Benefits, ROI and TCO for The Hosted Contact Center

Donna Fluss, president of DMG Consulting, wrote an intelligent and insightful article entitled “The Hosted Contact Center: A Paradox No Longerwhich was published online at  In the article, Donna reviews the benefits, ROI advantages and TCO (total cost of ownership) of hosted call center platforms.

Regarding the benefits of hosted call center platforms, Donna writes:

Our prediction is that, by the end of 2011, 30 percent to 35 percent of all new contact center seats will be hosted. There are many factors driving this trend, including:

  1. Availability of functionally rich, competitive hosted contact center offerings
  2. Viability of IP, which is altering the dynamics of contact centers
  3. Increasing number of virtual contact center environments that use at-home agents
  4. Growing need for flexible, multisite solutions that can easily and cost-effectively span the globe
  5. Desire to minimize unnecessary financial risks for the company and its management
  6. Ability to change providers without large penalties or write-offs
  7. Avoidance of large capital investments and start-up costs
  8. Need for technology-investment protection to ensure that solutions remain current without undergoing costly and time-consuming upgrades
  9. Reductions in corporate technical resources
  10. Low prioritization of contact center technology requirements by corporate technology executives
  11. Desire of contact center managers to sidestep irrelevant technology standards set by IT for premises-based systems
  12. High incentive for on-demand vendors to earn their customers? business on a monthly basis

Total Cost of Ownership

Donna wrote “Typically, a TCO analysis for an on-premise contact center solution takes into account costs for vendor hardware, software, applications, start-up, training, professional services, and ongoing maintenance and support (for both the software and hardware). A TCO analysis should also include internal staff (contact center and IT personnel) and other costs, such as disaster-recovery systems, real estate, travel, and software and hardware upgrades that are outside of regular maintenance and support.

With a hosted solution, many of these costs become transparent because they are incorporated into the monthly fees. Many businesses choose the hosted model because they can achieve a robust solution without the initial capital expense. They eliminate expenses for software and hardware purchase and implementation, as well as ongoing maintenance and upgrades, as the hosting vendor bears these responsibilities. Because the initial costs are less for hosted solutions than for traditional on-premise implementation projects, the avoidance of first-year costs — accompanied by savings from reductions in internal contact center and technology support staff and the elimination of upgrade fees — translates into a considerably shortened payback period and a lower TCO.”

To read the complete article visit:

To learn more about hosted contact center solutions visit or call 1-800-831-8130

All the best,

Darren Prine
Director of Sales
Phone: 480-251-9160
IM: CallCenterHero (Skype)

~ by Darren Prine on August 20, 2010.

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