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ASP and Hosted Service Providers

By Peter DeHaan
July/August, 2003

In simple terms, using a hosted service is like renting software.  The Internet is a common element to hosted services.  Typically software resides in a central server at the provider's location and users access it via the Internet.  According to Shane Green of Creative Entropy, the provider of SqueezeMeIn appointment-scheduling software, with hosted services, "There are no updates to worry about, no data backups to slow down your network, and no expensive hardware required to operate it.  It is all handled by the provider.  With the program running from one location it can be modified and new functions added easily.  When the application is enhanced, there is no effort required by the call center to begin using the improved functions."  This is one of the chief advantages of using a hosted service.

Consider the analogy of renting an apartment versus buying a house.  When you rent an apartment, you have a low initial cost (such as a security deposit or one or two month's rent), no long-term commitment (month-to-month or a short-term lease), and flexibility (as your space requirements change you simply get a larger or smaller apartment).  Contrast this to buying a house.  With a house you have a greater initial cost (the down payment), a long-term commitment (a 30-year mortgage), and inflexibility (you can't easily move or add space).  Of course there are disadvantages to apartment renting and advantages to home ownership, but they don't apply to this analogy!

In the same way, using a hosted service has a low initial cost, no long-term commitment, and is highly flexible as your needs and usage level change.  In fact, many users of hosted services echo the sentiments of Earl Jarman of LaBell Exchange:  "We chose [Almond Hill's] TurboSchedule for three reasons: simplicity, support, and affordability."  Stacy Polinsky of Tel-us Call Center, who also uses Turboscheduler, added, "You pay for the calendars as you need them, so you have no capital expense." 

Consider these four reasons to use a hosted service. 

Try-It-Before-You-Buy: Think of this as an extended test drive.  For a modest cost and minimal commitment you can assess a hosted service.  If it works out, you can go ahead and buy the software or system for your office.  However, if it is not what you expected, you simply cancel the service and move on, happy that you did not make a capital expenditure on something you are not likely to use.

Bootstrapping: A second scenario for using a hosted service is to build a client base and generate recurring revenues in a controlled way before buying any additional software or equipment.  Once you have established a threshold of monthly revenue, you can then invest in the technology and bring it in-house.  This is a low-risk way to pursue new markets and specialized niches that require services or capacities that you don't have.  This is feasible because you do not need to make a capital investment until after you have developed a client base and revenue stream to pay for the equipment.  You can then determine when it is cost-effective to stop renting and buy, just as you can in our preceding apartment versus home example.  Of course, some users will appreciate the utility, flexibility, and ease of the hosted service model so much that they will continue in that mode indefinitely.

Conserve Capital: The third reason to pursue a hosted service approach is to avoid making a capital investment, retaining funds for other purposes.

Occasional Use: The fourth justification is for a call center to obtain services that it needs on an intermittent basis or for the specific needs of one client.  Since it would be difficult to justify the cost of an outright purchase in either case, using a hosted service is an ideal solution.

There are two business models for providing hosted services, though the line of distinction between the two is not always clear and can overlap.  In fact, several of the vendors covered in this article fall into both categories.

Manufacturers: Often manufacturers want to provide low-cost options for prospective customers to try out products before they buy.  While all of the preceding examples are objectives that the manufacturers pursue, the first two models (try-it-before-you-buy and bootstrapping) are their main objectives, though their pricing structure is viable when customers want to use their hosted services indefinitely.

ASP (application service provider): An ASP is a company whose primary business is to provide hosted services.  Buying the software or equipment is generally not an option.  So ASPs focus on recurring revenue (just like a teleservice company) and the last two usage scenarios (conserve capital and occasional use) are ideally suited for ASPs.  The bootstrapping model is also of interest to ASPs, although in that scenario there is not an option to buy their software or equipment in the future.

"The ASP approach makes so much sense for Web-based applications," said Ray Shaw, president of Business and Professional Exchange.  "It also relieves our staff from the routine headaches and hassles of supporting an application internally."


