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In-House vs. Outsourcing for Telemarketing Outbound Calls: Practical Recommendations for Businesses (2/5)

  • Jun Mao
  • Wednesday, Oct 23, 2024
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This is a series of 5 articles exploring customer communication strategies for small businesses, focusing on outbound calls services:


Outbound Series Diagram
  1. Why Do Small Businesses Need Outbound Call/Telemarketing Services: Discover the importance and benefits of Outbound Call Services.

  2. (This Article) In-House vs. Outsourcing for Telemarketing Outbound Calls: What is a live outbound call agent? Should you outsource or hire in-house?

  3. Auto Dialers for Outbound Calls: What are Auto Dialers? What are the differences between Power Dialer, Progressive Dialer, and Predictive Dialer? Which Service is right for your business?

  4. Live Human Call Agents vs. Voice AI Agents for Automatic Outbound Calls: What is an automatic Outbound Calls Service? Does this solution meet your business needs?

  5. How To Choose The Best Outbound Call Service: Wonder which of the above services is best for your business? This article will help you decide.


Outbound calls are a crucial channel for customer engagement, sales, and relationship-building. While automation has taken the spotlight in some industries, live outbound telemarketing continues to provide advantages that automated systems struggle to replicate. The ability to personalize conversations, offer nuanced responses, and build rapport with customers makes live agents indispensable in industries requiring human interaction.

However, businesses face a key decision: Should they manage outbound calls in-house or outsource the outbound call operations? Both options come with advantages and drawbacks, especially when factoring in cost, scalability, and control.

This article compares in-house and outsourced live outbound calls, analyzing costs, features, and use cases to offer practical recommendations for businesses looking to optimize their customer outreach strategy.


In-House vs. Outsourcing Cost Comparison (Full-Time vs. Part-Time)

When deciding between in-house and outsourced live outbound services, businesses need to evaluate several cost factors. Below, we outline key considerations and how they differ in both models.

1. Staffing Costs

  • In-house: Based on data from PayScale, U.S.-based in-house call center agents earn an average of $15 to $20 per hour, with higher-end salaries reaching $21 per hour for experienced agents. When factoring in benefits and overhead, the total cost can rise to around $25 to $35 per hour, similar to the earlier estimate.
  • Outsourcing: Nearshore outsourcing firms, particularly in regions like Latin America or Asia, offer significantly lower labor costs. Outsourced agents can range from $10 to $15 per hour, including benefits. The reduced cost is due to the ability to spread overhead across multiple clients, offering substantial savings compared to in-house operations.

2. Training & Management

  • In-house: Training costs for call center agents are significant. The average cost of training an agent is around $5,000 to $7,500, according to industry sources like WorldMetrics and HelpJuice. In-house management resources are also required to oversee agents’ performance and development.
  • Outsourcing: Outsourcing providers typically handle training and management as part of their service offerings, reducing the internal burden on companies. This can significantly lower upfront and ongoing costs.

3. Infrastructure/Tech Costs

  • In-house: Setting up an in-house call center involves substantial investment in CRM systems, call handling software, and data security infrastructure. The average cost of CRM systems can reach $120 per user per month, with additional costs for hardware like phones and headsets. Data security and compliance measures also contribute to ongoing costs.
  • Outsourcing: Outsourcing firms often absorb these infrastructure and tech costs, which reduces the financial burden for businesses and allows them to scale operations more efficiently.

4. Flexibility

  • In-house: Scaling an in-house team can be time-consuming and expensive, as it involves recruiting, onboarding, and training new agents. This process can take weeks to months.
  • Outsourcing: Outsourcing offers far more flexibility, with firms able to quickly scale up or down based on the client’s needs. This makes it ideal for businesses facing fluctuating demand.

5. Speed of Scaling

  • In-house: Recruitment processes for in-house teams are often slow and resource-intensive. It can take several weeks to hire and train new agents, especially in highly specialized fields.
  • Outsourcing: Outsourced call centers can scale more quickly because they typically have a pool of trained agents ready to be deployed. This allows businesses to meet sudden surges in demand without delays.

6. Control Over Operations

  • In-house: Having an in-house team gives businesses full control over day-to-day operations, allowing for customized training, immediate feedback, and close monitoring of quality.
  • Outsourcing: While outsourcing provides less direct control, it is possible to establish performance metrics and detailed contracts to ensure quality standards are met. Providers also often offer monitoring and reporting tools.

7. Data Security & Compliance

  • In-house: Businesses managing operations internally have more control over data security, which is particularly important in industries requiring compliance with regulations such as GDPR and HIPAA.
  • Outsourcing: Outsourcing providers often comply with data security regulations, but businesses may still have concerns about data privacy when involving third parties. Contracts can include clauses to ensure compliance.

