How Much Does Outsourcing Customer Service Cost?
When companies get a quote for outsourced customer service, they usually hold it up against the salary cost they already have. It is the obvious comparison, but it is not an accurate one. Our CCO Bo Andersson on what drives the price, where the savings come from, and what a subscription includes.
When our CCO Bo Andersson sits down with a potential client, the client usually compares the quote to the salary cost they currently have. At a glance, that is the most obvious way to compare it. So while it’s understandable, it's not really an accurate comparison. What drives the cost is much more nuanced, and must be compared to what doing it yourself costs:
"Salaries are just one part. You also need to recruit people, train them, coach them, and have team leaders in place who can make sure the quality is always in check. Then come the phone system, the CRM, the licences, the office space and the IT support. Add sick leave, holidays, quiet weeks, and busy weeks."
- Bo Andersson
According to Bo’s own experience, these are the top five factors that drive the price of outsourcing:
- How large and predictable the volumes are
- How complex the support enquiries are
- Which languages and markets need coverage
- Opening hours, including evenings and weekends
- How much can be automated
The cost question falls alongside all this, but it is rarely the only question that decides it. “What really matters to most companies is the effect the outsourcing will have on the overall cost and efficiency." - Bo Andersson
Where do the savings come from?
The most immediately noticeable effect from outsourcing is efficiency. Support is suddenly handled by specialists who don't have to split their time across other tasks. They handle support only, and they're experts in that: "Just based on that effectiveness: what we've seen is that where we have taken over from an in-house team of comparable size, the efficiency gain alone has typically moved total support cost by around 20 percent." - Bo Andersson
On the topic of saving money by being more effective, we built our own platform with AI automation built in, which is available on its own or as part of an outsourcing team. The AI agents on our platform can handle as much or as little as necessary, and will help reduce time wasted on enquiries that don’t require human thinking. "This is where the cost picture has shifted most, and I see it every day," Bo says. “It means that complex cases go straight to a person, while smaller enquiries like looking up an order status are handled by the AI agent.”
On average, the clients who have adopted this way of working see up to 80 percent of enquiries solved by AI agents, leaving the customers who need a human on their case with less waiting time. "To me, that is modern outsourcing: AI where it works, and people when it matters." - Bo Andersson
What are you actually buying?
When partnering with Atender, you don’t have to outsource everything. You can choose to subscribe to our customer service, and what that subscription package includes is a design question we discuss individually with you:
"You can outsource everything and we can handle that, or we can help you with longer opening hours, or we can be a flexible team for you when you have peaks and be the security net. All the employee handling, the keeping, engaging, motivating and developing, that falls on us. And we are of course specialists in that."
- Bo Andersson
The strongest documented results come from a dedicated setup, where agents learn your product deeply and work as an extension of your team. If your volumes are lower or less predictable, our flex model gives you access to a shared pool of trained agents from as low as 60 effective hours a month, meaning time actually spent on your customers. With all our solutions, we offer to help with human agents, AI support agents, or a hybrid solution.
"For Atender, one of the most important things is that there is no startup cost for outsourced teams, which is actually quite unique. Usually, you'll have expenses for project management, meeting costs, pre-studies, you name it. We do not have that."
- Bo Andersson
The commitment runs on a monthly basis, though longer terms are also an option. Coverage can extend from "minimum hours per month" to "always on" whenever and wherever your end customers need it.
So... what does outsourcing customer service actually cost?
You already know your current cost base, which is the only figure this calculation needs.
"If you are wondering what outsourcing would cost for your business, send me a message. I am happy to take an informal chat and go through the numbers with you."
- Bo Andersson