How VoIP Can Reduce Contact Center Costs

By Catherine Hensley
Updated: February 12, 2011

Businesses today rely on efficient telecommunications systems to get the job done as efficiently and effectively as possible. Many large companies are employing contact centers to manage customer and technical support, as well as to streamline marketing and promotional communications. A VoIP (Voice over Internet Protocol) system can aid a contact center in reducing costs while also boosting productivity.

Communications (voice or data) are transmitted across an Internet connection with VoIP technology. With just a single network, multiple calls can be placed and many different data applications performed. Because of its simple yet also highly practical functionality, VoIP is a very attractive option for companies with contact centers.

A contact center manages communications for a company in two ways, through either inbound or outbound support.

Inbound Contact Center

An inbound contact center offers customer support by fielding calls from consumers who need assistance, for instance, or who have questions or concerns about a particular product they have purchased or are using.

Outbound Contact Center

A contact center providing outbound support conducts telemarketing, sales, or survey assignments for the host company. This type of contact center may also need to gather customer history information for product development and other marketing services.

Though each type of contact center has its own specific telecommunications needs, both will find VoIP technology to be beneficial for their business needs. For example, with VoIP, personnel costs can be kept to a minimum because VoIP technology eliminates the need for an organization’s locations to be in close geographical proximity to one another. Contact centers can thus be located in places with lower labor costs.

VoIP systems also help in reducing the costs associated with older telephone equipment infrastructure. At both types of contact centers, the usually more expensive toll-free numbers and outbound lines are much more reasonable under VoIP service plans, as compared to traditional network service and private lines from a phone company. Also, because VoIP is based on the Internet, many other related job functions (such as email, faxing, and instant messaging) can be performed concurrently through the VoIP system by contact center staffers. This is another way using VoIP boosts workplace productivity.

Utilizing VoIP technology is a smart way for companies with contact centers to increase efficiency while also lessening telecommunications costs. VoIP reduces telephone infrastructure costs, and it also significantly lowers labor costs because business locations do not need to be near each other to work effectively. VoIP makes sound and practical sense for companies with contact centers and significant communications needs.

Featured Research
  • The New 2017 Contact Center Comparison Guide

    We’ve put together a comparison guide that covers over 40 of the top call center software options, providing details on pricing, features, support, and integrations. If you want to save time and still make a great investment, this guide is a must read. more

  • Best Practices for Contact Center Quality Assurance

    A contact center often brings about a prospect’s first real-time interaction with your company. As such, if it’s not a positive one, they’ll likely look elsewhere for help. With 69% of Americans more inclined to recommend a company to friends and family after a positive customer service experience, you’ll need to exceed expectations on the following fronts. more

  • How to Make Your Contact Center More Efficient

    There’s a very good chance that your contact center is underperforming. With consumer preferences continuously changing, strategies that were once effective now result in too many unsatisfied customers. Fixing this problem involves reviewing your current procedures and optimizing them to drive better results. more

  • How Analytics Can Improve Your Call Center

    Do you know that 40% of contact centers have no data analysis tools, despite analytics being voted the top factor to change the shape of the industry within the next five years? This guide will outline the importance of call center analytics, and explore the many ways that analytics can help you improve your call center on every level. more

  • 8 Signs It's Time to Update Your Call Center Software

    Technology is always improving to meet the needs and expectations of businesses and customers alike. To make sure you’re providing the service your customers require and deserve, it’s vital to use up-to-date software solutions that fully support your customer service needs and company expansion goals. more