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


Dec 22, 2014

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.

TCN cloud based call center software (2) TCN cloud based call center software


About the Author: TCN

TCN is a leading provider of cloud-based call center technology for enterprises, contact centers, BPOs, and collection agencies worldwide. Founded in 1999, TCN combines a deep understanding of the needs of call center users with a highly affordable delivery model, ensuring immediate access to robust call center technology, such as predictive dialer, IVR, call recording, and business analytics required to optimize operations and adhere to TCPA regulations. Its “always-on” cloud-based delivery model provides customers with immediate access to the latest version of the TCN solution, as well as the ability to quickly and easily scale and adjust to evolving business needs. TCN serves various Fortune 500 companies and enterprises in multiple industries, including newspaper, collection, education, healthcare, automotive, political, customer service, and marketing.