contact center economics and the cloud
TRANSCRIPT
2
Agenda
• Trends Since 2013 Report
• TCO Methodology
• Technology Footprint Scenarios
• Impact of Company Size and Geography on Contact Center Costs
• Contact Center Economic Factors
• Choosing the Right Deployment Mode and Solution
2
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• More confidence in the Cloud, today • Generally, downward pricing pressure o Cloud systems more cost effective
over a 5-‐year span
• More add-‐on capabilities being bundled
• Cloud hesitation continues due to concerns about scalability, maturity
Trends Since 2013 Report
25% of all North American contact center seats run on
cloud-‐based Platforms by 2019
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Growing Cloud Adoption Rate
North American Agent Positons, Forecast, 2015—19
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• The Cloud is now mainstream for contact centers, with broad support from all vendors, large and small • Data security, certifications and references are key requirements
Market Trends
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1) If Effort saved is sufficient, 2) Cost is appropriate, and 3) Risk is acceptable
• Decision based on individual requirements and realities o Vendor, connectivity reliability, redundancy and recovery options,
technology stack
• Eventually, everyone will simply plug in and IT will be a utility o An on-‐premises server will look like a jukebox does in a diner
• SAP, many others see Cloud subscriptions surpassing licensing by 2018
Cloud Move Calculation
—InfoWorld -‐ A move to the cloud is no simple calculation, Oct 2015
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• The Contact Center – Defined
• Costs across 3 different use cases o 1 contact center, with 50 agents o Up to 2 contact centers, with a total of 300 agents o Up to 3 contact centers, with a total of 750 agents
• 6 product categories o Call routing o Multichannel capabilities o Outbound predictive dialing o Inbound IVR o Workforce management o Call recording and quality monitoring
• Low, Medium and High technology bundles
TCO Methodology
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Technology Footprint Scenarios -‐ Low
Low-‐Technology Footprint, 300 Agent Positons, Up to Two Sites
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Technology Footprint Scenarios -‐ Medium
Medium-‐Technology Footprint, 300 Agent Positons, Up to Two Sites
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Technology Footprint Scenarios -‐ High
High-‐Technology Footprint, 750 Agent Positons, Up to Three Sites
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Where Do the Lines Cross?
Medium-‐Technology Footprint, 750 Agent Positons, Up to Three Sites
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Small Contact Centers • Less of a gap in short or long-‐term costs between cloud
and premises • Price and ease of use differentiators between vendors • Integration capabilities and future needs impact choice
Impact of Company Size on Costs
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Midsize Contact Centers • Uncertainty of technology or CX direction makes cloud
better choice due to flexibility • Cloud helps bridge possible headaches from a multivendor
environment • More stable midsize companies not anticipating multichannel
engagement could go premises
Impact of Company Size on Costs
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Large Contact Centers • Complex contact centers should conduct rigorous evaluation • Large centers could explore managed services or hybrid modes • The larger and more advanced the application suite, the more
benefits from cloud
Impact of Company Size on Costs
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• Report calculations consider only North America
• US West Coast more ‘Cloudy’ than Midwest and East
• Cloud prices tend to be higher in UK, Northern Europe, than in US o Typical configurations are smaller
• APAC and LATAM extremely price sensitive o LATAM still an “untapped” market
• Southern Europe exhibits similarities to APAC and LATAM in pricing
Impact of Geography on Costs
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Choosing the Right Deployment Mode
• Price should be weighted among other significant factors • Cost not by itself a compelling reason to choose
Advantage Cloud Slight Cloud Advantage
Advantage Prem Either
1 site, 50 seats 2 sites, 300 seats 3 sites, 750 seats
Low -‐Tech Footprint
Medium
Either
Prem
High
Cloud Cloud
Cloud
Cloud
Cloud
Cloud Cloud
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• Typical 20% enterprise software maintenance uplift • More companies moving to best-‐of-‐suite • Technology more mature, with advanced capabilities • Some hidden ‘overhead’ and opportunity costs o Project management, team involvement during upgrade cycles
On-‐Premises Considerations
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• Beyond TCO, Cloud offers other significant strategic advantages o Typically faster deployment – especially per feature o Seasonal scale up/down and bursting o Continuous improvement through incremental updates
• Compliance assured by hosting partner • OPEX vs CAPEX funding o Longer term contracts can increase savings
Cloud Considerations
Simplified for Companies of All Sizes
On Demand, Fast and Easy
Small or Less Complex Environs
Cloud
Packaged, Scalable Capabilities
Medium/Large or More Complex
Cloud & On-‐Premises
Fully Customizable
For Larger Businesses
Cloud, Hybrid, & On-‐Premises
Omnichannel Engagement Center
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• Banking • Retail • Insurance • Healthcare • Telecom • Government • Utilities • Travel and Hospitality
Expertise and Success in Multiple Industries
San Jose, CA Amsterdam, NL Sydney, AU
SingaporeSlough, UK
Global Datacenter FootprintToronto, ON, Canada
Ashburn, VA
Western Canada
India
• Genesys leads the way in multinational capabilities and worldwide footprint of people and facilities o Customers in 120 countries, a global view of the business, with disaster recovery
• Global Universal Queue o Routing multiple channels to distributed agents, worldwide
Customer Success
Microsoft Atom Bank Red Hat CarTrawler Cegeka
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Summary
• Contact Center modernization requires clear roadmaps of expectations o 3 to 5 year time horizon
• Consider impact of mobility and new channels demanded by consumers
• New contact center connections through both strategic marketing and tactical services
• Complexity of existing infrastructure requires strong integration capabilities
• New systems likely needed for analytics, CRM, digital marketing, back-‐office
• Vendors need to serve as knowledgeable partners o Strong cloud and on-‐premises technology portfolios support customer
evolution
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More Information
• Ovum Report: “Total Cost of Ownership of Cloud-‐ and Premise-‐based Contact Center Platforms”
• Ovum Whitepaper: “Put the ‘R’ Back in CRM with a Customer Experience Platform”
• Ovum Decision Matrix: “Selecting a Multichannel Cloud Contact Center Solution, 2015–16”