Trends in the Contact Center (part 2)

Thank you for coming back to the blog. I hope that you’re finding this helpful. I want to encourage you to make this an interactive blog by submitting comments. We welcome your thoughts. Divergent points of view will make this much more useful for all participants. I actually tried to be a little provocative in the last blog, hoping for some feedback! So, without further ado, let’s talk about the first three trends that we see in the Contact Center in 2009.

Alternative Sourcing
Self Service
Virtualization

Alternative Sourcing. There are several factors that we see driving this trend. The main driver is the ability to solve business problems through technology without a major capital investment. Let’s be clear that when I say “alternative sourcing” that I mean a group of financial solutions rather than a group of technology solutions! Alternative sourcing can mean leasing. This has been a viable source for funding a project for many years.

What we’re seeing as a newer trend in alternative sourcing is the use of hosted models, or a managed model. Therefore, the second driver for alternative solutions is really the technology itself. IP Telephony is allowing equipment to reside in any location. That makes the ability to use a hosted or managed solution more possible now than ever before.

There is a big difference between hosted solutions and managed solutions. These differences can be summarized as follows:

· In a Hosted Solution, equipment is typically stored at a site other than the customer site -- usually a hardened data center. The equipment is still managed by the customer; however, the maintenance and the hardware are owned by the Host.
· Managed Solutions are like the Hosted model, except that the management of the equipment is also handled by the Host.
· Hybrid Solutions are rarely mentioned, but are probably the most often deployed method. This is where some equipment is hosted or managed, while additional equipment is deployed in the traditional way. Many times this model is effective because it’s a blend. It also enables a migration path from a traditional model to the hosted/managed model.

It should be noted that while many of the traditional vendors do offer the alternative sourcing models; there are many other players in this arena. Regardless of who you use to support the model, the technology solution employed is still the key consideration – which platform will best meet your business requirements. The means to implement this solution has economic impacts, but this is really a secondary factor. Only by looking at the business needs first and the sourcing second will you be able to realize the full potential of the solution.

Virtualization. Again, IP Telephony has made virtualization an important trend. Many firms are looking at virtualization from two perspectives.

· Employee virtualization – how can a business reduce its brick and mortar footprint while maintaining (or even increasing) revenue or satisfaction? With remote agents and remote sales workers, there are many possibilities. The technology is viable; the biggest questions become cultural, managerial and procedural. When considering this mode of operation, several factors need to be considered. Some examples are security, employee monitoring and management, office setup, and agent productivity.
· Technology virtualization – how can a business increase business continuity or reduce disaster recovery issues? DR/BC planning has always been critical, but often very expensive. The newer technology makes achievement much more affordable. You should make the effort now to determine your firms tolerance for downtime and plan for it accordingly.

Self Service is the final trend that we’re going to discuss today. Now I know that you’re thinking “this isn’t a new trend”. Well, I have to agree with you, it’s not a new trend, but it is a continuing trend. What we’re seeing here is that there is a renewed interest in the hosted model (see alternative sourcing).

Why the interest in the hosted model? The biggest reason we see is that capacity can be increased and decreased rapidly. The firm only pays for usage. This allows the firm to reduce capital expenses, reduce operational costs during slower periods, and augment staff during peak periods.

Another trend that we’re seeing in self service is the desire to bring a consistent and coordinated customer experience to the various interaction channels. That means that the IVR, Website, Blog, Chat, and all other channels should have a similar look and feel. The trick then is to make sure that you are able to effectively report across all channels so that you can more correctly measure the customer experience and the value of the channel.

In the next blog, we’ll discuss the next three trends that we see in the Contact Center in 2009 -- All in One Solutions, Business Knowledge, and Multi-Media (including Presence).