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The Role of Pricing in Outsourcing your Call Center

Thursday, September 3rd, 2009

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Outsourcing a company’s call center or business processes cannot be discounted as anything other than an important aspect of modern business. Not only can it help a company acquire the latest technology and best business practices, it can also help you effectively reach your target market through outbound sales or help you deliver optimum service to your customers through an inbound customer service call center. But probably the most important benefit that a company expects from outsourcing is its ability to help the company save on production costs.

Most outsourcing call center companies are located in countries where English is taught as a second language like in the Philippines. Most of these companies are U.S. or U.K. based, like Convergys or IBM Daksh, therefore, the practices applied are those perfectly applicable in the business setting of companies located in Europe and the United States.

The cost of outsourcing a company’s call center or BPO process has consequently declined with more and more outsourcing companies being put up. In line with this, the need for more efficient business practices became imperative. This is the reason why some outsourcing companies also provide services in terms of business processes like procurement, accounting, payroll administration, and marketing, to name a few. There are also others who offer dedicated virtual assistants to tend to your business needs. The growth of the scope of this industry just proved the viability and effectiveness of outsourcing. In the Philippines, for instance, call center companies have boomed in business areas like Makati and Ortigas where they cater to both local and international clients.

If your company is planning on outsourcing your call center or any of the business processes mentioned above, cost and pricing is vital. Most of the time, the cost of operations depends on the type of service that you need. Majority of the cost that you will incur will be on agent fees, whether it is on a per-minute or per-hour fee. Requesting a dedicated team with more experienced, more specialized agents will incur higher costs on the vendor, and this will, in turn, translate to a higher expense for you. This is beneficial for companies with complex business processes that need a more knowledgeable production base. Typically, the cost of having a dedicated team ranges from around $10 to $25 for most call center companies.

On the other hand, you can also opt for shared agents or blended teams, wherein a group of agents are assigned to handle concerns for different vendors. This is a viable option for some who are just trying out outsourcing since the cost is only typically around $0.50 to $1.00 per minute.

Aside from production costs, you may also be asked to pay for other fees such as for set-up, training, programming or reporting. These charges may be on a per-hour or per-minute charge, or you may just be charged a specific monthly fee. Monthly fees may look promising to some companies but if your business fluctuates for several months, paying a monthly fee may not be that viable of an option.

Due to the cost that you may incur with outsourcing your business, it is best that you consult with the vendor all the charges that they impose on clients. In this way, you can effectively draft your SLA or Service Level Agreement. You are also then assured that the output they produce is directly proportional to their cost. In addition, you can efficiently plan out discounts or penalties in case the production team fails to reach the required SLA.

Although pricing in terms of outsourcing may seem to be complex, knowing these things firsthand is very effective in ensuring that future business dealings work perfectly. Knowing these possible charges is sure to help you in selecting the best business partner to handle your outsourced call center or business process.

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