Let us first recognize that both terms, cloud-based call center and on-premise call centers, refer to customer service, albeit in different ways.
Cloud-based call centers
We all use the internet and understand that “cloud-based” refers to information that is stored in the cloud (whether data and numbers or images or conversations, both oral and written) and can be accessed via cloud-based technology by people who are authorized to do so. When organizations use cloud-based call centers to conduct their customer service activities, it signifies that all the outbound and inbound calls are handled on the cloud via the internet. A cloud-based phone system neither requires the company to maintain hard-software infrastructure nor needs dedicated physical space to accommodate call center agents or customer service executives. People work from remote locations, and the only tool they need is a mobile phone. There is no concept of a physical office.
On-premise call centers
On-premise call centers are traditional call centers that need physical space to accommodate not only the customer service agents or teams who will be taking customer queries via phone and resolving them but also the hardware, software, and infrastructure needed to make the call centers function. On-premise call centers are limited by geographical bounds or physical space, which is not the case with cloud-based call centers or OmniChannel.
Across the globe, be it the USA or the Philippines, both cloud-based phone systems and traditional on-premise call centers are being used by organizations. Gradually and definitely, they’re shifting to cloud-based call center systems; however, at this point, we cannot say that everyone has shifted to or opting for on-premise cloud-based call center software. Things are slowly changing.
Major differences between on-premise and cloud-based call center software
Organizations using on-premise call center services spend a hefty sum on the purchase and maintenance of the hardware, labor, space, installation, and other set up costs. In order to keep up with the technology, they will need to update or change the system each time a major shift happens in order to stay relevant. Cloud-based call center software comes with low setup costs, and other expenses are met via a monthly subscription system and a recurring fee.
Setting up an on-premise contact center requires a timeline, which may sometimes need to be extended as it involves identifying various hardware and software sellers, checking out the features of each system, comparing pricing, completing formalities in order to acquire a license to set up infrastructure, getting a building constructed or looking for a place to rent, and so on. A cloud-based call center, on the other hand, necessitates the installation of an app on the mobile phones of call center agents and business owners, the former to begin making calls and the latter to track work and evaluate the performance of the call center agents. Installing a cloud-based call center is quicker and far less complicated.
Call Center Agent's Productivity
On-premise call centers are often overwhelmed because of the multiple calls waiting to be picked up; they often handle two or three calls at a time, which lowers their productivity and adversely impacts customer service outcomes, killing the purpose of setting up a customer service center. They are required to manually switch from one call to another. In a cloud-based call center everything is automated and works via a single app. A lot of basic information is available to the agent receiving the call or serving the customer via phone. There are features like auto-dialing, call waiting, etc. Only those calls are routed to a cloud-based call center agent who specializes in resolving them. Along with the calls, the agent receives the history of the conversation or issue and its current status, from which he has to take it forward. A cloud-based call center agent is more productive. Not only the outcome of his calls is of better quality, but he or she also attends more calls in a working day compared with on-premise agents.
System Security, Maintenance, and Upkeep
On-premise call centers have higher upkeep and maintenance costs than cloud-based call centers. Both cloud call centers and on-premise call centers can be made equally secure through encryption and other advanced security measures.
Choose what suits an organization the best between on-premise and cloud-based call center.
The best type of call center for your business depends on your business goals and financial preferences. Entrepreneurs consider these factors seriously when making a decision.
Organizations that choose an on-premise call center must invest only in the equipment they require and do not have to pay a monthly subscription fee. Just like data, your software and hardware are under your control, and you can change, replace, or upgrade them whenever you see fit.
Those wishing to go with cloud-based call centers, consider factors like low installation and maintenance costs, no hassle or headaches with regard to system breakdowns, system updates, etc., as these the service provider takes care of these things. All that the organization using cloud-based call centers must do is to use the app and enjoy the outcomes in terms of better performance, productivity, and more.
Though most organizations are shifting to cloud-based call center service providers as it spares them time to focus on their core business, we advise all organizations to check out the features of both systems and install the one that will help them meet their business goals.