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Cloud Contact Center vs Traditional Call Center: A Cost Comparison

cloud vs traditional call center: a cost comparison

There are many sides to the Cloud contact center vs traditional call center debate. Cost is one of the most important. There are a number of factors that play a role in the cost of both a Cloud contact center and a traditional one. In this article, we’ll break down these costs and give you an approximate price for each call center solution. This should give you a better understanding of the call center solution that’s right for you.

Cloud contact center

The obvious cost advantage with a Cloud contact center is the absence of a large investment or start-up fee. Since this type of call center is based in the Cloud, all necessary components are hosted by your provider and are accessible over the Internet. This is useful because your provider, not your company, is responsible for the maintenance and updates required to your system.

Most Cloud solutions also allow pay-as-you-go models or short-term contracts. These types of pricing models are another important factor in this cost comparison because in the off-chance your call center reduces in size or closes all together, you won’t be locked into a lengthy contract or be stuck with the large amount of equipment that is required in a traditional call center. On the other hand, if your call center grows, you can easily add more agents because Cloud solutions are extremely scalable.

Most Cloud contact center software providers also include a number of popular calling features along with their service. Features such as IVR, Call Recording, Call Forwarding and Time-of-Day Routing may be accessible for no additional charge.

Cloud software is popularly offered at a monthly rate per seat, or extension, that you require. For instance, if you have 100 agents, you’ll need 100 seats. That means you’ll have a predictable monthly cost because you’ll be paying a set monthly fee for each of your agents to have access to the technology in your call center.

The monthly cost varies depending on the provider. Factors such as included features, integration and technology can all affect the price. This means that seats can run anywhere from $20 to upwards of a few hundred dollars depending on the service you require.

Traditional call center

A traditional call center comes with a large up-front price tag. Initial purchases of technology and necessary software can run anywhere from $100,000-$500,000. Be sure to factor in the price of installation and set-up of this equipment. This can cost around $25,000 depending on your solution.

Since your call center owns your own equipment, there isn’t a predictable monthly cost like you’d expect per agent using a Cloud solution. Instead, your costs can fluctuate depending on your current needs including features and your number of agents. You’ll also need to factor in the cost of an IT Manager to run your system. Your equipment will need constant maintenance and updates so it’s important to have an employee dedicated to your expensive system.

Since you’re essentially building your call center system from scratch, you’ll have the ability to customize it exactly to your liking. However, unlike the free features that come with Cloud solutions, you’ll have to purchase and install specific features that you’d like used in your call center. For instance, the Call Recording feature that might come standard with the Cloud can cost around $100,000 to install.

Regardless of which type of call center makes fiscal sense for your company, the key to a successful call center is incredible customer service. Both call center options allow you to focus on your customer and truly offer them a one-of-a-kind experience.

traditional vs cloud-based call center

David Wise

David Wise

Chief Executive Officer, Founder at AVOXI
David has more than 18 years of management experience in the telecommunications industry. A graduate of the Citadel, David worked as a Senior Account Executive with Intermedia Communications and later co-founded Rapid Link, a leading provider of International callback and VoIP. David then founded AVOXI in 2001with a focus on providing niche international call center markets with customized voice and data services. read more
David Wise
David Wise

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