How to Cut Contact Center Infrastructure Costs: Cloud-Based Contact Center Solutions

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In a world where technology changes faster than you can say “your call is important to us,” cloud-based contact center solutions are where it’s at. 

Contact centers large and small are increasingly shifting away from legacy, on-premise infrastructure in favor of cloud-based call center software solutions, a trend that isn’t going away in the foreseeable future. 

The number of seats in the cloud-based contact center infrastructure marketplace grew by 20% from 2017 to 2018 and is expected to jump by similar numbers annually through 2023. These figures were in no small part accelerated by COVID-19 which sped up the cloud adoption journey as leaders raced to digitize for at-home work setups quickly. 

Small- and mid-size organizations, in particular, are driving the growth as they adopt cloud contact center technology for the first time. 

The flexibility, scalability, security and sustainability of the cloud make it the ideal contact center solution for businesses of all types.

What is a cloud based contact center?

A cloud-based contact center solution is a set of applications hosted in the cloud that facilitate company-to-customer communications. Also known as a virtual contact center, this type of solution integrates the company’s various support channels (phone, email, live chat, etc.), agent dashboard, CRM, analytics and workforce management tools, bringing them together in one convenient interface.  

Cloud call center solutions facilitate useful features that improve metrics and reduce costs, including:

  • Intelligent call routing and dynamic scripting to help agents handle more interactions in less time
  • Interactive voice response and virtual agents that help customers self serve, reducing the number of necessary live agents
  • Real-time analytics that help managers monitor performance and meet KPIs

In addition to the many features that contribute to a better experience for customers, cloud-based software also improves the experience for call center personnel. The tools agents need to do their jobs are hosted in the cloud, eliminating the burden of working between multiple programs and juggling numerous logins. For supervisors, built-in workforce management tools help them boost efficiency and manage the activities of their team in the most effective way. 

Your primary concern may be with cutting infrastructure costs, which a cloud-based contact center solution can certainly achieve. But it also offers the (perhaps equally impactful) benefit of helping you better serve customers, which is a net gain for business.

What’s the difference between cloud-based and on-premises contact centers?

Traditionally, on-premises contact center technology consisted of an assortment of bulky hardware located in a physical location. To access such infrastructure, you’d need to sign a contract with a vendor, get locked into a service agreement, and pay for every agent seat. Adding new features required additional licensing, and upgrades or technical support required paying for the time and labor of an IT expert.

Now, thanks to the cloud, there’s no longer a need to maintain physical infrastructure to support your contact center operations. Cloud contact center software is fully accessible from anywhere with an internet connection, so you’re no longer limited by location. Customer interactions are faster and easier than ever. Rather than committing to a seat-based pricing model, you only pay for what you need.

Customer interactions are faster and easier than ever. Rather than committing to a seat-based pricing model, you only pay for what you need

How switching to a cloud contact center can reduce your costs and improve customer service

Quick and painless to deploy

With cloud contact center platforms, you don’t have to invest hundreds of thousands of dollars on new infrastructure and the labor to implement it. A cloud-based solution allows you to scale as needed, at any time, with minimal additional cost. There’s no need to negotiate with vendors all over the world to do business globally, and every piece of technology communicates seamlessly with one another rather than being siloed. 

Uncomplicated setup

Setting up on-premise call center infrastructure requires a dedicated team of technology experts and can take weeks or even months. A cloud-based solution can be up and running in a fraction of the time and is a much less intensive undertaking, both labor and technology-wise. 

Low up-front cost

Legacy call center infrastructure is incredibly costly. It requires the company to foot the bill for servers, cables, switching hardware and more, not to mention the physical space where all of it will live and the energy supply to power it and keep it climate controlled. It’s a massive line item. Cloud call center software requires none of this capital investment, instead requiring only a strong internet connection and devices that can access it. 

Regular, automatic upgrades

With legacy contact center software, every update was a major undertaking requiring a team of experts, not to mention a host of new expenses. With cloud-based contact center software, there’s no need to enlist your IT team every time a new feature is rolled out. You can make changes instantly and automatically, saving labor and resources. Add additional communication channels like live chat or in-app messaging as your needs require with no additional software licenses, and test new features easily without undergoing a major platform overhaul. 

