In a recent Blog, we reviewed a report from Ovum that analyzed the growth of the hosted contact center market and ranked its leading vendors.
Today, we’ll look at a new white paper from Contactual, a global leader in hosted contact center technology, which concludes that rapid technological changes make on-premises contact centers obsolete soon after they are installed, and suggests how enterprises can eliminate capital expenditures, increase customer satisfaction and stay on the forefront of innovation through cloud-based technology.
As Software-as-a-Service (SaaS) has matured, says Contactual, it has brought with it sweeping changes in IT, transforming industries like CRM and ERP. Now, the company says, contact centers are also undergoing a radical change. Companies aren’t just curious about SaaS, says Contactual, they are being driven to seek alternatives by the problems inherent in on-premises contact centers. Among the underlying technologies supporting this change are VoIP (Voice-over IP) and Internet-based communications, which provide superior functionality at a far lower cost than traditional systems.
Given the complexity and cost of setting up a call center, the technology often becomes outdated soon after it is up and running, says Contactual. Even worse, the company says, this upfront capital expenditure only represents the “tip of the iceberg” of the total cost of ownership. Contactual lists these significant drawbacks of on-premises contact centers:
•Significant capital expenditure,
•Substantial integration time and complexity,
•Unavoidable annual maintenance costs,
•Considerable ongoing support costs,
•High degree of vulnerability to disaster,
•Inability to easily accommodate off-site agents, and
•Difficult to manage fluctuating demand.
The SaaS model is making early adopters more agile and altering the competitive landscape, says Conactual. Solutions that were previously out of reach for small-to mid-sized companies are now within their grasp, putting more pressure on larger companies that want to maintain an edge.
Fortune 500 companies and market analysts have hailed SaaS as a viable way to outsource many IT functions, including email, customer relationship management, and enterprise resource planning. Gartner has named cloud computing as one of their Top 10 Strategic Technologies for 2010.
Cloud-based contact centers are a prime example of a successful SaaS model, says Contactual, which goes on to list what it believes are the most significant benefits of hosted contact centers:
•Eliminate capital expenditures,
•Reduce ongoing IT maintenance and support costs,
•Increase staffing flexibility,
•Gain disaster preparedness,
•Stay nimble as demand fluctuates, and
•Enjoy a “Future Proof” contact center.
And Contactual makes one final point on the environmental impact of hosted contact centers. Because the enterprise is under pressure to lower its carbon footprint, a hosted contact center, says Contactual, provides economies of scale in all areas – from staffing to energy use to system utilization – that make it a more planet-friendly choice than an on-premises solution.
To learn more about how to reap the benefits of an on-demand contact center solution read the white paper The New Math: Double Your Results for Half the Cost With Cloud-Based Contact Centers