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Study Demonstrates Lower TCO in Hosted Call Center Strategy

December 28, 2011
By Susan J. Campbell, TMCnet Contributing Editor

The consistent growth and popularity of cloud computing has spread to the call center space, enveloping companies in the opportunity of the hosted call center. The challenge in migration, however, is the number of organizations that have considerable investments in their on-premise solutions. They may want access to the flexibility and scalability in the hosted call center, but making the case for this change could be an uphill battle.

A recent inContact blog highlights the writer’s experience in working with Frost & Sullivan (News - Alert) to put together the Premise Vs. Hosted Contact Center: Total Cost of Ownership Analysis report. This report provides an in-depth analysis between the two deployment methods and compares the total cost of ownership (TCO) of general hosted and premise offerings for contact centers.

Ashwin Iyer, Global Director of the Contact Center Practice at Frost & Sullivan, recently presented on the findings of this study. His opening remarks in the presentation gave a nod to three tasks contact centers maintain as their primary goals – to reduce the cost associated with customer service and support; the improve overall customer satisfaction; and to increase revenue.

To the untrained eye, these goals appear to be poorly matched. How can you effectively improve customer satisfaction, while also lowering costs? Doesn’t it cost money to make money and customer service demands a larger chunk of the expense pie? With that thinking in place, a reduction in costs would subsequently reduce the ability to effectively respond to customer needs.

In reality, however, contact centers face this challenge every day. A number of them are overcoming the challenge by turning to the hosted call center model. The results of the TCO study demonstrate that by moving the majority of the call center applications to the cloud, the TCO of the system decreases dramatically. This reduction is due in part to the reduced time personnel must spend to maintain the system. This time can now be spent on strategic goals.

To see the study results in graphical form – check out the original blog by clicking the link provided above.

The key to understanding the benefits in the hosted call center model is to understand that the cloud continues to grow as a strategic delivery mechanism for call center solutions, and it continues to grow each year. Migrating to the hosted call center is not only a smart move for TCO, it also enables the desired scalability, built-in disaster recovery and extended applications and benefits. With such a strong case for the hosted call center – what are you waiting for?

Susan J. Campbell is a contributing editor for TMCnet and has also written for To read more of Susan’s articles, please visit her columnist page.

Edited by Chris DiMarco

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