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Lowest Rate Doesn’t Equal Best Value in Contact Center Outsourcing

Picture of Author: Matt McGeorge
Author: Matt McGeorge

VP of Client Experience & Growth

Contact center outsourcing team with headsets at green workstations, supervised by a team leader

Every time someone hears I have chickens at home, I get the same comment:

“Must be nice, getting free eggs.”

Free. Right.

What “Free” Really Costs

Let’s talk about what “free” actually costs me: the coop itself, the feed every week, predator-proofing, the fencing, the vet visit when one got sick, and the twice-a-day chores, rain, shine, or six inches of snow, that never take a day off.

Why the Cheapest Option Usually Costs More

Here’s the part people really don’t think about. When I built that coop, I had options. I could have used the cheapest lumber I could find, the cheapest feed on the shelf, and skipped the extra fencing. It would have cost me less money on day one.

But cheap lumber rots and warps. Cheap feed means smaller eggs and fewer of them. A coop built to the minimum is basically an invitation for a raccoon to wipe out the whole flock in one bad night.

You get what you pay for. That’s true with a chicken coop, and it’s true with almost everything else.

What’s Actually Behind an Outsourcing Partner’s Hourly Rate?

I think about this constantly when I sit across from someone evaluating contact center outsourcing partners and the conversation lands on the hourly rate. One number is a dollar or two lower than the others, and that becomes the whole decision.

But the rate on a proposal is like the lumber at the store. It’s the visible part. What you can’t see from that number alone is what’s actually going into it:

  • who’s recruiting and vetting the agents,
  • how much real training they get,
  • what the technology stack looks like,
  • whether there’s actual coaching and quality monitoring happening,
  • whether the culture makes people want to stay for years instead of walking out in 90 days.

The lowest hourly rate and the best long-term value are rarely the same thing.

The Hidden Costs of Choosing the Lowest Rate

Pick the lowest rate without asking what’s behind it, and you usually end up with the equivalent of that bargain coop. It holds up just long enough to look like you made a smart call. Then it doesn’t, and you pay for it in turnover, inconsistent customer experience, and rework, none of which show up as a line item but all cost more than the rate ever saved.

Lowest Rate vs. Best Long-Term Value

The lowest hourly rate and the best long-term value are rarely the same thing. You get what you pay for, whether we’re talking about eggs or customer experience.

What’s something in your business where the cheaper option ended up costing more in the end?

Picture of Author: Matt McGeorge

Author: Matt McGeorge

VP of Client Experience & Growth

Matt McGeorge is the Vice President of CX & Growth at The Office Gurus (TOG), where he leverages nearly 20 years of contact center industry experience spanning global operations, business development, and executive leadership to align customer experience design with business development. Rather than treating outsourcing as a mere cost reduction, Matt combines CX architecture and commercial strategy to design delivery models that eliminate friction, drive loyalty, and turn partnerships into strategic investments. Ultimately, he stands as a growing voice in advocating for outsourcing as a powerful tool for customer retention and brand value.

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Frequently Asked Questions

Is the lowest hourly rate the best choice when selecting an outsourcing partner?

Rarely. The lowest hourly rate and the best long-term value are rarely the same thing. The rate in a proposal is only part of the picture, and choosing it without understanding what’s behind it often leads to turnover, inconsistent customer experience, and rework that costs more than the lower rate ever saved.

What should you evaluate beyond the hourly rate in a contact center outsourcing proposal?

Look at what’s actually going into the rate: who’s recruiting and vetting the agents, how much real training they get, what the technology stack looks like, whether there’s actual coaching and quality monitoring happening, and whether the culture makes people want to stay for years instead of walking out in 90 days.

What are the hidden costs of choosing the cheapest outsourcing partner?

Turnover, inconsistent customer experience, and rework. None of them shows up as a line item on a proposal, but all of them cost more than the lower rate ever saved.

Why does a low-cost outsourcing decision often look smart at first?

Like a coop built with the cheapest lumber, it costs less on day one and holds up just long enough to look like a smart call. Then it doesn’t, and the real costs show up in turnover, inconsistent customer experience, and rework.

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About The Office Gurus

The Office Gurus® has risen to become one of the leading global BPO companies. Businesses in all industries find that in-house call centers and customer service teams can be expensive and time consuming to manage. We offer custom solutions through our call center outsourcing services and customer service outsourcing technology. One of our priorities is to make the process as seamless as possible by implementing superior customer support outsourcing solutions that will keep your business operations streamlined and your customers happy.