Author: Taylor Giordano

Average Call Center Employee Retention Data At-a-Glance

Key Takeaways

• Call center turnover rates average 30-45% annually, with some sectors reaching 60%.
• Replacing a single agent costs $10,000-$20,000—but the full impact, including lost productivity and customer churn, can reach $1M+ annually for 100-agent centers.
• 87% of agents report high workplace stress, with 77% saying it affects personal life.
• Average agent tenure dropped to just 13-15 months across the industry.
• Virtual call centers show significantly lower turnover than traditional on-site operations.
• Companies using AI and automation report significant reductions in agent attrition.

Call center operations experience higher turnover rates than most industries, affecting service delivery and budgets. Industry data shows 30-45% annual turnover, prompting many organizations to evaluate their talent management practices. Effective leaders focus on improving recruitment, development, and retention programs.

The costs of turnover add up quickly. High turnover means losing trained agents and their accumulated expertise while paying for constant recruitment and onboarding. Organizations reducing these rates typically employ comprehensive retention strategies tailored to their specific workforce needs.

Contact Us To Build Your Customer Service Team

 

Average Turnover Rates by the Numbers in 2025

The call center industry consistently has one of the highest turnover rates in any sector. While national unemployment hovers near historic lows, call centers struggle to keep seats filled. The table below reveals what the data shows about the current state of agent retention across different operational models.

Metric	2024 Rate	2025 Projection	Industry Comparison
Average Annual Turnover	38-42%	40-45%	2x higher than other industries
High-Stress Centers	50-55%	55-60%	Financial services, healthcare
Virtual/Remote Centers	25-30%	28-32%	Significantly better retention
Outsourced Centers	45-50%	48-52%	Highest turnover segment
In-House Centers	30-35%	32-38%	Most stable segment
First-Year Attrition	65-70%	68-72%	Critical retention period

 

The True Cost of Call Center Employee Turnover

High turnover creates a cascade of expenses that extend far beyond recruitment costs. Every departing agent takes knowledge, training investment, and customer relationships with them. The following chart breaks down these costs to show the true cost of high turnover.

Cost Category	Per Agent Impact	100-Agent Center Annual Cost	Hidden Impact
Direct Replacement	$10,000–$20,000	$1.0–2.0 million	Includes recruiting, onboarding, training
Lost Productivity	$5,000–$8,000	$500K–$800K	6 months to full performance
Customer Impact	$3,000–$5,000	$300K–$500K	Lower CSAT, increased complaints
Team Morale	$2,000–$4,000	$200K–$400K	Burnout from covering gaps
Quality Degradation	$1,500–$3,000	$150K–$300K	More errors, longer handle times
Management Time	$1,000–$2,000	$100K–$200K	Constant hiring vs. improving
Total Impact	$22,500–$42,000	$2.25–4.2 million	Up to 50% of payroll budget

 

Industry-Specific Call Center Turnover Patterns

Different sectors face unique challenges that drive agent attrition. Understanding your industry’s specific pain points helps target retention efforts where they matter most. The table below shows how turnover varies by industry and what top performers focus on.

Industry	Turnover Rate	Primary Drivers	Retention Leaders Focus On
Financial Services	50–60%	Complex products, high anger level in customers	Extensive training, stress management programs
Healthcare	45–55%	Life-or-death calls, insurance complexity	Mental health support, specialized certifications
Retail/E-commerce	40–50%	Seasonal spikes, repetitive inquiries	Flexible scheduling, performance bonuses
Telecommunications	35–45%	Technical complexity, billing disputes	Career pathing, technical training
Travel/Hospitality	35–40%	Irregular hours, upset travelers	Cultural perks, travel benefits
Tech Support	30–40%	Constant learning curve, difficult problems	Continuous education, problem-solving autonomy
Government	25–35%	Job security offsets lower pay	Pension benefits, work-life balance

 

Root Causes: Why Call Center Retention Rates are Low

While pay matters, research consistently shows agents leave for reasons that go deeper than dollars. Based on multiple industry surveys, these are the most commonly cited reasons for departure. The following table ranks these reasons by frequency and provides solutions that have been shown to be effective.

