The customer service outsourcing cost can vary widely depending on several factors, including the outsourcing provider, the level of service required, the complexity of tasks, the volume of calls, and the geographic location. 

However, even a very high level of customer service is often more affordable than you may realize. 

Let’s break down the costs by geographic area, and service type and discuss a few factors that can increase costs or save some cash.  

The customer service outsourcing cost depends on several factors, such as the services you need, the size of your business, and the geographic location.

What Is the Average Cost for Hiring an Outsourcing Customer Service?

Several geographical locations are often considered cost-effective for outsourcing customer service due to lower labor costs. 

The following are average hourly rates based on geographical location. Keep in mind that the outsourcing landscape is dynamic, and conditions can change.

  • North America: $ 26 – $ 52 per hour
  • Western Europe: $ 20 – $ 46 per hour
  • Eastern Europe: $ 7 – $ 26 per hour
  • Africa/Middle East: $ 8 – $ 20 per hour
  • South/Central America: $ 8 – $ 17 per hour 
  • India:$ 7 – $ 17 per hour 
  • South-East Asia: $ 4 – $ 16 per hour

What Is The Average Cost of Outsourcing Services Depending on The Service Type?

Different types of services require varying levels of expertise, technology, and resources, influencing the overall cost structure

The rates above generally apply to inbound customer service, telesales, and the different variations of customer acquisition and customer care services.

  • Inbound Customer Service: Phone, Live Chat, Email, Social Media: $10/ hour

This is operating a live customer service chat with your customers. Live chat provides more options than an AI chatbot, but the two services may be used together. 

  • Interactive Voice Response (IVR):

An IVR or Conversational AI tool is typically produced and priced on an individual case basis. Pricing typically has a one-time setup fee, monthly recurring charges based on consumption, and may have monthly minimum charges. Pricing depends on the simplicity or complexity of the solution if there is information capture and transmission, and the level of integration with other systems that are needed.   

  • AI Chat Bot and Voice Bot:  

Similar to IVR and Conversational AI, Chatbots and Voicebots are priced out depending on complexity. Their model typically contains a one-time setup fee, monthly consumption-based charges, and possibly monthly minimums. ChatGPT and Large Language Model technologies are more readily available and the cost of these is decreasing.

Factors That Impact Outsourcing Expenses

It’s challenging to provide a specific average customer service outsourcing cost, as the range can be substantial. The following factors can contribute to your overall outsourcing fees.

  1. Size and Scale: The number of resources required influences price. Many providers are able to offer discounts for larger volumes.
  2. Profile and Experience Required of Human Team: The greater the depth of experience, education, and specialty of the team will typically increase pricing. Inversely the more general, less experience required of the human team, will enable the pricing to drop. Language skills, education degrees, certifications, or specific training can also increase the cost of hiring.
  3. Outsourcing Destination: The location of the outsourcing provider can significantly impact customer service outsourcing costs. As listed above, offshore outsourcing destinations, such as those in Asia or Eastern Europe, typically offer lower labor costs compared to onshore or nearshore providers.
  4. Additional Services: Some outsourcing providers offer additional services, such as analytics, reporting, or multichannel support. These supplementary services can impact overall costs. 

Opt for Cost-Effective Outsourcing Services 

While customer service outsourcing cost is a significant factor when outsourcing your business, be sure to consider other factors such as language proficiency, cultural affinity, time zone compatibility, and the availability of a skilled and trainable workforce. 

Before making any decisions, evaluate your business needs and assess the overall suitability of an outsourcing destination for your customer service operations.