//Cost Comparison: Call Center Outsourcing Vs. Insourcing

Cost Comparison: Call Center Outsourcing Vs. Insourcing

Call center services have proven to be one of the most sought out outsourcing services by companies around the world. It delivers a number of benefits such as 24/7 customer availability, increased customer satisfaction, an experienced team among many. But did you know that call center agents can also be insourced?

You maybe wondering why now which type of sourcing cuts down more cost.  Before we answer that, let us first understand the difference between outsourcing and insourcing.

In some ways, insourcing is similar to outsourcing. The work may remain contractual and companies may hire another company to do noncore functions that require different sets of skills and expertise. What separates it from outsourcing is that insourcing is purely domestic.

Outsourcing

Outsourcing is a common practice by industries that involve using or contracting to an outside company to perform noncore functions for their business. Businesses can outsource domestically or decide to search overseas (offshore companies). Common outsourcing services are call centers, Tech and IT support and customer services.

Insourcing

Call center agents who are outsourced work offshore. In the case of insourcing, the agents work inside the company. With this, business owners and managers would have a more hands-on approach in observing and managing the agents.

Cost Comparison: Which of the two is more cost-efficient?

As mentioned, insourced agents do their duties and responsibilities in the facilities of the client who bought their services. With this, however, clients won’t only pay for the labor but also the equipment for each of his hired agents such as the space, rent, chairs, computers, and headphones. Additionally, clients have to be ready to pay a massive contingency fund in case of unexpected crisis.

It’s a different story for outsourced agents.

In the field of outsourcing, clients only have to pay for the labor provided by the agents. Everything from training, facilities, equipment, office space, and rent are all paid by their employer.  So it’s no secret why 65% of companies who have outsourced in the past are most likely to continue to do so.

The Verdict

If you put a cost comparison between the two types of sourcing, we can conclude that outsourcing saves more. However, aside from just choosing based on how much you can save,  it is also important for an industry to go for a company that can provide a skilled team. Something Forward BPO can do.

Forward BPO is an outsourcing company in Australia that offers various outsourcing services such as virtual assistant services, back office support, call center outsourcing, after hours call answering services and more. Contact us to know how we can move your company forward.

By |2019-07-18T02:41:42+00:00June 3rd, 2019|Categories: Blog|0 Comments

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