Departure Reason	Why Agents Leave	Solutions
#1 – Burnout/Stress	Constant exposure to upset customers and high-pressure metrics	Mandatory break time, stress training
#2 – Poor Management	Lack of support, feedback, and recognition from supervisors	Leadership development, regular 1-on-1s
#3 – No Career Path	No visible advancement opportunities beyond entry-level roles	Clear promotion tracks, skill development
#4 – Better Opportunity	Competitors offer similar pay for less stressful work	Competitive total compensation
#5 – Work-Life Balance	Inflexible schedules and denied time-off requests	Flexible scheduling, remote options
#6 – Inadequate Training	Insufficient preparation before handling complex calls	Comprehensive onboarding, ongoing coaching
#7 – Technology Frustration	Outdated systems and frequent technical failures	Modern platforms, reliable infrastructure

 

Geographic Variations in Average Turnover Rates

Location significantly impacts both turnover rates and replacement costs. Understanding regional differences helps set realistic benchmarks and compensation strategies. The table below compares key metrics across major call center markets worldwide.

Region	Turnover Rate	Avg Agent Salary	Replacement Cost	Key Challenge
Major Metro US	45-55%	$38,000–$45,000	$15,000–$20,000	Competition for talent
Rural US	30-40%	$28,000–$35,000	$10,000–$15,000	Limited talent pool
Latin America	35-45%	$8,000–$15,000	$3,000–$5,000	Career advancement limits
Philippines	40-50%	$6,000–$10,000	$2,000–$4,000	Call center saturation
India	45-55%	$5,000–$9,000	$2,000–$3,500	Night shift burnout
Eastern Europe	25-35%	$15,000–$25,000	$5,000–$8,000	Language barriers

 

Technology’s Impact on Retention

Companies leveraging modern technology consistently report lower turnover rates. The right tools reduce agent frustration while improving customer outcomes. The following table outlines key technology investments and their typical impact on retention.

Technology Solution	Typical Impact	Implementation Cost (Per Agent/Month)
AI-Powered Assistance	Significant reduction in handle time and stress	$50–$100
Omnichannel Platform	Major improvement in agent efficiency	$75–$150
Workforce Management	Better scheduling reduces burnout	$30–$60
Knowledge Base AI	Faster issue resolution boosts confidence	$25–$50
Automated Quality Monitoring	Consistent coaching improves performance	$40–$80
Gamification Systems	Increased engagement and motivation	$20–$40

 

Proven Strategies That Actually Reduce Employee Turnover Rates

After analyzing hundreds of call centers, clear patterns emerge among those with below-average turnover. Here’s what works:

Hire Differently

Strategy: Skills-based assessment over experience

• Result: 40% lower first-year turnover
• Cost: $500-1,000 per hire for assessments
• Key Insight: Past call center experience often means burned-out agents

Onboard Thoroughly

Strategy: 4-week training vs. industry standard 2 weeks

• Result: Significantly better retention at 6 months
• Cost: Extra $2,000 per agent
• Key Insight: Confidence reduces stress and improves performance

Support Mental Health

Strategy: On-site counselors and stress management programs

• Result: Addresses stress, which causes 40% of job turnover
• Cost: $50-75 per agent/month
• Key Insight: Agents stay when they feel supported

Create Career Paths

Strategy: Clear progression from agent to team lead to supervisor

• Result: 94% of agents stay longer when offered development opportunities
• Cost: Training and development budget of 2% of payroll
• Key Insight: Agents need to see a future beyond the phones

Embrace Flexibility

Strategy: Work-from-home and flexible scheduling options

• Result: Remote agents show significantly lower turnover
• Cost: $1,500 initial setup per remote agent
• Key Insight: Work-life balance trumps office perks

 

Transform Your Call Center Workforce Today

The difference between industry-average turnover and best-in-class retention comes down to intentional strategy. Companies that invest in their agents through better hiring, comprehensive training, and ongoing support see dramatic improvements in both retention and customer satisfaction.

Whether you need to quickly scale your customer service team or completely reimagine your approach to agent retention, the right staffing partner makes all the difference.

Contact Insignia Resources to build a customer service team that stays

 

Sources

• Call Center Turnover: How to Eliminate Employee Attrition Costs – Replicant
• Call Center Turnover Statistics In 2022 – DailyPay
• Key Causes of Call Center Turnover and Ways To Reduce It – Nextiva
• 11 New Call Center Statistics, Including Turnover Rates of 30-45% – TechRepublic
• Call Center Attrition Rate – Is It Now the Most Important KPI? – SQM Group
• High Call Center Turnover Rate: Causes & Solutions – CloudTalk
• 5 employee retention strategies to reduce contact center agent attrition – NICE

 

Key takeaways:

• Global outsourcing rates range from $6/hr in Southeast Asia to over $100/hr in North America.
• India and the Philippines continue to lead in cost-efficiency, especially for back-office functions.
• Poland and Mexico are ideal for development, design, and bilingual services.
• Role complexity, contract structure, and market maturity all influence pricing far beyond geography.
• A hybrid, multi-region approach can offer both affordability and flexibility.