Better security

A security incident is one of the most expensive things that can happen to a company, costing an average of $8.19 million per data breach in the U.S. Because cloud-based solutions are located in geographically redundant data centers and don’t rely on the security of a single physical location, they’re more secure and more reliable. Greater uptime leads to more satisfied customers. Plus, with a cloud-based solution, compliance with measures like CTIA, TCPA, and CAN-SPAM are built-in and require no additional user action. 

Improved reliability

We can’t talk about cutting costs without addressing a major financial liability: system downtime. Whether it’s due to a hardware failure or prolonged disaster recovery, a single outage can cost a company thousands of dollars per minute in lost revenue. That’s on top of the costs of the repairs to bring the system back online and the long-term damage to your reputation. Virtual contact centers offer unmatched reliability, with an industry gold standard of 99.99% uptime.

What are the key components of a modern contact center infrastructure?

In the dynamic landscape of customer interactions, a modern call center infrastructure stands as a beacon of innovation, empowering businesses to enhance customer service while effectively managing costs. The essence of this transformative approach lies in its ability to harness the cloud—a game-changer that redefines the way call centers operate.

  1. Cloud-powered flexibility: A cornerstone of contemporary call center infrastructure is its migration to the cloud. By adopting cloud technology, businesses unlock unparalleled flexibility. The cloud facilitates the seamless scaling of operations, ensuring resources are allocated optimally, even during peak times. This agility eradicates the need for excessive hardware investments and promotes a leaner, cost-efficient model.
  2. Virtual contact center solutions: Embracing virtual solutions further streamlines operations. With geographically dispersed agents seamlessly connected, businesses save on physical space and reduce overheads. This setup also enhances workforce management, allowing for strategic scheduling that matches customer demand patterns, thus maximizing efficiency.
  3. Omnichannel communication: Modern call centers excel in offering customers a seamless experience across multiple channels. Integrating phone calls, chats, emails, and social media interactions ensures customers can engage on their preferred platform. This approach not only enhances customer satisfaction but also optimizes agent utilization, effectively managing operational costs.
  4. Data-driven insights: Call center infrastructure has evolved into a data-rich domain. Advanced analytics tools provide deep insights into customer behavior, agent performance, and operational trends. Leveraging these insights, businesses can fine-tune operations, allocate resources efficiently, and tailor customer interactions for a personalized touch.

Robust security: With data breaches becoming a significant concern, a robust call center infrastructure integrates state-of-the-art security measures. Cloud-based solutions offer enhanced data protection protocols, ensuring sensitive customer information remains safeguarded.

What factors influence the cost of implementing a cloud contact center?

In the realm of cloud contact centers, a crucial advantage lies in their dual capacity to reduce costs and enhance customer service. Delving into the dynamics of cloud contact center costs reveals a spectrum of factors that influence the financial aspects of implementation.

  1. Scalability and resource allocation: The beauty of the cloud lies in its scalability. Costs are significantly impacted by the ability to swiftly adjust resources based on demand fluctuations. With traditional setups, overprovisioning to meet peak demands often incurs unnecessary expenses. However, the cloud’s pay-as-you-go model ensures costs align precisely with resource usage, eliminating wastage.
  2. Technology infrastructure: The sophistication of technology adopted plays a pivotal role. While cloud contact centers reduce upfront hardware investments, the selection of software, integrations, and features can vary in cost. An adeptly chosen technology stack not only optimizes operations but also affects long-term financial viability.
  3. Omnichannel integration: The extent of omnichannel integration directly influences the cloud contact center cost. Implementing seamless customer interactions across multiple channels necessitates robust integrations and specialized tools. However, these investments can be offset by heightened customer satisfaction and agent efficiency.
  4. Customization and configuration: Tailoring the cloud contact center to align with unique business needs can influence costs. While some off-the-shelf solutions might be cost-effective, customization to match specific workflows may entail additional expenses. Balancing these considerations is pivotal.
  5. Data management and security: Safeguarding customer data is paramount. Implementing stringent security measures can impact costs, but the fallout of a data breach could be far more detrimental. Striking a balance between security investments and potential consequences is a critical aspect of cost assessment.
  6. Training and change management: Transitioning to a cloud contact center necessitates training and change management efforts. The costs associated with upskilling agents and ensuring a smooth transition can influence the overall financial outlook.

