute, while agencies based in the U.S., Canada, or Europe tend to have higher rates, typically ranging from $0.75 to $1.35 per minute. This model helps businesses avoid fixed costs when call volumes are unpredictable.
Per-Agent (Hourly) Pricing
In the per-agent pricing model, businesses pay a fixed hourly rate for each agent assigned to their account. This pricing structure is ideal for companies with steady and predictable call volumes, as it simplifies budgeting and can lead to long-term cost savings. You essentially rent the agent’s time, regardless of call activity during those hours.
Hourly rates fluctuate based on geographic location. U.S.-based call centers usually charge between $28 and $40 per hour per agent, reflecting higher labor costs. Offshore centers in countries like India and the Philippines offer more affordable rates, typically ranging from $7 to $16 per hour per agent, making this an attractive option for businesses seeking to reduce expenses while maintaining consistent service.
Per-Call Pricing
Per-call pricing charges a fixed fee for each call, regardless of its duration. This model simplifies billing by focusing on the volume of interactions rather than their duration, which can be beneficial for businesses that require uniform and concise call handling. Though less common, per-call pricing may come at a premium compared to other models because it guarantees a set cost per interaction. This model is ideal for companies that prioritize predictable call costs and want to avoid variability in billing due to call length.
Flat Monthly Fees
The flat monthly fee model involves a predetermined monthly charge for a specific package of services. This pricing approach offers excellent cost predictability, making it suitable for businesses with stable call volumes and well-defined service needs. Flat monthly fee plans provide businesses with the advantage of predictable budgeting and simplified expense management. This model allows companies to focus on their core operations without worrying about fluctuating costs, fostering a stable partnership with the call center provider. With a clear understanding of included services, businesses can confidently plan their customer support strategy and scale as needed.
Create an AI Agent for Your Business within 5 Minutes
Droxy AI transforms the way companies interact with their customers. This AI platform handles inquiries across your website, social media, and over the phone, all while maintaining your unique brand voice. Droxy eliminates missed opportunities, converting visitors into leads, answering questions, and providing exceptional support. Best of all, this happens 24/7 at a fraction of the cost of human staff.
Benefits of Deploying Droxy for Your Business
Droxy AI creates a custom AI agent for your business in just five minutes. From there, your new virtual employee seamlessly engages with customers in any language, escalating conversations to your team only when necessary. This means you maintain complete visibility and control over every interaction while your customers enjoy a smooth experience.
Related Reading
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