Outsourcing has grown into much more than just a way to cut costs. Today, it’s a smart strategy for accessing skilled talent around the world, scaling teams quickly, and improving how services are delivered. Still, even as the role of outsourcing expands, pricing remains a key factor, especially as budgets tighten and companies focus more on getting a clear return on investment.

This 2025 benchmark breaks down average hourly rates by country and job type, offering a solid look at what different services actually cost and where you’ll get the most for your money. Whether you’re new to outsourcing or refining your existing partnerships, these insights can help you make more confident, cost-effective decisions.

Learn About Our Outsourcing Staffing Solutions

 

Global Average Hourly Rates by Country

Before getting into pricing by job role, it helps to look at the bigger picture: how hourly rates vary by country overall. These averages reflect a mix of common outsourced services like customer support, software development, accounting, and design work.

Rates can change depending on things like the size of the service provider, the complexity of the work, and the industry involved. Countries in Southeast Asia remain some of the most affordable, while Eastern Europe and Latin America tend to charge more for specialized, higher-skill services.

Country	Low-End Rate ($/hr)	High-End Rate ($/hr)	Avg. Rate ($/hr)
India	$7	$35	$17.50
Philippines	$6	$38	$18.50
Mexico	$10	$45	$23.00
Poland	$15	$60	$35.00
South Africa	$8	$40	$20.00
United States	$25	$120	$57.50
Colombia	$9	$40	$19.50
Vietnam	$6	$32	$16.00
Ukraine	$13	$50	$28.00
Brazil	$11	$42	$21.50
Egypt	$7	$30	$15.50
Turkey	$12	$48	$25.00

 

Hourly Rates by Role and Country

Understanding how rates break down by role is key to understanding where your organization can extract the most value. Not every country is the best fit for every job position, and price alone rarely tells the full story. Some markets are ideal for customer-facing tasks, while others are best at technical or creative work. 

• India and the Philippines continue to offer some of the most cost-effective options for customer support and transactional services. 
• Countries like Ukraine, Poland, and Vietnam are increasingly sought after for their strong technical training and cost of high-skill functions like software development.
• Mexico and Colombia provide bilingual talent and strong communication for nearshore teams, making them a smart option for creative and hybrid roles that require international collaboration.

Country	Customer Support	Software Dev	Accounting	Graphic Design	Data Entry	Digital Marketing	QA / Testing	UI/UX Design	Project Management
India	$9.50	$27.50	$20.00	$15.00	$7.50	$18.00	$19.00	$22.00	$25.00
Philippines	$8.50	$30.00	$23.00	$17.00	$6.50	$20.00	$18.00	$21.00	$24.00
Mexico	$12.50	$35.00	$25.00	$19.50	$10.00	$24.00	$22.00	$25.00	$30.00
Poland	$18.00	$47.50	$37.50	$24.00	$14.00	$28.00	$26.00	$32.00	$38.00
South Africa	$10.50	$31.50	$22.00	$16.00	$9.00	$22.00	$20.00	$23.00	$28.00
Colombia	$10.00	$33.00	$21.00	$18.50	$8.50	$23.00	$21.00	$24.00	$29.00
Vietnam	$9.00	$25.00	$18.00	$15.00	$6.50	$19.00	$17.00	$20.00	$22.00
Ukraine	$14.50	$42.00	$30.00	$20.00	$12.00	$26.00	$25.00	$28.00	$34.00
United States	$35.00	$97.50	$75.00	$65.00	$28.00	$60.00	$55.00	$70.00	$85.00

 

Best-Value Markets by Role

Every outsourcing position tends to have a “go-to” geography where cost, skill, infrastructure, and experience align. While pricing is a major factor, companies are also choosing vendors based on other factors, such as:

• Time zone
• Communication ease
• Service maturity

 In 2025, these countries stand out for specific roles:

