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Cost per Contact


What is the Cost per Contact?

Cost per contact is a call center metric for the average cost involved with the processing of all calls or connections over a given period. This KPI is widely used by call center management to evaluate the performance of the call center. It is a vital part of cost-benefit calculations. Every time one of your agents answers the phone or sends a message, your communications company spends money on compensation and running costs.

Running costs include all employees’ wages, holiday pay, insurance, and bonus allowances. To add, it will include all contractors, equipment, telecommunications, laptop computing, software licenses, recruitment, flights, office supplies, and miscellaneous expenses. Contact volume covers inbound communications from all sources: audio, email, internet, talk, fax, and walk-in.

How to calculate cost per call?

To calculate the cost per contact, take the agent’s salary and divide it by the total amount of calls made by the agent during one hour.

Next, calculate the total cost of the call center correlated with the time. Include the number of salaries for all agents who worked with consumers on either platform, operating expenses as well as costs associated with call center software, business tools, and telephony.

Reduce cost per call

Optimize the recruitment, preparation, and coaching of agents. One of the easiest ways to reduce call costs and improve the level of customer service is to ensure that the agents have considerable experience, skills, and expertise to meet the demands of the customer.

Utilize self-service options. The best way of minimizing the cost of a call is to reduce the number of incoming calls. Implementing the self-service solution for routine repeat calls reduces telephony costs, allows the operators more flexibility to deal with more difficult appeals, and reduces the expense of the call.


What is the Cost per Contact?
What is the Cost per Contact?
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What is Customer Lifetime Value?

What is Customer Lifetime Value?

Customer lifetime value or CLV is a metric that determines how beneficial a customer is throughout their commercial partnership. This is calculated using two main variables: cost of purchase and sales, though some companies may incorporate additional considerations.

Customer Lifetime Value is one of the main stats likely to be measured as part of a customer service campaign. It gives competitive merit to every customer-centric company. Further, this metric attracts a growing number of consumers to learn that the most important commodity in the company is its customers and not its inventory.

Importance of customer lifetime value

Organizations use customer lifetime value to determine if the risk of attracting new consumers is worth it in potential sales. CLV is also essential for the customer segment. Some consumers are more profitable than others. So, companies should research the profiles of people with the highest customer lifetime values and aim to attract more of these kinds of customers.

CLV determines how important a customer is to your business over an indefinite time rather than just the first order. This metric aids in determining a fair acquisition rate. Customer Lifetime Value should be used by management in a call center to go beyond delivering service quality and how value can be added by extending the life of the customer.


What is Budget?

What is a Budget?

A budget is a plan to balance income and expenditures to achieve the financial targets in a specific time. Creating this budget schedule helps you to decide in advance whether you're going to have enough money to do the things you need or would like to do. Almost anyone can create their budget, whether an entity, a group of individuals, a corporation, a government, or just about anyone else that makes money and uses it.

Budgeting may include preparing a detailed list of expenses or concentrating on a few categories. Some people like to write their budgets down by hand, and others prefer to use budgeting software and spreadsheets. There is no standard way to create a budget plan; what works for one person does not work for another.

Keeping track of whether you make and invest doesn't have to be complicated, doesn't need you to be good at math, and doesn't imply you can't afford the things you like. It just means that you're going to know where your money is going, you're going to have better leverage of your finances.

Why creating a budget plan is important

Budgeting is crucial to control your monthly costs, plan for life's unforeseeable activities, and be able to handle high ticket items without falling into debt. Budgeting allows you to monitor your money, and it ensures that you will always have enough money.

One of the most beneficial financial practices that you will adopt is budgeting. There are so many opportunities to survive on a budget, including helping you meet your financial goals, stopping you from being financially stressed, and even helping you escape or get out of debt.


What is B2B Payment?

What is B2B payment?

Business-to-business (B2B) payment refers to payment within businesses in exchange for goods and services. Whenever one business invoices another business is a b2b scenario. These payments can be sent and received through the following channels: cash, wire transfers, checks, electronic bank transfers, ACH payments, credit cards, and online payment platforms.

With the help of the internet, B2B payments can now be done quickly and instantly. Payment solutions like Payoneer have now emerged to provide the needs of businesses, be it small-and-medium enterprises (SMEs), startups, or enterprises.

B2B payment solutions

Most businesses still prefer check payments and wire transfers for clients within their country’s jurisdiction. Clearing of such payments may take up to three banking days, depending on their clients’ branch of account. However, this method may be costly for a business in the long run, with additional fees for wire transfer itself on top of the amount to be transferred.

Outsource Accelerator provides you the best outsourcing companies in the Philippines, where you can save up to 70% on staffing costs. We have over 3,000 articles, 200+ podcast episodes, and a comprehensive directory with 700+ BPOs… all designed to make it easier for clients to learn about, and engage with, outsourcing.

What is What is business process outsourcing?

What is Business Process Outsourcing BPO?

Business Process Outsourcing (BPO) is the delegation of business processes to an external service provider to a nearby or farther location. BPO uses various technology-enabled services to optimize the delivery of services.

Some of the usual outsourced business functions are the following.

Payroll Accounting Human resources Customer service Sales Marketing

In the case of content providers, these could mean hiring writers, remote editors, or virtual assistants.

BPO speeds up processes and enhances efficiency. Companies that outsource some of their business processes use their time on core services and competencies.

With this shift in focus, companies improve their current processes which may result in improved customer satisfaction. BPO helps companies divert their resources to more critical business strategies.

