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Toll Free: 1 800 371 6224 | US: +1 650 204 3191 | UK: +44 8082 803 175 | AU: +61 1800 247 724 | Philippine Local No: 63-2-83966000

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How Much Does Inbound Call Center Cost

By Lorraine O.

Updated on May 31, 2024

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Facing customer retention challenges, especially when you’re still getting the hang of things, is crucial. So, what’s the smart move for inexperienced businesses? Outsourcing their inbound call center services.

But the question is, how much are you willing to spend for better customer service? Knowing the inbound call center cost allows your business to budget planning before you delegate some of your business operations to a call center.

Keep reading to know more about the inbound call center costs and tips on managing it efficiently.


Inbound Call Center Costs in the Philippines

Labor-related costs account for an average of 46% of the contact center budget in the Philippines. 20% of the budget is allocated toward technological costs, while 19% goes for telecommunications.

Inbound call center costs are calculated depending on these three call center pricing:

Shared Inbound: This type is where agents often take calls on behalf of different clients. The client only pays on a per-minute according to the amount of time spent on each call.

This is an economical method of outsourcing as businesses can minimize their spending on overhead costs such as hiring, training, and managing. Inbound call center cost per minute may range from $.35 to $.55 to $.75 to $1.25 per minute in the US and Canada.

Dedicated: For this kind of service, a group of agents handles calls for only one client. This service is often priced per hour. For regular agencies, these fees typically range from $3–$15 abroad and $25–$35 in the US and Canada.

Monthly: BPO companies in the Philippines often offer this type of pricing. Monthly payments give companies a predictable and transparent cost structure suitable for businesses looking for stability and consistency in their outsourced expenses.

Different Call Center Cost

Different expenses associated with an inbound call center must be considered if you plan to outsource it to a third-party service provider. These expenses are divided into three categories: fixed, variable, and overhead.

1. Fixed Costs

Fix costs remain constant regardless of the number of agents or calls received. These consist of the price of contracts, licenses, software, hardware, equipment, and infrastructure.

For instance, the price of buying or renting a call center location, the cost of buying computers, phones, headsets, and other hardware, the price of subscribing to cloud-based call center software, and the cost of negotiating contracts with outsourcing companies or telecommunications providers.

2. Variable Costs

The quantity of calls or the number of agents affects these expenses. These include workforce expenses, training, incentives, and quality control.

These expenses depend on the demand and activity; thus, this month’s expenditures may differ for the next couple of months.

3. Overhead Costs

The expenses essential to the business overall but not directly connected to the operation of the call center are known as overhead costs.

These cover the price of managing, marketing, legal, accounting, and other support functions in addition to administration and additional costs.

For example, the compensation of managers and supervisors, marketing and publicizing the call center services, adhering to legal requirements, and creating financial statements and tax returns.

Tips To Manage the Inbound Call Center Cost

Controlling the inbound call center costs without compromising work quality is essential for organizations that balance efficient operations and high-quality customer service. To effectively manage the costs, here are some of the tips to consider:

  • Optimize Hiring and Training of Agents. Hire agents with matching skills and with the right attitude and personality. Competent agents are more likely to address clients’ concerns on the first call, which decreases follow-up calls and frees up agents to handle more calls.
  • Implement Self-Service Options. Provide consumers with self-service alternatives, like IVR (Interactive Voice Response), chatbots, FAQs, and videos, to handle their common and basic questions without human assistance. This may contribute to a decrease in the number of calls and interactions, which may decrease fixed and variable costs while improving customer convenience.
  • Utilize the Power of Artificial Intelligence. Provide agents access to AI-powered resources like workflows, knowledge bases, and visual aids to guide them through the resolution process. This can decrease variable costs by lowering handle times, enhancing first-call resolution, and improving quality assurance.
  • Optimize Staffing and Scheduling. Using workforce management software and analytics, you can make staffing and scheduling of agents based on forecasted call volume and demand. Aim to avoid overstaffing or understaffing during off-peak hours and ensure there are enough agents to handle peak times to lower call abandonment rates and improve service quality.
  • Measure and Monitor Performance. Using metrics and KPIs like cost per call, service level, average speed of answer, average handle time, etc., assess performance to identify strengths and weaknesses. Businesses can streamline operations and make informed decisions to reduce costs and improve overall customer satisfaction by strategically leveraging metrics and KPIs toward a customer-centric call center environment.

Magellan Solutions: Where Quality Meets Affordable Inbound Call Center Services

Whether you need customer service, technical support, order processing, appointment scheduling, or any other inbound call center service, Magellan Solutions can deliver it at a competitive price.

We aim to help you save time and money while growing your business. With over 18 years of experience and expertise, we have a track record of excellence and reliability.

So, if you’re looking for affordable inbound call center services to handle your customer needs professionally, call us today for a quote and free consultation.

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      How Much Does Inbound Call Center Cost

      Lorraine O.

      Lorraine, the creative force behind Magellan Solutions' content, is a seasoned writer with years of experience in the outsourcing industry. She stays up-to-date on new global outsourcing trends and ideas, bringing a fresh perspective to her writing. As a strategic collaborator, she enjoys turning complex outsourcing topics into clear, engaging stories that are easy to understand.

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