contact center economics and the cloud

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Page 1: Contact Center Economics and the Cloud
Page 2: Contact Center Economics and the Cloud

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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

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Page 3: Contact Center Economics and the Cloud

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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

Page 4: Contact Center Economics and the Cloud

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Growing  Cloud  Adoption  Rate

North  American  Agent  Positons,  Forecast,  2015—19  

Page 5: Contact Center Economics and the Cloud

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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

Page 6: Contact Center Economics and the Cloud

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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

Page 7: Contact Center Economics and the Cloud

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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

Page 8: Contact Center Economics and the Cloud

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Technology  Footprint  Scenarios  -­‐  Low

Low-­‐Technology  Footprint,  300  Agent  Positons,  Up  to  Two  Sites

Page 9: Contact Center Economics and the Cloud

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Technology  Footprint  Scenarios  -­‐  Medium

Medium-­‐Technology  Footprint,  300  Agent  Positons,  Up  to  Two  Sites

Page 10: Contact Center Economics and the Cloud

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Technology  Footprint  Scenarios  -­‐  High

High-­‐Technology  Footprint,  750  Agent  Positons,  Up  to  Three  Sites

Page 11: Contact Center Economics and the Cloud

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Where  Do  the  Lines  Cross?

Medium-­‐Technology  Footprint,  750  Agent  Positons,  Up  to  Three  Sites

Page 12: Contact Center Economics and the Cloud

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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

Page 13: Contact Center Economics and the Cloud

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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

Page 14: Contact Center Economics and the Cloud

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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

Page 15: Contact Center Economics and the Cloud

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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

Page 16: Contact Center Economics and the Cloud

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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

Page 17: Contact Center Economics and the 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

Page 18: Contact Center Economics and the Cloud

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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

Page 19: Contact Center Economics and the Cloud

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

Page 20: Contact Center Economics and the Cloud

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• Banking  • Retail    • Insurance  • Healthcare  • Telecom  • Government  • Utilities  • Travel  and  Hospitality

Expertise  and  Success  in  Multiple  Industries

Page 21: Contact Center Economics and the Cloud

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

Page 23: Contact Center Economics and the Cloud

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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  

Page 24: Contact Center Economics and the Cloud

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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”