On-premises vs cloud call centers: Which performs better?

On-premises vs cloud call centers: Which performs better?

Faith Ocampo Published on May 7, 2016

businessman-holding-glowing-cloud-in-the-dark

The war between on-premises and hosted contact centers is becoming even more intense.

While it’s true that cloud solutions for outsourced customer support have become popular, many business owners are still torn between on-premises and hosted service providers. It doesn’t help that the battle between these two call center types is marred by a lot of misconceptions and debates. Let’s clear up the confusion about these two, starting with the fundamental things you need to know.

The basics

hald-holding-glowing-cloud

When you outsource to an on-premises, or physical, contact center, it takes full responsibility for the processes you require. An on-premises firm houses its own hardware, software, and employees under one roof. Work is distributed across several teams who are each tasked to carry out the sub-functions of an outsourced activity. This includes training, call handling, quality monitoring, feedback analysis, and other duties you may need.

A hosted provider, on the other hand, makes use of cloud computing technologies. In this setup, you re handing over your customer support infrastructure to a firm that manages an external system. The software they ll be using is accessible through the Internet, and employees will typically be working from home on a BYOD (bring your own device) policy.

Which is cheaper?

piggybank-floating-on-clouds

Now that several forms of outsourcing services are available, the playing field has somehow leveled. Both on-premises and cloud-based call centers are lowering their prices. However, it s easier to determine the exact prices of the services offered by on-premises call centers. Depending on your needs, you can opt for bundled or individual services, which come at a fixed price. The downside is that you won t be able to scale down your operations if needed because you ll be signing a deal with your provider. Unless you can work out a way to include this in the official outsourcing contract, it could result in unnecessary expenses.

In contrast, cloud-based providers are initially cheaper mainly because they don t need to pay for big offices and equipment. However, forecasting how much money you ll need over a certain period, which is important if you re on a tight budget, is trickier. For example, there might be hidden charges such as maintenance or updating fees. In addition, you may need to add or subtract employees depending on your customer support demands. If managed well, however, this arrangement could translate to a better return on investment in the long term.

Which is easier to manage?

business-executive-using-smartphone-with-cloud-icons-in-dark

When your call center is operating from the cloud, you ll have less managerial control over it. With the BYOD setup, agents may be distributed in different locations. This may be beneficial for companies with highly diverse customer sectors, but there are negative implications you need to be aware of. One is that this can slow down the implementation of updates in workflows, which is important to ensure the consistency of your services across platforms. While hosted providers can talk to the agents virtually, face-to-face meetings allow for a much clearer and faster communication. In this area, therefore, on-premises call centers have an edge.

In addition, it’s harder to increase employee engagement in cloud contact centers. There s a very limited room for gamification or team building activities. Without a strong team bond, agents may begin underperforming over time. But if you want a team of agents who genuinely care about your company branding, you re better off with a physical contact center. There, you can directly reach out to your outsourced employees, listen to their insights, and initiate ways to foster camaraderie.

Which is more flexible?

it-experts-talking-laughing-in-data-center-server-room

Staffing-wise, there s no question that cloud solutions for customer support provide more flexibility. Upon your go-signal, your provider can quickly acquire new agents. You can even specify the ideal location of the employee, which is good if you re targeting a specific market group. At the same time, you can also inform agents if they won t be required to work within a certain timeframe in case there’s a lower demand on your end. This way, you ll be able to make the most of your resources and budget.

On-premises call centers, on the other hand, provide a different kind of flexibility. Although they follow a more structured process flow, they carry out routine activities meant to elevate their performance, including constant monitoring and feedback gathering. The insights gained from these functions would then be analyzed by several teams such as customer service strategists and big data specialists. As these professionals are working with the frontline agents under the same roof, it becomes easier to make improvements that truly reflect the voice of the customer.

Although cloud computing completely altered the landscape of the entire outsourcing industry, it doesn’t mean that it has robbed on-premises providers off the role they have long been playing. Both call center types have their own strengths and limitations. It’s up to brand owners to choose the better fit for their organization, considering their branding and the customers expectations.

Faith is a digital media enthusiast aiming to become an active part of the tech world by sharing her insights. She likes to blog about everything digimarketing, technology, and social media.
JOIN US ON FACEBOOK
Open Access BPO
Open Access BPO16 hours ago
Meet the diverse superheroes of our #ContactCenter team! From analytical minds to empathetic listeners, we've got it all.

Swipe through to see the incredible personalities, working styles, and motivators that make our customer service shine!

----------
Our #recruitment & training strategies are designed to get the best reps for your brand.
Oursource with us today: OpenAccessBPO.com/get-started

#WeSpeakYourLanguage
Open Access BPO
Open Access BPO21 hours ago
#CallCenters need to build a consistent and memorable #CustomerExperience covering all channels, both digital and non-digital. You need a high-performing #multichannel team that can successfully implement your #CustomerService strategy.

Here's how: https://buff.ly/3qvoHui

----------
Let us create the multichannel program and team for your brand: OpenAccessBPO.com/get-started

#WeSpeakYourLanguage`
Open Access BPO
Open Access BPO2 days ago
Among other benefits, 𝗰𝗼𝗻𝘁𝗲𝗻𝘁 𝗺𝗼𝗱𝗲𝗿𝗮𝘁𝗶𝗼𝗻 monitors and reviews user-generated content to:
• ensure the safety of customers;
• combat spam and potential scams;
• prevent misinformation and fake news;
• boost user experience; and
• cultivate an inclusive community.

𝗕𝘂𝘁 𝘄𝗵𝗶𝗰𝗵 𝗰𝗼𝗻𝘁𝗲𝗻𝘁 𝗺𝗼𝗱𝗲𝗿𝗮𝘁𝗶𝗼𝗻 𝗺𝗲𝘁𝗵𝗼𝗱 𝗶𝘀 𝗿𝗶𝗴𝗵𝘁 𝗳𝗼𝗿 𝘆𝗼𝘂𝗿 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀?
Explore the fascinating types of #ContentModeration shaping the digital landscape: https://buff.ly/3WR5rn5

----------
Work with our content experts to build a community where everyone feels heard and protected: OpenAccessBPO.com/get-started

#WeSpeakYourLanguage
Open Access BPO
Open Access BPO3 days ago
Preventing your customers from leaving your brand may not be as easy as it sounds, but here are 5 tips your outsourced #CallCenter's customer retention team must consider: https://buff.ly/3Nem7Sb

----------
Ensure brand loyalty with Open Access BPO's high-quality #CustomerSupport. Contact us today: OpenAccessBPO.com/get-started

#WeSpeakYourLanguage
#CustomerRetention
Open Access BPO
Open Access BPO3 days ago
#CallCenter Team Leaders drive progress and ensure top-notch service for your brand's customers.

Want to unlock the secrets to becoming an extraordinary leader for your team?
Here are the 5 biggest enemies of great leadership, along with a few tips on how to be a good leader: https://buff.ly/45LagCr

----------
Partner with Open Access BPO. We have great call center agents and team leaders to guarantee your brand's growth: OpenAccessBPO.com/get-started

#WeSpeakYourLanguage
Open Access BPO
Open Access BPO7 days ago
To build a truly customer-centric organization, your #CustomerExperience team must be highly emotionally intelligent.

Here are the 5 advantages of cultivating #EmotionalIntelligence among your #CallCenter staff: https://buff.ly/43uHbcu

----------
Connect with an #outsourcing firm that can deeply connect with your customers: OpenAccessBPO.com/get-started

#WeSpeakYourLanguage
#CX #CustomerSupport
Open Access BPO