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Local call centers can now lower the cost of their contact handling and workforce optimization infrastructure by up to 43% over a five-year period by utilizing cloud-based offerings rather than installing equipment in their own facilities, according to a new Frost & Sullivan report titled “Premise Vs. Hosted Contact Center: Total Cost of Ownership Analysis.”
The study, sponsored by leading cloud solutions provider inContact, analyzed 12 call center designs ranging in size from 50 to 500 seats and in functionality from different telephony systems such as ACD, IVR, chat, outbound dialer, quality monitoring, workforce management, customer feedback, agent hiring and eLearning system.
The analysis of total cost of ownership (TCO) concluded that hosted call center services significantly reduce TCO over premise-based systems in both three- and five-year scenarios for all 12 designs analyzed.
“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,” inContact Country Manager Junie Pama said.
“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% of the purchase price, other ongoing expenses, and equipment replacement every five to seven years,” he added.
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