Estimating the Cost of Opening a Small Call Center in India

Starting a call center business in India can be an incredibly cost-effective move for your enterprise. Despite the numerous announcements made during election periods for startup assistance, many such promises often fall short in reality. For small and local businesses, including call centers, these schemes can be more of a dream than a viable option. However, for businesses in the Information Technology (IT) and Business Process Outsourcing (BPO) sectors, setting up a call center in India can be both feasible and rewarding from the start.

One-Time Setup Costs

Let's break down the one-time setup costs for a new call center app. These include:

Hardware systems and handsets: Around 12 lakh rupees (60,000 per agent) Software licenses: Approximately 12 lakh rupees (60,000 per agent)

These initial investments can seem daunting, but they are necessary for getting your call center operational. For a pool of talented resources, you won’t find a better deal without breaking the bank.

Monthly Operational Expenses

Once your call center is up and running, you need to factor in monthly operational expenses. Here’s a breakdown of what to expect:

Virtual Call Center Setup

If you prefer a fully virtual setup without the need for a physical office, you can leverage cloud-based call center systems. The monthly operational expenses for a virtual call center are as follows:

Base pricing: Around 2,000 rupees per agent per month Additional charges: Services like outbound or inbound calling facilities might incur extra costs.

Contact Services Costs

The contact services costs for an outbound call center can vary depending on the offshore services:

Average rates: 500 to 750 rupees per hour

Inbound services are a bit pricier:

Average rates: 800 to 1,000 rupees per hour

As businesses evolve to meet consumer demands, integrating omni-channel support is becoming increasingly important. This includes chat, email, social media, and other communication platforms. To set up this feature, you can budget around 8,300 rupees per user per month for the necessary software.

Setting Up an Office

If you prefer the traditional office setup, you will need to:

Rent a space: A decent office space for a small call center operation might cost you around 2 lakhs (for rent, utilities, and furniture).

Remember to keep some spare cash for other operational costs such as:

Personnel salaries Data plans Regulatory compliance fees

Industry regulations and compliance can also add to your expenses, so it's crucial to factor these in to ensure a smooth setup process.

Conclusion

While the exact figures can fluctuate, setting up a call center in India offers a solid cost advantage from day one compared to other countries. By carefully weighing your required resources and budgeting accordingly, you can make this venture both feasible and profitable. So, whether you choose a virtual setup or an office-based one, your call center can be a genuine value proposition for your business.