Not long ago, most businesses mainly invested in “legacy” business software model.

“In 2015, around two third of the software budgets were allocated to this model” – According to Forrester Research

Two instances of this are Contact Centers and Customer Relationship Management. Both these fields used to be heavily reliant on human input. However, with time and technological improvements many of the systems and processes have been automated, particularly CRM cloud solutions. Yet, the same cannot be said about the call centers. There has barely been any big shift to cloud contact centers.

However, there is a wave of change. Currently, trends are backing cloud contact centers over on-premises solutions. Before we go any deeper, we have to first distinguish between the two for better understanding.

What is On-premises Contact Center?

An on-premises based solution is one where the software, hardware, and all the essential infrastructure is placed on your premises. These solutions can take different forms, for example, PBX or IP PBX etc.

Having an on-premise contact center means that you own it and are also accountable for its upkeep. Everything from the software to hardware, servers to your headsets to integration support is handled inhouse. It requires you to spend your money on the right infrastructure for the same. Hence, it requires a huge outlay and maintenance on the part on the business.

What is Cloud Contact Center?

Cloud contact centers are a progression to on-premise contact centers. They are one of the central points of a business and is hosted on the internet servers. All inbound and outbound customer engagements are managed through it. Cloud contact centers allow customer engagements through omni-channel.

The Current Trends: Cloud Contact Center

Now that we understand what a contact center really is, let’s discuss about the current trend in the field namely Cloud Contact Centers. Lately, we have seen a significant rise in the use of cloud contact centers.

“The cloud-based contact center market share is projected to increase from $5.43 Billion in 2016 to USD 15.67 Billion by 2021, at an estimated Compound Annual Growth Rate (CAGR) of 23.6%.” – According to a procès-verbal by MarketsandMarkets.

A report by Forrester envisages that the international cloud market will reach $146 billion at the start of this year and $236 billion by 2020. But why? How are cloud contact centers superior than their on-premise counterparts? One way to find out is by talking about the benefits that comes with using cloud contact centers.

Benefits of Cloud Contact Centers

  1. Agent Flexibility

Cloud solutions are simple to establish and offer round-the-clock service to the customers. Contact centers pick call representatives from diverse geographies. One is to promote diversity but also to ensure a complete approach to problem-solving as quickly as possible. Having agents from numerous contact centers offer the brand greater versatility and also guarantees productivity.

  1. Improved Productivity

A cloud solution does not just enhance agent flexibility, but also boost their productivity. The user interface of the cloud solution is simple to understand. Information from various channels is projected in real time. Prioritizing consumers become easier with features like ai IVR. It guarantees callback is set according to how urgent they are. Additionally, this boost agents’ efficiency as her/his time is saved and the consumer is also directed to the right agent as per their problem.

  1. Cost Effective

Cloud based solutions have shown beyond doubt to be a lot more cost effective as compared to on premise contact centers. First of all, it is simple to revamp in case of cloud centers. This further assists in merging other platforms. In so doing, consumers gain access to various channels and/or platforms without spending a lot of money.

  1. Scalability

One prime benefit of cloud-based contact centers is the effortlessness with which an organization can gauge their operations as per existing demand. Having a bigger bandwidth in periods of high demand (Peak time) and going back to initial size in times of normal demand.

  1. Greater Customer Experience

Having numerous agents from different geographies with diverse expertise gives the business the ability to manage a wide variety of customer problems. When the agents feel valued and empowered, it reflects in their engagements with the clients. Thus, higher, the agent contentment, better the customer experience.

  1. Multi Tenacity with Ease

A decent cloud contact center has providers which offer ideal upgradation and enhancements. One of the biggest benefits of a cloud-based contact center is instantaneous and time effective integration of various contact centers. This means that numerous contact centers will remain up to date and a lot safer. A good cloud contact center will be able to add on a new user/customer fast and with ease.

  1. Hire Qualified Agents Across Geographies

The only requirement of cloud software is internet access and your machine. This enables the business to get competent agents even from diverse geographies. It also ensures superlative workforce to cater to client needs as well as become cost effective.

  1. Environment Friendly

There is no doubt that the demand for innovations in every sector of the industry that support a cleaner environment is growing by the day. The contact center domain is no different and thus measures have been taken to preserve our environment every step of the way. Through cloud contact centers, the businesses strive to maintain this. Since virtually all the resources are shared and are accessible only when needed, no resource is misused. Apart from having a lot of advantages as it is, this is one way through which businesses can give back to the environment and promote sustainable development.


Cloud-based contact centers are the future of call centers. The current belief is that cloud-based contact centers are most fit for Small-Medium Enterprises Start-ups. For Big Companies, with intricate business needs and highly sensitive data, on-premise contact centers are still a much superior option. Choosing the most suitable contact center option ultimately depends on your business needs and the future prospects.

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