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Home » Articles » Outsource Accelerator’s Outsourcing Cost Calculator

Outsource Accelerator’s Outsourcing Cost Calculator

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If your company is seeking ways to optimize resources and enhance efficiency, outsourcing can be a new solution. And to begin outsourcing effectively, understanding the fundamental financial implications is crucial. 

To assist you in this process, we are thrilled to introduce the Outsource Accelerator Outsourcing Calculator! This viable tool is designed to simplify the evaluation of outsourcing options and determine their financial feasibility for your organization.

Let’s dive into the world of outsourcing calculations and unlock the potential for business success!

Standard outsourcing costs to consider

Outsourcing isn’t quite the same as traditional hiring, so here’s a brief overview of the standard costs you may encounter: 

Labor costs

One of the primary reasons for outsourcing is to take advantage of lower labor costs in other regions. The regular rates for outsourced labor can vary significantly depending on the country. 

The outsourcing calculator will provide you with a glimpse into this for different roles. 

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Service provider fees

Outsourcing providers naturally charge a fee for their services. It’s crucial to understand their pricing structure and negotiate a fair and competitive rate that aligns with the scope and quality expectations. 

Transition costs

When transitioning tasks or functions to an outsourcing provider, there could be initial setup and transition costs. 

These can include additional expenses for training, software or equipment upgrades, data migration, or other costs associated with transferring responsibility. 

Communication and coordination

Effective communication and coordination between the business and the outsourcing provider are vital. Costs related to communication tools, project management software, and regular meetings can add to the overall outsourcing expenses. 

Quality and skill level

Higher-skilled professionals generally command higher rates. If you require specialized skills or a high level of expertise, the cost of outsourcing may be higher. 

The outsourcing calculator will allow you to compare between different experience levels. 

You’ll want to analyze these factors to ensure a successful outsourcing partnership. Don’t worry, as you’re still guaranteed a cost-effective strategy. 

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Why use the Outsource Accelerator Outsourcing Cost Calculator? 

With OA’s outsourcing calculator, you can see how you can save two of the most valuable resources in business– time and money. 

Based on our data of several key positions throughout the outsourcing sphere, you can get a number that will allow you to budget properly and determine your next strategy. 

You’ll be equipped with what you need to start building an offshore team

Why use the Outsource Accelerator Outsourcing Cost Calculator 
Why use the Outsource Accelerator Outsourcing Cost Calculator

How to use Outsource Accelerator’s Outsourcing Cost Calculator

Now let’s dive into the Outsource Accelerator Outsourcing Cost Calculator (also known as the  OA Offshore Team Builder): 

1. Staff selection

Begin by selecting the type of role you’d like to outsource, the salary range, quantity of staff, general location, and work shift. 

For example, you selected a single Customer Service Agent with a mid-low salary who works in a major city with a US day shift schedule.

Click the “Add staff” button on the right, and you will receive this:

You will see a general estimate of the offshore salary compared to the onshore salary. 

Clicking “Show details” will give you an initial breakdown from the outsourcing calculator.

Aside from the base salary, you will also need to cover relevant government contributions and benefits as part of the standard outsourcing costs. 

For example, in the Philippines, these include:

2. Outsourcing service

The next step is to select the specifics of your outsourcing service. 

First, choose where your staff will work from. Our outsourcing calculator details the types of office standards to help you decide.

You’ll be able to see details on how different types of cities affect your service and costs. Should you wish to change your choice from the first step, the outsourcing calculator will update your costs.

Then, select the remaining specifications for your outsourced role. You will be given options for the following:

  • Hardware specifications
  • Team size
  • The team’s projected growth
  • Management model
  • Whether the team will require internal hierarchy roles
  • Specialized operations requirements
  • Whether you want a Build-Operate-Transfer (BOT) capability
  • Whether you want a specialized vertical partner
  • Start requirements
  • Preferred contract terms
  • Preferred payment terms

3. Generate report

Finally, click “Generate Report” and the outsourcing calculator will display the full breakdown and summary of your outsourcing model. 

