How Much It Costs to Start a Small Call Center?

The budget for a call center depends on its types and the outsourcing services. So, depending on the type of call center you want to run, the budget for the business can be analyzed accordingly. Depending on the type of call center, the initial budget for establishing a call center differs a lot.
 

• On-site call centers
  Running a physical office comes with many upfront payments for many things like hardware, office spaces, and network infrastructure. The minimum startup budget for the on-premise support center is assumed to be around $15,000 for equipment and office setups only.
• Virtual call centers
  Virtual call centers based at home do not use most of the resources like the internet, office space, and electricity from the office. So, starting a small virtual call center can cost up to a budget of $1,000.
  
  Monthly subscription fees, data usage, and additional cost of add-on features are some of the extra expenses while running a cloud-based virtual call center.
   

• Hybrid call center
  A hybrid workplace environment minimizes the operational cost. However, as it combines the cost of both cloud subscription fees and on-premises upfront costs, it might have some of the repetitive expenses, which are around $10,000- $15,000 for a call center with 15-20 employees.
• Outbound Call Center
  A support center making outgoing calls may have startup costs of around $10,000, including hiring, rent, outbound call center software, and equipment. However, for a smaller customer support center, this cost might be lower.
• Inbound Call Center
  A small inbound call center with the primary task of just handling incoming calls might have an initial cost of around $5,000. It only includes the cost of hiring, rent, infrastructure, and inbound call center software cost.

The call center business has a very quickly profitable outlook. However, it involves many expenses which should be taken care of seriously. Understand the usual expense areas to manage your budget carefully while starting a call center business.

Hiring staff, training them, and providing a good salary are some of the serious investments when opening a call center. Depending on the location and the company, salaries differ a lot.

Salaries

The average monthly wage for a call center agent in a developing nation like the Philippines is about $450, whereas the average monthly wage for the same level of call center agent in a developed country like the USA is expected to be around $3000 to $3500.

Recruiting new hires is more expensive than keeping the present employees. So, you must look after your staff and provide a deserving amount to keep the employees satisfied with their salary. Poor salary scale results in high staff turnover and increases the expense of your call center.

Training

The training expense varies depending on the type of training. Online training costs a lot less than in-person training. Also, the length of the training program determines the cost of training. The average expense can range from $500- $1000 per trainee annually.

Additionally, benefits like medical insurance, bonuses, lunch, paid time off, taxes, and other insurance need to be taken care of by the company.

Investing in technology is important for a call center as its operations are fully dependent on it. The minimum technology needed for a call center includes call center software, hardware, business internet, and network infrastructures like routers and firewalls.

Hardware

The cost of call center equipment like computers, headsets, phones, and telephones depends upon the type and quantity of the hardware. The minimum expense for hardware is expected to start from $50 each. These expenses can be avoided when running the virtual call centers.

Software

Depending on the number of users, features integrated, quantity of calls, type of calls, and the service provider, the call center software cost can vary. Generally, prices range from $500- $5000 or more annually according to your features add-ons.

You should ensure that the software includes the most basic call center features required to operate the call center smoothly.

Some of the features include:
 

 
Network Infrastructures
 

The cost of setting up a network infrastructure depends upon the quality and type of internet connection. Factors like speed, security, devices used for connecting, and ISP providers affect the cost of overall network infrastructures. Typically, it is around $2,000, including the equipment required.

A call center heavily relies on phone lines and high-speed internet for its day-to-day operation. Inbound call centers mostly do not need to pay to receive calls. However, for an outbound call center, you must estimate the number of outbound calls and purchase a bundled package service plan, reducing the calling costs.
 

Call centers dealing with customers’ sensitive data need to follow regulations in order to ensure data security. Businesses need to pay fees to the government bodies for this certification, such as HIPAA adherence and PCI compliance, to ensure data privacy.

It's better to pay for certifications and follow those standards. Failure to meet these standards leads to heavy fines exceeding the initial certification charges.

On-premise or hybrid call centers have costs that include rent, furniture, office supplies, maintenance, and other utility fees. The alternative cost-saving way while starting out the call center would be a home-based call center.
 

Generally, to open a call center business, the minimum starting setup cost would be $5,000, which can increase to $15,000 depending on the outsourcing services. Additionally, it needs to include the major expense, i.e., salary, which is around $3,000 per agent on average. Hence, the total cost of starting a small business call center with 10-15 agents adds up to $30,000- $50,000.

Planning your call center’s budget is nice, but it's also essential to do more on the planned budget. Here are some valuable tips to follow to maximize the use of the budget.

Cloud-based solutions like Calilio charges you only when you start to use its features. These cloud-based solutions are based on pay-as-you-go models. So, unlike the on-premise hardware, there is no need to invest since the beginning. Always look for easily scalable applications so that there won’t be a need to switch platforms in the long run.

Select the best compatible technology for your business. Look for the service packages that include essential features. Investing in technologies, such as Voice over Internet Protocol (VoIP), is typically more cost-effective than traditional telephone systems. Choose the right one that effectively handles the high volumes of calls.
 

Furthermore, choosing the right subscription plan according to your budget and requirements is crucial for business owners. Calilio is a one-stop call center software for affordable call center solutions - starting from $12 per month.

You can use various social media platforms or online job portals, as they are usually free and are reachable by almost everyone. You can also opt for the hiring agents.

When choosing the infrastructure for your call center, select the budget-friendly one after comparing prices with different vendors. Select the hardware under the planned budget, but also try to find something useful.

Utilizing call center solutions with automated features like IVR directs the customers and helps to cut down on lengthy internal processes. IVR helps direct the call to the correct department, reducing the wait times for faster resolutions and, eventually, a better customer experience. These features reduce workloads and boost the productivity of a call center.

The cost to open a small call center varies according to the type and outsourcing services of the customer support centers. It is essential to understand the costs involved and manage them to make the business profitable.

The startup cost for running this business is expensive, but there are multiple ways of reducing those costs. Choosing the right call center software, cost-savings on hiring practices, and purchasing only what the business needs at the right time contribute to cost-saving of the startups.

To open a small call center, the estimated cost is around $5,000 to $15,000 for initial setup only. However, the total cost depends upon the size of the business.

Depending upon the size and services provided by the call center, the typical cost of opening an inbound call center starts at around $5,000, an outbound call center needs around $10,000, and a blended call center requires approximately $15,000. The cost of an on-premise call center is typically $15,000 - $50,000 just for setting up, excluding personnel expenses.

To start a call center, decide your service goal, plan your budget, choose the right technology, hire the right people, and build a skilled team. Design efficient workflows and use monitoring tools to improve your agent's performance and customer satisfaction continuously.

To start a home-based call center, set a clear goal and finalize the call center type, plan a budget, develop a business plan, build a trustworthy team with skilled virtual agents, and implement effective virtual call center software. Monitor performance metrics to identify areas of improvement and monitor new practices regularly.