As C-level leaders drive the global shift to cloud technology, they often face challenges in quantifying its benefits. For instance, how can they ensure their businesses maximise value from this transition? This question also arises when modernising call centre technologies.

The answer to identifying that cost comparative difference is typically found in understanding both the direct and, more importantly, indirect costs to an enterprise. And yet, the long-term value of cloud is in agility, time-to-value of new capabilities and operating margins.

What’s difficult to measure is innovation. And innovation is what holds the promise of many greater returns.

Advantages of Cloud-Based Contact Centre Solutions

With the rise of Software as a Service (SaaS), more companies are accelerating their moves from traditional on-premises solutions to cloud-based solutions. This shift aligns with insights from industry experts who note the advantages of a cloud opex over an on-premises based capex model. Cloud reduces upfront costs, while offering ongoing flexibility and massive scalability. And some platforms deliver more.

Cloud-native platforms help businesses by simplifying their tech stacks to drive operational efficiencies. The comprehensive approach of the Genesys Cloud™ platform differentiates it from other solutions that rely on disparate systems stitched together. Genesys Cloud operates on a single code base. This streamlined structure can not only simplify updates and integration but can also enhance the overall reliability of the platform, as all components are designed to work without compatibility issues.

Because all functions — from customer support and engagement to workforce management — run on a single platform, there’s less risk of system failures or downtime caused by complex integrations that rely on highly skilled resources. Every component within the platform is designed to interact seamlessly, which can create a cohesive customer experience that bolted-on or fragmented solutions cannot offer.

Cloud Reduces Traditional Voice-Centric Costs

In systems from the 1990s, on-premises architectures were limiting. The architecture to connect multiple systems typically required customisation from IT that was heavily based on one-off work. This meant special knowledge was needed to maintain it, and those skills were expensive and uncommon, which added to technical debt — and it was often unplanned.

Now, cloud systems move the work IT did into the cloud, which lowers operational costs. This dramatically reduces the dependencies on technical debt and the special IT skills required to maintain the on-premises environment.

Strategic Role of IT in the Era of Cloud

Viewing IT as a strategic business asset can transform how companies approach call centre software implementations. For example, moving to a cloud-based platform often creates an opportunity to re-profile IT skills — shifting the focus toward software expertise and DevOps capabilities. This allows companies to build in-house skills and empower staff with growth opportunities.

The cloud model also means faster deployment, enabling businesses to roll out new features or updates quickly. IT teams can work more iteratively and with better agility.

Companies that shift to a DevOps or cloud culture can often focus on collaboration, flexibility and scalability — not only in terms of technologies but also in terms of their work performance. DevOps-focused IT teams can respond faster to unexpected issues. This shift can streamline manageability of IT operational costs by reducing dependency on physical infrastructure and improving scalability.

Cloud-based call centre software also makes it easier to evolve, as businesses can adapt and scale their operations only when needed to meet growing demands, or emerging sales opportunities. This strategic approach to IT optimises operations and positions companies to drive competitive advantage.

Initial Setup Costs vs. Recurring Costs

The financial model for cloud is fundamentally opex. While there may be capitalised costs, they are typically focused on one-time expenses like implementation. This financial shift has some advantages as there’s no longer heavy up-front investments typical in capex models, such as hardware and IT infrastructure in a data centre.

With an opex model, businesses have the flexibility to pay fees only for what they use. It enables rapid scalability to adjust resources as demand changes without overcommitting funds.

Opex models are also more predictable and easier to manage, providing better cash flow control. And with cloud-based software, the vendor handles the costs of maintenance and upgrades.

With cloud environments, a company no longer has to pay for the upkeep of data centre infrastructure. And because a smaller staff typically manages cloud technology, other team members are freed up to work with lines of business on revenue-generating initiatives, for example. Greater agility lets organisations respond quickly to market changes without being tied to long-term hardware investments.

Fewer Components Lowers TCO

Tech stack consolidation plays a significant role in determining the total cost of ownership (TCO) for call centre software. Moving from multiple disparate systems to a unified platform can yield substantial efficiencies in the cost of call centre software, even if the transition happens gradually.

This consolidation simplifies like-for-similar replacements, where overlapping tools are eliminated. And that aligns with cost efficiency and agent productivity objectives.

A single platform also enables access to new feature capabilities more readily, enhancing operational value and reducing risks associated with managing multiple systems, including human error. In addition, revenue objectives are supported through better customer experiences, which can lead to brand loyalty and advocacy. Opportunity costs decrease as threats to business stability and competitiveness are minimised.

