The document discusses the total cost of ownership for on-premise versus cloud contact centers. It outlines the direct and indirect costs associated with each model. On-premise contact centers have higher upfront and maintenance costs, while cloud contact centers have more predictable operational expenditure. Cloud contact centers can boost agent productivity through metrics like lower wait times and increased first contact resolution. Overall, the cloud model transfers most costs to third-party providers.

1. Total Cost of Ownership
Cloud vs. On-premise
Contact Center

2. The total cost of ownership (TCO) is
the cost estimate to suggest direct
and indirect costs involved in a
business, system, or product.
Here we are discussing the TCO
involved with a call center.

3. 1. Direct Cost:
It includes upfront expenses like data storage cost,
software installation cost, equipment support cost, and
regulatory requirements.
2. Indirect Cost:
These are the expenses such as customer
support system, internal tickets, upgrades,
and releases.

4. On-Premise Contact Center
These type of contact centers are more
hardware-based and require upgrades more
frequently that’s why the cost of an on-
premise contact center is higher.
Also, a dedicated server is required for
communication purpose.

5. In this, a third party service provider
hosts the contact center set up in
the cloud.
Users can log in with via computer
or mobile.
Cloud Contact Center

6. Cloud vs. On-Premise
Contact Center

7. Factors Cloud On-premise
Deployment Quick, Less costly Tedious, Costly
Technology Upgrades In line with industry
Complicated, Cost
inclusive
IT Requirements Minimal Dedicated
Expense Model OpEx CapEx
Contact Center
Efficiency
High Low
Customer Connection Instant Slow

8. CAPEX
On-premise contact center requires
huge CAPEX (capital expenditure) for
its deployment.
Also, the maintenance cost can
increase over the time in these contact
centers.

9. OPEX
For cloud contact centers, OPEX
(operational expenditure) is required as a
per-user fee that can be paid by fragmenting
the amount in small sections. And this cost
can be easily analyzed over the time
according to the bandwidth used by agents.

10. Agent Productivity
Agent productivity gets a boost with the
cloud as it brings down the expenses of
getting them live on calls or even managing
their performance.
Cloud contact center uses various metrics to
increase productivity, such as:

11. 1. Lower Average Speed of Answer
(ASA):
Many agents work together to reduce the
call queue and holding time so that
overall productivity increases.
2. Lower Abandonment Rate (ABA):
Cloud contact center helps in reducing
the abandonment rate.

12. 3. Enhanced Customer Service Levels (CSL):
Customer satisfaction level gets improved when
right and skilled agents handle the call.
4. Increase First Contact Resolution (FCR):
Customer queries handled by best-qualified
agents gives results in increased FCR.

13. Cloud contact center easily integrate
with your CRM system to identify the
conversation history of customer. So,
agents can utilize this information for
further interactions with the customer.
Impact of Cloud on Contact
Centers

14. Forrester Research says that a 10
percent advancement in customer
experience of a company can move into
more than 1 billion dollars in increased
revenue and other benefits.
From Customer Satisfaction
to Loyalty

15. Agents with access to the right tools, which
is readily available with the cloud, help
them handle customer queries and deliver
better customer experience.
Enhancing the Agent Experience

16. Understanding the TCO can help in crucial
business decisions.
Above factors are helpful to find the TCO of a
contact center. In cloud contact centers, a third
party service provider takes care of most of the
cost, whereas on-premise contact center requires
you to bear all costs.

17. About Us
6C Dialer provides Hosted Predictive Dialer, Hosted Call
Center Solutions, Voice Broadcasting Service and VoIP
Service for high performance Call Centers
To know more, please visit:
https://www.6cdialer.com
or call us at +1-833-333-9222,+44-800-088-5198
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19. References
Understanding TCO of On-Premise vs Cloud Contact Center -
6cDialer
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