Hosted Call Center: Comparison with On-premises Call Centers
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The on-premises call center’s biggest backlash is being unable to handle the large call volume and complex issues. It leaves agents feeling more stress and burnout - and also affects customer experience through longer wait times.
So, how does a hosted call center differ from an on-premises call center?
Highlights:
- A hosted call center handles customer interaction with the help of a third-party vendor instead of on-site.
- A hosted call center delivers call center tools and features through a secure cloud platform.
- A hosted call center enhances customer relationships by integrating with CRM systems, reducing costs, and offering scalability.
- The hosted call center differs from on-premises call centers in various ways, such as location, ownership and responsibility, operation, capabilities, etc.
- Organizations choose hosted call centers as a cost-effective option, paying only for services used while the provider owns the equipment.
What is a Hosted Call Center?
A hosted call center is a cloud-based system that handles businesses' inbound and outbound calls without maintaining on-premises hardware or infrastructure. It is hosted on a cloud, allowing companies to manage calls online with features like automatic call distribution(ACD) and interactive voice response (IVR).
Note: A cloud call center is used as a synonym for a hosted call center. All cloud call centers are hosted, but not all hosted call centers are cloud call centers.
How Does a Hosted Call Center Work?
A hosted call center handles the infrastructure needed for inbound and outbound calls for your organization. It is hosted by third-party vendors. So, instead of owning and maintaining the hardware and software, you pay a recurring monthly fee.
- Infrastructure: The third-party vendor hosts the server, software, and phone systems that comprise the communication infrastructure in the cloud. It reduces the need to spend money on software or hardware that is installed on-site.
- Agents: Instead of using conventional desk phones, agents use softphones to make and receive calls, which can be executed anywhere with internet access.
- Routing: Automatic call distribution (ACD) software and call routing to redirect inbound calls to the right person or specific call queue based on predetermined rules and criteria. Routing rules take factors like skills, availability, and priority into account.
- Applications: Agents access the application of the call center through a web browser. This includes phone controls, CRM integration, ticketing, knowledge management, chat interfaces, and data dashboards/reporting.
- Administration: The vendor is in charge of managing and administering the backup, applications, and infrastructure. Web interfaces allow businesses to self-administer at the agent performance, call flow, and reporting levels.
- Disaster Recovery: Information technology is distributed across multiple locations, like different cloud regions or geographically dispersed data centers, instead of keeping it on-premises so the business runs continuously.
Benefits of a Hosted Call Center
Hosted call centers offer advanced features like call recording, interactive response, and CRM integration to implement on businesses of all sizes efficiently. These features allow agents to access the call center software, enabling remote work and increasing customer satisfaction.
1. Improved Customer Experience
A hosted call center provides a scalable, flexible infrastructure that allows the agents to access the customer's data instantly, have personalized interactions, resolve issues quickly, and offer seamless communication across multiple channels, like phone, email, or live chat.
2. Reduce cost
Hosting call centers helps to reduce costs by eliminating the need for a large number of upfront investments in on-premises infrastructure, hardware, and software. The organization rents the platform, uses it according to their needs, and only pays for the service they use.
3. Scalability
Hosted call centers are highly scalable, as seasonal businesses can hire or terminate agents to meet changing demands. It can handle the increasing number of customers and a large volume of calls and enhance your expenses.
4. Remote work capabilities
As the call centers are hosted on cloud servers, agents don't have to be present on-site to complete the work. They can operate from anywhere with the help of the internet and remove disruptions to the work process.
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What is the Difference Between an On-premises Call Center and a Hosted Call Center?
The on-premises call center is a setup where a company owns the software and infrastructure and manages it. However, a hosted call center is hosted and maintained by a third-party provider.
Comparisons between on-premises call centers and hosted call centers based on location, ownership and responsibility, operation, capabilities, securities, and liabilities.
1. Location
On-premises call centers are conducted inside the business premises. It is hosted and managed by the company itself in its own physical facilities. Agents are required to be physically present to access the system.
In the case of a hosted call center, it is handled by a third-party platform such as Calilio to store data, manage customer interaction, and provide tools for agents to work remotely. Agents can work from anywhere as it is operated on a cloud server.
2. Ownership and responsibilities
The infrastructure, upkeep, and upgrades are entirely owned by the vendor that supplies your hosted call center system. Day-to-day operations are the organization's responsibility, and organizations only pay for their services to host call centers.
On the other hand, if you are associated with an on-premises call center, the organization owns the servers and physical phone lines. A separate department is allocated for call center service, and the organization has to pay the IT team to run the call center.
3. Operation
On-premises call centers use traditional landlines over Private Branch Exchange (PBX). All the systems are hardwired on the onsite server.
The hosted call centers are operated in the cloud using voice-over-internet protocol (VoIP). All the systems are connected to a remote server via a network.
4. Capabilities
On-premises call centers have basic features like hold transfers and voicemail. Integrating tools and communication channels is not easy. It requires installation, maintenance, and servicing of hardware, software, and infrastructure.
Hosted call centers operate on cloud servers, providing physical stores, websites, mobile apps, and social media. It requires less time, resources, and effort to implement.
5. Security and Reliability
If your call center is handled by a hosted call center, then all the security and reliability are controlled by that platform. All the security-related software, such as call center software and AI-based capabilities, is maintained by a third party. There is also the risk of unauthorized access to the data. As long as you have a stable internet connection, you can have excellent customer interaction with call quality.
In the case of an on-premises call center, as it is located inside the organization, the organization has more control. The organization is fully responsible for implementing and maintaining the security measures, but if the system is outdated, it will be hard to maintain security.
Who Should Consider a Hosted Call Center?
The right call center for your business depends upon your budget, scalability, and security needs. If your business is small, you can use an on-premises call center, but if your business needs scalability and remote work capabilities, then you must choose a hosted call center. A hosted call center enables global operations, handles high call volumes with number sharing, and offers low-cost international calling. Cloud providers continuously upgrade features for a better user experience. So, at the same cost, you can use their update with new experiences.
Conclusion
Hosted call centers benefit businesses that want a customizable call center and want to enable remote work. With the benefits of a hosted call center, companies can grow more than their expectations. The cost is also minimized as the service provider only charges for the service they have taken.
Frequently Asked Questions
What is the major difference between an on-premises and a hosted call center?
A hosted call center is hosted on a cloud server and handled by a third-party vendor, while an on-premises call center hosts the infrastructure within the company.
How does a hosted call center work?
A hosted call center uses cloud-based technology to manage calls, route them via IVR, and provide agents with dashboards. The center is hosted on a provider’s servers, enabling remote access, scalability, and cost savings without on-site hardware.
Who chooses a hosted call center?
Businesses that handle a high volume of calls use a hosted call center.
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