Delivering excellent customer service is essential for businesses staying competitive. However, running an in-house 24/7 call handling team can be costly and complex. From wages and training to managing holidays, sickness, and fluctuating demand, the expenses quickly add up.
Outsourcing your call handling provides a smarter, more cost-effective solution. With a flexible, pay-as-you-go model, you can cut costs, improve efficiency, and focus on your core business without compromising service quality.
The Hidden Costs of In-House Call Handling
Many businesses underestimate the actual cost of running an in-house call handling team. Beyond salaries, you need to account for recruitment, training, employer contributions, legal requirements, and overheads. Ensuring round-the-clock coverage only adds to the financial strain.
The Challenge...
Let’s say you want to staff your call centre to ensure you can always answer five calls simultaneously. That means you need a minimum of five agents available at all times. That might seem straightforward, but the required agent numbers rise when you factor in breaks, holidays, and sick leave. Then, you need to cover multiple shifts, seven days a week.
Here’s a breakdown of what’s really required:
- Total coverage needed
24/7/365 service = 43,800 agent hours annually (based on five agents available at all times). - Maximum hours a single agent can work
After holidays and sick leave, each agent provides 1,776 hours annually. - Minimum number of agents required
43,800 hours ÷ 1,776 hours per agent = 25 agents. - Extra staff to cover peak demand, training, and breaks
A 20% workforce buffer is necessary to avoid service gaps: 25 × 1.2 = 30 agents.
That means to guarantee uninterrupted service, you’d need at least 30 full-time agents.
Further reading: Optimising Call Centre Staffing Levels to Manage Call Spikes
The Real Cost of Running a 30-Agent In-House Call Centre
Breakdown of Costs Per Employee (UK - 2025 Figures)
| Cost Factor | Per Employee (Annual) | For a 30-Agent Team |
| Basic Salary (Min. wage £12.21/hr) | £25,396.80 | £761,904 |
| Employer's NI (15%) | £3,059.52 | £91,785.60 |
| Holiday & Sickness Cover | £1,015.87 | £30,476.10 |
| Recruitment & Training | £1,500 | £45,000 |
| Office Space & Overheads | £2,000 | £60,000 |
| IT & Infrastructure | £1,500 | £45,000 |
| Management Costs | £3,371.68 | £101,150.40 |
| Total Annual Cost | £37,843.87 | £1,135,316.10 |
Answer4u Insight: This model assumes perfect efficiency, which is rarely achievable. Realistically, businesses often need even more staff, further increasing costs. Even with careful planning, an in-house call centre is a significant financial commitment.
The Smarter Alternative: Outsourcing Call Handling
Instead of investing over £1.1 million per year to maintain an in-house team, outsourcing offers a flexible, budget-friendly solution.
How Outsourcing Saves Money & Increases Efficiency
Real Cost Comparison: In-House vs. Outsourcing
Example: If Answer4u charges £1 per call, and your business receives 50,000 calls annually, the total cost would be £50,000 per year - a fraction of the £1.1M needed for an in-house team.
Additional Benefits of Outsourcing with Answer4u
✔ Scalability - Adjust your service levels based on seasonal demand.
✔ Consistent Quality - Trained professionals handle every call with care.
✔ Better Customer Experience - Agents ensure callers feel valued.
✔ No HR Headache - No recruitment, training, or staff management challenges.
How Outsourcing Works
- Set up your call handling preferences - Define scripts, FAQs, and escalation processes.
- Let Answer4u handle your calls – Our expert team is available to manage your customer interactions 24/7/365.
- Pay Only for What You Use - Scale up or down to match your seasonal or promotion fluctuations.
The Smart Choice for Your Business
Managing a 24/7 in-house call centre is expensive, time-consuming, and difficult to scale. The cost of hiring 30 agents to provide uninterrupted service can easily exceed £1.1 million per year.
Outsourcing with Answer4u gives you a cost-effective, scalable alternative where you only pay for the calls handled—saving up to 80% compared to in-house operations.
Why bear the burden of an in-house team when Answer4u provides a smarter, more cost-effective solution?
Ready to Cut Costs and Improve Efficiency?
Book a free consultation with Answer4u’s New Business Manager to see how our 24/7 Call Handling Service can help your business thrive.