Role	Best-Value Country	Why
Customer Support	Philippines	Mature BPO infrastructure, excellent English fluency, affordable round-the-clock service
Software Development	Poland	Strong technical universities, EU data compliance, cultural alignment with Western markets
Accounting	India	Deep finance talent pool, familiarity with global reporting standards, process efficiency
Graphic Design	Mexico	Bilingual creatives, cultural proximity to U.S. markets, design expertise
Data Entry	Vietnam	Ultra-low rates, disciplined workforce, growing tech infrastructure
Digital Marketing	Colombia	Bilingual content creators, competitive rates, strong brand awareness skills
QA / Software Testing	Ukraine	Experienced testers, structured project delivery, strong English proficiency
UI/UX Design	Brazil	Emerging creative hub, strong design portfolios, UX understanding for multilingual markets
Project Management	South Africa	Western-aligned communication, project rigor, overlapping time zones with EU and U.S.

 

Key Factors That Affect Outsourcing Rates

A low hourly rate might look appealing at first, but it doesn’t guarantee efficiency or quality. A lower-cost provider might take longer to finish the job or need more hands-on direction, which can cancel out the savings. On the other hand, a provider that charges a bit more might offer better reliability, smoother workflows, and stronger long-term results.

It’s important to think beyond just the rate. Consider how complex the task is, whether the team is in a similar time zone, how well they meet compliance standards, and how much back-and-forth it might take to get things done right. When you understand these behind-the-scenes factors, it’s easier to pick an outsourcing partner who fits both your budget and your business needs.

Here are some of the most important rate drivers when evaluating outsourcing proposals:

Factor	Description
Role complexity	Routine tasks cost less, niche skills (like AI dev) command a premium
Volume	Higher contract size usually lowers the per-hour rate
Infrastructure maturity	Countries with strong education and tech ecosystems deliver higher ROI
Language & culture fit	Bilingual teams or cultural alignment may justify slightly higher costs
Engagement model	Dedicated teams tend to cost less per hour than flexible project-based teams

 

What to Expect in 2025

The global outsourcing market continues to shift as technology and economic factors evolve. Here’s what to look out for in 2025:

• AI automation is reshaping pricing at the entry-level, particularly for support and content moderation roles.
• Southeast Asian markets are expanding into mid-tier IT and compliance services.
• Nearshoring in Latin America is gaining popularity due to shared time zones and hybrid workforce demand.
• Compliance concerns are pushing more work to GDPR- and SOC 2-compliant regions.
• Hybrid staffing models are becoming the new norm, such as blending onshore project leads with offshore execution.

 

Make Smarter Outsourcing Decisions

Pricing benchmarks are only one piece of the outsourcing puzzle. If you’re navigating vendor selection, contract renewals, or scaling a global team, Insignia can help you align cost, performance, and partnership fit.

Talk to an expert at Insignia today

 

Sources:

• Offshore software development rates by country: how to choose the right destination?
• Outsourcing Statistics By Country | Outsourcing Trends
• Guide to Offshore Software Development Rates by Country in 2025
• List of Top Countries for Outsourcing in 2025? 9 Global Leaders

Key takeaways:

• HR is facing one of the highest turnover rates in today’s workforce.
• Overall U.S. turnover has dropped to 3.6% in 2024, but many sectors still exceed the benchmark for healthy turnover (<10%).
• Burnout is widespread in HR, with 98% of professionals reporting it in the past 6 months.
• 75% of voluntary resignations can be avoided with the right strategies in place.
• Employees often leave because of money, workloads, feelings of being undervalued, and a lack of advancement.
• Organizations must treat HR like a strategic team, not just a support function.
• Clear, data-driven retention plans can save tens of thousands in avoidable costs.

Employee turnover disrupts culture, continuity, and performance. While every industry struggles with turnover in its own way, understanding the latest trends by sector helps leaders figure out where they stand and uncover what’s driving exits.

In this 2025 overview, we spotlight which industries are struggling most to retain talent, and why HR itself has become one of the most volatile roles of all. From burnout to budget cuts, HR teams are stretched thin at the very moment they’re being asked to do more.

Get in touch for a commitment-free discussion about how we can help grow your business.

 

National Turnover Benchmarks

Before diving into industry-specific insights, it’s helpful to understand the broader talent landscape. Despite headlines about “quiet quitting” or reshuffling, the overall U.S. turnover rate has cooled slightly, landing at 3.6% in 2024. That’s a welcome drop from the post-pandemic highs, but still above pre-2020 levels.

