When businesses look for ways to increase productivity and reduce costs, outsourcing help desk services may appear to be a viable option. However, is it truly worth it in the long run?
According to Hubspot, 86% of service teams note that having a help desk system increases their productivity. It is critical to look at the entire picture when assessing the cost to outsource help desk services. The expense of hiring a team or firm to provide help desk services must be considered, as well as the costs of training and support, software and hardware, and ongoing maintenance. In this blog post, we shed light on the cost of outsourcing help desk services, its benefits, and how to find the right service provider for your business.
How much does it cost to outsource help desk services?
How much does it cost to outsource help desk services?
So, first off, what is a help desk? A help desk is a service that provides technical support to people who use technology, like computers or smartphones.
If you have a problem with your computer, for example, you might call a help desk to get assistance. That said, help desk services can be used to either support your team with their IT concerns or support the customers using your business’ software or systems (usually, for eCommerce) if they have system issues or concerns. Now, sometimes companies outsource their help desk services. This means that instead of having their own employees provide technical support, they hire another company, or a help desk outsourcing provider, to do it for them. This can be a good idea because it can save the company money and resources.
But how much does it cost to outsource help desk services? Well, it depends on a lot of factors. In the United States, the average cost to outsource help desk services is between $80.00 and $150.00 per month per user. That means if a company has 100 employees who need help desk support, it could cost them anywhere from $8,000 to $15,000 per month.
However, there’s another option. Companies can outsource their help desk services to a developing country like the Philippines where helpdesk services usually fall within the range of $20.00 to $50.00 per month per user. If the company with its 100 employees were to outsource help desk services rather than hire it in the US, the monthly total will be $2,000 to $5,000 per month. That’s 60-70% in cost savings!
The rate difference is primarily due to the lower cost of living in the Philippines, resulting in lower labor costs. Simply put, outsourcing your help desk support needs to the Philippines can be much cheaper than outsourcing to the United States.
If you’re considering this option, it’s also important to note that pricing models for outsourced help desk services are not one-size-fits-all. Outsourcing providers in the Philippines typically structure fees based on usage, workforce needs, and bundled services.
As you think about outsourcing your help desk services, let’s go through the available options and see which one best fits your business’ unique help desk and IT support needs.
What are the types of outsourced help desk pricing models?
- Per-Ticket Help Desk Pricing Model
In a per-ticket pricing model, the outsourced help desk services costs depend on the issues or “tickets” that your team or customers need help with. This might cover everything from simple password resets to troubleshooting complex software errors. The main advantage of this model: you only pay for the support that you actually utilize. If your company has low or unpredictable help desk support needs (e.g. startups and seasonal businesses), then this model is a great option for you. The potential disadvantage, on the other hand, is that costs can quickly escalate if the ticket volume suddenly spikes. So, if you have a high or unpredictable support demand, it might be worth considering the other pricing models.
- Per-User Help Desk Pricing
With per-user pricing, your outsourcing provider charges a fixed monthly fee for each employee you have who is using the service (regardless of how many tickets each of them files during the month covered). This approach simplifies the budgeting aspect of help desk outsourcing as you’ll know how much the service will cost upfront. This option is best for companies with stable headcounts and predictable IT support needs, such as medium-sized organizations whose members need guaranteed tech support coverage. The con: if there are several users who rarely need support, then this option may not be the best one for you — especially if cost savings is a top priority.
- Per-Hour Help Desk Pricing Model
Under the per-hour pricing model, you are charged based on the actual time support service agents spend addressing the requests sent to them. Similar to the per-ticket model, this approach allows you to pay only for the services you actually use. This option is also ideal for businesses with unpredictable support needs, such as project-based organizations. The only disadvantages are: (1) it is more difficult to forecast monthly costs in this model and (2) you might need to ensure closer monitoring of support agent productivity to ensure efficiency.
- Tiered Outsourced IT Support & Help Desk Packages
You can also ask your help desk provider about tiered and bundled support packages. In this pricing model, you have the option to choose from basic packages to premium bundles. Depending on your outsourcing provider, a basic tier might include help desk support during business hours for common issues; while premium tiers can provide 24/7, multi-channel support and advanced troubleshooting. If you’re looking for a comprehensive managed IT service or help desk outsourcing solution minus the hassle, a tier package might be best for your team.
