It's a balancing act for contact center executives everywhere: improve the quality of customer interactions, but minimize expenses to do it. Ok, how? With advanced applications like intelligent ACD routing and quality monitoring to improve the customer experience, and especially with its pay-as-you-go approach for minimizing startup costs and ongoing expenses, many contact centers are turning to Communications as a Service, or CaaS. Moreover, in a dynamic business climate, contact centers are also discovering how flexible CaaS is, and how rapidly it allows them to adapt to whenever needs dictate.
Minimized Startup and Ongoing Costs
In a contact center, the total cost of ownership for a premises-based communications solution adds up from software and hardware plus implementation services, data center infrastructure requirements (integration, energy consumption, etc.), system maintenance, upgrades, IT staffing and, at times, the need to scale to more users and features. On a balance sheet, the greater these initial and ongoing expenditures, the lower the return on your technology investment is likely to be.
However, reducing costs and increasing ROI is where a hosted solution model, such as CaaS, is at its best. While the scope of operations naturally varies from one contact center to another, a July 2007 Frost & Sullivan research report ("The Hosted Model: Why It's Revolutionizing the Contact Center Industry") found that, when compared to a premises-based solution and equivalent functionality for 100 agents, CaaS can produce a cost savings of 23% over 5 years. The savings primarily come from:
Simplified deployment. CaaS eliminates the initial capital investments for hardware, middleware, software licensing, and months of costly vendor services to implement a premises-based solution. With the CaaS model, the service provider maintains the platform and applications, allowing a contact center to deploy a solution rapidly and pay only for the functionality and capacity it utilizes, often on a monthly fixed-cost basis.
Service provider administration. Although many CaaS offerings extend user and application administration to the customer, vendors routinely manage overall system integration, configuration and administration requirements on the back end, including upgrades and ongoing support. Doing so allows a contact center to reduce its own IT staffing and operations costs.
On-demand scalability. With most premises-based solutions, scaling for...