How to Budget for Call Centre Software Costs

To be sure you get shareholder buy-in, carefully plan your budget to maximise ROI and avoid unexpected costs. Start by evaluating whether you are aiming for a “like-for-similar” replacement solution or a transformational upgrade, as each path impacts budgeting and potential ROI differently. You’ll also need to understand the role of automation and how you’ll use it to reduce costs.

Readiness for change is not just a technical consideration. People and processes play a major role — and many of these will change. Preparations should include clear communication about pending changes, stakeholder alignment and workforce readiness. That includes educating teams so that they understand the benefits and impact of the transition before it begins.

View your call centre as a customer engagement centre — a strategic brand extension that shapes customer perceptions. When negotiating with vendors, prioritise flexibility, scalability and transparent cloud contact centre software pricing. Focus on value-added features that align with your brand and long-term goals.

Navigating Contact Centre Software Pricing Models

Two common billing approaches are per-user and per-minute billing. Per-user billing charges a flat fee per call centre agent or by the number of users, ideal for call centres that have predictable call volumes and stable team sizes.

Per-minute billing charges are based on usage, which can be advantageous for call centres with fluctuating call volumes — but it could lead to unpredictable costs if call traffic surges.

Another consideration is whether you want to use subscription or pay-as-you-go models. Subscription plans, paid monthly or annually, can offer a stable, predictable expense and could include comprehensive support and might have more features included. This model offers long-term stability and regular use.

A pay-as-you-go model gives you flexibility and reduces your commitment. However, it could become more expensive for companies with consistently high-volume usage.

Carefully evaluate your call centre’s needs and call patterns to choose the most cost-effective option for your business.

Best Practices for Realising Contact Centre ROI

Identify What Matters Most After Initial Cost Savings

Hard savings are expected. But consider the value you’re expecting as a result of the change. TCO typically focuses on a comparative. For example, a Contact Centre as a Service (CcaaS) platform can reduce cost structures especially in indirect costs, such as:

  • Current and future capital costs
  • Real-time operating expense
  • Opportunities from less risk, such as availability versus downtime
  • User productivity with less downtime
  • Training
  • Maintenance of systems

Know the Hidden Costs of Implementing Call Centre Software

Even with its many advantages, be mindful of hidden costs that come with such transformations. There’s a very real “chasm of change,” in which organisations must bridge the gap between adopting new technology and fully integrating it into their operations.

This includes the cost of retraining staff, adjusting workflows and restructuring to accommodate new processes. It also encompasses your organisation’s readiness to embrace change. This requires a clear strategy or adequate infrastructure for adapting to new technology that might result in higher expenses.

 

If a call centre isn’t viewed as a strategic imperative or part of the company’s brand identity, this can lead to implementation efforts with less commitment, and increased costs due to inefficiencies and potential disruptions.

 

While modern technology can facilitate these changes, you still need to consider how needs vary across your workforce. IT teams, agents, supervisors, workforce engagement administrators and reporting analysts each have different roles and responsibilities. Adapting the software to meet diverse needs may require additional customisation, training and support — all of which carry their own expenses.

Lastly, integrating call centre software with existing systems, such as CRM platforms and workflow processes, often involves extra time and financial investment. Ensuring seamless compatibility may demand technical support, custom development, or new infrastructure upgrades to prevent data silos and ensure smooth operations. Planning for these integration needs reduces costly inefficiencies down the line.

Determine Expected ROI on Call Centre Implementations

This process is essential, and it requires a clear understanding of what matters most for your business. Evaluate your current contracts. Would new software enable you to consolidate or replace existing solutions, reduce redundancy and potentially lower costs?

A comprehensive approach reduces your tech stack, thereby simplifying operations, streamlining integrations and cutting expenses. In this way, you’re enhancing ROI by improving efficiency.

Consider the use cases that align with your deployment goals. For example, if your focus is on improving customer satisfaction, look for metrics such as reduced call times or improved first-call resolution rates. Define both near-term and long-term roadmaps to understand the value you expect to achieve at different stages, and to set realistic expectations for ROI growth over time.

Be realistic about what value you can achieve in a reasonable timeframe, balancing between hard metrics like cost savings and increased flexibility, such as in staffing. There are also many intangible benefits to consider.

CCaaS platforms can provide a low-risk environment for experimentation. This enables you to test new approaches or features without major upfront investments. By evaluating these factors, you can set a comprehensive ROI strategy that aligns with your business’s unique needs and growth objectives.

With its comprehensive integration of CX, employee experience, digital channels, AI, and unified communications and collaboration, Genesys Cloud can enable you to not only simplify operations but also streamline customer journeys. Discover why leading brands consistently choose Genesys Cloud for their CX transformation.