How to Start a Call Center from Scratch? (Without Wasting Money)

Juhi Parekh
Author:
green tickUpdated : September 30, 2025

There’s a process to good customer service: the prompt hello, the seamless transfer, the relieved sigh when a problem is solved in one go.

Building a call center business is about crafting that flow deliberately. And the world is paying attention: the global call center outsourcing market was USD 97.3 billion in 2024, and it’s growing at 9.1% annually toward 2030.

In this blog, we’ll break down the call center metrics, strategies, tools, and frameworks that can fuel your idea of starting a profitable call center.

How to Open a Virtual Call Center?

To start your own call center, you should incorporate basic employee training. Along with that, give strategically planned infrastructure and combine the right technology with trained agents to provide quality customer service.

1. Plan Prior to Opening a Call Center

Before committing to customer relationship management or hiring agents, going through the strategy planning is imperative. When you don’t have a plan, you will have to keep wondering if your call center has the potential to meet customer expectations or not.

Have a clear goal: Describe what the cloud-based call center setup can help you achieve. It can be increasing sales, answering customer questions, or providing outbound call center services and a technical support team.

  • Know your market: Conduct market research to understand customer needs and expectations.
  • Traditional call center industry or multi-channel: Will your center be inbound-only for incoming calls, outbound-only for sales, a combination of both, or offer more than just call interactions?
  • Customer Experience: Be sure to build your center service for a positive customer experience and quality phone calls.

2. Choose the Right Call Center Type

A hosted call center influences efficiency, cost, and scalability. Choosing the right type of call center to maximize operations is the best long-term solution for your business.

Traditional Call Center

The call center will be managed in a centralized location. Moreover, using a traditional contact center begins a more direct approach to managing agents.

Remote / Virtual Call Center

Remote call centers or hosted call centers enable agents to work anywhere. These cloud-based center software allows incoming and outgoing calls without sacrificing call quality. It grants benefits such as,

  • Cost Savings with less overhead on office space rent and utilities.
  • Access to talented agents who are more skilled in comparison to local.

Hybrid Set Up

Office and remote agents allow the best of both worlds. You can maintain operations seamlessly, whether there are technical issues or local emergencies.

3. Put the Core Infrastructure in Place

Robust infrastructure is an essential component of a successful omnichannel contact center. Without a doubt, well-engineered systems can facilitate productive processes and support customer experience.

VoIP / Cloud Telephony

Changes to cloud call center software can help enhance your customer service functions like, operating a call tree for automatic call distribution with reports, etc.

For example, CallHippo is a call center software that has some useful call features, including call recording, call forwarding, and CRM integrations.

Computers, Headsets & Internet Connection

To support a call center, you should make sure that you have computers, headsets, and high-speed internet. Without proper call quality, you will have difficulty communicating with the existing customers over the phone, which can result in downtime.

Interactive Voice Response (IVR)

An Interactive Voice Response (IVR) menu allows quick access for the customer to get to the right department. An IVR can minimize the wait time for customers and allow them to address their own issues.

CRM System

CRM systems take customer data and store it in a centralized location. Integration with the VoIP system is critical as it provides the ability to track metrics for your agents working in call centers. Also, your customer representatives can switch between tasks, which overall assists them in delivering superior customer service.

Call Recording for Monitoring and Training

The call center should have the advantage of recording calls, so that employees can take accountability and do service performance monitoring. This call recording feature can track call quality and service delivery. Meanwhile, it also helps in delivering training and compliance for audit processes.

Comprehensive Calling Features

Many call center equipment and software platforms will include calling features, including automatic call distribution, call routing, call forwarding, predictive dialing, etc. Outbound call centers can conduct prescriptive sales campaigns, and inbound call centers can resolve customer inquiries efficiently.

Integration with Other Business Tools

You should be able to integrate your call center software with sales tools, such as Salesforce and HubSpot, among others. This will enable seamless and productive work, as agents will manage inquiries, follow up, and deliver quality customer service across multiple channels.

4. Check Security Compliance

Protecting customer data from breach or loss is non-negotiable. Therefore, ensure your call center is in compliance with the GDPR, HIPAA, PCI DSS, and other relevant regulations. It will protect clients and your organization from fines for loss of data or failures in security protocol compliance.

  • Secure Networks: Use encrypted communications, firewalls, and other security measures.
  • Access Control: Implement role-based access to center staff.
  • Audit Ready: Keeping systems ready for compliance audits will help maintain trust.

5. Examine Security Compliance

Data protection is not an option. Adherence to requirements is mandatory (GDPR, HIPAA, PCI DSS) to ensure that information is secure and avoid any implications of incurring penalties.

  • Secure Networks: Encryption of all chats and firewall protection of all databases.
  • Access Control: Provide access to authorized personnel only.
  • Audit Readiness: Business plan to keep systems ready for audits to gain customer trust.

6. Hiring and Training the Right Staff

The success of a call center depends on its people, including call center managers. Call center staffing is vital for maintaining a call center that delivers consistent and valuable experiences for customers.