Here is an overview of the hosted services that are available to outsource call centers and teleservice companies:

Appointments On-Call, from Alston-Tascom, is an appointment scheduling software package available via the Internet.  It offers flexibility to customize each client's availability and allows each client to have multiple sub-accounts for individuals within the company.  Each individual can specify standard appointment length and the number of simultaneous appointments.

Information on repeat callers is stored in the database so that agents can quickly fill in form fields simply by knowing the caller's name and/or phone number.  Appointments can be taken by personnel at the client's site, by call center agents, or by anyone with an Internet connection and login authorization.  No double booking will occur because all appointment takers are working from the same Web-based database.

Also, appointments can be booked as "accepted" or "tentative."  The client's staff can then accept a tentative appointment or request that it be re-scheduled or cancelled by the appointment taker.  The client can be notified of the status of all appointments via email or they can check appointment status on the Web at any time.  Regularly scheduled reports, showing appointments for the next day or for the next week, can be sent via fax or email.  Appointments On-Call is $35 per month for the first 10 subscribers and $25 per month for each additional subscriber.

CenturiSoft Unified Communication is marketed by Phone and Wireless.  It is a unified communications platform for stand-alone subscribers as well as for business-to- business applications.  Using a Web interface, subscribers have full control of account management to modify their profile, behavior, and view details of activity.  For example, a subscriber can switch from call screening to voice mail with a click of the mouse. 

The system allows conferencing services on a subscription basis or on demand using a Web portal.  It also offers voice-over-IP access to the subscriber account.  Users can log in and listen to messages, return calls, and make outbound calls.

The emergency call-out option is useful for on-call disaster teams or specific strings of users.  R.J. Chaffee, president of Ability, said, "This process gives the work to the system, not the agents, thus call progression is faster, agent error is eliminated." 

Another critical concern for today's call centers processing medical transactions is compliance with the Health Information Portability and Accountability Act (HIPAA) regulations.  According to Lori Jenkins, office manager of Answer-All, "Because of CenturiSoft's design standards, we were able to resolve a HIPAA compliance issue with regards to message delivery.  [Disclaimer/Recommendation: Connections uses this service to electronically receive faxes, forwarding them to email.]

eCreator Agent Scripting from Amtelco is an application that simplifies call processing, including order entry, appointment taking, class registration, location, and physician referral.  Browser-based scripts provide secure remote access and make it easy to network large accounts with other locations.  The navigation walks agents through complex call processes and simplifies agent training.  Integration with eCreator's Interactive Voice Response (IVR) allows call centers to pull information collected in IVR and present it in an agent script.  Pricing for eCreator Agent Script hosting starts at $100 per month, plus set-up fees.

eCreator IVR automates telephone-based tasks without agent interaction.  Supplemental automated voice services can be added to call center offerings including order taking, appointment taking, appointment reminders, class registration, help desk, information requests, location referral, resource scheduling, and surveys and polling. 

eCreator IVR uses scripted voice applications that provide information to callers using pre-recorded or text-to-speech prompts.  Information can be collected from callers via programmed menus that are triggered by DTMF tones or speech recognition.  It also has open database connectivity and multiple language support.  It shares the same cache as eCreator agent scripts, so information collected in IVR can be passed to an eCreator agent script.  Pricing for eCreator IVR script hosting starts at $300 per month plus set-up fees.

eConferenceLink is Amtelco's Web conferencing application, allowing call centers to resell Web conferencing to clients.  It allows users to make remote PowerPoint presentations, do live share of their desktop or Web pages, and conduct surveys or polls of an audience from anywhere via the Internet.  Adding voice conferencing, such as the Infinity Conference Bridge, allows for an entire conferencing solution.  Pricing for eConferenceLink hosting is a five-seat license for $225 per month, plus set-up fees.