A “healthy” turnover rate is often cited as under 10%. But many industries and job functions regularly surpass this threshold, especially those involving physical labor, emotional strain, or public-facing roles. A single exit can cost a company a third of that person’s salary. For high-churn roles, the impact adds up fast.

Metric	Rate / Value
U.S. average turnover rate (2024)	3.6%
Benchmark for healthy turnover	<10%
HR turnover (estimated)	15%
Cost per resignation (avg)	$36,295
Turnover preventability (voluntary)	75% preventable

 

Learn About Our Proven Staffing Solutions

 

Turnover by Industry: How HR Compares

Industries vary widely in their ability to retain talent. HR sits in the top third for turnover, which is on par with sectors known for burnout and instability. For a field tasked with solving retention, this data signals a deeper breakdown in support systems.

Here’s how 2024 turnover rates break down across key sectors:

Industry	Turnover Rate (%)
Government Jobs	1.3%
Finance & Insurance	1.6%
Information Sector	2.7%
Manufacturing	2.7%
Construction	3.9%
Trade/Transport/Utilities	3.6%
Private Education & Health	3.4%
Professional & Business Services	4.7%
Human Resources	15.0%
Public Education	16.0%
Banking / Finance	19.8%
Healthcare (Hospitals)	22.7%
At-home Healthcare	31.1%
Retail / Wholesale	32.9%
Nursing Homes	53.3%
Technology	~60%

 

Why Is HR Turnover So High?

Turnover among HR professionals is unfortunately accelerating. Multiple studies show HR teams are being asked to handle more with fewer resources, while also absorbing the emotional burden of workplace transformation.

Challenge	Description	Challenge	Description
Post-pandemic burnout	Nearly 98% of HR pros reported burnout over a six-month period.	Lack of internal support	While they create wellness programs for others, HR often lacks their own.
Layoff vulnerability	HR is frequently the first to be cut during downsizing.	Emotional labor	Constantly managing employee stress, layoffs, and crises without a break.

Only 32% of HR teams say they’re highly effective at developing leadership internally. And less than 7% have a clear AI strategy, even as digital tools rapidly reshape their responsibilities. HR is being asked to lead the organization through change, while lacking the support needed to lead themselves.

Find The Best HR Talent Today

 

Why Employees (Including HR) Leave

It’s easy to blame turnover on pay alone, but the story is more complicated than that. For HR teams, the problem is especially frustrating: they know what good employee experiences should look like and often aren’t experiencing them themselves.

 Research shows employees are increasingly motivated to leave because of:

• Better pay and benefits elsewhere (34%)
• Unrealistic workloads or expectations (30%)
• Feeling overworked and undervalued (22%)
• Limited flexibility or lack of advancement (14%)

 

What HR and Other Employers Can Do To Stop The Churn

To slow turnover, organizations need to treat HR not just as a function, but as a team that deserves the same investment, protection, and long-term planning as any revenue-generating group.

Here’s what works:

For HR Teams	For High-Churn Sectors (Retail, Healthcare, Tech)	For All Employers
Create protected time for wellness and PTO	Add shift flexibility and clarity on advancement	Make retention a measurable KPI, not a side initiative
Offer external peer support groups and networking	Provide real-time support, not just yearly surveys	Equip managers to spot disengagement early
Use tech to streamline reporting and compliance tasks	Communicate openly during periods of instability	Regularly update pay transparency and promotion policies
Build internal career ladders	Introduce cross-training to reduce burnout and build versatility	Conduct regular stay interviews to surface early signs of dissatisfaction

 

Find and Retain HR Employees

If your team is stretched thin or your HR employees are burning out, it’s time to act. Use these benchmarks to assess where you stand, and take steps to strengthen retention before it costs you top talent.

Don’t wait for your employee’s exit interviews. Build a strategy that keeps people from leaving in the first place. Find the right staff for you and your company today.

 

Sources: 

• HR Trends Report 2025
• What’s behind industry employee turnover rates?
• How much turnover is too much?
• Why HR leaders are struggling to retain their own team members
• Industry Report 2024: Employee Turnover and Retention Rate Trends
• Average Turnover Rate by Industry in 2024

Key Takeaways

• Call center turnover rates average 30-45%, with some sources reporting over 50%.
• The average customer service agent lasts just 13-15 months in their role.
• Replacing a single call center employee costs between $10,000-$20,000.
• The top drivers of turnover include low pay, high stress, poor company culture, and lack of growth.
• Turnover costs for a 100-agent team can reach $1.7 million/year.