Key benefits of outsourcing

Outsourcing can be advantageous to your business for several reasons: 

Cost savings

Outsourcing certain tasks or functions can be more cost-effective than hiring and maintaining in-house staff. Companies can employ seasoned experts at lower costs, particularly when outsourcing to regions with lower living expenses. 

When you use our outsourcing calculator, you’ll be able to see that you can save as much as 50-70% compared to traditional recruiting. 

Many outsourcing contracts also come with fixed costs, making it easier for companies to budget and plan for expenditures. This contrasts with the variable and sometimes unpredictable costs of in-house operations.   

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Key benefits of outsourcingx`

Access to specialized expertise

Outsourcing provides access to a diverse and global talent pool. Firms can leverage specialized skills and proficiencies that may not be available in-house. 

It allows businesses to tap into the knowledge and experience of professionals who have specific expertise in the outsourced area. These people can bring innovation and new perspectives into your business. 

Disclaimer: The OA Team Builder provides the approximate monthly savings of hiring staff with Outsource Accelerator compared to hiring in-house. It provides indicative pricing only. The fees provided are not the official quote.

Outsource Accelerator’s pricing is based on the typical employee salary for the role (including all government-mandated costs and employee benefits), plus the OA recruitment fee, and the hardware expenses (based on a standard hardware setup).

Additional monthly charges will be added based on the typical costs of office space, IT support, and HR functions. These costs may vary, but they provide a more accurate comparison with Outsource Accelerator’s offerings.

The local hiring costs are based on research conducted by employment agencies for similar roles.

Increased efficiency and competitiveness

Many outsourcing firms often stay updated with industry trends and technologies, bringing fresh ideas to the table. Capitalizing on these premier third-party providers can lead to:

  • Improved productivity
  • Faster turnaround times
  • Better quality of work
  • Competitive edge

Outsourcing to different time zones also allows you to maintain up to 24/7 operations. This is especially beneficial for tasks that require continuous support, such as customer service or IT maintenance. 

Scalability and flexibility

Outsourcing allows businesses to scale their operations quickly and flexibly without the need for heavy investments in infrastructure or human resources. 

With our outsourcing calculator, you’ll be able to see the difference that ramping up or down team members makes. 

Focus on core competencies

Finally, by outsourcing non-core activities, businesses can free up valuable time and resources to focus on core competencies. 

Your internal team can concentrate on strategic initiatives, business development, and activities that contribute to growth and success. 

You’ll experience these benefits and more, especially if you partner with a reliable outsourcing firm. Check out our BPO Directory to find one that suits your needs. 

Discover outsourcing now!

Embracing outsourcing can revolutionize the way your organization operates. By partnering with specialized providers, you can:

  • Tap into a pool of expertise
  • Save time and resources
  • Focus on what really matters in your business

To embark on this transformative journey, carefully assess your business needs, identify suitable partners, and establish clear communication channels. 

Remember that outsourcing works best when carefully planned and aligned with your objectives. 

Take the leap into outsourcing and unlock the full potential of your business. Discover new possibilities and position your brand for sustainable success. 

With Outsource Accelerator’s Outsourcing Cost Calculator, you’re off to a good start.  

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About OA

Outsource Accelerator is the trusted source of independent information, advisory and expert implementation of Business Process Outsourcing (BPO).

The #1 outsourcing authority

Outsource Accelerator offers the world’s leading aggregator marketplace for outsourcing. It specifically provides the conduit between world-leading outsourcing suppliers and the businesses – clients – across the globe.

The Outsource Accelerator website has over 5,000 articles, 350+ podcast episodes, and a comprehensive directory with 2,300+ BPO companies… all designed to make it easier for clients to learn about – and engage with – outsourcing.

About Derek Gallimore

Derek Gallimore has been in business for 20 years, outsourcing for over eight years, and has been living in Manila (the heart of global outsourcing) since 2014. Derek is the founder and CEO of Outsource Accelerator, and is regarded as a leading expert on all things outsourcing.

“Excellent service for outsourcing advice and expertise for my business.”

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