Which One Should You Pick? Cloud-Based Call Centers Vs. On-Premises Call Centers

Published on: 30 July 2018 Last Updated on: 11 September 2024

In today’s fast-paced world, businesses constantly seek ways to improve efficiency while reducing operational costs.

One of the most significant changes we’ve seen is the shift from traditional on-premises call centers to cloud-based solutions. This is no longer just a trend—it’s a strategic move towards higher profitability and smoother operations.

Cloud-based call centers have become an essential organizational plan for businesses that value high profitability and low operational costs.

More and more businesses are moving from on-premises call centers to cloud-based call centers. If you, too, are considering a change, know the reasons to confirm your decision.

Why Choose Cloud-Based Call Centers?

The following reasons show you the difference between cloud-based call centers and on-premises call centers:

1. Installation

The installation process in the on-premises call centers was time-consuming. You had to plan the hardware, get licensing, set it up, install software for the systems, and more.

Cloud-based call centers are easy to install. You don’t have to maintain hardware or ensure it operates efficiently. You don’t need to assemble different devices and start off with your process.

2. Operational Costs

The cost of managing an on-premises call center is huge. It takes a lot of money to set up and buy hardware such as computers, phones, headsets, and more.

You also need licensing and office space to accommodate all your employees. Due to improving technology and regular software upgrades, the costs of replacing an installation are also high.

Options like Cisco’s customer journey platform show how little investment can go a long way. These processes don’t cost much money but require a good internet connection.

Everything is saved on the cloud and billed on a usage basis. This is one way to decrease your operational costs.

3. Easy Management

The hardwired and software systems of the on-premises call center make the process tougher and strenuous. It requires more supervision and includes regular licensing, maintenance, upgrades, and more.

Cloud-based call centers need little management and eliminate the maintenance of hardware systems. The support comes from digital engagement, reducing on-premises IT charges and other complexities.

4. Flexibility

When you install the on-premises call center, it is tough to customize it according to the number of agents. The number fluctuates, and there is less flexibility in the workflow.

Maintaining hardware is tough, and you need to modulate the systems, headphones, and so on. In this traditional system, the customer agents don’t work remotely.

They are stuck at their desks all the time, receiving calls. This disrupts the company’s ability to deliver quality customer service around the clock.

Cloud-based call centers are responsive to the scalability according to the requirement.

Cloud systems are offered based on subscriptions, so adding and removing users is like blocking a subscription. The cloud-based system helps agents work from the comfort of their homes.

They just need a good internet connection. They offer 360-degree customer support irrespective of where they are.

5. Scalability

You will need more staff when you see an expanding business in your on-premises call center.

The scalability levels of the on-premises call center system are slow because you need to spend money on aspects ranging from architecture to hardware.

Cloud operations offer an efficient software system that depends on data servers. These are what mark their scalability, and there are no extra investments needed.

6. Reliability

The quality of phone calls on the on-premises system is great. However, it is usually broken through many systems and that affects the customer’s experience. Cloud operations depend on a strong network. You need great internet facilities to promote better customer service.

From the points above, we can assume that the future of cloud-based call centers is bright.

In every way, it is a better option compared to traditional call centers. Now you know all the reasons to shift to a cloud-based call center, choose the best organization for the services.

Which Office Should You Choose as an Employee: On-Premises vs. Cloud-Based?

On the other hand, if you’re trying to decide between a more traditional on-premises call center or a modern cloud-based one, it’s important to think about the pros and cons from an employee’s perspective.

Here are a few things to consider:

Flexibility and Work-Life Balance

One of the most attractive benefits of a cloud call center is its flexibility. You can work from home, your favorite coffee shop, or anywhere else with just a reliable internet connection.

It’s much easier to fit work around your life, which is incredibly useful. Whether you’ve got a busy lifestyle or just need to prefer a more fluid schedule where you’re not tied down to being in one location.

Career Growth Opportunities

Cloud-based call centers typically adopt new technology trends. This means you will get exposure to next-generation tools and digital platforms.

Your expertise in cloud technology could be in high demand since businesses are moving their solutions to the cloud.

On-site call centers tend to stick with outdated processes and technologies. Therefore, exposure to current industry trends may not always be possible.

Work Environment and Culture

The traditional office space has a lot going for it – team collaboration, immediate access to team leads, and a routine.

