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New Study Says That Cloud-Based Solutions Such as Predictive Dialers Can Lower Call Center's Costs

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June 22, 2011

New Study Says That Cloud-Based Solutions Such as Predictive Dialers Can Lower Call Center's Costs

By Jamie Epstein, TMCnet Web Editor

Call centers can lower the cost of their workforce optimization infrastructure by over 43 percent throughout a duration of around five years, simply through utilizing cloud-based offerings such as a predictive dialer instead of purchasing and then installing expensive equipment in their own facilities, according to a new Frost & Sullivan (News - Alert) report entitled “Premise vs Hosted Contact Center: Total Cost of Ownership Analysis.”

According to a recent article, Frost & Sullivan closely analyzed more than 12 call centers with different sizes; the smallest being 50 seats and the largest being 500 seats, and the capabilities that are provided by different telephony systems including ACD, IVR, chat, predictive dialer, quality monitoring, workforce management, customer feedback, agent hiring and an eLearning system.

After an analysis of total cost of ownership, the study concluded that hosted call center services significantly reduce TCO over premise-based systems, in both three and five year situations for all 12 call centers that were looked at.

“Overall, call centers could save on costs of systems and applications, implementation, maintenance and upgrades, and hosted per-agent, per-month fees. The pay-as-you-go hosted pricing model of this technology allows call centers to eliminate in-house hardware investment as well as related IT infrastructure, maintenance, and upgrade expenses that go with premise-based infrastructure. Compared with cloud-based solutions, traditional premise-based infrastructure requires an upfront capital investment that can easily exceed $1 million, maintenance contracts that are typically 15-25 percent of the purchase price, ongoing expenses, and equipment replacement every five to seven years,” inContact country manager Junie Pama stated.

Results also show that the bigger the size of the call center, the more money the hosted model will save the organization. The research proves that after a five year period terminates, 100-seat centers averaged 23 percent savings, 250-seat centers averaged 34 percent savings and 500-seat centers averaged 43 percent savings, the article claimed. Also, more money is saved as the amount of call-center applications that are hosted in the cloud increase.

“This study not only validates the financial benefits of a cloud-based contact center infrastructure, but also clearly demonstrates that the appeal of the hosted model is not limited only to small businesses without the resources to purchase and maintain on-premise equipment,” said Paul Jarman, CEO of inContact. “The fact that the TCO increases as the number of seats grows will be a strong driver in the enterprise market, where we are already seeing significant traction for our own cloud-based contact center offerings.”

Jamie Epstein is a TMCnet Web Editor. Previously she interned at News 12 Long Island as a reporter's assistant. After working as an administrative assistant for a year, she joined TMC (News - Alert) as a Web editor for TMCnet. Jamie grew up on the North Shore of Long Island and holds a bachelor's degree in mass communication with a concentration in broadcasting from Five Towns College. To read more of her articles, please visit her columnist page.

Edited by Rich Steeves

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