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cost to outsource customer service

How Much Does It Really Cost to Outsource Customer Service? (2025 Breakdown)

Is your customer support team drowning in tickets? Are you missing calls after hours, or watching your payroll costs balloon as you try to scale?

If so, you’re not alone. Many growing businesses hit a point where building an in-house team is too slow, too expensive, or simply impractical. This is where the powerful strategy of outsourcing customer service comes in.

But one question stops every business owner: “What is the real cost?”

Googling “outsource customer service pricing” can give you vague numbers, but a true understanding requires a breakdown. This article will give you a transparent, no-fluff cost analysis for 2025 and equip you with the framework to evaluate if it’s the right move for you.

Why Businesses Choose to Outsource Customer Service

Before we dive into the numbers, let’s clarify the motivation. While how to reduce customer service costs is a common search, the best outcomes come from viewing outsourcing as a strategic upgrade, not just a cost-cutting exercise.

The key benefits include:

  • 24/7 Customer Support: Never miss a query again, regardless of time zone.
  • Rapid Scalability: Handle seasonal spikes or rapid growth without a stressful hiring cycle.
  • Access to Expert Talent: Tap into a pool of trained professionals who know how to measure customer satisfaction (CSAT), handle difficult situations, and use modern support software.

The Real Cost Breakdown: In-House vs. Outsourced

To understand the value, you must first understand the true fully-loaded cost of an in-house employee. It’s far more than just their salary.

In-House Agent (Fully-Loaded Cost Estimate)
Let’s assume a base salary of $45,000/year for a US-based agent.

Cost FactorEstimated Annual CostNotes
Base Salary$45,000
Benefits (Health, 401k, etc.)$13,500~30% of salary
Software & Tools (CRM, Phone)$2,400$200/month
Office Space, Equipment, Utilities$5,000
Management & HR Overhead$6,000
Total Estimated Annual Cost$71,900
Monthly Cost Per Agent~$5,990

The Outsourced Customer Service Model


When you hire remote customer service agents through a BPO like Techsho, you typically pay a simple, all-inclusive monthly per-agent fee. This covers everything: salary, benefits, training, hardware, software, management, and office space.

Rates vary based on complexity, experience required, and location (nearshore outsourcing in Brazil or offshore outsourcing in Pakistan are often sweet spots for quality and value).

  • Basic Email/Chat Support: $9 – $20 per hour
  • Multichannel Support (Phone, Email, Chat): $12 – $28 per hour
  • Technical or High-Touch Customer Support: $29 – $40+ per hour

Let’s calculate using a rate of $10/hour for a full-time customer service/multichannel support agent (160 hours/month):
$10 x 160 hours = $1,600 per month, per agent.

Outsourcing can offer significant savings (often 30-50%) while also providing the benefits of scalability and 24/7 coverage.

4 Factors That Impact Your Final Cost

  1. Dedicated Team vs. Shared Agents: A dedicated remote team works exclusively for you, embodies your brand, and can be trained on complex products. A shared agent pool is more affordable but may handle multiple accounts. For quality and brand alignment, dedicated is often worth the investment.
  2. Experience and Skillset: Supporting a SaaS product requires different skills than answering e-commerce FAQs. More complex support justifies a higher rate for more qualified agents.
  3. Channels Supported: Offering omnichannel support (phone, email, social media, live chat) requires more sophisticated systems and training than email-only.
  4. Management and Reporting: The best BPO partners don’t just provide agents; they provide performance data. Ensure your customer support outsourcing package includes regular reports on key metrics like CSAT, First Response Time (FRT), and Average Resolution Time.
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Is Outsourcing Customer Service Right For You?

Outsourcing isn’t a magic bullet. It’s a strategic decision. Ask yourself these questions:

  • Are your customer support costs inhibiting growth? (preventing you from hiring more salespeople?)
  • Do you have trouble hiring and retaining quality local talent?
  • Are you struggling to provide support outside of standard 9-5 hours?
  • Do you have a documented process for handling common support issues?

If you answered “yes” to most of these, then exploring a dedicated call center team could be a transformative move for your business.

Your Next Step: How to Evaluate a Partner

Understanding how much does it cost to outsource customer service is the first step. The next, and most important, is choosing the right partner. Look for a BPO that acts as an extension of your team, not just a vendor.

They should be eager to understand your brand voice, your customers, and your business goals. Ask about their training processes, their quality assurance (QA) framework, and the technology they use.

Curious about what that looks like in practice?

We believe in transparency and education first. If you’re conducting your own cost-benefit analysis, we want to help you get it right. Click to receive a FREE Customer Service ROI Calculator.

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