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How Does a Hosted Call Center Solution Stack up to Premised?

call center software


Read on to learn the five most compelling reasons why 70% of call center execs report that they’re making plans to switch to the cloud in 2015.

And if you’re interested in crunching the numbers, we’ve put together a 5-year cost analysis for call center and collection agency execs who are considering making the switch from premise-based setups to a solution in the cloud.

Here’s a breakdown on five of the most important deciding factors when you’re faced with the choice to go hosted or premised:

1. Startup Costs
With a hosted solution there are no start-up or capital costs; you pay as you go, and you receive automatic no-cost upgrades to maintain cutting edge capability.

The premised model requires a large upfront capital outlay along with ongoing operational costs including seat fees, and upgrades that are either restricted or prohibitively expensive.

2. Upgrades and Future-Proofing
Regardless how much you spend on a dialer today (a typical dialer runs up to $300,000 or
More) in a year or even less time, you better bet that newer technology will render your “new” system obsolete, requiring a new dialer altogether or pricey upgrades that may come with additional employee training costs.

3. Increased ROI
The capital outlay from an in-house IVR system can take years to recoup, but you can achieve instant ROI with a cloud-based solution because you don’t need to register lines or seats and you can save the expense of unused licenses and do away with capacity restrictions.

4. Advanced Analytics & Real-time Monitoring
With a hosted solution you get automatic updates, real-time call monitoring, and advanced call agent KPI reporting, along with security, efficiency, and compliance tools built-in at no additional cost.

5. Scalability & Flexibility
When agencies can access unlimited lines/ports without worry regarding the related upsizing or downsizing costs, their dial strategy changes. To be e¬ffective in the long run, an agency has to predict the future:

  • “How many lines/ports should I buy at start-up?”
  • “Is that going to be enough to help me grow, and will I get the needed bang for my buck?”
  • “What happens if I guess wrong? And if I win, or lose, a major account, what then?”

With a premised system, purchasing too few ports is a common occurrence, making it difficult to consider ways to maximize usage. When capacity is reached an agency will outsource overages to a hosted contractor, resulting in lost revenue for the dialer and increased expenditures for the agency now having to use two dialing solutions.

Cost Analysis & Total Cost of Ownership

Even over five-years, a hosted solution makes more financial sense than a premise-based setup, saving you more than 10% in that period of time. The numbers tell a compelling story, and it’s easy to discern why a secure, reliable, cost-predictable, continuously upgraded, hosted cloud solution is becoming the preferred choice over expensive, out-of-the-box premised models.

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