Jun 18 2009

Offshore and Outsourced Call Center Rates and Pricing

Published by Brad Rubin at 10:20 pm under Pricing

When I was blogging regularly, I would get requests to talk about pricing and what would be considered a competitive rate in the call center industry.  I have finally decided to do a short piece on pricing, and this article will briefly discuss what I am seeing in the marketplace.

 

The times were much different 24 months ago.  Offshore call center pricing in the Philippines and India was appreciating because the Peso and Rupee had gained so much on the dollar.  Most vendors didn’t hedge currency and the only way they could operate was to increase their pricing models.  With the dollar weakening in the global economy, business started to rethink their sourcing strategies.  The value of going offshore wasn’t necessarily a slam dunk anymore. 

 

About 12 months ago, the American economy fell hard.  The macro economic factors then pushed the rest of the world down.  Countries that were dependent on American business started to tumble.  As the rest of the world started to feel the pinch, the American dollar started appreciating against foreign currency, even in the dire economy. 

 

When economic conditions got tough, business got more diligent.  They started scrutinizing every proposal and really performed their diligence on pricing.  This then drove offshore rates down.  With vendors losing clients, it became (and still is) a frenzy to win business.

 

If you were ever going to consider outsourcing, now is the time to take the plunge.  Rates are cheap and you can negotiate most setup costs and telephony costs away from your contract.  Also, you can pretty much get any type of skill set at the rates I mention below.   This would include Outbound, Inbound, Service-To-Sales and Telemarketing.

 

This all being said, this is my assessment of hourly FTE rates that are now being presented to accounts with 100 seats or more.  Add 10-20% if your operation is less than 100 seats.  If your operation is less than 50 seats, you should seek out a mid-size vendor and pitch that the business will grow together.  This will help keep your rates in these ranges.

 


  • Philippines       $9.50 – $12.00
  • India                $9.00 - $11.00
  • Costa Rica       $12.00-18.00
  • Guatemala       $9.00 – $11.00
  • El Salvador     $8.00 - $10.00
  • Mauritius         $9.00 – $11.00

NOTE: Outsourcing to El Salvador may require a helmet and kevlar vest.  All kidding aside, it is a beautiful country. :-)

3 Responses to “Offshore and Outsourced Call Center Rates and Pricing”

  1. # Markon 19 Jun 2009 at 12:57 pm

    Interesting post. I live in Guatemala and have some basic outsourcing experience. I would love to swap stories with you or buy you a cup of locally-grown coffee on your next visit here.

    Regards,

    Mark

  2. # Brad Rubinon 19 Jun 2009 at 1:12 pm

    Sounds good Mark. I will definitely keep that in mind. Cafe con leche en Guatemala es muy delicioso.

  3. # stevenon 23 Sep 2009 at 10:57 am

    Hey! Nice job here! I’ll be dropping by from time to time :)

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