What is a hosted contact center?

Let’s begin with a simple hosted contact center definition. Traditionally, companies with contact centers would have them on-site. Teams of customer support agents would be physically located in an office, using phones connected to a fixed landline network. The infrastructure to support the contact center would also be on the premises and maintained by engineers as required.

A hosted contact center solution is different. It’s an omnichannel customer support service hosted off-site by a third party, either on physical servers owned and maintained by the provider or via cloud servers. This makes it possible for customers to get in touch via a number of different channels, including voice call, online chat, SMS, email, and social media.

While businesses previously would have had to rely on hardware like PBX technology and budget large amounts for maintenance, that’s no longer necessary. Additionally, using a hosted contact center simplifies the task of deploying customer service teams because you’re no longer weighed down by the requirement to house everyone on-site.

The advent of the cloud contact center solution in particular has also made top-end features much more accessible to smaller companies. That’s because these services often come with functionality such as real-time customizable analytics and multiple integrations out of the box.

Of course, there are plenty of other features typical of a hosted contact center. So, it’s worth taking a little time to look at some of them in more detail.

Key features of a hosted contact center

Hosted contact center solutions make a broad array of features available to companies — here are a few of the key features you’ll be able to take advantage of if you decide to make the switch.

Omnichannel support

First on the list is omnichannel support. We’ve briefly mentioned this already, but it’s worth revisiting in more depth. The truth is, not all of your customers would choose to contact your organization by phone if they had alternative options. Yes, it’s still a popular channel, but things are changing as the omnichannel experience becomes more widely available.

In particular, younger customers who are digital natives tend to have higher expectations surrounding the availability of digital options such as live chat and support via messaging services like WhatsApp.

In fact, according to Vonage’s Global Customer Engagement Report 2024, 31% of businesses already say they use messaging via non-SMS apps daily, and just as many say they expect to increase their use of these apps over the next six to 12 months.

A fundamental aspect of customer service is that you have to meet your customers where they are. For more and more consumers, that means on non-voice channels, which are widely supported by hosted contact center providers.

Advanced call features

Hosted contact center solutions come with a suite of advanced call features, including:

• Virtual Assistant/Automatic Call Distribution (ACD): When a customer calls or messages your center, the virtual assistant greets them with a welcome message and works quickly to establish customer intent. It can answer many queries automatically and offer self-service solutions. If the query is complex enough to need a human touch, the ACD system kicks in to route the call to the right agent.

• Dynamic/custom routing: The ACD can use dynamic routing to make sure the customer connects with the right agent to help them resolve their issue quickly. You can set custom rules for the routing based on a number of factors such as CRM data, priority level, or history with a specific agent.

• Call monitoring: This feature allows supervisors to monitor any call and join it to provide support or coaching for their agents.

• Call recording: You can set the system to record all calls or a custom selection of them. Recordings can be shared via email and stored for future reference.

• Auto dial: For outbound calls, the auto dialler feature saves your reps time because it eliminates the need for manual dialing. Combined with tools like predictive dialing, it’s great for outbound-focused campaigns.

Scalability

One of the great things about hosted contact center software is that it’s so flexible. All you need to use it is a reliable internet connection and a compatible device like a laptop or phone. That makes it simple to scale up or down according to your organization’s business needs.

Want to add some new accounts as your business grows? You can get them set up in minutes. There’s no need to wait while new phone lines or other infrastructure is installed. You just add new accounts via your admin dashboard, set them up, and they’re ready to go.

Similarly, if you need to downsize for any reason, it’s equally easy to do. You’ll never be stuck paying for more accounts than you need.

Real-time analytics

Another advantage of a hosted contact center service is that it generally provides companies with extremely useful real-time analytics. This typically includes customer engagement measurements that you can review via a customized dashboard. You can even log channel activity into your CRM automatically to enable instant review.

High-end hosted contact center vendors often incorporate AI-powered insights as well. For instance, you can use an AI-supported conversation analyzer tool to gain deeper insights into customer intent, which allows your agents to meet your client’s needs more effectively.

Multiple integrations

Whatever business tools you use, you’ll get a lot more out of them if they work together. This is a key strength of hosted contact center solutions, which often come with multiple integrations ready to go.

Rather than having to switch between applications, your agents will be able to pull data from your CRM directly within the contact center software. This enables them to respond to customers with all the information they need already at their fingertips.

Other common integrations you can benefit from include those for collaboration platforms such as Slack, and industry-specific tools like Bullhorn or Clio.

Hosted contact center vs. on-premises contact center

To really understand the benefits of a hosted contact center, it’s worth comparing them to the main alternative: on-premises solutions. 

Remember, first of all, that there are two types of hosted contact centers: server-based and cloud-based. You’ll often hear the terms “hosted contact center” and “cloud contact center” used interchangeably, but they’re not quite the same.

A cloud contact center is a type of hosted contact center; specifically, it’s one hosted on cloud servers. But it’s also possible to have a contact center hosted on servers that are physically located in the provider’s own offices. That said, from the point of view of a company using these services, there’s not much difference in practice.

In contrast, an on-premises contact center is one your company hosts and maintains itself. Some of the key differences are:

• Location: On-premises contact centers are located on-site, whereas hosted centers are either on the provider’s servers or on the cloud.

• Setup time: Installing new infrastructure on-premises can take days, or even weeks, whereas with hosted contact centers, setting up new accounts typically only needs a few minutes.

• Infrastructure maintenance: It’s all handled by the hosted contact center provider, as opposed to companies having to budget to cover in-house maintenance.

