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Cost Consideration: To Outsource or Build an Internal Call Center

If you’re considering whether to outsource your teleprospecting activities to a reputable agency (i.e. TeleNet) or build an internal call center, you may initially think that an internal team is less expensive. However, there are many hidden costs that will typically add up to be larger than the obvious costs. Some of the costs and accounting allocations that need to be considered in evaluating in-house vs. outsourced teleprospecting operations include:

- Tele-Prospectors

  • Attracting, recruiting and hiring qualified candidates
  • Addressing ongoing attrition
  • Career Paths into Sales
  • Back-up Coverage
  • Benefits/Taxes/Workers Comp
  • Outplacement and severance packages

- Program Manager(s) - Supervisor(s) - Training and Trainer(s)

  • New Hire Training – Phone/ Teleprospecting Skills, Product/ Market/Competitive Knowledge, Systems and Processes
  • Ongoing Training– Skill development, Product/ Market/Competition changes and updates

- Telephony

  • Phone Switch(es)
  • VoIP
  • Call routing
  • IVR
  • Inbound line(s)
  • Digital Recording Software
  • Call Accounting Software
  • Conference Lines & Web Conferencing

- Automation/Systems

  • Call-Center Software
  • CRM Integration
  • Marketing Automation / Nurturing System
  • Instant Messaging

- Facilities

  • Physical space/Design
  • Cubicles/Furniture
  • Wiring/Cabling
  • Equipment
  • Generator(s) to ensure uptime
  • Provision phone/internet (if new facility/site)
  • Overhead allocation

- Development of Reporting

  • Agent Management
  • Campaign Management
  • KPIs
  • Source Analysis
  • Cross Campaign/Segment
  • Competitive and Market Trends

- Development of processes and procedures

- Quality Assurance systems, processes & personnel

- Capacity planning and scheduling and headcount management

  • Managing campaign volume peaks and valleys
  • Overflow

- Data Management

- IT support

- Ownership — senior management time investment

 In addition to the above list of tangible cost considerations, you must also consider the impact on your focus.   Will any responsibilities need to be placed on the “back-burner” to allow the necessary time and personnel to successfully launch an internal teleprospecting team?  Building and managing an internal teleprospecting team is a likely a deviation from your core competencies, and therefore, you must also consider its impact to your core charter.