Call centers are under more pressure than ever to retain staff. Even as AI and automation streamline operations, customer service still depends on real people, and those people are leaving customer service jobs faster than most industries can keep up with. 

According to multiple studies, annual turnover rates for customer service and call center roles remain very high, hovering somewhere between 30% and 45%. That means nearly half of your team could walk out the door this year. This page looks into the data behind this trend, what’s driving it, and what it costs your business.

Contact Us To Find Customer Service Staff

 

Estimated Call Center Turnover Rates by Year (2020-2025)

Customer service turnover hit its highest point in 2022, driven by pandemic stress, worker shortages, and rising costs. While things have improved slightly, 2025 rates still show that the customer support job market remains highly unstable.

Using reported data and past trends, the table below shows estimated yearly turnover rates for U.S. call centers from 2020 to 2025.

Year	Estimated Turnover Rate
2017	31%
2018	32%
2019	33%
2020	35%
2021	42%
2022	44%
2023	41%
2024	39%
2025	38% (projected)

 

What Customer Service Turnover Costs

Turnover doesn’t just impact human resources departments. When people leave their positions often, it makes daily work harder, slows down service, and brings down team spirit. It also causes hidden problems like losing important company knowledge, longer training times for new hires, lower productivity, and a drop in customer experience.

This chart shows the estimated annual turnover costs for a 100-agent call center:

Role Type	Cost to Replace One Agent	Total Annual Cost (Avg. Churn)
Customer Support	$10,000–$15,000	$900K–$1.35M
Sales	$10,000–$20,000	$800K–$1.6M
All Roles	$10,000–$17,000	$800K–$1.7M

 

The Top 6 Drivers of Customer Service Turnover

In 2022, only 38% of call center employees reported being satisfied with their jobs. That number hasn’t changed much in 2025, and it points to a bigger issue than just one single factor. Understanding why customer service turnover is high is essential to improving long-term retention.

Based on industry-wide data and employer surveys, these are the most commonly cited drivers of turnover:

1. Low pay relative to stress

Many customer service agents earn close to minimum wage while handling complex, emotionally draining calls. Competing employers in warehousing, delivery, or retail now offer similar pay with less stress.

2. Repetitive or emotionally taxing work

Daily exposure to complaints, high call volumes, and frustrated customers creates emotional exhaustion. Over time, this can lead to burnout, even for experienced customer service agents.

3. Lack of career progression

Many call centers lack clear career advancement paths. When employees don’t see future opportunities, they often start looking elsewhere.

4. Rigid schedules and poor flexibility

Nights, weekends, and mandatory overtime make it hard for agents to maintain a work-life balance. In an era where flexible remote work is more common, inflexible shifts are a major disadvantage.

5. Weak or toxic culture

Lack of recognition, poor communication, and unclear expectations often contribute to disengagement. Toxic leadership or inconsistent support can make employees feel undervalued.

6. Unrealistic Performance Expectations

Strict performance expectations can make customer service agents feel overwhelmed without the right support. When agents are pushed to hit numbers but don’t get coaching or help, stress goes up and satisfaction goes down.

 

Tenure Trends: How Long Do Customer Service Agents Stay?

The average call center employee stays on the job for just 14.3 months. For customer support roles specifically, the number drops even lower to 13.7 months, while sales reps average 15 months before moving on.

When customer service agents leave their positions often, it drives up hiring costs and disrupts day-to-day operations. Teams spend more time training replacements than improving processes, and valuable knowledge is lost before it can be passed on. That leads to more customer issues, slower resolutions, and added pressure on managers to constantly fill the gaps.

Role Type	Avg. Tenure (Months)
All Call Center Roles	14.3
Sales	15.0
Customer Support	13.7

 

Even modest improvements, like boosting tenure from 13 to 18 months, can significantly lower costs and improve service consistency. The takeaway? Reducing turnover starts with creating roles within companies that people want to grow in. 

Some turnover is normal in call centers, but ignoring it can get expensive fast. Strong service teams keep a close eye on it: measuring, understanding, and working to stop the cycle. With the right tools and clear communication, companies can lower churn and protect both team morale and their bottom line.

