How Much Does It Cost to Outsource Customer Service?

Knowing the cost and ROI is essential when it comes to finding the right next steps for your business. Whether branching into a new service line or outsourcing customer service, you want to know that your investment will pay off in the long run.  


With customers now being in constant communication with their brands, from social media to call handling complaints, managing your customer service is essential for business growth and development. But for many businesses who don’t have the resources in-house to fulfil their customer service commitments, how much does it cost to outsource customer service? 


How much does outsourcing customer service cost?

Working with an internal customer service team means finding the time and money to invest in training, staffing, and equipment. This can often result in businesses spending more than expected to provide adequate customer service. Whereas outsourcing customer service shows clear costs per month, giving you a standard rate for the work you need. 


The industry average cost for outsourcing customer service can lie between £24-39 per hour per agent for the UK. However, this can largely depend on the services you need, whether you’re opting for a 37.5- or 40-hour option, and whether you’re hiring in-country agents or off-shoring your customer service, which can often be a cheaper alternative. This should cover your inbound call service and management fees but might not consider fluctuations in the market, call volume, or multichannel support.  


Here at Kura, we aim to provide you with the best customer service outsourcing that you can get. We believe in offering a bespoke, tailored customer service strategy which means that we can personalise your services within your chosen budget. Our highly trained customer service advisors work around the clock to give your customers the best experience. 



Is outsourcing cheaper than in-house customer service?

In-house customer service experience means you have better control over how much you would like to spend, but this doesn’t always satisfy your customers, and it can often result in money being spent on training rather than problem solving. By outsourcing your customer service, you can ensure all your investment is going towards your customers and their after-care experience.  


When deciding if outsourcing customer service is right for you, you will want to take your customers into consideration, and whether you have the right resources in-house to provide the top-quality experience that many customers now expect.  


Depending on the depth of customer service you need, outsourcing prices can adjust to fit your business needs. And not only can it help save you money through a pre-existing infrastructure, which can readily support customer communications, but it can also mean less customer dissatisfaction.  


How does outsourcing customer service save your business money? 


When deciding how to handle customer service, you will be choosing between working in-house or opting for a trusted outsourcing partner to manage the customer experience on your behalf.  


For many businesses, outsourcing might be a necessity due to the resources they have in-house, but did you know outsourcing could help save your business money, too? By investing in external customer service support, you can benefit from:  


Less money spent on developing internally

Customer service in-house can involve money spent on sourcing the right staff, training, and equipment for the role. Whether you’re taking inbound calls or setting up an omnichannel support network, you will need to ensure you’ve got the best technology available to handle the influx of calls and the customer data needed to answer queries and complaints.  


By outsourcing your customer service, the equipment and training needed will already be in place. Opting for a trusted partner means you won’t struggle to get your customer service off the ground, with the right infrastructure already in place to manage the communications and call volume you need.  


Employee costs

Customer service in-house will involve increasing employee costs to have the right training in place. It might also require additional funds to be placed into recruitment. But with an outsourcing company, there is no need to find the right staff. Our highly trained staff know how to handle decision making, problem solving, and sensitive subjects.  


Here at Kura, we pride ourselves on developing people first. As our advisors are already trained, you can ensure your money is focused on giving back to your customers rather than spending time and energy on further training. We pride ourselves on developing our advisors, that is why we dedicate 750,000 hours a year to training alone. We believe that it is our people that make a difference, and our company culture and values equal great performance for our clients. 


Easier growth transitioning

Unlike in-house, where you will need to ensure you have the right space, workforce numbers, and more for business growth, outsourcing your customer service can make growing your business easy. No matter the number of calls, the infrastructure should already be in place to handle all forms of communication.  


And with offshoring options, global expansion isn’t an issue. Your business can reach customers all over the world and might also be able to offer multiple languages so that all customers have the same comfortable experiences.  


Open hours

Not only will you save money, but outsourcing customer service can also help make you more money in the long run. As our services can be offered 24/7, 365 days a week, you don’t have to worry about missing out on customer loyalty or missing an up-sell.  


Our ability to work all day, every day, means that every customer has the opportunity to reach a customer service advisor and have a better experience overall.   


What factors contribute to the cost of customer service?

There are many factors which can affect the price you pay for outsourcing customer service. Knowing how much support you need, and where, is the first step to finding the right trusted partner for your business.  



Many customer service providers might be able to offer multichannel support. This means that your customers can connect with your business in multiple ways, whether through inbound calls, chatbots, or even social media. Being able to offer multiple routes for customer service can improve the customer experience. Still, it is also worth noting that it will take more time and energy to maintain clear communication across all platforms.  


An omnichannel support option is the best choice for a streamlined customer support service. This not only offers customer service connection across multiple channels, but it is also an integrated service which provides consistency across all platforms. In this way, customer service advisors maintain context around queries, no matter the means of contact. 


Spikes in calls

Whether your business is experiencing growth or you’re going through a ramp period, spikes in calls can be a contributing factor to the price you need to pay for customer service. Whether it is the in-house body count you need to manage the volume of calls or offering around-the-clock access, fluctuations in calls can have an impact on the price of your customer service care.  


There might also be a spike in calls due to seasonality. For some businesses, including retail, there might be an increase in calls during Black Friday and the Christmas festive period as more customers buy products or interact with your business for the first time. This can increase your spending. But extra investment in customer care during the holidays can be beneficial to your business as it ensures all customers leave their experience happy.  


Level of support needed

Depending on the level of support your customers need, you will expect to pay more for your services. For some companies, you might need to handle inbound customer queries or complaints. Whereas other businesses will also need to deal with debt collection and payment support, which will require a higher level of sensitivity and empathy.  


Our highly skilled advisors know what they are doing when it comes to complaints management, finding both a solution for you and your customers. With over a decade working in partnership with one of the largest utilities companies in the UK, we are experts in the area, handling complaints across all channels including customers to the ombudsman.  


Knowing what your customer service will entail and the level of customer service needed can help you understand your payment better. Whether it is only inbound calls or a mixture of inbound and outbound services, each will have its own payment structure across BPOs and call centres.  


To find out more about what you can get, and for what price, contact us