Call and contact centers have evolved dramatically in recent years. With changes in technology have come changes in the call center industry. Call centers no longer have to be in one fixed physical location. With modern systems, calls can be distributed to employees in different locations, resulting in virtual call centers. Even with a fixed call center, different technology choices and the number of vendors selling solutions has increased exponentially in recent years. This has made selecting the right software systems tricky. The Business.com Guide to Call Center Software will: - Breakdown the various types of systems. - Help you calculate the costs. - Offer a comparison checklist to simplify the process.

1. BUSINESS.COM GUIDE TO CALL CENTER SOFTWARE

2. CONTENTS
OVERVIEW OF CALL CENTERS 3
TYPES OF SYSTEMS 6
CALCULATING COSTS 8
COMPARISON CHECKLIST 11
GLOSSARY OF TERMS 12

3. 3
OVERVIEW OF CALL CENTERS
HOW
Call and contact centers have evolved dramatically
in recent years. With changes in technology have
come changes in the call center industry.
Success used to depend on assembling the right
number of people in the same room or building to
handle calls, but all that has changed. Call centers no
longer need to be in one fixed physical location. With
modern systems, calls can be distributed to employees
in different locations, resulting in virtual call centers.
Even with a fixed call center, different technology
choices and the number of vendors selling solutions
has increased exponentially in recent years.
This had made selecting the right software and
systems tricky. This guide will greatly simplify the
process for you.
“CALL AND CONTACT CENTERS HAVE
EVOLVED DRAMATICALLY IN RECENT YEARS.”

4. 4
WHO
A call center’s most valuable
asset is its people, but the
right software system can
make a huge difference,
as it allows a call center to
run smoothly on its own,
with little need for IT staff
or technicians to keep the
phones ringing.
Call centers used to depend
on switchboards, complex
telephone systems, and other
intricate pieces of hardware.
These days, only basic
equipment is required, such as
headsets and PCs. Software
is now at the heart of the call
center system, so choosing
the right software is the most
important aspect of setting up
a successful center.
“SOFTWARE IS NOW AT THE HEART OF THE CALL CENTER SYSTEM, SO
CHOOSING THE RIGHT SOFTWARE IS THE MOST IMPORTANT ASPECT OF
SETTING UP A SUCCESSFUL CENTER.”

5. 5
WHAT
These days, your call center systems choices are vast,
which means that the chance of finding a solution
custom tailored to your needs that’s also in your price
range is excellent. The first step in making any decision
is to have a clear understanding of your requirements.
A number of factors need to be taken into account when
assessing different solutions. Once you know what’s
available, you can narrow your search to the best vendors
and plans. The major considerations include:
Size. A software system should not just be able to cope
with your current workload, but should also take into
account any potential future expansion. Ensure that you’re
choosing something that’s flexible and that can grow as fast
as the expected expansion of your operation.
Location. While most call centers are in a fixed physical
location with all operators working in the same building,
it’s possible to have some or all of your staff working
virtually. If this is the case, a cloud-based system
operating over the Internet will give you much more
freedom than a call center system installed on machines
or servers in a specific location.
Incoming or Outgoing. Some call centers handle only
inbound calls, others handle primarily outbound ones,
and some require a system capable of both. While low
subscription costs may look tempting, high call charges
could make an inexpensive solution costly in the long run.
Features. These days, call center systems don’t just
route calls to different operators. The software enables all
sorts of features such as routing calls to specific people,
forecasting call volume, and storing and analyzing call
data. Many of these features promote the smooth running of
a call center, but not all are needed by every organization
Support. Choosing a system that looks after itself, or one
that comes with technical support included in the price,
can make a big difference to both your budget and your
staffing levels.