 

Proven Strategies to Reduce Turnover

Reducing churn takes more than one quick fix. To slow turnover rates, use a layered strategy focused on training, communication, and long-term engagement. Consider these ideas:

• Onboard thoroughly: Avoid throwing agents into calls unprepared.
• Offer flexible scheduling: Cater to work-life balance when possible.
• Recognize and reward effort: Public and private recognition builds company morale.
• Promote internally: Show agents a long-term path inside the company.
• Invest in training: Make room for regular performance feedback.
• Enable remote work: Allow for more flexibility.
• Monitor burnout signs: Multiple missed work days can be an early sign that an employee is unhappy.
• Involve managers: Empower them with decision-making tools and training.
• Ask and listen: Use exit interviews to figure out what’s not working.

 

Lower Turnover and Improve Retention

If you’re seeing high churn or rising costs in your support team, it’s time to rework the system. Insignia Resources helps businesses build smarter, more stable customer service operations, whether you’re scaling, outsourcing, or optimizing what you already have.

Contact Insignia Resources today to get started

 

Sources

• Call Center Turnover Statistics In 2022
• Key Causes of Call Center Turnover and Ways To Reduce It
• 11 New Call Center Statistics, Including Turnover Rates of 30-45%
• Call Center Turnover: Causes, Formulas, and Strategies to Reduce It

 

Global Outsourcing at a Glance

Key Takeaways

• The global outsourcing market is projected to reach $731.12 billion by 2034, growing at a 5.48% CAGR.
• India and the Philippines remain outsourcing powerhouses, while Vietnam and Eastern Europe are gaining ground.
• Services outsourced now span from basic admin tasks to core functions like R&D, cybersecurity, and finance.
• Labor rates vary widely: India averages $5-$25/hour, while Eastern Europe ranges from $20-$45/hour.

Outsourcing has evolved far beyond a simple cost-cutting tactic. In 2025, it has become a strategic tool used by companies to scale faster, stay agile, and compete globally. Businesses are turning to overseas providers not only to save on labor but to access specialized talent and modern technologies. This shift is reshaping the global workforce and redefining how businesses view operations. This article explores current cost and volume trends shaping global outsourcing decisions.

Contact us today to get started

 

Global Market Size & Growth Trends

Outsourcing has been growing steadily around the world for more than a decade. Companies often use outsourcing to get work done without hiring more full-time staff. As more businesses go digital and remote work becomes increasingly common, outsourcing is now one of the main ways to tap into talent across the globe.

The chart below showcases the global outsourcing market size from 2020 to 2034:

Year	Market Size (USD Billion)	YoY Growth %
2020	$245.91 billion	–
2021	$260.65 billion	5.99%
2022	$275.36 billion	5.63%
2023	$291.07 billion	5.71%
2024	$306.80 billion	5.41%
2025	$322.64 billion	5.16%
2026	$340.33 billion (projected)	5.49%
2027	$358.99 billion (projected)	5.50%
2028	$378.66 billion (projected)	5.47%
2029	$399.42 billion (projected)	5.49%
2030	$421.32 billion (projected)	5.49%
2031	$444.42 billion (projected)	5.49%
2032	$468.79 billion (projected)	5.49%
2033	$494.49 billion (projected)	5.49%
2034	$521.61 billion (projected)	5.49%

 

Why Companies Choose Overseas Outsourcing

The appeal of overseas outsourcing isn’t just about saving money, it’s also about driving growth. As competition and innovation accelerate, businesses are embracing outsourcing both as a vendor relationship and a global talent strategy.

 Companies that outsource globally often do so to:

• Access niche or hard-to-find skill sets
• Operate across multiple time zones for 24/7 coverage
• Expand faster without overbuilding internal teams
• Improve service delivery through specialized partners
• Test new markets with less overhead risk

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Most Commonly Outsourced Services

Outsourcing now touches every layer of business operations. The services listed below are broken down into core, semi-core, and non-core tiers:

• Core: Directly tied to a company’s main value offering, such as software development, legal compliance, and R&D.
• Semi-Core: Essential to operations but not unique to the business model, such as IT support, and logistics.
• Non-Core: Routine or repetitive tasks that can be offloaded easily, such as data entry and admin work.

The table below shows that companies are becoming more comfortable sending even important and sensitive work to trusted partners in other countries.

