The concept of providing optimal customer service to your client base takes priority within your organization, yet it’s also a significant financial burden. Like many other companies facing similar challenges, you’re exploring the potential of a hosted contact center, as well as the opportunities offered through overseas outsourcers. Companies like Five9, inContact and Contactual offer powerful value propositions, but can their hosted contact center solution compete financially with offshore outsourcing?

Budgetary Benefits Found in the Hosted Contact Center

The trend toward hosted solutions and cloud computing has largely been driven by the cost benefits offered to companies of all sizes. The small- to medium-sized business (SMB) especially is drawn to the concept of subscription-based pricing in favor of significant on-premise investments. A hosted contact center allows companies like yours to leverage customized solutions according to need. You pay only for those services and features you use, while also allowing you to scale according to need. Providers like Contactual even provide PBX overlay options that allow you to continue to leverage current technology investments while optimizing on a hosted contact center.

Hosted Contact Center vs. Offshore Outsourcing

Offshore outsourcing differs from a hosted contact center in that agents handling your calls are not managed by your supervisors. Instead, your call campaigns are handled completely by the offshore companies. For years, India has been the destination of choice for offshore call centers simply due to the education level of the low cost labor pool. This dynamic is changing in India, however, forcing a number of companies to explore other options. One emerging location is the Philippines as it also offers low cost options, an educated workforce and a heightened appreciation for Western culture. Cost for your offshore outsourced call center is based on location and the agents dedicated to your projects.

The Customer Experience – Does the Hosted Contact Center Win?

Customer service should be your primary focus with your customer contact center, regardless of the model or location. There are elements to consider whether you are moving to a hosted contact center model, or moving your contact center offshore to an outsourcing provider. A hosted contact center is one that you still manage internally, yet leverage technology delivered through applications offered by your provider. The agents using the hosted model are either located in a remote office or can work out of their homes. The offshore outsourced center is managed on site in your country destination. You provide your expectations for customer service and monitor accordingly. It is still up to the offshore provider to manage this element of customer service for your brand.

Agent Retention – Does the Hosted Contact Center Protect Your Base?

An examination of agent retention is an interesting metric when comparing the hosted contact center to the offshore outsourcer. According to Monet Software, a call center software provider, agent turnover runs as high as 30 percent in the standard in-house call center. Such high attrition drains resources as you recruit, train and replace skilled agents. If you contract an offshore outsourcing provider, agent retention is their problem, not yours. A hosted contact center is still technically in-house, and any lost agent is a cost to your organization and a risk for damaged customer service. It’s still up to you and your managers to keep your agents engaged, motivated, and loyal.

When taking the comparison between the hosted contact center and the outsourced call center down to bare bones, it really depends upon the perception of your client base. Offshore outsourcing can present negative connotations in some industries, while others can support it without impacting the customer experience. If your offshore outsourcing provider can deliver a completely seamless experience for your customer – they don’t know their call is handled by someone on the other side of the world – you can justify the move and enjoy the cost savings. If not, the cost benefit will not make up for the customers lost due to the degraded customer experience.