The Guide To Call Center Costs: How To Price A Call Center
Whether building an in-house call center or switching to cloud-based software, call center costs can vary greatly. Factors such as staffing, call volume, service levels, and technology influence call center pricing. Understanding exactly what your business will be paying for before your call center goes live will help you plan your budget and avoid unexpected bills.
In this guide, we’ll cover what’s included in call center costs and show you how to estimate and control your total spend so you can choose a solution that fits your budget without sacrificing customer experience.
How Do You Price a Call Center?
There is no one-size-fits-all number when it comes to call center costs. Every business is unique, with various needs. If you’re running an inbound call center for customer support, for example, the setup will be different than a sales-focused, outbound call center. To get an accurate estimate, we’ll need to break costs down into clear categories.
Common call center costs include labor, which is usually the largest cost, software, overhead, hardware, IT support, usage, and other miscellaneous expenses.
Other factors that can influence the cost of running your call center include:
- Type of service: Running an inbound or outbound center typically costs about 30% less than running an outbound call center.
- Call complexity: More complicated tasks, like technical support or multilingual support, drive up labor costs as they require skilled agents that cost more to retain.
- In office or remote: Remote call centers cost less to run than in-office call centers simply because they do not require a central location (office space).
- Location: If you’re based in a large city, you can expect to pay more in office rental costs and agent salaries than you would in a rural area.
Common Call Center Costs
Here’s a closer look at some common call center costs:
Staffing
The highest cost for any call center is typically staffing. The key to running an effective call center is the people behind it. Working in a call center can be stressful, so paying agents well is essential for retention. Employees who are poorly paid perform worse and quit at higher rates, leaving a cycle of recruiting and training new employees.
When budgeting for a call center, expect to pay the following for staffing:
- $17 to $20 per hour for agents, which equals out to around $35,000 to $40,000 per year for a full-time employee.
- $25 to $50 per hour for managers, depending on experience and region.
- $1,500 to $2,000 per employee for annual training.
- $2,500 per hire for recruiting, which includes advertising, screening, and interviewing.
In addition to employee wages, many call centers offer benefits like health insurance, housing stipends, or contributions to internet and power bills for remote employees. Although the cost of labor is high, paying agents well keeps morale high and ensures better retention.
According to Nextiva, you can expect to pay between $850,000 and $900,000 a year in labor for a call center with 20 agents.
Technology
Technology is a must for any call center, but it’s important to find a balance between choosing the right tech without overbuying. At minimum, expect to pay:
- $30 to $125+ per user per month for call center software
- $10 to $30 per user per month for VoIP service
- $50+ per headset
- $50 to $200 per desk phone
- $1,500 to $3,000 per agent for workstations
- $2000+ upfront for network infrastructure like routers and firewalls
- $100 to $300 per month for business internet
- $60 per user per month for security tools like backup and data recovery
- $50 to $150 per user per month for CRM software
Tip: VienerX can help you evaluate your needs and make strategic tech buying decisions without overpaying for tools you won’t use!
Data Usage
Another factor to consider when looking at call center pricing is data usage. Every call, recording, message, and report relies on data, and those costs can add up. For voice calls, data usage comes primarily from VoIP traffic. While individual calls don’t use a lot of data, high call volumes with long durations can increase bandwidth needs. While some internet providers offer unlimited data, be aware of data caps and overage fees.
Facilities
When running an in-house call center, be sure to factor in costs of furniture, utilities, supplies, and office-space. Average call center costs for a small office are around $2,500 per month, depending on your location. Rent is more costly in larger cities than in smaller areas.
It is possible to save a significant amount of money by running a remote call center, but this may end up spending more on training than for an in-house operation.
Overhead
When calculating call center pricing, don’t forget overhead costs. These can include management, insurance, HR, and accounting, among other costs. The typical ratio is 1 manager to every 10 to 15 agents. Try to find a balance between adequate management and not overspending.
Compliance
VoIP-based phone systems are cost-effective for call centers of all sizes, but because VoIP operates over the internet, it’s vulnerable to cyberattacks. Depending on the industry you’re in, you may need to follow specific industry regulations to protect data from hackers. Staying compliant with regulations like HIPAA, GDPR, and PCI-DSS can cost upwards of $100,000 per year. Make sure to research industry requirements before the call center goes live.
Outsourcing
Outsourcing is a common way for businesses control call center costs. Instead of hiring and managing in-house staff, companies partner with a third-party call center that provides trained agents, technology, and infrastructure for a predictable fee.
Outsourced providers eliminate expenses like recruiting, training, office space, and equipment. Pricing is typically usage-based, such as per minute, per call, or per agent.
For many businesses, a hybrid approach works best. This allows core support staff to work in-house while outsourcing overflow, after-hours, or seasonal calls.