- Dedicated Agent Pricing
The closest thing to having an in-house help desk service is the dedicated agent pricing model, where you may opt to pay one (or more) full-time outsourced IT expert to work exclusively on your business’ IT help desk concerns. This way, you have an outsourced employee who effectively acts as an extension of your team. If you need personalized, dedicated IT support from someone who has an in-depth understanding of your systems and your team, the outsourced helpdesk agent model may be best for you. It may cost a little more than the other models, but you’ll get the ROI through an improved service quality.
- Hybrid or Custom Models
Since we’ve already mentioned that there is no one-size-fits-all solution, several outsourcing providers also offer engagement models that blend all the ones mentioned above. For example, you may opt to pay a base per-user fee, with additional per-ticket charge for after-hours help desk support needs. Tiered plans can also be customized according to the specific workloads that you have in the business. While hybrid models may take more time to plan and negotiate, it’s these solutions that are flexible, scalable, and fully tailored to your business’ unique needs.
Now — which outsourced help desk pricing model do you think best matches your needs? If you’re still not sure, don’t worry! After all, the pricing models are not the only considerations in the cost of outsourcing help desk services.
What factors affect the cost of outsourcing help desk services?
There are many factors that can affect the cost of outsourcing help desk services. Here are some of the most important factors to look into:
1. Location
Where the company providing the help desk services is located can affect the cost. For example, wages are generally higher in the United States than they are in the Philippines, so outsourcing to the Philippines (as opposed to outsourcing help desk services in-shore) can be cheaper.
2. Skill level
The skill level of the people providing the help desk services can also affect the cost. If the people providing the services are highly skilled and experienced, they may charge more. Of course, if you want value for money, it might be worth considering a help desk solution from a highly-skilled IT expert.
3. Service level
The level of service that the company wants can affect the cost. For example, if the company wants 24/7 support, it will likely cost more than if they only want support during business hours. As discussed above, after-hours and multi-channel desk support are usual inclusions of packages in the higher tiers.
4. Technology
The technology being used can also affect the cost. For instance, if the company needs help desk support for a complex software system, it may cost more than if they just need support for basic computer issues.
5. Language
The language being spoken can also affect the cost. For example, if the company needs help desk support in a language that is less commonly spoken, it may be more expensive.
As you can see, there are many factors that can affect the cost to outsource help desk services. It's important for IT help desk companies to consider these factors and choose a provider that meets their needs and budget. The thing is, carefully considering all these factors allow you to maximize the benefits of help desk outsourcing.
What are the benefits of outsourcing help desk services?
Outsourcing help desk services can provide numerous benefits to companies that opt to work with a reliable service desk outsourcing provider. Here are some of the business benefits that are worth note taking:
Save on staffing costs
Outsourcing IT help desk services can be cheaper than hiring and training in-house staff. This is because the cost of living and wages can be lower in other countries. For example, outsourcing to a developing country like the Philippines can be cost-effective for companies based in developed countries. This means that companies can save money on staff salaries, benefits, and training costs.
Tap into specialized expertise
The company providing the help desk services is likely to have specialized expertise and experience in providing technical support. This means that the company and the customers using your help desk can get high-quality support without having to invest in training or hiring new staff. Outsourcing providers like KDCI Outsourcing have employees who are certified in specific technologies, which can improve the quality of the support provided. Additionally, the provider may have experience dealing with a wide range of technical issues, which can make them better equipped to handle complex problems.
Scale operations quickly
Outsourcing help desk services can provide flexibility and scalability. If the company needs to scale up or down quickly, it’s easier to do so with an outsourced help desk support provider than with in-house staff. This is because the provider can quickly allocate more or fewer resources as needed. For example, if the company needs more support during a busy period, the provider can quickly allocate more staff to handle the increased workload.
Focus on core business
Outsourcing help desk services allows the company to focus on its core business activities. Instead of spending time and resources on technical support, the company can concentrate on its main business goals. With an outsourced help desk staff who is trained and managed by an outsourcing provider, you have less admin to worry about (but ALL the benefits of help desk support). This can make the company more productive and efficient, as it can focus on activities that directly contribute to its bottom line.
Access to the latest technology
IT help desk outsourcing can give the company access to new technology and tools. The provider IT Outsourcing companies in the Philippines may have access to the latest software and hardware, which can improve the quality of the technical support provided. Additionally, the provider may be able to offer the company access to new technologies and tools that the company wouldn't have been able to afford on its own. This can help the company stay competitive and up-to-date with the latest industry developments.