Often, companies find it impractical to hire a full-time position in-house because of the cost associated with doing so. Outsourcing services can also help them save costs and resources in hiring suitable employees.

How does Business Process Outsourcing work?

Business process outsourcing happens when a business taps a third-party service provider to operate some of its internal processes. Such ‘processes’ include customer service, accounting and finance, or sales.

It is different from hiring an agency to do specific tasks, as the outsourcing provider (BPO) is more concerned with the ongoing production of labour-intensive tasks, instead of the higher-level strategy and guidance.

Now, business process outsourcing has broadened and is more akin to staff augmentation, or staff leasing.

What are the benefits of business process outsourcing?

There are many benefits to outsourcing, as well as some downsides and risks. The common benefits include:

Cost savings

Companies can enjoy savings of up to 70% by leveraging the salaries and costs in countries such as the Philippines and India.

Global market

Businesses get to access a bigger pool of talent that can fit their requirements. They can have better options in hiring employees since they are not limited to what is available in their home countries.

Global presence

At the same time, business process outsourcing opens clients to global trade opportunities. They can establish their global presence and expand more easily to other locations since they already have operations in the area.

Flexible workforce

BPO reduces internal local compliance obligations including providing additional office spaces to employees. Instead, organizations can hold their business operations on a remote setup, most usually having their teams in an office provided by the BPO firm.

Leverage skill

Companies cannot always do everything on their own. BPO enables them to leverage the skills of other specialist companies on more complex tasks such as accounting and IT.


Lastly, BPO enables organizations to focus on their core business functions. This is since most of their non-core business operations are done with the help of a reliable service provider.

Business process outsourcing examples

The business process outsourcing sector is a vast industry, generating over $200bn annually, and employing millions of people worldwide.

BPO can be seen in different forms and contexts, from hiring single staff to getting an offshore team. Some examples of BPO include:

Big enterprise

Facebook and Uber outsource many of their operational functions, including content moderation for Facebook, and customer service for Uber

Medium-size businesses

A medium business with 50-500 staff might outsource the labour-intensive accounting and finance functions to a team in the Philippines.

Small business and entrepreneur

It is common for small business owners to have a Virtual Assistant (VA) working for them full time and remotely from the Philippines.

What are the different types of BPO?

The type of business process outsourcing can be characterised by their specialisation, location, and size.

Generalist or specialist BPOs

Business process outsourcing is in the human resources and professional services sector. However, their services extend across all industries. The majority of BPOs are generalists, in that they offer a full range of professional services.

Meanwhile, some specialise in certain verticals such as the following.

Legal process outsourcing

Legal process outsourcing deals more with delegating legal processes and compliances to legal firms in another area.

Knowledge process outsourcing

Meanwhile, knowledge process outsourcing enables companies to outsource knowledge-related work including research and development, innovation, and creatives.


Business process outsourcing typically operates from developing nations such as the Philippines, India, and Colombia. They typically have cheaper cost-of-living and bigger populations. Different locations offer different advantages.

Size of BPO

The bigger BPOs employ more than 250,000 people. They are huge, global operations. Medium-sized BPOs range from 500-5,000 staff and offer a full range of services. The smaller BPOs might have 1-500 people.

Functions of business process outsourcing

Collectively, business process outsourcing provides any kind of staffing solution. Common functions of BPO include:

Finance and accounting

Outsourced finance and accounting services help businesses manage their books, monitor cash flow, and keep up with corporate income tax compliances without fuss.


Healthcare outsourcing, meanwhile, organizes various back- and front-end functions done for the healthcare and insurance industries.

Creative and content

Creative services outsourcing covers everything from post-production of Hollywood movies to newspaper and website content.

Tech, IT and development

IT outsourcing involves delegating network management, web and app development, and cybersecurity protection to IT firms in different countries.

Sales & customer support

Some BPO providers specialize in sales and customer support for pre- and post-sales transactions. This helps companies meet the expectations and demands of their customers, keeping them satisfied even after their purchase.


BPOs and marketing firms can help in ongoing marketing, communication and branding activities for their clients. This helps them attract more suitable leads in a cost-efficient way.

Talent and HR

Businesses can delegate HR, recruitment and compliance to professional employer organizations to maximize recruitment and workforce management.


Generalist BPOs help organizations accomplish general business administration and operational activities. This includes data entry, appointment setting, and other related functions.

Supply chain management

Lastly, e-commerce stores benefit from outsourcing supply chain management to manage warehouse and delivery processes.

Top BPO companies in the world’s top outsourcing hubs

A wide range of business process outsourcing companies in different parts of the world provide utmost services to their Western and local clients. Many of them even earned recognition by award-giving bodies due to their performance in both their roles and their level of care for the employees.

Check out the top BPO companies in several outsourcing destinations below.

Top BPO companies in the Philippines Top Indian BPO companies Top South African BPO companies Business Process Outsourcing (BPO) services

With the rise of new offshore outsourcing locations, companies can have better options in terms of location and services they can delegate. However, finding a suitable BPO company can be a daunting task to be done on their own.

Good thing advisory services such as Outsource Accelerator is there to help them.

Outsource Accelerator is the most trusted source for independent information & advisory for Business Process Outsourcing (BPO). We have over 5,000 articles, 350+ podcast episodes, and a comprehensive directory with 2,500+ BPOs from different locations.

Outsource Accelerator's offerings make it easier for clients to learn about, and engage with, business process outsourcing companies worldwide.

Want to learn more about outsourcing? Check out the Inside Outsourcing book as well as the Inside Outsourcing book review today!

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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 3,000+ 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.