The cost of outsourcing depends on the location of the provider. US and Canada-based providers usually charge between $27 and $57+ per hour, while those based in Asia can range between $6 to $18 per hour.
Typical Costs of Call Center Software
Call center software is the backbone of the modern call center. With features like call transfers, auto attendants/IVR, and even workforce management, a good platform can help your call center work more efficiently and provide better customer service. Most providers offer call center software as a subscription. They charge a monthly fee per agent and the buyer gets access to all the features in the plan.
How much the center costs depends on the features needed. For call centers that truly only need voice calling and call management features, monthly costs will be much lower, starting at around $75/user/month. However, many businesses are switching from call centers to contact centers. Contact centers provide multiple ways for customers to reach the business, including voice, video, email, live chat, and social media channels. This added functionality costs more, starting at $150+/user/month, but it helps provide a better customer experience.
In addition to the subscription fee, there may be some added call center costs when first setting up the software, as well as ongoing development costs. A simple call flow without tons of customization is usually easy to set up, but if any complex integrations are needed, you’ll have to involve your internal IT team or hire technicians to help. In addition, integrations may need ongoing maintenance to continue running smoothly.
Additionally, support may be needed to assist with any or all of the following:
- Technology migrations
- Setup and onboarding
- Training for the team
- Dedicated support (some providers offer this as an add-on or as part of a premium plan)
- Custom integrations
Finally, when migrating to the new platform, there may be a fee to transfer data from the old system to the new one. If there are large volumes of data, this can be expensive. Some providers charge for the bandwidth used when migrating data. It’s important to understand all costs before committing to a provider, so make sure to ask during the evaluation phase.
Cloud vs On-Premise Call Center Software
On-premise systems used to be the gold-standard for call centers, but today, many companies are transitioning to cloud-based software. So how do the two compare?
On-Premise Call Center Software
When it comes to call center pricing, on-premise systems are much more expensive than cloud-based systems. On-premise software is installed directly onto local servers. You are in charge of maintenance and updates, which means the organization needs to hire IT staff to manage everything. You also have to pay upfront for the equipment needed to run the call center software. All in all, you may pay $10,000 plus upfront for the hardware, plus $1,000-$3,000 per agent for the software.
| Pros | Cons |
| More control over data and security | Requires large capital expenditure |
| Can save money in the long run, as long as you keep using the software | Updates, maintenance, and repairs are all on you |
| Scaling up is difficult |
Cloud-Based Call Center Software
Cloud-based call center software doesn’t require any large capital expenditures. There may be some fees for setup/data migration, but it’s much less upfront than for an on-premise system. Cloud-based software is hosted by the provider and is only accessible via the internet. The provider manages servers, updates, and security so the end user doesn’t have to. Deployment is quick–think days to be up and running versus weeks or months–and scaling up or down is simple, without any need for more equipment.
| Pros | Cons |
| No large upfront costs | Requires high-speed internet to work well |
| Scaling is easy | You have less control over security |
| Updates are automatic | |
| The provider handles maintenance | |
| Minimal need for IT |
Go with on-premise software if:
- Your industry has strict internal data policies
- You have large, predictable volume
- You can support IT expenses
- You need deep customization
Go with cloud if:
- You want fast deployment
- You need predictable costs
- You want remote agent flexibility
- You want modern capabilities like AI and analytics
- You don’t want to deal with infrastructure headaches
Call Center Cost Reduction Ideas
It’s easy for call center costs to grow beyond what your budget can handle. Here are some ideas for reducing call center costs:
- Calculate your expected usage: Before you’re live, it’s important to estimate your call volume. Some call center providers meter calls, which means higher call volumes will cost you more. Some providers offer unlimited calls, but charge a fee if you go over a limit. Make sure you understand the fine print to avoid any nasty surprises.
- Add self-service options: IVR menus for common requests, FAQs, help centers, chatbots, and account portals can all enable customers to help themselves. This frees up agents to focus on calls that add value, such as contract renewals and debt collection.
- Optimize staffing: Use Workforce Management (WFM) tools to forecast call volume and schedule agents based on demand peaks. This can help you avoid overscheduling when it’s slow and save on labor costs.
- Don’t overbuy technology: Just because a call center plan has a lot of fancy features doesn’t mean you need them all. Make sure you purchase plans based on the tools you will use right now. Regularly audit your software to ensure you’re not paying for licenses or features you’re not actually using.
Call Center Costs: Save Money and Spend Smarter
Call center pricing is complex. No two call centers are the same, which means estimating the cost requires some detailed estimation. Finding the right call center provider can make a huge difference in how efficiently your team works, saving you money in the long run.
If you’re looking for a call center provider, VienerX can help. We’ll audit your setup to create a strategy that will help you save money while ensuring you have all the tools you need. We understand that your business is unique, which is why we provided tailored recommendations based on your needs. Contact the experts at VienerX today to get started!
