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Updated March 27, 2024

Customer Service Outsourcing Pricing Guide May 2024

Customer Service Outsourcing Pricing Guide 2024

Because of today’s evolving business trends and challenges, customer support outsourcing sees massive demand and growth. Having a comprehensive understanding of the varying factors that influence customer support services costs will make it easier to prepare when hiring a potential partner. 

The name of the game in today’s business world is scalability. Regardless of size and industry, companies always look for ways to improve their scalability without breaking the bank.

Top-tier customer support services help businesses scale by caring for their most crucial stakeholders — customers. While concerns and misconceptions exist about outsourcing customer services, the demand can’t be denied.

Establishing an in-house team can be an option, but the flexibility of outsourcing customer support services can’t be replaced. However, call volume isn’t always set, which dents internal productivity. Working with an outsourced customer support services team can give businesses the freedom to scale up or down depending on demand.

Customer Support Services Outsourcing
A type of outsourced call center service that focuses on assisting customers. It is an extension of the customer experience offered by companies to those who purchased or are planning to purchase their products. Customer support specialists aim to increase customer satisfaction through email, chat, or phone calls.

Previously, customer support services were seen as a solution for bigger companies with more funds. That’s fortunately not the case anymore today because the different price points offered by different service providers allow small businesses and startups to access top-notch customer service specialists across the globe.

This pricing guide will discuss everything you need to know and consider when hiring a dedicated customer support outsourcing provider. Use this guide when preparing to avoid oversight that can add up costs quickly.

Customer Service Outsourcing projects reviewed on Clutch typically cost

$10,000 - $49,999
< $10,000 $10,000 - $49,999 $50,000 - $199,999 $200,000 >

As seen in the graphic above, the average price for customer support outsourcing can range from a few thousand to several tens of thousands of dollars.

The price tag may seem daunting at first glance, but the benefits of hiring a customer services outsourcing team are priceless. Not only do they help improve customer retention, but they also boost customer loyalty, encourage feedback, and allow businesses to focus on their core competencies.

Types of Customer Support Outsourcing

Customer support services aren't a one-size-fits-all type of solution. Different channels and methods fit different types of business needs and goals. Here are the 4 most common types of customer support channels offered by these service providers:

Channel
Description
Phone
The most utilized type of customer support channel for varying functions such as customer queries and concerns. Many businesses and customers prefer this channel because it’s straightforward and efficient, being the fastest way to resolve any issues. This type of customer support channel is also great as it provides a human touch that makes the customer feel more valued and comfortable.
Email
This channel is considered the most cost-effective form of customer support solution as it can allow customers and agents to communicate simultaneously without being active. Many customers prefer this channel because they don’t have to wait for an agent to pick up their query, and they can contact the business at their convenience, expecting the company to respond as soon as possible.
Live Chat
Another in-demand customer service channel is live chat as it’s like a hybrid between email and phone wherein the customer can get real-time solutions without talking over the phone.

Otherwise called non-voice support, this service can be done through the company’s website or mobile messaging apps such as Skype and Messenger. In recent years, live chat support has evolved because of AI-powered tools, freeing customer service agents by automating frequently asked questions and only connecting them when the customer asks.
Social Media
Another form of asynchronous support companies offer is through social media messaging. This service covers both public and private interactions through social media networks like Facebook, TikTok, Twitter, and LinkedIn. The demand for this type of customer support service has skyrocketed as more consumers want a quick and accessible way to connect with brands.

Choosing the right channel for your customer service matters is essential to the success of your project. The best way to identify what is the ideal channel for your business is by understanding your customers. Don’t worry about committing to only one channel, though; multi-channel support can also be the right route, depending on your business needs.

Additional reading: “What is Omnichannel Customer Service?

Customer Service Outsourcing Rates by Industry

The scope of work is a main factor when determining pricing for customer service outsourcing. Different industries require various services, which is a key indicator of the scope of work that a customer service outsourcing company will do.

Want to know more about how much customer service outsourcing firms charge for their services in your industry? This table shows what select business types can expect to pay based on their market.

Industry
Average Project Size
Beverage Manufacturing
$10,000–$49,999
$10,000–$49,999
Outsourcing/Offshoring
$50,000–$199,999
$10,000–$49,999
Software
$50,000–$199,999

Note: Price ranges above are in U.S. dollars

What is the Real Cost of Hiring a Customer Service Outsourcing Company?

The average cost of hiring a customer service outsourcing company on Clutch is between $25-$49 per hour.

One of the biggest reasons why customer support outsourcing companies see huge demand is because they offer scalability, flexibility, and agility — all of which are highly coveted by businesses. It’s a crucial investment that’s cost-saving and beneficial in many ways.

