What Is Seat Leasing in Outsourcing?

Seat leasing provides workstations, facilities and supporting infrastructure for a client's team without necessarily managing the business process itself.

Seat leasing provides workstations, facilities and supporting infrastructure for a client's team without necessarily managing the business process itself. It is common when a company needs ready operating capacity without building an office.

What can a seat lease include?

  • Desk, computer and peripherals
  • Internet, power and backup
  • Office, meeting and common areas
  • Physical security and access
  • IT support and facility services
  • Optional recruitment or payroll support

How is cost calculated?

Assume 20 seats at $500 per seat each month, plus a $2,000 monthly dedicated-connectivity charge. The illustrative monthly cost is 20 × $500 + $2,000 = $12,000, before taxes, setup and overtime.

Illustrative seat-leasing cost

Example monthly facility cost
Cost componentAmountMethod
Twenty seats$10,00020 × $500
Dedicated connectivity$2,000Monthly fixed charge
Illustrative monthly total$12,000$10,000 + $2,000

The example excludes deposits, setup, staffing, taxes and variable usage.

Seat leasing vs. managed BPO

Seat leasing supplies infrastructure while the client directs the work and employees or contractors. Managed BPO accepts responsibility for defined processes or outcomes.

What should be reviewed?

Check included equipment, security, access, redundancy, occupancy terms, data controls, support hours, business continuity and exit obligations.

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