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A hardware-based call center is the traditional solution to the challenge of customer service. Generally, it requires the business to have a physical location, all the hardware necessary to facilitate the service and an on-site staff. The modern, and increasingly popular alternative is the virtual call center, such as the Telax call center software .

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A virtual solution typically has lower overhead, is more practical for small businesses, allows for more seamless integration with existing infrastructure and adapts to future growth in a more organic and cost-effective manner. In the following sections, we will explore some of the core aspects of a call center and juxtapose the hosted and the hardware-based approach.

Capital Acquisition

Whether virtual or physical, a call center is an investment, and many businesses prefer that investment to be a capital acquisition rather than an ongoing service contract. This is one of the great advantages of a conventional approach. However, as we’ll see in the following items, there are many strings attached to that advantage.

IT Control, Troubleshooting and Core Competencies

Another advantage to a hardware-based solution is IT control. Some business models demand it, and a virtual solution, such as the Telax virtual call center, simply cannot deliver that. On the other hand, most IT departments do not specialize in call center applications and configurations, which can lead to issues lasting longer and solutions being more expensive.

Security

As with IT control, some businesses, such as those with military contracts, require high levels of security. A virtual solution is not inherently insecure, but of course, there is some inherent risk in connecting an external network to internal resources.

Upgrade Efficiency and Upgrade Purgatory

In well-planned scenarios, upgrading in a hardware-based environment can be more cost-effective. The resources required, however, are beyond the scope of most small and medium-size business. The other issue is upgrade purgatory, which is an elegant way of saying that upgrades often set off an unforeseen domino effect that can be quite costly.

Design Complexity

For the business, a virtual call center is very simple, and it offers a single access point. A hardware-based solution, in contrast, comprises many distinct parts all requiring different third-party vendors. In addition, integration and compatibility often becomes highly complex, and the business must handle it all in-house.

PBX and CTI Functionality and Cross-Licensing Costs

A private branch exchange (PBX) is a vital component that allows the call center to transfer incoming and outgoing calls. Features on PBXs vary significantly between brands and models, and in order to configure them for ACD, CTI and IVR control, the IT department will require a highly specialized skill set. In addition, the business will have to account for cross-licensing costs that arise from using third-party CTI applications.

Professional Services and Third-Party Vendors

A business with a hardware-based solution often has to supplement their in-house staff with third-party vendors and other professional services. With a virtual solution, those costs are non-existent because the host handles all such logistics on their end. The business doesn’t have to worry about it.

Application Integration and Compatibility

With hardware-based solutions, one simple change with the call center infrastructure can have an adverse effect throughout. So even minor changes require a great deal of testing and increase total cost of ownership of the solution.

Provisioning

A virtual solution allows the business to pay for what they need when they need it, and most plans are fluid. With a hardware-based solution, a business must have the resources to handle peaks, and that puts them in the position of having excess capacity more often than not, which is a great waste of money.

Training

A conventional setup requires a great deal of training for many employees and vendors, and each training event is a high-risk investment because the employee could leave at any time. In a virtual setup, this cost is included in the ongoing contract, and the business doesn’t pay on a per-individual basis.

Custom Reporting

Custom reporting is vital because it is the analysis of these reports that allows the business to prepare and optimally, spend less money in the future. All hosted call center solutions include custom reporting. With a hardware-based solution, custom reporting is a separate component, and it may require a separate vendor or a specialized in-house team.

Redundancy and Disaster Recovery

Likewise, disaster recovery and redundancy are separate and expensive components of any hardware-based call center solution, and they often require additional end-user licenses. Hosted solutions, however, include redundancy and disaster recovery mechanisms, which the business can upgrade to meet their specific needs.

Rapid and Flexible

The greatest advantage to a hosted solution is that it offers rapid deployment, adjusts to new demand easily and is extremely versatile. It also has no need for a central location, so in scenarios where the business has its own agents, it can distribute those agents as it see fits.

The Author’s Bio is:
Arthur Clyne is a Montreal-based web and technology consultant for several local area businesses. He’s published articles on consumer advocacy related to IT and copyright.