In 2013, I was brought in to sort out a vendor selection process for a client looking to outsource some technical support call centre work to an offshore vendor. The client had received a total of 95 responses and the price quoted per month per agent varied from '450 to '3200. How can this so be so?
Firstly, some vendors simply didn't understand the requirements. The agent skill requirements were fairly high and the idea that a price of '450 per month ('3 per hour) was simply ridiculous. In fact, even those quoting less than '1000 were all showing their lack of knowledge of the skill requirements and that totalled most of the submissions. So, how do you determine the prices offshore?
(1) For customer services work, low tiered vendors in Asia (don't use them) charge anywhere from '3 per hour.
(2) For quality vendors, prices vary from '8 to '11 per hour in Asia
(3) Mid tiered vendors charge '6-'9 per hour in Asia
(4) Technical support carries a premium of between 10% and 100% depending on skill levels
(5) For the same level of vendor and agent, a South African vendor is between 15 and 40% higher
(6) Egypt offers similar prices to India & The Philippines