A Frost & Sullivan report found that larger contact centres gain higher savings with the cloud-hosted model
Contact centres can lower the cost of their contact handling and workforce optimisation infrastructure by up to 43 percent over a five-year period by using cloud-based offerings rather than installing equipment in their own facilities, according to a new Frost & Sullivan report.
The Premise Vs Hosted Contact Center: Total Cost of Ownership Analysis study was sponsored by inContact a provider of on-demand contact centre software and contact centre agent optimisation tools.
Study authors analysed 12 contact centre configurations ranging in size from 50 to 500 seats, and in functionality from ACD-only to a full-function ACD, IVR, chat, outbound dialler, quality monitoring, workforce management, customer feedback, agent hiring and eLearning system.
Significant Reduction Of TCO
The analysis of total cost of ownership (TCO) for both three- and five-year timeframes concluded that hosted contact centre services significantly reduce TCO over premise-based systems in both three- and five-year scenarios for all 12 of the configurations analysed.
The study also found the larger the contact centre, the higher the savings with the hosted model. Over five years 100-seat centres averaged 23 percent savings, 250-seat centres averaged 34 percent savings and 500-seat centres averaged 43 percent savings. In addition, the study found the more contact centre applications hosted in the cloud, the more money saved. In a 100-seat contact centre, for example, the five-year savings jumps from 9 percent for a hosted ACD to 23 percent for a full-function, nine-application hosted system.
A pay-as-you-go hosted pricing model that eliminates in-house hardware investment, as well as related IT infrastructure, maintenance and upgrade expenses, drives the savings, according to the research. 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, other ongoing expenses and equipment replacement every five to seven years. All of the study’s TCO calculations take into account the costs of systems and applications, implementation, maintenance and upgrades, and hosted per-agent, per-month fees.
“This study not only validates the financial benefits of a cloud-based contact centre 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 centre offerings.”