6. 6
A major decision concerning call center systems
is how the software will be hosted. Software can be
installed on an office server in what is known as a
managed system, it can be hosted in the cloud, or
it can be hosted by a third-party hosting company.
The hosting system you opt for can make a big
difference in cost, but it’s not just a matter of looking
at subscription fees.
While a third-party hosting system tends to have more
expensive subscription fees than a self-hosting one,
having someone else look after the software means you
need little if any in-house technical support.
Self-Managed Systems. While self-managed systems
seem like the simplest solution-just install the software
and run the system yourself-they can be the most difficult
when you factor in your own time. On the positive side,
you have full control over the system. The downside is
that you have complete responsibility for keeping the
system running. Any errors or problems fall to your in-house
staff to put right. Although many providers of self-managed
systems offer some support, it might not be
what you need when you need it. If having your call center
operating efficiently is essential to your profits, be sure to
consider the costs of maintaining the system, not just the
base price of hosting it.
Cloud-Based Systems. To avoid in-house servers and
all the hardware and software headaches that come with
them, more and more call centers are now self-hosted
on the cloud. The cloud is just another way of saying
that the system is hosted online. Self-hosted means that
you’re the one who set it up on the cloud, and you’re
responsible for keeping it operating. Your cloud host
provides space for you to do your thing, but usually
TYPES OF SYSTEMS
“TO AVOID IN-HOUSE SERVERS AND ALL THE
HARDWARE AND SOFTWARE HEADACHES THAT COME
WITH THEM, MORE AND MORE CALL CENTERS ARE NOW
SELF-HOSTED ON THE CLOUD”

7. 7
offers no support beyond providing reliable storage. The
drawbacks of cloud hosting are latency (running slowly)
and security (vulnerability due to being online). But as
more and more cloud-based systems are emerging,
these problems are disappearing. Most cloud services
now offer redundant backups and data encryption.
Third-Party Hosting. For a complete, no-headache
solution, third-party hosting is favored by many call
centers-particularly large ones. While annual hosting
subscriptions tend to be much higher than both self-managed
and cloud-based systems, the initial costs are
incredibly low. Essentially, you don’t have any capital
expenses with a hosted system, and the cost savings
in operation and support can be truly significant. In
addition, you also have a partner that’s handling all the
complexities of running your software system, enabling
you to take advantage of their expertise. However, the
depth of experience can vary from vendor to vendor.
One problem with third-party hosts is the need to
get your hosting partner to understand your needs,
challenges, and preferences.
“FOR A COMPLETE, NO-HEADACHE SOLUTION,
THIRD-PARTY HOSTING IS FAVORED BY MANY
CALL CENTERS-PARTICULARLY LARGE ONES”

8. 8
Calculating the true cost of a particular call center
system isn’t easy, as different variables and factors
can turn what seems like a good deal into something
that is, in reality, quite expensive. Finding a solution
that provides the best value for you means assessing
three different sets of costs: capital expenses,
subscription fees, and outbound calling charges.
Capital Expenses
Self-managed. If you choose a system that will be
installed on your own servers and computers, you’re
going to have to pay for the initial hardware and any
additional storage required for expansion. You’ll need lots
of storage capacity if you’re going to use functions such
as call recording or workstation recording. You’ll also need
staff to look after the running of the system. This might
amount to one or two people for a small outfit, up to a
whole team of IT professionals for a large call center.
CALCULATING COSTS
“IF YOU CHOOSE A SYSTEM THAT WILL BE INSTALLED ON YOUR OWN
SERVERS AND COMPUTERS, YOU’RE GOING TO HAVE TO PAY FOR THE INITIAL
HARDWARE AND ANY ADDITIONAL STORAGE REQUIRED FOR EXPANSION.”

9. 9
Then you have the cost of the software. Buying all this in
advance could be very costly, but is the preferred solution
for those who want total control of the operation. It can
even be the least expensive solution, depending on the
cost of keeping the system running. Purchasing a system
over time on a contract basis usually entitles you to some
technical support from the vendor. After all, vendors don’t
want to lose your business if you’re having problems they
could easily fix.
Cloud hosting. Running on the cloud will cut down on
capital expenses, as there will be no need to buy or
lease servers or hard drives. You’ll still need support
staff to look after the software; however, as cloud-based
systems can be accessed from anywhere, you don’t
have to hire in-house technicians to keep your call
center running. You can outsource the maintenance of
your system separately from outsourcing the staffing of
the phones, if you choose.
Third-party hosting. Beyond the basic hardware-such as
workstations and headsets-the capital expense with a
third-party hosting system is negligible: no servers, no
software, no IT team, and no setup costs. The hosting
company should take care of everything. Watch out for
low entry-level pricing combined with contracts that are
difficult to terminate. Contracts vary from one to five
years, and some of them have high termination fees.
Subscription Fees
Monthly or annual subscription fees vary from vendor
to vendor, but these are meaningless unless you factor
in the total costs of operating the system. Usually a
software company charges on a per-operator basis,
making it more expensive for larger call centers. If you
expand, for every additional operator, the subscription
rate will increase. And subscription costs are not the
only regular expense. You also need to consider the
cost of outbound calls. Your subscription agreement
might lock you into a high cost for outbound calling.

