Outsourcing customer service to an external contact center provider can deliver numerous advantages. With their specialized expertise, industry knowledge, and advanced infrastructure, contact center companies are capable of providing top-notch customer support. Additionally, an outsourcing firm offers the flexibility and scalability necessary to adapt customer service to changing demands and workloads.
When selecting an outsourcing partner, it is essential to understand the cost structure of such services and the factors that influence pricing. The price is shaped by various elements, including the employment model of the agents and the type of services offered.
In this article, we will explore these factors in depth, offering insights into what to consider when evaluating the pricing of outsourcing providers, what to expect in service rates, and how to effectively manage costs.
The form of employment and the incentive systems in place significantly impact the final cost of outsourcing services. In Poland, the most common forms of employment are employment contracts (umowa o pracę) and order contract (umowa zlecenie). Each has its pros and cons, and the choice of the appropriate type should be based on the specific needs of the projects being carried out.
An employment contract offers greater stability and job security but does not provide the same level of flexibility as a mandate contract. The latter allows for adjusting schedules to the current project needs and enables quick responses to increasing or decreasing project scale. However, it requires training a team that is 20-25% larger to ensure this flexibility and maintain high service level (SL) indicators.
Equally important is the incentive system, which motivates agentss and encourages them to achieve better results. It is important to remember, though, that while it increases motivation and KPI achievements, it also raises the overall cost of the project.
Below is a comparison of the employment costs associated with mandate contracts (umowa zlecenie) and full-time employment contracts (umowa o pracę), considering the following assumptions:
The base rate covers tasks that do not require specialized knowledge or education. Depending on the industry and project needs, additional skills may be necessary.
For instance, helpdesk services may require specialized technical knowledge, cosmetic hotlines may need advice from dermatologists, and sales-oriented projects may demand specific agents skills and consistently high motivation.
The language of service plays a significant role in the costs of contact center projects. It requires additional investments in recruitment, training, maintaining operational flexibility, and quality control. Additionally, individuals proficient in foreign languages often expect higher compensation.
Compensation varies based on the language used and the level of proficiency. Significantly higher costs are associated with niche languages from smaller or more distant countries, which are less commonly taught and often in high demand in Poland.
The most popular languages, such as English and Ukrainian, typically cost only a few percent more than services provided in Polish. However, other language groups can increase costs by several dozen percent.
Working hours are also a critical factor—weekend shifts, holiday work, and night shifts may require additional financial compensation.
Contact center operations are typically located in major cities, providing easier access to a large pool of candidates with diverse skills.
Offices located in strategic, well-connected areas facilitate easier recruitment and contribute to higher employee satisfaction. However, location does not significantly impact the pricing of contact center services, even when considering remote work.
While remote work may seem to lower office space costs, it requires additional resources for support and monitoring. Outsourcing companies often maintain physical offices to provide a workspace for employees who do not meet performance standards or encounter quality issues.
One indirect factor is the necessity of on-site work, which can currently limit the availability of potential candidates. Additionally, the cost of on-site training increases due to travel requirements.
These costs may arise from the purchase of additional equipment, such as hardware, software, Microsoft Office packages, AI-based solutions, dedicated telecommunication lines, specialized office space, and security measures like office monitoring cameras.
When outsourcing customer service to a contact center, clients have the right to expect a comprehensive service that meets their needs and delivers tangible benefits.
Key elements that contribute to a successful partnership include:
One common method of cost optimization is the decision to hire primarily or exclusively students, as their hourly wages are typically lower for employers compared to those of experienced agentss. However, there are several important factors to consider:
In conclusion, hiring students can result in cost savings and provide flexibility, but it also carries risks such as high turnover, lower availability, and increased training costs. On the other hand, employing individuals with full availability offers greater security, stability, and often higher customer service quality.
A recommended approach is a mixed model that combines the advantages of both solutions. It is important to carefully analyze the specific needs of the project and, if possible, determine the appropriate balance to maximize benefits and minimize risks.
Implementing AI-powered bots can significantly contribute to cost optimization in contact centers. These solutions offer numerous benefits that lead to savings and increased efficiency.
While AI-driven contact center support offers a range of benefits, it’s important to remember that implementing bots also comes with certain challenges.
The key to success lies in finding the right balance between automation and human customer service. A hybrid model that combines AI bots with a traditional team of agents tends to deliver optimal performance, high quality, and customer satisfaction.
The job market is evolving rapidly, and more companies are moving away from traditional office setups in favor of remote work. While this model can significantly reduce costs related to renting and maintaining office space, it also brings various risks, including potential declines in service quality, such as reduced team motivation, difficulty maintaining focus during extended training sessions, lack of face-to-face communication, and technical issues.
The hybrid work model, which combines the flexibility of remote work with the advantages of working in an office, seems to be the optimal approach. It offers the following benefits:
Reducing costs in a contact center is a goal for many companies, but it should not come at the expense of service quality. The key to success lies in finding the right balance between cost savings and maintaining high-quality customer service. Investing in service quality and customer experience builds a positive brand reputation and contributes to long-term success, even with a limited budget. The best optimization strategy depends on the specific project, industry, and individual needs of the company.
Author: Ewa Depta, CSO & Board Member, OEX VCC.