Cookie Preference Centre

Your Privacy
Strictly Necessary Cookies
Performance Cookies
Functional Cookies
Targeting Cookies

Your Privacy

When you visit any web site, it may store or retrieve information on your browser, mostly in the form of cookies. This information might be about you, your preferences, your device or used to make the site work as you expect it to. The information does not usually identify you directly, but it can give you a more personalized web experience. You can choose not to allow some types of cookies. Click on the different category headings to find out more and change our default settings. However, you should know that blocking some types of cookies may impact your experience on the site and the services we are able to offer.

Strictly Necessary Cookies

These cookies are necessary for the website to function and cannot be switched off in our systems. They are usually only set in response to actions made by you which amount to a request for services, such as setting your privacy preferences, logging in or filling in forms. You can set your browser to block or alert you about these cookies, but some parts of the site may not work then.

Cookies used

Performance Cookies

These cookies allow us to count visits and traffic sources, so we can measure and improve the performance of our site. They help us know which pages are the most and least popular and see how visitors move around the site. All information these cookies collect is aggregated and therefore anonymous. If you do not allow these cookies, we will not know when you have visited our site.

Cookies used

Google Analytics

Functional Cookies

These cookies allow the provision of enhance functionality and personalization, such as videos and live chats. They may be set by us or by third party providers whose services we have added to our pages. If you do not allow these cookies, then some or all of these functionalities may not function properly.

Cookies used




Targeting Cookies

These cookies are set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant ads on other sites. They work by uniquely identifying your browser and device. If you do not allow these cookies, you will not experience our targeted advertising across different websites.

Cookies used


This site uses cookies and other tracking technologies to assist with navigation and your ability to provide feedback, analyse your use of our products and services, assist with our promotional and marketing efforts, and provide content from third parties


Here are some suggested Connections for you! - Log in to start networking.

Evaluating Outsourcing Customer Service Cost: Is it Worth It? - The Connection - Blog

Evaluating Outsourcing Customer Service Cost: Is it Worth It?

Most companies perform some kind of customer service, whether that involves handling and processing orders, back-end support, or both. In many companies, the ongoing debate is: should we handle the process internally, or would outsourcing customer support be more cost effective?

Many companies view this question as one of cash flow — how much (more) is outsourcing than managing customer support in-house. But evaluating and comparing these options is more complex than simply cash flow. Here are some other key factors:

Labor Costs (and sometimes the only cost that is considered)

We all get that there is a differential in base wage from internal vs. outsource, but internally we also have the somewhat hidden costs that include benefits, sick pay, vacations, holidays, and the training and management of the agents. Then we need to figure in the cost of recruiting associated with the original hire and then the recruiting, rehiring, retraining costs associated with attrition. And now that we mention attrition, are we factoring in all of those costs?

Other Hard Costs

Companies that operate in-house call centers often do not realize, are not aware of, or do not include all the hard costs, so they do not have a complete picture of what they are spending to do it themselves. Therefore, they do not realize the true cost of insourcing.

This is one reason companies come to us. We help them see what other costs are involved that they may not have considered. Costs often overlooked include the space to house the agents, furniture, equipment, managers, trainers, Quality Assurance personnel, investments in technology for a voice platform, voice analytics, reporting platform, etc.

Opportunity Cost

It is also important to look beyond direct expenses.  There are MANY opportunity costs associated with running your own internal contact center including items such as:

  • What if you’re out of space and considering an extra 5,000 sq. ft. on the floor above? How much square footage are you utilizing to house CSRs?

  • Are you factoring in all the overhead associated with an additional X employees?  Perhaps the CSRs and all the associated supervisory and management personnel are putting you over the line for certain HR regulations. And if it’s not HR, it’s any number of administrative costs associated with having an additional team of employees.

  • Do you have the critical mass to scale up all the technology needed to successfully operate a 21st-century contact center? There are a lot of systems required — telephony, workforce, HR, payroll, quality assurance, etc.

