What’s the true cost of customer service?

In-house vs outsourced vs offshore – which delivers the most value in terms of quality AND savings?

Here we break it down to the average cost per customer service agent in each scenario.

“These days, onshoring may not deliver the obvious cost savings of the past, but delivers a whole lot more when it comes to experience, skills and future-proof technology. But offshoring is the clear winner when it comes to the full package – all that and the savings too.”

– Will Brown, Director of Sales Enablement, Sigma Connected

Exceptional customer service matters more now than ever, no doubt about it. But achieving ‘exceptional’ isn’t easy – or cheap. Many companies are struggling to keep costs down while still giving customers top-notch experiences. That’s when outsourcing customer service starts to look like a tempting option. 

But how does the cost of an in-house vs an outsourced customer advisor weigh up?  

When looking at the expense of an in-house versus outsourced customer advisor, it’s common for businesses to solely focus on the hourly rate of an in-house advisor and compare it directly to the quoted cost of an outsourced one. However, unless you consider the entire package, not just the salary, outsourcing options might not seem any more budget-friendly, and often more expensive, than keeping things in house. 

The true cost of a customer advisor in the UK  

While salary is a clear consideration, there are numerous other expenses that tend to slip under the radar. Your customer advisor requires a computer, telephone equipment, a chair, and a designated spot in your workspace. They need the contact centre software, not to mention the upgrades and all the new technology necessary to keep up with CX expectations and the competition. Then there’s the expense of hiring that agent, covering their pension, benefits, training and holiday pay. There’s inevitable attrition and the constant shuffle of staff, followed by more recruitment and training. The list goes on and on… 

So now, when you break that fuller picture back down to the hourly cost of UK in-house vs UK outsourced advisor, they are pretty much identical. Which, when you think about it, is hardly a surprise when onshoring. You’re paying for the same equipment, employee costs, services, etc, in the same country. And it’s also only right that, with the skills and expertise required, we should pay well for something so important as great customer service – and the people that make it happen. 

But again, that’s still not the whole story. An outsourcer that specialises in customer services brings a lot more to the table.   

The hidden benefits of outsourcing customer services to a specialist   

When you outsource your customer services you get more than a team of customer service agents. With Sigma Connected, for example, you get access to a highly trained, highly experienced team, with industry knowledge and specialist skills. And this team is constantly upskilled.  

You get management teams with years of CX experience under their belts, the latest CX technology with people who know how to get the best out of it and a powerful data analytics and insight service. All that and more is built in as part of the service. We’re particularly experienced at the ‘tougher’ aspects of customer service, such as collections and complaints. We focus on a human-centric, empathetic approach and are skilled in supporting vulnerable customers.  

And outsourcing customer service can be particularly beneficial in industries where it’s not perhaps a central feature – in the utilities sector, for example. They’re great at what they do, but their reputation for delivering great customer experiences to match is going to take a lot of hard work and investment to build.  

But, when you offshore, you get all that AND big savings 

If you opt for our CX services based in in Cape Town, South Africa, our contact centre operations are a mirror image of our ones in the UK, and with the added benefit of lower operating costs (up to 65%).  

But that’s not all. South Africa brings its own unique advantages, with its reputation for warm and empathetic customer service and a good cultural fit. You get the same skills and experience, same leadership, security and rigorous compliance, plus all of those added extras – from tech to analytics – that are just part of our service. And you can rest assured that we are a responsible employer. We make sure our customer service agents feel supported and rewarded. In Cape Town we’re known for it, so we attract – and keep – the best people. People who love their jobs and know how to deliver exceptional customer experiences. That way, our clients’ customers receive exceptional customer experiences – but at a fraction of the cost.  

Want to find out more?