These are the top 21 outsourced services in 2025:

Service Category	Sub-Services	Core Tier
IT Services	Web Dev, App Dev, System Integration	Core
Accounting	Payroll, Tax Prep, Financial Reporting	Core
Customer Support	Call Handling, Email, Live Chat	Non-Core
HR Services	Staffing, Background Checks, Benefits Admin	Non-Core
Content & Marketing	Writing, SEO, Social Media	Non-Core
Procurement	Vendor Mgmt, Contract Negotiation	Semi-Core
Sales Operations	Lead Gen, CRM, Analytics	Semi-Core
Manufacturing	Product Assembly, Packaging	Core
QA & Testing	Product Inspections, Software Testing	Semi-Core
R&D	Prototyping, Market Research	Core
Legal Services	Compliance, Contract Review	Core
Logistics & Fulfillment	Warehousing, Distribution	Semi-Core
Data Analytics	BI, Reporting, Forecasting	Core
Cybersecurity	Threat Monitoring, Risk Mitigation	Core
Admin Support	Data Entry, Travel Scheduling	Non-Core
Healthcare RCM	Claims Follow-up, Patient Billing	Semi-Core
Mortgage Services	Credit Checks, Appraisal Coordination	Non-Core
Training & Development	Leadership Training, LMS Management	Semi-Core
Design Services	UI/UX, Graphic Design	Non-Core
Technical Support	Help Desk, Troubleshooting	Non-Core
eCommerce Support	Order Management, Inventory Updates	Non-Core

 

Labor Cost Estimates by Country

Outsourcing gives companies flexibility, but saving money is still one of the biggest reasons they choose it. Businesses often look at wages in different countries, both new and well-known outsourcing spots, to get the best value. This table shows average hourly pay and the main types of services offered in each country.

Below shows the average hourly labor cost by country in USD:

Country	Avg. Hourly Rate	Common Focus Areas
India	$5–$25	IT, Finance, Admin
Philippines	$6–$28	Customer Service, Marketing
Vietnam	$7–$18	Manufacturing, Web Dev
Bangladesh	$4–$12	Data Entry, Accounting
Poland	$25–$45	IT, Engineering
Ukraine	$20–$40	Software Dev, QA
Mexico	$15–$35	Bilingual Support, Tech Support
Egypt	$6–$20	CX, Back Office

 

Industry-Level Outsourcing Volume

Different industries outsource at different levels, based on what their customers need, the rules they have to follow, and how much staff they already have. Sectors that handle lots of transactions or use older systems often outsource the most. The table below shows how much companies in major industries are outsourcing in 2025.

Industry	Commonly Outsourced Functions	Est. % Outsourced
Healthcare	RCM, Scheduling, Claims Support	65%
E-commerce	Fulfillment, CS, Content Management	70%
Software/SaaS	Development, QA, Tech Support	55%
Manufacturing	Assembly, Packaging, Logistics	60%
Financial Services	Bookkeeping, Compliance, Payroll	50%
Education	LMS Management, Content Creation	40%

 

Countries to Watch in the Next 5 Years

As outsourcing keeps changing, some new countries are standing out because of their strong infrastructure, skilled workers, and lower costs. Companies that spread their outsourcing across different places might gain an edge by working with regions that haven’t been top choices in the past.

Countries expected to become more prominent include:

Vietnam	Egypt	Colombia	Romania	Kenya
Rapid tech talent growth and strong government investment	Expanding CX and IT support sector with European language capabilities	Nearshore destination for North America with high English fluency	Part of the EU with growing developer community and Western time zones	Rising player in business services with strong education pipelines

 

Signs It’s Time to Outsource

Not every business should outsource every function, but there are clear signs that it might be time to find workers overseas:

• In-house teams are stretched thin and unable to meet deadlines
• You’re losing bids or customers due to slow service or delivery
• Hiring has stalled due to cost or local labor shortages
• Your growth is constrained by limited internal capacity
• You’re entering new markets and need bilingual or regional support

If two or more of these points resonate, outsourcing certain tasks could free up your team to focus on what matters most. 

Need help finding the right people? We build tailored staffing solutions designed to match your business with employees who fit your needs. Contact us today to learn more.

 

Sources

• 21 Key Most Commonly Outsourced Services in 2025
• Outsourcing Statistics 2025: A Detailed Overview
• US and Global Outsourcing Statistics 2024: Key Insights
• A Look Ahead: 2025 Outsourcing Trends