Outsourcing customer service has been a standard procedure for many companies seeking to improve their customer service satisfaction levels at a low cost. However, it is important for you to carefully consider the true cost of outsourcing customer service before making a decision. 

In addition to the hourly rate charged by the outsourcing company, businesses must also consider the cost of training and onboarding new support staff, the impact on customer satisfaction, and any potential legal or compliance issues. 

In this article, we will explore the various costs associated with outsourcing customer service and provide tips for you to make informed decisions about whether outsourcing is the right choice for your organization.

How much is the cost of outsourcing customer service? 

The cost of outsourcing customer service can vary greatly depending on a number of factors, including the specific requirements of the business, the type of customer service being provided, the location of the outsourcing provider, and the volume of customer inquiries. 

Some businesses may choose to outsource customer service to a call center, while others may outsource to an individual contractor or a team of contractors. In general, businesses can expect to pay anywhere from $8 to $50 per hour for outsourced customer service, depending on the specifics of their needs.

There are several costs associated with outsourcing customer service that businesses should consider before making a decision. These costs can include:

Hourly rate

This is the most obvious cost associated with outsourcing customer service and can vary greatly depending on the location of the outsourcing company, the skill level of the support staff, and the complexity of the support being provided.

Training and onboarding

Outsourcing companies will typically provide some level of training and onboarding to ensure that your support staff are knowledgeable and able to effectively assist customers. This can involve initial training as well as ongoing training to keep support staff up to date on new products or services.

Communication and coordination

When outsourcing customer service, it is important for you to have clear lines of communication and coordination with the outsourcing company to ensure that support inquiries are being handled efficiently and effectively. This can involve additional time and resources to manage the relationship.

Impact on customer satisfaction

If customer satisfaction suffers as a result of outsourcing customer service, it could have a negative impact on your business's reputation and bottom line. It is important for you to carefully consider the potential impact on customer satisfaction before outsourcing customer service.

Legal and compliance issues

Outsourcing customer service to a company in another country can involve additional legal and compliance considerations, such as data privacy laws and employment laws. It is critical for you to be aware of these issues and to ensure that you are in compliance.

How much do outsourcing companies charge? 

If you look around the web, call center outsourcing companies in the United States may charge anywhere from $20 to $50 per hour for customer support services. However, if you choose to outsource your customer support to a Philippine-based outsourcing company, you’ll get exceptional customer service outsourcing services at a fraction of the cost. 

ManilaPros, for example, offers competitive pricing plans for customer support services on email & chat, phone, and social media moderation. You can hire a skilled customer support agent at a fixed monthly charge of $1,425-1,575 or $8.25-9.25 per hour. That amounts to less than half of the wage rates for email support roles available in the US. 

In addition, every email support agent you hire with ManilaPros comes with training, quality assurance, backup support, and a dedicated account manager. We can assist you in scaling up your customer service team quickly while reducing your labor expenses by as much as 70%.

Is outsourcing customer service cheaper? 

Outsourcing customer service can be a cost-effective business strategy for companies, especially if they do not have the resources or expertise to handle customer inquiries in-house. Outsourcing customer service can help businesses save money in several ways: 

Labor costs

Outsourcing customer service can be less expensive than hiring and training in-house customer service staff. When you hire a full-time customer service staff, you add another employee to your payroll with recurring monthly benefits. This includes allowances, HMO, taxes, and other medical plans. 

By outsourcing your customer service function, you only pay for the service you need. When you outsource to the Philippines, for example, you get to reduce your labor costs by up to 70%. This is because of the country’s cheap labor and low cost of living.

Infrastructure costs

Businesses do not need to invest in the infrastructure necessary to support an in-house customer service team, such as computers, phone systems, and office space. 

When they partner with a reliable outsourcing vendor, they can access their industry-leading tools including the latest software in the market. Also, they can save on rental expenses as their outsourcing partner can shoulder the office space necessary for a successful offshoring of their business operations.

Scalability

Businesses can easily scale up or down their customer service operations to meet changing customer demand, without the need to hire or lay off staff. 

Most of the top customer service outsourcing companies offer an enterprise plan for businesses with growing needs for additional resources. This is helpful for businesses during peak seasons so they won’t miss out on their important customer inquiries.

Expertise

Outsourced customer service providers often have specialized expertise and experience handling customer inquiries, which can lead to higher customer satisfaction and loyalty. 

Customer support agents from the best call center companies are highly trained to support high-volume customer inquiries while delighting customers. They are equipped with the best customer service practices and have helped many businesses increase their customer satisfaction levels.

Time and resources

Outsourcing customer service allows businesses to focus on their core competencies, rather than spending time and resources on non-core activities. 

Customer service can take up much time from your internal staff. You can free up internal resources by entrusting your customer service processes to the expert service providers. This allows your employees to concentrate on their critical functions and optimize your customer service.

Can I outsource my customer service?

Yes! In fact, even some of the multinational companies like Amazon have outsourced their customer service and it resulted in greater operational efficiency and internal capabilities. It is possible for you to outsource any of your business processes no matter where you are in the world. You can follow these simple steps for a successful customer service outsourcing:

Determine your customer service needs

Identify the specific customer service tasks that you need to outsource, such as answering customer inquiries, handling complaints, or providing technical support.

Research outsourcing options

Research different outsourcing providers and compare their services, rates, and reputations. Look for providers that specialize in the type of customer service you need, and that have experience serving businesses in your industry.

Evaluate the provider's capabilities

Review the provider's infrastructure, systems, and processes to ensure that they have the resources and expertise to handle your customer service needs.

Negotiate terms

Negotiate the terms of the outsourcing agreement, including the scope of work, the rate, and the terms of payment.

Set up the outsourcing arrangement

Work with the provider to set up the necessary systems and processes to support the outsourcing arrangement, including any necessary training and onboarding.

Monitor and review the arrangement

Regularly monitor and review the outsourcing arrangement to ensure that the provider is meeting your customer service needs and standards. Make any necessary adjustments to the arrangement as needed. 

Outsource Your Customer Service Needs to ManilaPros

The cost of outsourcing customer service may overwhelm you as there are hidden costs you may encounter with the wrong partner. Good thing ManilaPros offers a reasonably priced subscription with no setup fees and hidden charges. You can pay one flat monthly rate per full-time associate and can cancel your subscription anytime. 

ManilaPros, a Philippine-based full-service outsourcing company, is a leader in providing five-star customer care for retailers. We'll provide you with customer support agents who are vetted, trained, and certified for your brand, so they can effectively cater to your customers based on your brand's voice, values, and goals.

Contact us today to learn more about our retail customer care services.