What should I look for in a help desk outsourcing contract to ensure I get the best value for my money?
When it comes to outsourcing help desk services, there are several key elements to look for in a contract to ensure you get the best value for your money. Here are some important considerations to keep in mind:
Service Level Agreements (SLAs)
A SLA is a contractual agreement between the service provider and the customer that outlines the level of service the provider will deliver. When outsourcing help desk services, it's important to have clear SLAs and flexible engagement models in place that define the level of service you can expect to receive. This includes factors like response time, resolution time, and availability. Ensure that the SLAs are realistic and aligned with your business needs.
Scalability
As your business grows or changes, your help desk needs may also evolve. It’s important to have a contract in place that allows for flexibility and scalability in your outsourcing arrangement. This means that the service provider should be able to quickly and easily adjust the level of support they provide as your needs change.
Reporting and Metrics
To ensure that you’re getting the best value for your money, you’ll need to have clear metrics in place to measure the success of the outsourcing arrangement. This includes regular reporting on performance metrics like ticket volume, ticket resolution time, and customer satisfaction scores. Ensure that the provider has a strong reporting system in place that allows you to monitor these metrics and make data-driven decisions.
Cost Structure
The cost structure of the outsourcing contract is another important consideration. Ensure that the outsourcing pricing model (be it a per-ticket model or a fully-customized solution) is transparent and aligned with the level of service you expect to receive. Look for a provider that offers flexible pricing options that allow you to pay for the level of support you need without overpaying for services you don't need.
Data Security and Privacy
When outsourcing help desk services, you'll be sharing sensitive information with the provider. Ensure that the contract includes clear provisions for data security and privacy. This includes ensuring that the provider has appropriate security measures in place, and that they comply with relevant regulations like GDPR and CCPA.
How do I choose the right help desk outsourcing provider based on costs?
Choosing the right help desk outsourcing provider based on costs (among other factors) can be a complex process, but by following these steps you can simplify the decision-making process:
1. Determine Your Budget
The first step is to determine how much you can afford to spend on outsourcing help desk services. This will give you a baseline for evaluating different providers based on cost.
2. Compare Provider Prices
Research and compare the prices of different help desk support outsourcing providers. Look for providers that offer competitive pricing, and consider the range of services they offer, and find the one that offers the pricing model that best matches your business’ unique needs.
3. Assess the Provider's Experience and Expertise
Cost is important, but it’s also important to choose a provider that has the experience and expertise needed to provide high-quality help desk services. Look for providers that have a proven track record — evidenced by case studies — of delivering successful help desk solutions for businesses similar to yours.
4. Consider the Provider’s Location
The location of the provider can also impact cost. Outsourced help desk providers located in developing countries may offer lower costs due to lower labor costs, but there may be trade-offs in terms of language barriers and cultural differences.
5. Evaluate the Provider's Communication and Language Skills
When outsourcing help desk services, it's important to choose a provider that can effectively communicate with your team, as well as the end-users or customers. Evaluate the provider’s language skills and consider whether there may be any language barriers that could impact the quality of the service provided.
6. Review the Provider's Contract Terms
Before finalizing an outsourcing agreement, review the provider’s contract terms. Look for any hidden costs or fees, and ensure that the contract terms align with your business needs.
7. Consider Long-Term Value
When evaluating help desk outsourcing providers based on cost, it's important to consider long-term value. While one provider may offer a lower initial cost, a higher-quality provider may offer better long-term value by providing more effective support and reducing the need for future investment in help desk services.
Outsource Your Help Desk Support Needs to KDCI.
At KDCI, we provide outsourced technical support specialists who are specifically trained to handle eCommerce, customer service and human resources. Our team is based in the Philippines and is carefully selected based on their excellent communication skills, quick problem-solving abilities, and ability to work well under pressure<br>
By outsourcing your help desk & IT support needs to KDCI, you can rest assured that your team and customers will receive the best possible support. Our team can quickly and accurately respond to customer queries, identify customer needs, analyze and report product malfunctions, and ensure that all customer concerns are addressed promptly and professionally. This not only improves customer satisfaction but can also help to increase customer loyalty and retention.
Are you interested to learn more about our outsourced help desk support services? Contact KDCI Outsourcing today to get started!
