Outsourcing and moving to hosted solutions is an information and communications technology mega-trend. Entire data centers have already moved into the cloud. Cloud computing, XaaS, and virtualization have become common business practice.

In this way, contact centers are also outsourced and operated as hosted solutions. Network-based contact centers offer all of the functionalities common to premises-based equipment, but the solution from the cloud is more flexible. This has led to more and more centers being outsourced.

Cost efficiency is the primary motivator: A network-based contact center can reduce costs by 30 percent to 40 percent compared with a premises-based solution. The reasons are obvious: Less hardware is needed, which results in lower costs. Clients benefit from centralized release management, controlling and administration. Maintenance costs for the center operator are eliminated. 

The flexible technology is another stimulus. A browser-based contact center workplace for agents and managers is accessible from any location with Internet access. This allows contact centers to add temporary agents for additional traffic during peak hours and holiday periods.

Cost Advantages for Network Operators and Contact Centers

Cost advantages are not only a reason to change for the contact center; network operators hosting the solution also benefit. Rather than generating revenue with service numbers alone, offering contact center seats and contact center services can be profitable business. Each network-based‘seat can be charged and features added and calculated according to customer requirements (on demand). In Europe, the monthly license fee for an agent seat is generally 30 to 50 euros.

NG-IN solutions with virtual workplaces are no financial disadvantage for contact centers, as they are still cheaper than having equipment on site. A virtual solution requires no installation and can be activated immediately.

Carriers can use one platform to operate multiple contact centers, even if each customer requests different features and has different requirements. On one NGIN platform different scenarios are possible and can be added according to customer demands. 

Questions Regarding Outsourcing

If a contact center decides to move into the cloud, there are things to consider apart from the savings potential.

The first step is to find a provider that hosts contact centers. Usually network operators have such an offering. There are also several smaller, specialized service providers for value-added services, who offer network-based contact centers.

Defining what exactly should be outsourced is the next consideration. Is it the entire call center, or just certain functions, such as inbound, outbound, or voice recording? The actual purpose of the network-based solution should also be clarified: Will some features be outsourced permanently, or will additional Web-based agent seats be added to cover traffic peaks?

A network-based contact center is ideal for companies that are expanding and want to operate centers in different locations. Number translation works on the net, and non-geographic service numbers can be converted to geographical numbers to divert the caller to an agent in their region or to transfer calls based upon criteria such as center operating hours, availability, agent skills, etc. A virtual solution is particularly suited to companies that cover multiple time zones. You determine which part of the world calls are diverted to and at what times. This principle is known as “following the sun.”

No Security Concerns

As many companies have security concerns about the local installation of an application, an HTML-only solution is the best answer. Data protection officers in large enterprises are skeptical when third-party software with access to corporate data sources has to be installed. This is another argument for a browser-based agent workplace for which no third-party software has to be installed: All that is needed is a browser and an assigned IP address.

Contact centers that want to continue using their CRM system can have it integrated into the network-based solution. This is done via standard protocols such as http(s) or SOAP, but also via proprietary interfaces from different vendors. 

Many companies are reluctant to put their customer database or records into the network. When looking for an outsourcing solution, they should consider technology that allows the database server to be connected to the network-based contact center. This is also done via standard protocols.

Selecting a Vendor 

Contact centers looking to obtain cloud services from their network operators should first find out whether these can offer all of the required features. Particular attention should also be paid to the voice response system. With a network-based solution, the contact center should be able to create its own IVR workflows and make changes at will, preferably in real time. 

This is often included in the standard product, but some providers charge extra for call flow building. An IVR solution should be easy to use and not require programming skills, so that the center can change workflows flexibly and in a timely manner. 

There are also differences between the agent workplaces offered. Providers have various models and charge for additional functions. Integrating a chat, SMS, or social media module can cost extra.

A move to the cloud makes sense if the equipment in use is outdated or defective. Instead of spending money on repairs or new purchases, outsourcing is almost always more economical. If not all the equipment needs to be replaced, a hybrid solution is possible. Instead of the purchasing and repair costs, only the one-time setup fee and the “rent” for a certain number of seats would have to be paid. Service is the carrier’s responsibility. This software-as-a-service (SaaS) concept is very common and saves time and money.

Anyone wanting to outsource a contact center and introduce a hosted solution should know beforehand what functionality he wants to outsource. Contact centers in the cloud are available from network operators, however, there are differences in price and the services offered. Companies that introduce a flexible, virtual contact center often ask themselves why they didn’t take the step into the cloud much sooner, especially when they see the positive return on investment figures.

Reinier Meuwissen is vice president of number translation service, inbound, and contact center solutions at European Computer Telecom AG, http://www.ect-telecoms.com.