Cost per Call
Definition
Cost per Call
Cost per call (CPC) is the total operating cost of a call centre divided by the number of calls it handles in a defined period, usually a month. Contact centre leaders watch it because it links spend directly to volume — a single dial that connects finance, workforce planning, and customer service performance on one sheet.
Two flavours run in practice. A fully loaded CPC folds in real estate, technology, and management overhead. A variable CPC tracks only agent labour and telephony per interaction. Analysts quote both when they compare an in-house team against a BPO vendor.
The metric matters because voice is still expensive. ContactBabel’s 2024 UK Contact Centre Decision-Makers’ Guide put the average fully loaded inbound CPC at around £4.53, while offshore delivery from the Philippines or India lands closer to £1.20-£2.00. Deloitte’s 2025 Global Contact Centre Survey flags CPC pressure rising as agent wages catch up post-pandemic and automation absorbs the simpler calls.
Key takeaways
- CPC equals total operating cost divided by calls handled in the same window.
- Fully loaded CPC includes overhead; variable CPC covers only agent labour and telephony.
- Industry median CPC in 2024 sat around £4-6 onshore, US$1-3 offshore per inbound call.
- CPC rises when average handle time climbs, occupancy falls, or turnover spikes onboarding cost.
- Cutting CPC without hurting CSAT means removing waste — repeat calls, dead air, mis-routing — not corners.
How it works
Cost per call is calculated by dividing the total operating cost of a call centre by the number of calls handled in the same period. The formula is simple; which costs you include matters more than the arithmetic. Most operators run two views side by side so finance and operations agree on the same number.
Cost per Call = Total Operating Costs ÷ Total Calls Handled
Worked example: a 100-seat team spending US$250,000 in a month that handles 100,000 calls posts a CPC of US$2.50. If the same team handles only 80,000 calls next month because average handle time drifted from 5:30 to 6:45, CPC jumps to US$3.13, a 25% rise for one operational miss.
The table below shows what most operators fold into each version of the metric.
| Cost bucket | What it covers | Fully loaded CPC | Variable CPC |
|---|---|---|---|
| Agent wages | Salaries, benefits, overtime | Yes | Yes |
| Telephony / VoIP | Trunk lines, per-minute charges, seat licences | Yes | Yes |
| Software | CRM, ticketing, IVR, workforce tools | Yes | No |
| Real estate | Floor space, utilities, security | Yes | No |
| Training | Onboarding, coaching, e-learning | Yes | No |
| Management | Team leads, QA, operations, reporting | Yes | No |
Four levers move the number. Volume matters first: every extra call spreads the fixed base thinner. Handle time is next; every 30 seconds shaved off average handle time cuts variable CPC by roughly 8-10%.
First call resolution also swings the total, because a five-point FCR gain kills the repeat contacts that inflate call counts and cost. Finally occupancy: the fewer paid idle minutes per shift, the lower the labour cost per productive call.
Examples
Named operators publish CPC ranges as part of their commercial pitch. Concentrix and Teleperformance both cite blended per-interaction pricing in their investor decks, typically US$1.10-US$1.80 for tier-one offshore voice contracts signed through 2024. Foundever (formerly Sitel Group) moved a US retailer’s Spanish-language queue from Texas to Bogotá in 2023 and reported a 42% CPC reduction with CSAT holding within 2 points.
A Manila-based financial services BPO running a mid-market credit-card programme quoted US$1.20 per handled call on a per-call commercial model in late 2024, versus roughly US$4.60 for the same client’s residual US-based team. The gap is almost entirely agent labour, since wages account for 60-70% of any voice contact centre’s operating cost, per ICMI’s 2024 benchmark set.
TTEC and Alorica publish separate CPC bands for regulated verticals. Healthcare and financial services calls tend to run 40-80% higher than retail because handle times are longer, quality assurance is heavier, and agents need certifications that inflate the wage line.
Related terms
- Average handle time (AHT): the biggest single lever on variable CPC.
- First call resolution (FCR): high FCR shrinks repeat volume and lowers total CPC.
- Occupancy rate: higher occupancy means fewer paid idle minutes per productive call.
- Customer satisfaction (CSAT): the balancing metric that stops cost cuts damaging service.
- Business process outsourcing (BPO): offshoring typically drops CPC by 50-70% versus onshore delivery.
- Interactive voice response (IVR): self-service deflection reduces the call denominator.
- Workforce management: forecasting accuracy cuts the overstaffing that inflates CPC.
- Knowledge process outsourcing (KPO): higher-complexity work carries a different cost curve.
FAQ
What is a good cost per call?
It depends on geography, vertical, and channel. Onshore US retail typically runs US$3-US$6 per call. Onshore financial services or healthcare runs US$8-US$15.
Offshore delivery from the Philippines, India, or Colombia usually lands US$1-US$3. ContactBabel’s 2024 UK benchmark pegged fully loaded CPC at around £4.53.
How do you calculate cost per call?
Divide total operating costs for a defined period by the number of calls handled in that same period. Include agent wages, telephony, software, real estate, training, and management overhead for a fully loaded figure. Strip everything except agent labour and telephony for a variable figure that lets you compare vendors on a like-for-like basis.
What drives cost per call up?
Rising average handle time, poor forecasting that leads to overstaffing, high agent turnover that inflates training spend, low first call resolution that triggers repeat contacts, and heavy shrinkage that cuts effective occupancy. Every extra minute on a call adds directly to CPC.
How does outsourcing affect cost per call?
Offshoring to the Philippines, India, or Colombia typically cuts CPC by 50-70% versus onshore US or UK delivery. Quality-adjusted savings tend to land between 30-50% once you factor in ramp time, quality assurance, and knowledge transfer. Wages drive most of the delta.
What is the difference between cost per call and cost per contact?
Cost per call covers only voice channels. Cost per contact covers all channels — voice, email, chat, social, messaging — and is the modern replacement metric for omnichannel operations. Most global operators track both so voice can still be benchmarked against its own history.
Should cost per call be the primary contact centre KPI?
No. CPC read on its own can push a team to cut corners that damage CSAT and FCR. Pair it with a service-quality metric and a resolution metric. Most mature operators use a CPC / CSAT / FCR triangle to keep the trade-offs honest.
Need real CPC numbers for your own operation? Get a quote from a vetted BPO partner and compare apples to apples.
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