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Cost Analysis: In-house Live Chat Support vs Outsourcing

Live Chat Support Cost

To remain competitive in the quickly changing world of modern business, offering outstanding customer support has become essential. Live chat support has gained immense popularity among the various support channels available due to its efficiency and convenience.

This article delves into the significance of live chat support services and the role of cost analysis in making informed business decisions.

In-house Live Chat Support

In-house live chat support services refer to establishing a dedicated customer support team within the organization to handle live chat customer interactions. This team operates under the company's management and follows its guidelines and policies.

Building an In-house Live Chat Support Team

Creating an in-house live chat support team involves carefully selecting and training individuals with the right skill sets to provide exceptional customer service. Effective communication and problem-solving abilities are essential traits for team members.

Necessary Skill Sets and Training

The team members must be proficient in multitasking, empathetic, and well-versed in the company's products and services. They should undergo comprehensive training to handle various customer scenarios effectively.

Cost Factors in In-house Live Chat Support

Employee Salaries and Benefits

One of the primary cost considerations in establishing in-house live chat support is the salaries and benefits of the support team members. Skilled support personnel may demand competitive compensation packages.

Infrastructure and Technology Expenses

Building an efficient live chat support system requires investment in reliable technology, including chat software, hardware, and network infrastructure.

Management and Supervision Costs

Managing an in-house team involves additional costs for supervisors, team leads, and administrative staff responsible for coordinating and overseeing the support operations.

Pros of In-house Live Chat Support

Complete Control and Customization

Having an in-house team grants the company full control over the support process, allowing for customization to align with specific business goals.

Direct Interaction with Support Team

The direct communication between in-house support and other departments fosters a better understanding of customer needs and enhances cooperation.

Security and Data Privacy

Keeping customer interactions in-house may provide a sense of security and ensure better data privacy compliance.

Cons of In-house Live Chat Support

High Initial Setup Costs

The initial investment required to establish an in-house live chat support services team can be substantial, especially for small and medium-sized enterprises.

Staffing Challenges and Turnover

Recruiting and retaining skilled support personnel can be challenging, leading to potential gaps in support coverage and additional recruitment costs.

Limited Support Coverage Hours

In-house teams might not be able to offer 24/7 support, which can be a disadvantage for businesses with a global customer base.

Outsourcing Live Chat Support

Outsourcing live chat support services involves partnering with external service providers to handle customer interactions on behalf of the company. Depending on the business's preferences, these providers may operate onshore, offshore, or nearshore.

Types of Outsourcing Options (Onshore, Offshore, Nearshore)

Onshore outsourcing involves collaborating with service providers within the same country, while offshore outsourcing involves working with providers in different countries. Nearshore outsourcing falls between the two, involving nearby countries with similar time zones and cultural compatibility.

Cost Factors in Outsourcing Live Chat Support

Service Provider Fees and Models (Per Hour, Per Chat, etc.)

Outsourcing fees can vary based on the service provider's pricing models, such as per hour of support or per chat interaction.

Setup and Integration Costs

Integrating the outsourced support team into the company's systems and processes may incur initial setup costs.

Language and Cultural Considerations

To ensure smooth customer interactions, language proficiency and cultural understanding are crucial for international outsourcing.

Pros of Outsourced Live Chat Support

Cost Savings and Predictable Budgeting

Outsourcing can lead to cost savings, as companies can avoid the expenses associated with hiring and maintaining an in-house support team. Additionally, outsourcing enables businesses to budget more predictably.

24/7 Support Availability

Outsourcing to live chat service providers in different time zones can result in round-the-clock support availability for customers.

Access to Specialized Expertise

Outsourced support teams may bring specific expertise and experience in handling diverse customer issues.

Cons of Outsourced Live Chat Support

Less Control and Customization

Outsourcing chat support functions means relinquishing some control over the support process, which may not align with particular business preferences.

Communication Challenges

Language barriers or communication differences can lead to misunderstandings and less effective support interactions.

Data Security Concerns

Outsourcing live chat support services requires sharing customer data with third-party providers, raising data security and privacy concerns.

5 Factors to Consider When Making the Decision

1. Company Size and Scale

The size of the company and the scale of its operations can influence the feasibility of in-house support.

2. Support Volume and Complexity

Companies with high support volumes and complex customer queries may benefit from outsourced support.

3. Budget Constraints

Budget limitations may steer companies towards outsourcing as a cost-effective solution.

4. Long-term vs. Short-term Needs

Considering long-term support requirements can help decide between in-house and outsourcing options.

5. Industry and Customer Base

The industry's nature and the customer base's preferences can impact the support approach choice.


Selecting the right live chat support approach is crucial for businesses aiming to provide exceptional customer service. Both in-house and outsourcing live chat options offer distinct advantages and drawbacks. Companies must conduct a comprehensive cost analysis while considering their specific requirements to make the most suitable choice for their unique circumstances.

Are you looking for the best live chat service providers? Wow Customer Support is here for you. We at WOW aim to help your business grow through our services. We provide excellent live chat support services for customer support. With over ten years of comprehensive customer service experience, we can proudly say we are one of the industry's best live chat service providers. Contact us today to learn more!