10. 10
Outbound Calling
These days, VoIP (Voice Over Internet Protocol)
services provide the most cost-effective solutions for
call centers because outbound calling plans are so
much cheaper than regular business landline rates.
The great freedom of a self-managed system is that
you can choose from the large number of VoIP service
companies, ensuring that you get a competitive price.
Perhaps the most common and popular VoIP service is
Microsoft’s Skype, which offers 5,000-minute bundles
for $30 to U.S. landlines and mobiles.
With a hosted system, you not only pay a monthly fee
per operator, but you’ll also be charged a per-minute or
per-30-second rate for outbound calls, and usually you
have no choice as to the outbound call provider.
Discounts are normally offered for higher call volumes.
Typical per minute charges are as follows:
• $0.035 / 60 seconds (0 - 350,000 minutes per month)
• $0.015 / 30 seconds (350,001 -
500,000 minutes per month)
• $0.012 / 30 seconds (500,001 -
1,000,000 minutes per month)
• $0.011 / 30 seconds (1,000,000 -
2,000,000 minutes per month)
• $0.010 / 30 seconds (2,000,000 -
5,000,000 minutes per month)
Another option, especially if you go the self-managed
route, is to sign up for an unlimited calling plan. These
plans allow for unlimited outbound calls, usually
within certain areas or countries, for a monthly fee per
operator. Whether this works out to be a better value
than paying for individual calls will depend on the
number and average duration of calls your operators
make. Unlimited domestic calling plans typically start at
around $10 per month, per operator.

11. 11
This checklist will help you quickly assess
the best vendor for your needs.
Basic Features
Number of Phones Supported
Auto-attendant
Automated Directory
Call Forwarding
Call Hold
Conference Calls
Last-number Redial
Music on Hold
Speed Dial
Extra Features
Free Training
Ability to Upgrade
Future-proof
Hosted by Provider
International Call Support
Charges
Cost of Central Unit
Cost of Installation
Cost of Accessories
Cost of Maintenance
Cost of Handsets/Headsets
Cost of Employee Training
Service and Support
Free Live Online Assistance
Free Live Phone Assistance
Training Videos Available
CALL CENTER CHECKLIST
My Needs Vendor 1 Vendor 2 Vendor 3

12. 12
Automatic Call Distribution (ACD): An automatic
system that uses either caller ID, or requests that a
caller input numbers on a keypad, to route calls. ACD
makes a call center more efficient by automatically
routing calls to the correct operator.
Cloud: Cloud computing is the hosting of software on
the Internet, which saves you from having to install a
system on your own PCs or servers. It also makes your
system accessible from any device connected to the
Internet, such as a tablet or smartphone.
Computer Telephony Integration (CTI): This turns a PC
into a telephone system, providing all the functionality
and more of a telephone without the need for
specialized equipment.
Interactive Voice Response (IVR): A system that
recognizes speech and what a person is saying. IVR
enables automated operator systems where callers can
vocalize what they want.
Virtual Call Center: Instead of having operators in the
same room or building, virtual call centers allow calls to
be routed to any operator anywhere on the system. This
allows operators to work remotely.
Virtual Operators: Also called “virtual attendants,”
virtual operators are call-answering systems that
instruct users in how to serve their own needs by either
speaking commands or entering them on a keypad.
Voice Over Internet Protocol (VoIP): The use of the
Internet to make voice calls. Often VoIP is much
cheaper than regular landline call rates.
GLOSSARY OF TERMS