  • What is the ongoing capital investment for technology, security, reporting, etc? Is it possible that you could wind up limiting investment in equipment, R&D, etc., for your core business because of the ongoing investment in a call center?

  • And what is the opportunity cost if you operate your own center and then don’t keep it current? How will that affect your ability to perform the customer service and support function at the level that you and management determines is necessary to support your customers.

And then there is the human side — how you are utilizing your people? It is one thing if you have 50,000 employees and you need an extra 20 people for the call center. But what if you have a 100-person company and you need 50 people for your call center? Or you have just 50 regular staffers but need 100 to handle customer service?

If your company is virtual — a very small staff using cloud-based services — operating a call center requires that either you shift your focus or hire a new set of people to ramp up a quality contact center. It gets worse if call center needs are likely to fluctuate for seasonality or other reasons. Now, the tail is clearly wagging the dog. With all the systems and support required, you are now in the call center business instead of focusing on your company’s core offering.


Is outsourcing customer service cost worth it? Well, the contact center is on the front line, dealing directly with your customers every day. You do not want to cut corners and deliver a bad product to your customers as their first impression, or any impression.

If your internal call center is already a solid operation, then the cost may be worth it. Otherwise, spending a little more to outsource to ensure customer service excellence will be money well spent, and in reality, once you have all the costs at your fingertips, it may really not cost any more at all.


Publish Date: January 29, 2019

2023 Buyers Guide SaaS Solutions


CrankWheel Screen Sharing
CrankWheel is an easy and simple screen sharing solution, made for the needs of salespeople and customer service agents.

CrankWheel complements voice calls by adding visuals to ongoing calls. There is no need to get the customer off the phone, onto another platform.

Agents share their screens by directing clients to a link that can be sent via SMS, email or simply spelled out.

The client can enter on any device, mobile, desktop or tablet and enters the session instantly. There is no registration or download required by the client.

- Screen sharing
- Agents can hand control over to the client
- Warm lead capture widget that alerts the sales team instantly of an intere...
(read more)


We help you automate your QA program using artificial intelligence. Why just listen to 6 calls when you can listen to 100% of your calls that too without adding any additional resources.

We empower QAs to get to the right calls, find coaching and training opportunities and improve overall Customer experience.

View more from The Connection

Recent Blog Posts:
Healthcare Call Center Best Practices: Work with a Qualified Call CenterMarch 12, 2020
Interpreting a Call Center Metrics Dashboard with The Connection®February 13, 2020
Benefits of Outsourcing Your Appointment Setting ServicesJanuary 30, 2020
Customer Service Trends to Look Out for in 2020January 16, 2020
Causes of Inaccurate Call Center Workforce Forecasting & How To Avoid ThemNovember 21, 2019
Call Center Staffing: Best Practices for an Outstanding TeamOctober 31, 2019
It's All in the Numbers: Your Ultimate Guide to Call Center MetricsOctober 17, 2019
Customer Satisfaction Metrics: What You Should Know About CSAT and NPSMay 30, 2019
How to Identify the Best Customer Service Assessment Test for Your Call CenterMarch 28, 2019
Call Center Training Tips for Managing New HiresMarch 7, 2019

About us - in 60 seconds!

Submit Event

Upcoming Events

Europe's leading call & contact center event is now arriving at the U.S., showcasing the latest and most effective technologies, strategies and advancements to industry professionals who are looking to excel in the customer engagement world!

Disco... Read More...

Newsletter Registration

Please check to agree to be placed on the eNewsletter mailing list.

Latest Americas Newsletter
both ids empty
session userid =
session UserTempID =
session adminlevel =
session blnTempHelpChatShow =
session cookie set = True
session page-view-total = 1
session page-view-total = 1
applicaiton blnAwardsClosed =
session blnCompletedAwardInterestPopup =
session blnCheckNewsletterInterestPopup =
session blnCompletedNewsletterInterestPopup =