How do you like our new home? Nice, isn’t it?

Anyway….

I wrote here a couple of weeks ago about making your own telephone system rather than buying one. I’d like to talk today about a similar topic - using a “hosted", or “network-based” system.

For those who are not familiar with the concept: it’s a bit like renting a telephone system, except you don’t have the system on your site. It’s usually located at a datacentre which has reliable telephone and data connections. Thesedays, just about any telephone service is available as a hosted solution (inbound, outbound, IVR, call recording, speech recognition, etc.).

How does it work?
The basic idea is that each agent has a direct dial number. When the system is ready for an agent to deal with a call it will transfer it through to this number. In certain cases the telephone lines are lost competely and the voice sent via IP. Some setups are slightly more complex, with an active-x or COM component provided to install on each agent’s PC. Via the internet this lets the hosted system know what each agent is up to, and in return provides from useful CTI that’s essential for some situations like outbound calling.

What’s it cost?
Obviously price differs from supplier to supplier, but you usually have to pay for the following:

• An account setup fee
• Monthly rental per agent
• Inbound leg call costs to connect to your agent (If via PSTN)
• If applicable, outbound leg call costs to connect to the customer

Pricing will depend on the exact service - and I know of suppliers who will provide an inbound IVR service free if it’s on an 0870 number and they keep the few pence made from each call. For high-call campagins this is quite a popular model.

Why do it?
The key benefit is scalability. Within hours your supplier can double your call centre capacity. No waiting times for kit. Assuming, of course, that you’ve got the lines and agents in house.

As technology improves, your supplier should update their kit and this will be at no charge to you.

You don’t have to deal with capital expenditure for the switch, which means you can account for the switch as P&L rather than as an asset.

More reliable than a switch on site - with technical support taken care of.

Multiple sites and homeworkers are easily accomodated. In fact, physical location is completely irrelevant.

Why not do it?
It can be more expensive. Whilst it seems cheaper on a monthly basis (and this is how most suppliers will try to sell to you), it will cost more over longer periods.

Lack of control. Unless you’re a very very big customer you’re not going to be able to demand changes or improvements to the system. You can’t decide which call carrier outbound calls go through so you may not be getting the most cost effective deal.

You still need telephone lines for all your agents - unless it’s a VOIP solution.

Who does it?
iCall
Ultra
Five9

to name three….but you could also consider getting a consultant to research suppliers that are suitable for you. There are many around at the moment and not all of them provide good service - so beware.

I honestly believe that most call centres will follow this route over the next 5 years. It fits perfectly with my vision for the PSF call centre. In the future your company will need to be lightweight and turnaround jobs in hours rather than days.

On the flipside - we may see the traditional box manufacturers get cleverer with what they offer and start to provide scalability-on-demand (IBM style). Keep your eyes open for this.

Regards,
DB