Labor as % of Call Center Costs

Cost Performance

Dec 01, 2004

Years ago I heard a metric that said your call center direct cost of labour should not be more than 50% of the income generated by the call center. This is for an outsource organization rather than an in-house call center. Can anyone comment on this figure and what your percentage targets for this dollar amount are? -- Val Morgan

Answers

  • Posted at 12:00AM on Jan 1, 2005

    Val, we have seen ranges on this ratio and it also depends on the location of the call center. In the US, the direct labor cost can still be approximated at 50%. To give you a better idea, for an outsourcer, if the hourly rate is $25, then the labor cost could be around $10 of that, and another $10 for other costs. In the case of offshore locations like India and Philippines, the direct labor costs are lower but communications, training and some other costs are higher. -- Umesh Jain, Merging Elements

  • Syed Nasim Posted at 12:00AM on Nov 6, 2008

    It varies from industry to industry and depends on the nature of revenue generated. My experience is that it can vary from 5%(at my current job) to 50%. Onshore, offshore and nearshore also effect the cost %.

Please sign in to contribute an answer. If you don't have an account you can register for free here.

Question Search

Need help with something specific? Search our entire QueueTips section to find it.


Can't find what you're looking for in a current QueueTips post? Submit a new post to us!

Call Center Insider
ICMI's Weekly Newsletter

Training & Events

QueueTip Posts

Webinars & Whitepapers

Articles & Blog Posts

Videos

QuickPoll

Is agent adherence so bad that you feel like you need to time your agents' bathroom breaks?

Absolutely! Our agents are dillydallying!
Heck no! Our agents are adherence champs!
Adherence is bad, but bathroom breaks aren't the issue.
More Polls