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
  • 9 Spooky Signs You Need a Contact Center Upgrade

    When was the last time you evaluated the performance of your current contact center and the software you are using? The results may be frightening! If it’s been awhile since you invested in contact center software, there is a good chance that your needs have changed or that there are better options available now. Fortunately, it’s relatively easy to determine if you need an upgrade or not. more

  • Eight Ways You Should Be Using Contact Center Reporting

    Every day, your contact center collects critical data that can be used to drive strategic improvements to your efforts in the future. But that data is meaningless if you don’t know how to access and analyze it. The key to do doing both is using reporting features. By understanding how to use reporting tools, you will gain much greater insight from the data you are collecting. more

  • Top 10 Customer Service Trends in 2017

    Customer service plays a HUGE role in the success of your business. In order to remain competitive companies must be ready to provide modern customer experiences that meet customer needs. If you haven't already invested in updating your customer service experience you are already behind. By 2018 more than half of companies will redirect investments towards innovations in customer experience. more

  • The Role of Self-Service in Modern Contact Centers

    By 2020, 85% of customers' relationships with companies will be managed without any contact with human services representatives. What does that mean for your business? The data shows that companies need to offer effective self-service options in order to remain competitive. However, many contact centers are confused about how their core contact center software fits into self-service. more

  • Tips and Tools for a Positive Contact Center Environment

    When it comes to stressful environments within the business world, it is no secret that the contact center frequently makes the list of one of the most stressful. This elevated level of stress leads to high agent attrition rates, and thus subsequently additional costs on your business to find, hire and train new employees. more