8. Cost per Call

  • In-house: The average cost per call in an in-house setup is typically higher due to salary and overhead costs, averaging around $6 to $20 per call, depending on the complexity and duration of the call.
  • Outsourcing: Outsourced solutions tend to be more cost-effective, with nearshore providers offering a lower cost per call of around $4 to $15, making them an attractive option for businesses looking to reduce operational expenses.

Cost Comparison between In-house and Outsourced for Telemarketing outbound calls

In-House vs. Outsourcing Feature Comparison

  1. Personalization and Rapport Building

  • In-house: In-house agents tend to be better positioned to build meaningful customer relationships due to their closer alignment with company culture and deeper product knowledge. Their familiarity with the brand enables them to personalize conversations and tailor their responses more effectively, which is crucial for sectors requiring high trust, such as financial services and real estate. This approach often results in higher customer satisfaction and loyalty.
  • Outsourcing: Outsourced agents, while not as immersed in the company culture, can still be trained to deliver personalized experiences. Modern outsourcing providers focus on thorough onboarding programs to familiarize agents with the brand, and ongoing training helps maintain high service quality(NobelBiz)(Vsynergize). The effectiveness of personalization in outsourced settings depends heavily on the training provided and the tools available to agents, such as CRM systems that help track customer interactions across different channels.
  1. Speed and Volume

  • In-house: In-house call centers may struggle to handle high volumes efficiently, particularly in industries with fluctuating demand. Hiring, training, and scaling a large team to manage peak periods can be time-consuming and costly. Additionally, limited resources may lead to longer wait times or lower-quality interactions during busy periods.
  • Outsourcing: Outsourced providers offer significant scalability advantages, especially for high-volume industries such as travel and hospitality, where customer demand can spike unpredictably. With a large pool of agents and 24/7 availability, outsourcing firms can quickly ramp up or scale down operations to meet demand without sacrificing service quality. This makes them ideal for handling large call volumes efficiently.
  1. Complexity Handling

  • In-house: Complex customer inquiries, such as those in legal or technical services, are often better handled by in-house teams. These agents usually have a deeper understanding of the products or services, enabling them to provide more nuanced and accurate responses to complex questions. For industries like healthcare or finance, where detailed knowledge is critical, in-house teams are generally more effective.
  • Outsourcing: While outsourced teams can be effective at handling straightforward inquiries, they may struggle with more complex or highly specialized issues unless they are provided with comprehensive, ongoing training. Outsourcing providers that invest in continuous learning and advanced tools (like AI-driven knowledge bases) can mitigate this challenge, but the success of handling complex queries depends heavily on the quality of training and the resources available.

Challenges of Live Outbound Services vs. Automated Systems

Businesses that rely solely on live agents face higher operational costs and scalability challenges.

While live agents excel at building rapport, they cannot match the volume and cost-efficiency of automated systems.

According to industry data, automated outbound calling systems can handle larger call volumes, often resulting in higher efficiency for repetitive tasks like appointment scheduling.

A hybrid model that combines live agents and automation helps balance personalization with cost-efficiency.

Live agents can focus on complex or high-value interactions, while automation handles routine tasks, significantly improving overall performance.

Use Cases for Live Outbound Services

Healthcare:

Live outbound calls are crucial in healthcare for tasks such as appointment setting, follow-up care, and lead generation. A B2B telemarketing service targeting healthcare providers demonstrated success by working with gatekeepers and using discovery questions to understand specific needs. This approach helped differentiate their calls and improved meaningful engagement with decision-makers like doctors and staff. Similarly, Cedaron Medical partnered with Quality Contact Solutions to address lead generation challenges. By adjusting scripts and testing concepts, QCS helped Cedaron increase lead efficiency and reduce costs, significantly enhancing their outreach.

Recommendation for Healthcare Outbound Services:

  • Quality Contact Solutions Provides healthcare-focused outbound call services, including appointment reminders and patient engagement.

    • Pricing: Custom pricing available upon request. Request a Quote.
  • 1840 & Company Offers global outsourcing solutions, including outbound telemarketing for healthcare companies.

    • Pricing: Custom pricing available upon request.
  • United Call Centers Ltd Specializes in healthcare telemarketing services, including appointment reminders, lead generation, and patient engagement.

    • Pricing: Contact sales team for a quote.

Financial Services:

Live outbound telemarketing is critical in financial services for lead generation and appointment setting. A financial firm partnered with a telemarketing provider to improve outreach by refining their Ideal Customer Profiles (ICPs) and conducting thorough research on decision-makers. By targeting relevant contacts and offering personalized communication, they significantly increased engagement and conversions. This strategy provided a scalable approach, helping the firm maintain a steady flow of qualified leads through precise targeting and nurturing efforts.

