Cost Benefit Analysis of a Virtual Call Center

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Cost Benefit Analysis of a Virtual Call Center

• Michael Amigoni
• Chief Operating Officer
• ARO Outsourcing

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Background ARO Remote Center

• ARO created remote center from bricks and mortar
  center in 1997
• Remote workers in financial services, insurance
  and medical markets
• Web center allows access for call center and
  support staff via web gateway from anywhere in
  the US

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Background ARO Remote Center

• Employees 99 Baby Boomers
• Both outsourced call center and outsourced
  knowledge workers
• Training web and facility based
• Growth opportunities in call center and knowledge
  workers

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Types of Contact Center Costs

• Fixed Costs or Footprint
• Building or leased space
• Cubicle or furniture
• Computers
• Employee comforts lockers, refrigerators, break
  rooms

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Types of Contact Center Costs

• Variable Costs
• Wages
• Training
• Management

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Types of Contact Center Costs

• Hidden Costs
• Turnover
• Absenteeism
• Productivity cost
• Less people for same output
• Quality
• Reject cost
• Competitive advantage

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ROI Example

• ROI
• Before 100 Agent Call Center
• 45 turnover/year
• Agent hiring and training 7K/year
• Overhead cost per agent 5K/year
• After 100 Agent Virtual call center
• 10 turnover/year
• 100 virtual agents
• 15 productivity gain

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ROI Overview

• Calculation of Savings
• Overhead Cost 100 x 5K 500K/ yr
• Reduced Turnover 7K x 35 245K/yr
  Productivity gain 25,000/ agent salary x 15
  agents 375K/yr

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ROI Overview

• Total Savings
• Overhead Cost 500,000
• Turnover Cost 245,000
• Productivity 375,000
• Grand Total 1,120,000/yr.

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Its all about the peopleyou hire

• Good people drive down the costs
• Turnover
• Training
• Good people means less people for the same level
  of service due to gains in productivity
• Best thing the people provide their own building

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• Michael Amigoni
• Chief Operating Officer
• ARO Outsourcing
• 816-777-5008 or
• Michael.Amigoni_at_CallCenterOptions.com