If you are someone who likes more of a hands-on approach with your coworkers, an office may be the choice for you.

A cloud-based work environment is heavily communication-based and autonomous. If you can self-motivate yourself to work on your own time, then a cloud-based workplace would be ideal.

Stability and Job Security

On-premises call centers feel more stable because they have fixed infrastructure in place. Not to mention the fact that they’re just offices you can go visit.

If your CRM goes down or there’s a power outage, somebody physically located near you can fix it.

However, while cloud-based solutions may require an internet connection to access, they certainly don’t shut down in bad weather (in fact, “the cloud” is often where they store information on such storms).

Hardware failures or physical office closures are unpredictable occurrences that you should be wary of.

Final Note

Cloud-based call centers are the way forward as more and more businesses embrace digital transformation.

They will increase in functions, quality, and applications. Are you a business owner or an employee still sitting on the fence?

Decide quickly which side of the divide you want to belong to because cloud technology is here to stay!

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Deepanwita Dey

Deepanwita is a seasoned practitioner of ‘jumping the ship’. She started out her journey with literature and now holds a double graduation degree, one of which is in psychology. As a result, she is now using this skill to help confused job seekers to pick a direction. Given her academic background, her writing is laden with analytical analogies and deep research. As one of Content Rally’s most regular contributors, readers can find a sense of confidence in her writing.

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8 Tried and Tested Secrets of a Productive Home Office

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Fast Freight Solutions: Why Expedited Shipping Is A Game-Changer

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However, the cost is higher when you expect such fast transit. So, choose Expedited Shipping whenever you need to make an urgent shipment. The Benefits Of Expedited Shipping This shipping option allows goods to reach their destination in less time. Most businesses opt for standard measures whenever possible because they are cost-effective and reliable. However, there are times when shipments must arrive quickly, typically within a day or two after placing the order. Many industries benefit from offering this option. Medical supplies can arrive at their destination rapidly, which is essential because it could be a matter of life or death. Just-in-time production methods are becoming more common in manufacturing, so expedited shipping ensures operational efficiency while minimizing downtime. The company can meet customer demands, giving it a competitive edge. When customers receive their goods on time, they may become loyal clients of the business. In addition, they may leave a positive review and tell their family and friends about the company. Expedited shipping allows the business to stand out and increase its market share. Consumer demands change rapidly. A company must be ready to provide customers with what they want and need. Expedited shipping allows the business to become more agile. It can quickly adapt to seasonal peaks and fluctuating demand. Business owners know the importance of being flexible and nimble, as they saw the importance of having these capabilities during the global pandemic. Lead times lessen when expedited shipping is used. The business can fulfill customer orders quickly while improving its inventory turnover. The short transit times result in cost savings and higher profits. Improved Inventory Management Expedited Shipping can subtly improve inventory management. Firstly, it can reduce the level of stockouts. At the same time, it ensures that the products are available timely. 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Air freight out of the four is most helpful for international deliveries or supply of perishables over a short distance. On the other hand, courier companies specialize in using direct local networks for the fastest deliveries. Keeping Costs Down Business owners must know when to use expedited shipping and when other methods serve as the better option. Expedited shipping comes with higher fees to ensure the speed of the delivery. The business may choose to bear these costs or pass them on to consumers, thereby raising the price of the goods. A company might offer tiered shipping levels, allowing customers to choose the level that meets their needs and fits their budget. In addition, the company might decide to collaborate with one or more carriers to negotiate better rates and service-level agreements. This arrangement helps to guarantee consistent performance. Nevertheless, the shipping carrier is only part of the equation. The business must also optimize its order processing workflows. Technology solutions can help the company achieve this goal. It must also manage customer expectations and be transparent throughout the order fulfillment process, from when the order is placed until the goods are delivered. The Bottom Line! Expedited shipping has numerous benefits, but it is wrong for every situation. A business owner must know you need speed and flexibility in shipping to meet customer demands. The customer is always the top priority, so exceeding these expectations will lead to increased loyalty and positive reviews, which every business needs. Read Also: List of Basic Shipping Documents you should be aware of The Importance of Packaging Design in Small Business Success Corporate Hackathon: Benefits To The Employees

Which One Should You Pick? Cloud-Based Call Centers Vs. On-Premises Call Centers