Evolution hosted IVR, provided by Alston Tascom, allows call centers to provide IVR (interactive voice response) services to their clients.  Because it is a hosted service, there is no equipment to buy or software to install.  Like most IVR systems, the hosted IVR leads callers through audio prompts to access, enter, or modify data using their telephone keypad.  It can be used to automate routine, time-consuming, labor-intensive telephone queries.  Callers can interact with the IVR using their touch-tone keypad or via voice, with the "Talk-To-Me" Speech Recognition option.

Pricing for the hosted IVR includes a one-time setup fee for designing the application and a monthly per minute or per unit charge thereafter.

Infinity Web Applications (Including Registry/Roster, On-Call Scheduling, and Directories) can be hosted by Amtelco and connect to Infinity over the Internet.  Your clients will be able to view and update their on-call schedule, read messages, view directories, and dispatch messages all from the Internet.  Infinity Web applications are hosted for $125 per month per application, license rental of $175, plus set-up fees.

SqueezeMeIn is an online scheduling package from Creative Entropy, Inc. that allows call center agents and their clients to work from the same appointment calendar simultaneously.  This avoids the common pitfalls of double bookings and lost appointments that can plague paper schedules.

The multi-language component of SqueezeMeIn allows users to view their schedule in their language of choice.  Agents, clients, and customers can view the same schedule in their preferred language.  For example, an agent can input an appointment in English and the client's staff can interact with the schedule in Spanish.  By viewing the schedule in their native language, each user can get the full benefits of the application.

SqueezeMeIn is a hosted service.  All that is needed by the call center and its clients is an Internet connection.  "The new feature for selecting which days the employees are off is wonderful," said Christann Turner, president of ChriShans, a hair salon in Los Angeles.  Call center pricing is $25 per month per schedule.  Each schedule can handle multiple resources such as exam rooms, doctors, and cleaning crews.

TimeCommerce by TimeTrade Systems provides appointment-scheduling software for healthcare providers, service businesses, and universities.  It can be used to book appointments and reservations, as well as to perform enrollment and registration for classes and events.  TimeCommerce allows call centers and teleservice companies to take appointments in real-time, without any need for database synchronization.  This avoids conflicts and double bookings.  Using TimeCommerce, appointments can be made through multiple channels – by call center agents, the client's staff, or online by customers via a self-service interface. 

TimeTrade is an ASP so there is never any software for the TAS to purchase, install or maintain.  "We use TimeTrade Systems on an ASP basis," said Ray Shaw, president of Business and Professional Exchange, "and have been extremely pleased with the performance, uptime, security, and support."

Monthly fees are based on the number of resources (people, rooms, equipment) being scheduled by the client.  For example, a single doctor would pay $50 per month, while a five-physician practice would pay $160 per month.

Turbo-On-Call, from Almond Hill Enterprises, is an application to handle clients' on-call schedules.  It is a stand-alone system that allows clients, such as service companies and medical office staff, to enter and maintain their schedule in a Web-based calendar.  The calendar and its information are simultaneously accessible by the call center, office staff, and on-call personnel.  Turbo-On-Call is priced at $19.95 per month.

TurboSchedule is another offering from Almond Hill Enterprises.  It is an Internet-based, operator-assisted appointment-scheduling tool that converts the traditional appointment book into a virtual appointment book, effectively extending the client's front desk operating hours to 24/7.  "It is easy to use, efficient, affordable, and our clients and our agents love working with it," stated Paul Alvarado of Professional Answering Services.

TurboSchedule is customizable and adaptable to many business models.  "TurboSchedule is an easy to use, inexpensive way of keeping things organized," said Ryan Hudson of Santa Cruz Answering ServiceTurboSchedule is priced at $12 per month per calendar.  The maximum price, with all add on features, is $19.50.

VoiceXML Hosting Service, from BeVocal, provides call centers with managed VoiceXML call automation and enhanced voice services. BeVocal's application, hosting, and developer solutions enable customers to deploy and maintain various services including voice dialing, content and entertainment services, travel information, workforce management, and customer care.

