Monday, August 9, 2010

Part 3 - The Other Stuff

In the last of the 3 part series on the real cost of your insourcing customer care we want to make sure all of the other expense related items are taken into consideration that eventually add to the overall cost. We have already walked through that the real cost of agent wages is closer to $20 and that once you account for off phone activity and other unproductive time the real cost comes closer to $30.

Additional items to consider when trying to compare internal costs to external costs include the following:

- Supervision expense - depending on ratios this can be anywhere from $3.50 - $7.00 per productive hour

- Operating Expenses such as rent, utilities, supplies, etc. all need to be included when comparing internal and external rates. Depending upon the location of the operation this could be an additional $5-7 per production hour.

When all is said and done the cost of insourcing can be around $40-50 range compared to most domestic outsources that will charge a base rate ranging between $25-$30 depending upon volume and program complexity.

Now the key is finding the right outsourcer.