• Cost: Typically, a hosted contact center is priced per user per month, with billing happening on a monthly or annual basis. In other words, it’s predictable, which is good for business planning purposes. On-premises solutions are inherently unpredictable cost-wise, as you need to factor in both capital expenditure and maintenance costs.

• Accessibility: A contact center hosted on the cloud or on the provider’s server can be accessed via any internet-connected device, whereas on-premises contact center software requires users to be located in the office, meaning there’s much less flexibility.

Although some businesses may have good reasons for preferring to keep their contact centers completely in-house, most companies will find that the benefits of using a hosted solution represent a real step forward in their operations.

Benefits of using a hosted contact center

Switching to a hosted VoIP contact center can be one of the best decisions you make for your business. Here are a few of the benefits you’ll be able to take advantage of when you take that step.

Fast setup time

As previously mentioned, one of the biggest benefits is how quick the system is to set up. When you set up an on-premises contact center, there’s a lot of technical work involved. You need engineers to install phone lines and an IT team to make sure every agent’s workstation is operational. It all takes time.

But with a hosted solution, the largest time investment is actually researching which provider to choose. Once you’ve made your decision, creating your contact center is as simple as signing up on the provider’s website to set up your company’s account.

Then, whenever you need to add more individual accounts for new staff, you just click a few options on your admin dashboard, and it happens immediately — no waiting around for contractors to install new hardware. It’s a simple, smooth process that gets your agents up and running fast.

Lower costs

There are a couple of ways that using a hosted contact center saves your organization money. First of all, there’s no need to budget for capital expenditure on complex equipment, since all your teams need to access the service is an internet-enabled device and a secure connection.

If you do a lot of business in other countries, you’ll also benefit from cheaper international calls. Because the system is VoIP-based, the calls are routed via the internet, meaning you won’t stack up costly phone bills when connecting with clients abroad.

In addition, the fact that the third-party provider takes care of all maintenance and upgrades is a game changer. Traditionally, these have amounted to a significant operational expense that companies have had to budget for.

Since there’s no need for you to do that, you can redeploy precious resources elsewhere. It also means you can do more with less, as there’s no longer any need to have a big maintenance team on standby, so you save on labor costs, too.

Supports remote and hybrid working

In these digital-first times, if you use an on-premises solution, you’re restricting your options in terms of your hiring pool. All your agents will, of necessity, have to live within commuting distance of the office. But that’s not the case with a hosted contact center, meaning you can broaden your recruitment search to find the best experts available anywhere.

The increasing popularity of remote and hybrid working models is no surprise. They provide flexibility for your employees, which they value highly. In fact, according to the American Enterprise Institute’s The Social Workplace Volume II report, a staggering 78% of workers surveyed said that flexibility is the most important factor they take into consideration when choosing a job.

When you deploy a hosted contact center solution, you can take advantage of all the benefits of flexible working models. Your staff will be happier and more motivated to deliver the kind of top-quality service your clients deserve.

More advanced features

If you’ve ever read any hosted contact center reviews, you’ll no doubt have been struck by how often satisfied clients mention the advanced features that these solutions provide.

We’ve already mentioned some of the advanced call features you’ll be able to take advantage of, but there’s plenty more that can benefit your organization.

For instance, there are all the advanced analytics tools that give your teams feedback in real time. You can capture and analyze key metrics you select, and monitor them as they come in via a customizable dashboard. This allows you to make better data-driven decisions that align with your organization’s broader business strategy.

Improved customer service

Finally, what all this comes down to is delivering outstanding customer service. There’s simply more you can do with a hosted solution to tailor your offering to individual customers.

Because hosted contact center software integrates with your other business tools, you can do things like pull data from your CRM during a conversation. This means that the agent will be able to offer a more personalized service, since they’ll have direct access to the customer’s entire history with the company.

This is also good news for key metrics like First Call Resolution rates. Thanks to the combination of an automated smart routing system and the easy accessibility to relevant CRM data, your customers get what they need faster.

Hosted contact center pricing: A comparison 

The cost of a hosted contact center varies widely according to the features you want to include. Generally speaking, there will be an entry-level tier that covers basic functionality, with premium and sometimes enterprise options that give you more.

These subscriptions are pretty much always calculated per user per month, although most commonly, the billing cycle will work on an annual basis, so you’ll be charged once every twelve months. There will also sometimes be a usage-based element on top of the basic per-user charge, so it’s important to double-check the terms and conditions so you know exactly what you’re paying for. 

Elevate your customer service experience with Vonage Cloud Contact Center software 

Customer expectations are higher than ever, and your business needs to be ready to meet them. When it comes to providing the kind of customer service your clients deserve, switching to using a cloud contact center can give you the flexibility and advanced functionality to deliver truly unforgettable customer experiences.

Vonage Contact Center (VCC) solution gives you everything you need to deliver top-tier customer service to all your clients. You benefit from the very latest in AI-powered technology that helps generate deep insights into customer intent. What’s more, with advanced analytics and a wide range of integrations ready to go from day one, you’ll always have a clear view of how your teams are performing.

In addition, you get a whole host of omnichannel capabilities including support for voice, email, web chat, SMS, video chat, and all the main social channels. Dedicated omnichannel reporting lets you pull together data on key metrics from across every channel, so you always have a full picture of your team’s performance.

If you’d like to know more about how Vonage can help you launch the perfect contact center solution for your business, simply reach out to one of our experts today. They’ll be more than happy to help.