  • Recruitment: Recruit call center agents who have excellent communication skills, empathy, and problem-solving. Also, experience with inbound and outbound calls should be verified.
  • Training Programs: Onboarding and training programs should be delivered for the necessary product knowledge.

7. Design Clear Processes for Operations

Consistency in operations drives efficiency. Standardized workflows help center managers oversee operations as well as agents to provide reliable service across digital communication channels.

  • Document SOPs: Create detailed procedures for call routing, escalations, and issue resolution.
  • Workflow Design: Plan agent schedules, responsibilities, and coverage to prevent bottlenecks.
  • Quality Guidelines: Define performance expectations and metrics to measure agent efficiency and service quality.
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Pro-Tip

Use visual workflow diagrams so agents understand escalation paths and call-handling steps. This reduces mistakes and improves the customer service experience.

8. Monitor and Track Key Performance Metrics

You can’t improve what you don’t measure. Center metrics give managers the insight needed to optimize agent performance and customer experience.

  • Track Center Metrics: Average wait times, first-call resolution rates, average handling time, and agent utilization are essential.
  • Dashboards: Real-time dashboards provide actionable insights into call volume, agent performance, and operational bottlenecks. These dashboards are critical for continuous improvement.

 

9. Test the Setup Before Full Launch

Before going live, pilot testing ensures everything functions correctly. Always go for technical and operational testing to get prepared for launch.

  • Technical Testing: Verify VoIP systems, IVR menus, CRM integration, and call routing.
  • Operational Testing: Simulate incoming and outgoing calls with agents to identify potential issues.

Hidden Costs That People Don’t Often Talk Specifically About

Even if your call center requirement is “well-planned,” be on guard for hidden surprises. Being aware of the known pitfalls can save you some dollars, time, and headache!

Security / Compliance Fines if You Skip Setup Properly

Ignoring security protocols or compliance practices for setup could lead to fines, lawsuits, or permanent damage to your brand. For sensitive customer data, compliance practices involving regulatory rules such as the GDPR, PCI DSS, HIPAA, etc., should be implemented.

Poor Connectivity and Downtime

Frequent downtime or poor connectivity frustrates customers and can drive them to competitors, directly impacting revenue for a call center company. While exact costs vary, studies show that IT downtime can cost businesses approximately $5600 per minute to $9,000 per minute

Workplace Setup Cost

Setting up a call center involves more than just hiring agents; it’s about creating a functional workspace and utilizing center features that support productivity. From office rent and utilities to desks, chairs, and other essential equipment, costs quickly add up. On average, a small business call center can expect to spend around $1000 per month.

ROI: When Does a Call Center Pay Off?

Evaluating the return on investment for a call center is crucial before committing significant resources. Here are the factors that define the costing of the call center.

FactorDescriptionKey Tip
Break-Even TimelineWhen your call center starts generating profit after setup and operational costs.Track costs and agent performance; adjust staffing and call routing to reach break-even faster.
Cost Per Resolved CallTotal cost per successfully resolved call, including labor and overhead costs.Optimize workflows and use performance tools to reduce cost per call.
In-House Call CenterManaged internally with direct supervision.Maximize ROI with strategic staffing and training.
Outsourced Call CenterHandled by a third-party provider to reduce overhead.Vet providers carefully and enforce SLAs and security standards.

1. Break-Even Timeline

The break-even point determines when your call center starts turning a profit after initial and ongoing costs. Considerations such as volume, agent efficiency, and type of service factor into how long it takes you to get back your investment.

2. Cost Per Resolved Call

Cost per resolved call is the most important metric for determining efficiency, as it includes labor, technology, and overhead. Most importantly, it tells you whether you’re running an efficient call center while still maintaining a good degree of service.

3. Comparing In-House vs. Outsourced

The in-house call center will provide direct control and supervision. However, these call centers are often more expensive than outsourcing. In addition, outsourcing a call center can reduce overhead and provide specialized services; however, there can be concerns with reduced control or data security risks associated with in-house.

Wrapping Up

Undeniably, starting a call center isn’t about buying phones or hiring people. It’s about building a system that actually works, where technology, processes, and your team play nice together. Every choice, such as your model, tools, compliance, costs, affects how your customers feel when they interact with you.

Do it right, and your call center can become a growth engine. It strengthens relationships, drives loyalty, and it can even help close more deals. With a clear strategy, the right tools like CallHippo, and a team that’s trained and motivated, you’re creating experiences people remember.

FAQs

How long does it take to set up a call center?

For small virtual setups, it takes a few weeks. Conversely, for big traditional operations, it takes 3–6 months.

Do I need special licenses to run a call center?

If you have sensitive customer data, then you will require a special license. GDPR, HIPAA, PCI DSS, and many more licenses should be taken by you.

What’s the minimum number of agents to start?

Most small centers can be started with 3–5 agents. The goal is to cover your calls without burning out your team.

Do I need separate software for inbound and outbound calls?

Not at all. Platforms like CallHippo handle both. Add CRM integration, call routing, and recording, and you’ve got a complete toolkit in one place.

Published : September 30, 2025

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