Cloud Contact Center vs. Premise-Based Contact Center – Top Considerations |
Posted: July 24, 2017 |
If you are currently considering the TCO or total cost of ownership of a cloud contact center versus a premise-based contact center, you have to examine several factors first to determine whether or not this will work for you and your business. Take a Look at the Bigger Picture Although it is important for a business leader to drill down on discrete differences in TCO between premise-based and cloud contact center, it is also a must to look at the bigger picture. Based on research, companies which deploy contact centers in the cloud get to spend 27% less on their yearly contact center costs compared to their peers. Get ROI Breakdown There are varying estimates in the industry when it comes to cloud contact center which can range from around 8 to as much as 27 percent. This is a broad spectrum without offering executives an exact breakdown on cost benefits or sources of such improvements. It is also a must for executives to see the total breakdown of operation cost between premise and cloud-based platforms. These will include savings which can be acquired through doing away with maintenance and server acquisition costs. Reduce Contact Abandon Rates Through improving customer responsiveness, a company which adopts cloud platforms also gets to enhance customer experience through matching customers to agents who provide the right skill set to resolve their problems. Matching agents and customers with exact accuracy will result in lower customer abandon rates and increased customer satisfaction. It helps explain why customer contact abandon rate for a cloud contact center is 4.5% compared to the 6.2% for the premise-based systems. Companies which can enhance their responsiveness towards customers are also found to generate higher customer satisfaction, lower customer churn, and increased revenue. Reduced IT Resources Research studies have found out that many companies get to realize around 3% to 5% reduction in the IT headcount when they moved to the cloud. It represents the average percentage reduction in the costs of IT resources, even thought the figures could actually reach to as much as 15% in the most extreme cases for the organizations that have disproportionate IT support. Although there are some obvious reductions in the number of the IT staffers required for supporting premise based contact center applications the moment a company makes a shift to the cloud, the hosted platform could generate some more extra cost savings. These can include a reduction in the number of full time equivalent IT workers required for supporting the ancillary systems like storage and servers, as well as all savings in cost involved. These savings can come from the elimination of expenses related to having to train IT employees on the premise software certifications together with the time being spent in the certification classes which can then be redirected to productive work. Impact of Uptime to the Business A cloud contact center also experiences lesser downtime compared to companies relying on the hodgepodge of legacy systems with their heavy patches. The price of downtime can vary for different companies which depend on their respective industries and the indirect and direct impact of customer support on the revenue.
For more information please have a look here Cloud-based Contact Center
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