By Wayne Scaggs
The purpose of a call center system in the cloud is providing a more efficient method of receiving raw data, processing that data into value-added information, and delivering the valuable information to customers in a timely manner.
Why use the cloud? First, if you accept the premise that the call center industry is not an island and that technology influences how our customers expect information to be processed and delivered, think “cloud.” When competitors move to the cloud because it is more efficient and then come after your customers with new and cost-effective solutions, how will you keep your customers with your cost-intensive hardware-based system? Cloud systems are here to stay because efficiency always trumps “but we have always done it this way.”
I consistently receive two types of inquiry calls:
The first type of caller asks, “How can paying a monthly recurring fee be cheaper than buying a system that will be paid off at some point?” What these callers do not yet realize is that the hardware system in their equipment room continually costs them money. Start with the cost of the system and then add the interest on a loan (or a lease with built-in interest). Then consider the cost of getting the system shipped to one’s office; installation and training are often in addition to the system price. Plus the system is usually a balance sheet debt, limiting future borrowing power.
T1 or PRI costs will continue to rise, and the last mile is a big part of the bill. How much more are you paying due to the way the phone company charges you for a full PRI, the per-minute cost, and long contracts? What about the service they provide?
You also need a technician to maintain the system. Or are you a do-it-yourself owner? If you are, how do you value your time? How are you paying yourself? You are probably the most valuable person in your company, so working on your equipment is not the best use of your time. You also need supporting hardware: network, network cables, and switching hub, along with the labor to install your network. After your warranty expires you will have maintenance and service fees for as long as you have the system.
Did you include the cost of an UPS and generator backup into your calculations? Another consideration is that your UPS batteries may only last for a few years before needing to be replaced. About six years into the life of your system when things have finally settled down, you’ll need a major upgrade. Whether hardware, software, or both, you are looking at 35 to 50 percent of the original system cost just to keep up with the changes in technology and customers’ demands.
Utility expenses include electricity and air-conditioning for your equipment. Other facility costs include the equipment room itself; the floor space costs something. The equipment has to be insured; this is part of owing your own hardware.
In contrast the second type of caller says answering calls is how he or she makes money; costly equipment is a major business distraction. This caller asks, “What does it take to go on the cloud system?” These callers understand the value of cloud technology so they can concentrate on their business.
A cloud system solution has no capital expenditure, no debt on your balance sheet, and no interest to pay. Your cloud system should use SIP channels and therefore be more cost-effective than T1 or PRI. There is no last mile charge every month from your telephone company. All the system maintenance is the responsibility of the vendor as part of your monthly fee. Your local area network (LAN) only needs to accommodate your workstations and the Internet. There is no need for a large UPS that requires a generator. You’ll also avoid an expiring warranty or the need to buy a service plan.
The decision is in your hands. Become the second type of caller.
Wayne Scaggs is president of Alston Tascom, Inc., which offers premised-based and hosted contact center solutions.
[From Connection Magazine – November/December 2015]