Customer Service Outsourcing Pricing Models

Like any other service provider, customer service outsourcing companies also operate with different pricing models. Before committing to a potential partnership, it’s imperative to understand all the commonly used pricing models in the industry so you know what you’re paying for.

Here are the main pricing models applied by customer service outsourcing companies:

  • Hourly rate: This pricing model is the most common because of its simplicity and transparency. It mirrors most BPO provider pricing models wherein it requires the company to track the time rendered by customer service representatives, which will be what’s charged. The hourly method is also preferred by many businesses as its predictability makes it easier for them to budget.
  • Per minute: Similar to the hourly model, the per-minute pricing structure records the actual time agents spend in minute format. This model is ideal for businesses that want more flexibility while maximizing their budgets.
  • Per transaction: Also called pay-per-performance, this pricing structure is not that common but is also a great option for growing companies. This model tracks the number of calls, emails, or cases agents handle. It’s great for motivating agents to work more productively, but it can be more difficult to budget for.

Each pricing model has its advantages and disadvantages. In addition to those pricing models, companies typically charge a flat rate for certainty. These fees cover their overhead costs, such as training, tools, and office space expenses. 

Ensure you assess your business to outline your requirements and communicate them to the vendor when you consult with them for your project.

What Impacts the Cost of Outsourcing Customer Support Services?

Preparing and budgeting for customer service outsourcing can be a pain if you don’t know all the factors to consider. There are different elements that directly or indirectly affect the price tag of a project. Let’s break them down:

  • Level of expertise
  • Number of agents
  • Type of agent commitment 
  • Service Level Agreements (SLAs)
  • Communication channels
  • Availability of support
  • Tools
  • Language
  • Geographic location

Level of Expertise

Every business has its own unique needs and caveats. High-level technical support costs more as increasingly complex interactions demand certain expertise, skills, or experience.

Number of Agents

Since agents can only handle a certain amount of calls or transactions per shift, bigger-scale projects require more specialized agents. The more agents your business needs, the higher the costs.

Type of Agent Committment

When working with a full-service customer support services provider, you can share agents with their other clients or have dedicated agents for your account. Of course, having full-time agents will be more expensive than sharing with another account. 

Service Level Agreements (SLA)

The specific agreement outlined within the contract also affects costs. For example, projects that require extremely rapid response time, strict quality assurance, and swift resolution times often cost more as they need more resources to meet and maintain, resulting in added operational expenses.

Communication Channels

The channels enumerated above play a key role in determining the final costs of outsourcing customer support services. Agents don’t usually handle all of the mentioned channels, so if a business requires multiple communication channels, they should prepare to spend more, as it will require the outsourcing partner to hire specialists for each.

Availability of Support

Not every business needs 24-hour support, while certain businesses need round-the-clock support. Your business's requirements will determine the costs, as overnight staffing doesn’t come cheap. Typically, bigger companies that cover different international locations are the ones that require 24/7 support. 

Tools

Different technologies, such as CRM systems, AI automation, and ticketing solutions, are essential to providing efficient support. These tools help enhance customer service but can also contribute to operational costs.  

Language

 Hiring a bilingual or multilingual customer service outsourcing partner comes with added complexity and costs.  

Geographic Location

Arguably, the biggest factor that affects customer service outsourcing support is the service provider’s geographical location. The rates are generally based to accommodate the cost of living and labor costs of the employees, Therefore, services from companies headquartered in North America and Western Europe cost more than East Asia and Eastern Europe. 

2024 Customer Service Outsourcing Pricing by Location

Browse hourly rates for Customer Service Outsourcing companies by popular locations.

CountryAverage Cost per Hour
United States of America<$25
India<$25
United Kingdom<$25
Canada<$25
Australia$25 - $49
Phillippines<$25
Ukraine<$25
Poland<$25
Spain<$25
Mexico<$25

*Countries ranked by Clutch traffic

Outsourcing has been a common practice in the business world for years. However, there are still concerns about hiring a third-party provider from different countries like the Philippines or India. 

Companies in North America, Australia, and Western Europe tend to charge more for their customer service outsourcing than those in Asia and Africa.

The bottom line is that outsourcing from nearby countries or far regions always has pros and cons, but there are no hurdles too high with the right outsourcing partner by your side. 

If you plan to hire a customer service outsourcing company soon, research the advantages and disadvantages of working with a service provider from different locations. Still, the best way to avoid all the cons is by finding the right provider with a proven track record of meeting metrics and providing quality services. 

Look for a Quality-Driven Partner that Fits Your Budget

In today’s incredibly competitive market, excellent customer support services are crucial to providing meaningful customer care and experience. Investing in a qualified team is key to setting long-term success.

The pricing for customer service outsourcing will ultimately depend on your needs. Partnering with the right team is the best way to ensure you get the most value for your money.

Find the best customer outsourcing services on Clutch

Browse Customer Service Outsourcing Firms