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The Great Debate: Local vs. Hosted

As with any business software need, you're going to be faced with a crucial decision right away: Do you want to host the software in-house on your servers, or log in to a secure web site where the software is hosted on the provider's servers? Let's look at both sides to determine the appropriate choice for your business.

  • Locally-Hosted: You install, host, and run call center software from your servers or in your data center (if applicable).
  • Application Service Provider (ASP): With an ASP, the vendors host the software and functionality on their servers and users simply log in over a secure connection.

In general, your decision will come down to which downside impacts your business the most: Not being able to access data in the rare instance that your broadband connection fails or you experience a power outage, or having to manage all aspects of your call center software in-house.

Finances can also dictate which direction you follow. If you can afford the costs of an in-house call center software solution AND you have the internal resources to maintain the functionality, it's a worthy investment. But if you're working on a limited budget and need comparable applications over a secure and reliable network, an ASP solution can provide all that you need.

The chart below illustrates the pluses and negatives of each purchase:


Locally-hosted Solution

ASP Solution

Pros

Cons

Pros

Cons

Complete control over your system

Most expensive initial purchase

Far less expensive; smaller start up costs; affordable monthly subscription fees

No control if the providers’ servers fail

Fewer  incremental costs over time

Need experienced IT staff in house to manage it

Easy to get started; no need for expensive infrastructure

May offer less functionality,

Quicker to grab data

Must fix problems yourself or hire outside help

Highly secure

Internet connections don’t stay up 100% of the time.

 More customization and integration options available

Backups and security up to you

Provider responsible for upkeep and management; will make repairs as needed

Backups and security dependent on vendor

Before you shop

Congratulations! You have decided it's time to equip your business with a feature-rich solution to optimize the efficiency of your call center operations. It's a big step forward and there's a lot to keep in mind, but this information should help keep you informed so you make the best decision for your business.and your wallet!

Prior to talking to any vendor, there are some key things to keep in mind about the purchase before spending a dime. Consider your answers carefully and be sure to discuss them in detail with multiple vendors (you certainly don't want to take the first deal offered as it may not be the best deal!)

  • How long does it take to get set up? Depending on the number of service agents using the software and how complex the software customization needs to be, you could be talking about several weeks to a half a year, perhaps longer. Make sure you plan far in advance so you can get started using the benefits of the software immediately.
  • ยท Will you need intense training? Call center software isn't as easy as surfing the web - there is a lot to learn to get the full benefits offered. But the navigation and menu options should still be easy enough to follow. Since every software package will be different, plan for enough training to get everyone up to speed.
  • Can the software perform the way you want? One of the key advantages to call center software is the vendor can customize it to include the specific features you need. Relay what you want the software to do before agreeing to purchase anything. Usually, the vendor can develop a program that best fits your organization's needs.
  • Will you maintain the software in-house? This is probably one of the most overlooked considerations. If you install software on your servers, it needs to be up and running at all times. You must have an IT professional that you can call upon when problems arise. If not, you'll have to go with an offsite solution that the vendor manages, but you'll need a readily available broadband connection. (You can read more about in-house software vs. ASP to decide which is best.)
  • Can I afford it? What major purchase doesn't come down to dollars and cents? There's no question that call center software will require a large up-front investment in the tens of thousands of dollars. But you need to consider the money you will save in the long run. Your agents can save 10 to 20 seconds per call with call center software. This could add several additional calls to their plates every day and increase productivity, all without adding a single new employee!
Assess your situation

Before you sit down with a call center software vendor to discuss what you need, here is some information you should gather beforehand. This will provide the vendor with a lot of the information they will need to determine which solution is best for your business. Make sure to share this data with multiple vendors before making a final decision:

-What type of calls make up the bulk of your call center activity (outgoing, incoming, both?)
-How many calls come in monthly?
-Are most customer inquiries in-depth or basic?
-How many service reps do you employ?
-How long is the average call?
-How much can you afford to spend?
-What system are you currently using (if any)?
-Do you need to use it in tandem with another management program (such as CRM?)
-Are you set up for voice-over-Internet-protocol (VoIP)?
-Do you think you will grow operations in the next few years?