Recommendation for Financial Services Outbound Services:

  • CIENCE Technologies Focuses on outbound sales and lead generation for financial institutions.

    • Pricing: Custom pricing based on scope.
  • LevelUp Leads Provides outbound telemarketing and appointment setting services for financial sectors.

    • Pricing: Contact sales team for a quote.
  • Abstrakt Marketing Group Offers outbound lead generation services for financial clients.

    • Pricing: Contact sales team for a quote.

Real Estate:

In real estate, live outbound calls are vital for lead generation and client engagement. A real estate firm, struggling to manage increased lead demand, partnered with a telemarketing provider specializing in live outbound services. Through targeted outbound calls, the company increased qualified leads and allowed agents to focus on closing deals, significantly improving revenue and customer satisfaction. The effectiveness of live calls in generating new opportunities helped the company streamline operations and improve client relationships.

  • Hit Rate Solutions Offers comprehensive outbound call services for real estate, focusing on high call volumes, lead generation, and appointment setting.

    • Pricing: $8/hr, Package includes 80 hours.
  • Remote CoWorker Provides virtual assistants and telemarketing services, including outbound calling for lead generation and client engagement in real estate.

    • Pricing: Part Time Starter– $8.99/hour
  • Martal Group Specializes in B2B lead generation, including healthcare outbound services.

    • Pricing: Custom pricing available upon request.

Retail & E-Commerce:

In the competitive landscape of retail and e-commerce, effective lead generation and outbound telemarketing are crucial for growth. A real-world example comes from a retail merchandising firm that partnered with a telemarketing provider to increase lead acquisition and expand its reach. By splitting their Ideal Customer Profiles (ICPs) and testing targeted messaging, they generated over 20,000 leads from retailers with 250+ locations, helping close significant deals and secure new contracts worth over $1.5M. This personalized, data-driven approach ensured higher open rates and improved overall sales outcomes.

  • Belkins Specializes in retail and e-commerce lead generation through outbound calls and personalized outreach.

    • Pricing: Custom pricing available upon request. Request a Quote
  • Blue Valley Marketing Offers outbound telemarketing services tailored to retail and e-commerce clients.

    • Pricing: Contact sales team for a quote.
  • UpTown Creation Provides outbound telemarketing and lead generation services for retail businesses.

    • Pricing: Contact sales team for a quote.

B2B SaaS:

In the fast-paced world of B2B SaaS, generating qualified leads is vital to fueling sales pipelines. An example of this is Jedox, a financial software company that partnered with a telemarketing provider to drive its outbound prospecting efforts. By developing precise targeting parameters and launching personalized campaigns, the partnership resulted in the generation of 30,000 prospects per month and 21 qualified leads monthly. This strategy helped Jedox connect with mid-market financial managers, increasing engagement and boosting demo bookings for their software solutions.

  • Martal Group Delivers B2B lead generation and outbound sales for SaaS companies.

    • Pricing: Custom pricing available upon request.
  • CIENCE Technologies Specializes in outbound sales development for B2B SaaS companies.

    • Pricing: Custom pricing available upon request.
  • Belkins Provides lead generation and outbound services for B2B SaaS businesses.

    • Pricing: Custom pricing available.

In the legal industry, outbound calling plays a critical role in improving client communication and securing new business. Legal professionals often face the challenge of balancing billable hours with time-consuming phone follow-ups. Studies show that 71% of clients prefer communicating via phone, making timely outbound calls essential for success. By using outbound calls to follow up on inquiries, secure appointments, and provide reassurance to nervous clients, firms can boost client satisfaction and retention. For example, one law firm used outbound calling to follow up on web inquiries and saw significant improvements in client acquisition and communication efficiency.

  • LexReception Provides outbound call services for law firms, focusing on client retention and communication.

    • Pricing: Contact sales team for a quote.
  • Lawyerline Offers outbound telemarketing services designed for legal professionals.

    • Pricing: Bronze Plan – $2.00/Minute.
  • Remote CoWorker Offers outbound telemarketing services for law firms, focusing on client retention, follow-ups, and appointment scheduling.

    • Pricing: Part Time Starter– $8.99/hour

Conclusion

Both in-house and outsourced live outbound call services have their advantages and disadvantages. In-house operations offer better control and deeper customer relationships but at a higher cost. Outsourcing provides flexibility and cost savings but may lack the same level of personalization. For many businesses, a hybrid model that leverages both live agents and automated systems can offer the best balance between cost-efficiency and customer engagement, ensuring the right mix of speed, volume, and personalized service.