The Software-as-a-Service trend continues to take hold in the contact center industry – but how many more organizations will take this route for their contact center systems over the next few years is anyone’s guess. Although some organizations still seem dead-set on keeping their systems in house, the vast majority now seem like they are at least open to the idea of going with the hosted delivery model. From where I sit, it appears that a surprisingly large number – perhaps upwards of 20 percent – of all contact center operators have already deployed hosted solutions – however, it seems most are using only one hosted application, or a set of applications, to test out the waters, and not very many have not shifted their entire architecture over to the SaaS model.
It’s interesting to talk about the SaaS trend with the software vendors operating in the contact center space. Most of the vendors I’ve spoken with which do not yet have hosted versions of their software say they eventually will … in fact, most make it sound inevitable that they must move in this direction, regardless of the level of interest among current customers. Many of the software vendors which offer “middleware” or peripheral solutions are saying that as contact centers increasingly migrate over to all-hosted systems, they, too, must evolve to offer their solutions on a hosted basis (here I’m talking about solutions such as CRM integration, which have traditionally been on-premise only).
The benefits of going with hosted solutions are now well established. To name a few of the big ones, there is lower up front cost because companies don’t have to shell out for equipment, installation and maintenance; there are much lower initial licensing fees; and because the software is Web-based it can be accessed by any authorized user from any end point -- plus it can be centrally administered and typically offers more advanced reporting capabilities. What most companies like best about the hosted model is the fact that it helps them avoid unexpected costs: Now the software is consumed just like any other utility (electric service being the more common analogy), and thus it can be represented as a recurring line item in the monthly operating budget – there are no equipment failures or network problems to deal with and throw off the budget. It also takes the strain off the company IT department, as it is no longer required to maintain and troubleshot the contact center system when there are problems.
Because it is Web-based, hosted contact center software is also ideal for facilitating the “Virtual contact center” where all end points on the network are “equal.” Thus it is ideal for facilitating the home-based, or remote agent model, as well as the “informal contact center” model, where the walls of the contact center are broken down and other knowledge workers within an organization can be used to deliver customer service. In this sense, other knowledge workers in an organization – including back office workers -- can serve as “advanced contact center agents” who specialize in certain areas. They can handle more difficult requests, complaints or problems – or even higher value transactions – thus freeing up “regular” agents to handle more routine matters. The virtual contact center leads to vast efficiencies in operations and improves customer service across all touch points. With this model, the customer gets the sense that they are contacting a whole organization, not just some company division or department which is “siloed” away from the rest of the organization.
Another huge advantage is that organizations can get the latest software solutions and the very best Web-based technology through then third party providers that offer the software and the hosting services. Software updates are delivered automatically and the client gets the very latest versions of the software as soon as they become available. Best of all, these upgrades can take place remotely, without any expensive truck rolls or prolonged technician visits.
And, of course, the more hosted solutions you deploy the easier it becomes to integrate those solutions with other solutions, whether they are also hosted or in-house.
To learn more about the advantages of going with hosted solutions for your contact center, I suggest readers check out the new Hosted Contact Center channel on TMCnet, sponsored by Five9, a leading provider of hosted contact center solutions. Today, TMCnet’s Susan Campbell posted an informative article to the channel outlining some of the benefits afforded through the hosted, or SaaS deliver model. To check out her article, click here.
It’s interesting to talk about the SaaS trend with the software vendors operating in the contact center space. Most of the vendors I’ve spoken with which do not yet have hosted versions of their software say they eventually will … in fact, most make it sound inevitable that they must move in this direction, regardless of the level of interest among current customers. Many of the software vendors which offer “middleware” or peripheral solutions are saying that as contact centers increasingly migrate over to all-hosted systems, they, too, must evolve to offer their solutions on a hosted basis (here I’m talking about solutions such as CRM integration, which have traditionally been on-premise only).
The benefits of going with hosted solutions are now well established. To name a few of the big ones, there is lower up front cost because companies don’t have to shell out for equipment, installation and maintenance; there are much lower initial licensing fees; and because the software is Web-based it can be accessed by any authorized user from any end point -- plus it can be centrally administered and typically offers more advanced reporting capabilities. What most companies like best about the hosted model is the fact that it helps them avoid unexpected costs: Now the software is consumed just like any other utility (electric service being the more common analogy), and thus it can be represented as a recurring line item in the monthly operating budget – there are no equipment failures or network problems to deal with and throw off the budget. It also takes the strain off the company IT department, as it is no longer required to maintain and troubleshot the contact center system when there are problems.
Because it is Web-based, hosted contact center software is also ideal for facilitating the “Virtual contact center” where all end points on the network are “equal.” Thus it is ideal for facilitating the home-based, or remote agent model, as well as the “informal contact center” model, where the walls of the contact center are broken down and other knowledge workers within an organization can be used to deliver customer service. In this sense, other knowledge workers in an organization – including back office workers -- can serve as “advanced contact center agents” who specialize in certain areas. They can handle more difficult requests, complaints or problems – or even higher value transactions – thus freeing up “regular” agents to handle more routine matters. The virtual contact center leads to vast efficiencies in operations and improves customer service across all touch points. With this model, the customer gets the sense that they are contacting a whole organization, not just some company division or department which is “siloed” away from the rest of the organization.
Another huge advantage is that organizations can get the latest software solutions and the very best Web-based technology through then third party providers that offer the software and the hosting services. Software updates are delivered automatically and the client gets the very latest versions of the software as soon as they become available. Best of all, these upgrades can take place remotely, without any expensive truck rolls or prolonged technician visits.
And, of course, the more hosted solutions you deploy the easier it becomes to integrate those solutions with other solutions, whether they are also hosted or in-house.
To learn more about the advantages of going with hosted solutions for your contact center, I suggest readers check out the new Hosted Contact Center channel on TMCnet, sponsored by Five9, a leading provider of hosted contact center solutions. Today, TMCnet’s Susan Campbell posted an informative article to the channel outlining some of the benefits afforded through the hosted, or SaaS deliver model. To check out her article, click here.
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