Contact Center solutions have evolved significantly over the last two decades. Before 2005, the vast majority of contact center software was On-Premise based and highly fragmented. At around that time, Cloud-based solutions began gaining popularity. However, the first Cloud-based solutions were still point solution-oriented. They didn’t offer integration between systems, so businesses had to deal with multiple vendors and configure back-end integrations themselves. By 2015, companies had access to highly integrated software networks and source all the capabilities they needed from one vendor or solution. Yet, most large enterprise organizations were slow to adopt cloud solutions due to concerns about security issues and control loss. It wasn’t until 2020 that we finally saw a significant number of large enterprises migrating from fragmented On-Premise solutions to Contact Center as a Service solution (CCaaS). These organizations are now seeing significant success and growth from Cloud-based services, and this growth is expected to continue in the future.
Cloud-based software offers significant benefits over On-Premise solutions. First, having one fully integrated solution is easier for the customer because it creates a much more consistent experience across channels. Cloud-based software also requires less effort for frontline associates because they don’t have to learn multiple systems or navigate from one system to another. Another significant value offered by CCaaS is speed. CCaaS vendors keep up with market trends and regularly implement new capabilities and new versions of their software. This approach is faster, more scalable, prevents the need to purchase new technology, and improves overall ROI. The final benefit is cost. Customization, which can be costly, is often not truly needed as the core functionality and streamlined processes are sufficient. If your technology team is looking to consolidate and focus more on innovation, then CCaaS may be a great way to go.
A successful CCaaS implementation starts with solid business operations’ and technical assessments to identify which capabilities will add the most value for your customers and your business. Choosing the right vendor is also crucial to ensure their solution has the most important capabilities to your business, that you can trust that they can deliver on your technical solution design and that you have a partner that will grow with you. The implementation is a large-scale project and long-term decision, so it is recommended to use an RFP procurement process to identify the vendor that will best meet your business’s needs and budget.
Of course, on-premise-based solutions are still great solutions and suitable options for many companies, so conducting the right level of due diligence on all solutions is a critical first step. However, in summary, cloud solutions do provide many benefits, including integration between systems and reductions in cost and effort, so we expect to see more migration to complete CCaaS solutions over time. Recent Gartner projections indicate that CCaaS use will increase by 50% between 2020 and 2022.
Pam Plyler, the Contact Center Executive Practice Lead for The Northridge Group, provides leadership, expertise, and insights to clients looking to transform their contact centers and drive towards best-in-class performance in quality and operational effectiveness and efficiency. Pam drives results through her passionate leadership and experience in process re-engineering, technology solutions, and organizational design. She is a long-time CCNG member, Town Hall facilitator, and blog contributor.
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