Vendor selection and support: Partnering with the right cloud contact center vendor affects both upfront and ongoing costs. Evaluating vendors based on pricing models, support offerings, and track records is instrumental in optimizing your cloud contact center cost efficiency.

What are the cost implications of moving a contact center to the cloud?

Shifting a contact center to the cloud is a transformative journey that not only enhances customer service but also yields substantial cost advantages. The strategic migration from traditional setups to a cloud-based infrastructure reshapes the financial landscape in profound ways.

Operational efficiency: The cloud’s pay-as-you-go model empowers businesses with unparalleled operational efficiency. With traditional setups, fixed costs often lead to underutilized resources during non-peak periods. The cloud dynamically adjusts resources based on demand, eliminating the wastage of unused capacity and optimizing cost-effectiveness.

Infrastructure overhaul: In-house contact centers entail significant upfront investments in hardware, maintenance, and upgrades. A contact center in the cloud costs less over time because it negates the need for extensive hardware purchases. This shift reduces both initial capital expenditures and ongoing maintenance costs.

Resource allocation: The cloud’s scalability ensures that costs align closely with resource usage. Seasonal spikes in customer interactions no longer necessitate excessive provisioning; costs scale in tandem with demand. This flexibility ensures that resources are allocated optimally, mitigating unnecessary expenses.

Global reach, local costs: Traditional contact centers often grapple with international communication costs. Cloud-based solutions transcend geographical barriers, enabling seamless global interactions while leveraging local communication rates. This approach slashes international communication expenses and empowers businesses to expand their reach without inflating costs.

Reduced downtime costs: A contact center in the cloud offers heightened reliability through redundancy and disaster recovery mechanisms. The mitigation of downtime, which can lead to revenue loss and tarnished customer experiences, translates directly into cost savings and safeguarded brand reputation.

Innovative features at scale: Cloud solutions often package advanced features that are accessible at scale without incurring additional expenses. This empowers businesses to enhance customer experiences through innovative tools without the traditional hefty price tags.

How can specialized software optimize contact center infrastructure?

In the realm of contact centers, specialized software emerges as the catalyst for optimizing infrastructure, simultaneously cutting costs and enhancing customer service. This transformative approach harnesses technology to create a harmonious symphony of efficiency and excellence.

Streamlined workflows: Contact center infrastructure software acts as a tailor-made solution, aligning contact center workflows with precision. It eliminates redundant tasks, automates manual processes, and fosters a seamless flow of operations. This optimization minimizes agent effort and time, leading to increased efficiency and reduced operational costs.

Data-driven insights: Advanced software platforms are data goldmines. They offer deep insights into customer behavior, agent performance, and operational trends. These insights empower managers to make informed decisions, allocate resources strategically, and fine-tune processes for maximum efficacy.

Omnichannel excellence: Specialized contact center infrastructure software enables omnichannel communication, a cornerstone of modern customer service. Integrating phone calls, chats, emails, and social media interactions creates a holistic customer experience. This not only enhances customer satisfaction but also optimizes agent utilization, effectively managing operational costs.

Personalized customer interactions: Personalization is a hallmark of exceptional service. Specialized software employs data analytics to customize interactions, delivering tailored solutions to customers. This personal touch elevates customer satisfaction while driving repeat business and word-of-mouth referrals.

Efficient resource allocation: Workforce management is pivotal in contact centers. Specialized software optimizes staffing levels, scheduling shifts based on historical data and real-time demand. This efficiency ensures that agents are available when needed, avoiding overstaffing and minimizing labor costs.

Continuous improvement: The best contact center infrastructure software facilitates a continuous improvement loop. It enables the monitoring of key performance indicators and metrics, aiding in identifying bottlenecks or inefficiencies. This proactive approach leads to iterative enhancements that enhance service quality and cost-efficiency.