It is available in two varieties.  Foundation VoiceXML is for customers wishing to host a production VoiceXML application with substantial call volumes.  This provides guaranteed capacity and bursting for peak volume needs and is capable of supporting hundreds of simultaneous calls per minute.  Each account operates under a one-year contract backed with a 99.9 percent system availability.

The other option is for companies interested in small-scale deployments of voice-enabled applications, called Hosting Lite.  This is a self-provisioned, pre-paid, bundled telephony solution that enables developers to quickly set up and launch a hosted voice XML service.  Plans range from 3,000 to 45,000 minutes-per-month with up to 15 simultaneous calls.  All plans are pre-paid, with telephony bundled into the price, and require a $500 set-up fee. 


Here is the key contact information for the hosted services vendors listed in this article:

Almond Hill Enterprises, Inc.
Services: TurboSchedule scheduling software
              Turbo-On-Call on-call scheduling
Contact: Sid Mandel at 516-889-9526 or Sid@turboschedule.com
Web site: www.turboschedule.com

Alston Tascom, Inc.
Services: Appointments On-Call
              Evolution Hosted IVR
Contact: 866-282-7266 or info@alstontascom.com
Web site: www.alstontascom.com

Amtelco
Services: eCreator agent scripting
              eCreator IVR
              Infinity Web applications
              eConferenceLink Web conferencing
Contact: 800-356-9148 or info@amtelco.com
Web site: www.callcenters.amtelco.com/hosted.htm and www.1call.com/healthcare/elink.htm

Creative Entropy, Inc.
Services: SqueezeMeIn appointment scheduling
Contact: Shane Green at 870-492-6974 or Shane@SqueezeMeIn.com
Web site: www.SqueezeMeIn.com

Phone and Wireless
Services: Centuri Messenger Unified Communications
Contact: 800-727-6690 or Sales@pw-x.com
Web site: www.phoneandwireless.com

TimeTrade Systems, Inc.
Services: TimeCommerce appointment scheduling software
Contact: 877-884-9224 or info@timetrade.com
Web site: www.timetrade.com

Service

Category

Company

Training

Support

Option for call center to purchase?

Option for ASP to purchase?

Appointments On-Call

Appointment scheduling

Alston Tascom, Inc

On-Line via the Web and by telephone

marketing assistance & materials; help with client training

Yes

Yes

Centuri Messenger

Unified communications

Phone and Wireless

End user training done with minimal assistance

24 x 7

Yes

Yes

eCreator agent scripting

Call processing

Amtelco

Via live  Web sessions

24 x 7

Yes

Not an ASP package

eCreator IVR

IVR

Amtelco

Via live Web sessions

24 x 7

Yes

Not an ASP package

eConferenceLink

Web conferencing

Amtelco

No training needed

24 x 7

Hosted only

Not an ASP package

Hosted IVR

IVR

Alston Tascom, Inc

On-Line via the Web and by telephone

Marketing assistance & materials; help with client training

Yes

Yes

Infinity Web applications

Call processing

Amtelco

Very little help needed; on-line help available

24 x 7

Yes

Not an ASP package

SqueezeMeIn

Appointment scheduling

Creative Entropy, Inc.

Provides fully functional demos

24 x 7

Hosted only

No

TimeCommerce

Appointment scheduling

TimeTrade Systems, Inc.

Onsite or online using Web 

24 x 7

Yes

Yes

Turbo-On-Call

On-call scheduling

Almond Hill Enterprises, Inc.

On-line training, if needed

Phone support for ERs; email for non-ERs

Will consider site license

No

TurboSchedule

Appointment scheduling

Almond Hill Enterprises, Inc.

On-line training, if needed

Phone support for ERs; email for non-ERs

Will consider site license

No

VoiceXML

Voice processing tools

BeVocal

-

24 x 7

-

-

 

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