Call Center Outsourcing Myth #1 – “Just Butts in Seats”

When it comes to outsourcing, there are many myths that surround our industry and it still surprises me that many of our potential clients still believe in them. One of the most prevalent misconceptions is that many decision makers will just focus on the human resource cost to outsourcing, and not the infrastructure and processes that are required to run an efficient center. They will equate the cost of the solution only with the salary cost of an agent

We’ve had a client say to us, “Why are your solutions priced this way? Isn’t it just butts in seats?” This was surprising to us, not only because our rates are at market or usually lower, but the client did not understand all that elements that went into running a call center.

Here are some factors to consider:

1. Human Resources – Yes, there is the obvious cost of the people taking the call, chats, or emails; but what about the cost of recruiting, selecting, training and retaining a hire? Outsourcing will eliminate the costs associated with hiring and maintaining a viable workforce. An experience call center will manage their hires to minimize attrition and not just hire just anyone to fill their seats.

2. Support staff – Along with the agents, there is a full team of support staff that is needed to keep call running efficiently. In our facilities we have a full team of supervisors (day and night), team managers, QA assessors, workforce management team, IT technicians, and an a full account management team to support our clients. These added costs must be considered as we need to increase the number of people in these roles with every new group of agents we add to the floor.

3. Infrastructure – What about the building? How about common areas and training facilities? Many people forget to include rent and utility costs associated with maintaining a center. By outsourcing, you are sharing these costs with other accounts so it is rolled into one price.

4. Technology & Telephony – The technology in a call center is critical to running efficient and successful operations. Your outsourced partner must make huge investments in the latest call center technology and ensure it is maintained and kept up to date. There are many costs to consider - hardware, software, integration fees, customizations, reporting and analytics, licenses, upgrades, T1 lines, telecom and telephony cost etc. By outsourcing, clients don’t have to worry about the hassle of maintaining the technology required to run at required service levels.

So as we can see, it not just getting “butts in seats”. There is more to it than that. Any other outsourcing myths to share?

- MK