What factors determine the cost of implementing contact center software?

In the realm of optimizing contact center operations, the implementation of specialized software emerges as a pivotal strategy, offering a dual promise of enhanced customer service and cost efficiency. Understanding the factors that determine the contact center software cost is instrumental in making informed decisions that align with business goals.

Software customization and features: The level of software customization and the breadth of features play a significant role in shaping contact center software costs. Off-the-shelf solutions tend to be more cost-effective, while highly tailored options entail higher initial investments.

Scale and user licenses: The scale of the contact center operation and the number of user licenses required directly influence costs. Larger operations or those with extensive agent teams may require more licenses, impacting both upfront and ongoing expenses.

Integration complexity: Contact center software often needs to integrate with existing systems and tools. The complexity of integrations can impact costs, as intricate connections might require additional development efforts.

Cloud vs. on-premises: The choice between cloud-based and on-premises software has financial implications. Cloud solutions often involve subscription-based pricing, which can be more manageable in terms of upfront costs, while on-premises solutions might require higher initial investments.

Maintenance and support: Ongoing maintenance and support are critical for the longevity of the software. Costs associated with updates, troubleshooting, and customer support can influence the overall contact center software cost of ownership.

Scalability and flexibility: The software’s scalability and flexibility are essential factors. Solutions that can easily adapt to changing business needs without incurring significant costs are favorable in the long run.

Training and onboarding: Training agents and staff to effectively use the software is a key consideration. Costs associated with training materials, sessions, and potential productivity dips during the learning curve should be factored in.

What strategies can be employed to reduce costs in a contact center?

In the pursuit of operational excellence, it’s paramount to reduce call center costs while concurrently elevating customer service. Embracing strategic approaches that optimize expenditures without compromising quality is the key to achieving this delicate balance.

  1. Adopt cloud technology: Integrating cloud technology into your contact center architecture is a game-changer. Cloud solutions reduce call center costs by eliminating the need for extensive hardware investments. Additionally, the pay-as-you-go model ensures that costs are directly aligned with resource usage, allowing for optimal allocation and preventing wastage.
  2. Implement self-service options: Empower customers with self-service options such as interactive voice response systems and online knowledge bases. These tools allow customers to find answers to common queries independently, reducing the load on agents. This not only enhances customer satisfaction but also minimizes operational costs by decreasing agent workload.
  3. Utilize virtual agents and chatbots: Embracing AI-driven virtual agents and chatbots can significantly reduce call center costs. These technologies handle routine queries, freeing up human agents to focus on more complex interactions. Moreover, virtual agents operate around the clock, providing customer support beyond regular working hours without incurring additional labor expenses.
  4. Optimize workforce management: Efficient workforce management is pivotal in cost reduction. Utilize analytics to forecast call volumes accurately, enabling precise scheduling of agents. Overstaffing during low-demand periods is minimized, decreasing labor costs. Similarly, real-time data insights help in dynamic resource allocation to meet demand fluctuations.

Continuous agent training: Well-trained agents are more effective and efficient. Invest in ongoing training to enhance agent skills, ensuring they can resolve issues swiftly and accurately. This reduces call durations, call escalations, and the need for follow-up interactions, ultimately trimming call center costs.

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About LiveVox

LiveVox (Nasdaq: LVOX) is a proven cloud CCaaS platform that helps business leaders redefine customer engagement and transform their contact center’s performance. Decision-makers use LiveVox to improve customer experience, boost agent productivity, empower their managers, and enhance their system orchestration capabilities. Everything needed to deliver game-changing results can be seamlessly integrated and configured to maximize your success: Omnichannel Communications, AI, a Contact Center CRM, and Workforce Engagement Management tools.

For more than 20 years, clients of all sizes and industries have trusted LiveVox’s scalable and reliable cloud platform to power billions of omnichannel interactions every year. LiveVox is headquartered in San Francisco, with international offices in Medellin, Colombia and Bangalore, India.

To stay up to date with everything LiveVox, follow us @LiveVox, visit www.livevox.com or call one of our specialists at (844) 207-6663.

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