If there's one undeniable trend in IVR, it's that
enterprises, government agencies and other organizations are migrating to
hosted solutions. In 2012, Ovum estimates that hosted and managed speech
services will account for 60 percent of the total spending on IVR speech
solutions in North America. This percentage is expected to grow through 2016 as
more enterprises choose cloud and hybrid-cloud deployment models for voice
self-service over that of premises-based solutions, Ovum says.
Significant top and bottom-line savings are driving
the hosted-IVR trend. For example, hosted speech eliminates upfront costs. As speech
and IVR technology become more sophisticated and complex, so does the cost
to build great self-service platforms. By providing the same services in a
shared, cloud-based environment, hosted vendors eliminate the upfront cost of
hardware and software, as well as ongoing costs for upgrades and for specialized
staff. In today's competitive climate, few organizations can afford to ignore
the massive bottom-line savings.
Hosted systems eliminate the need to maintain unused capacity. Most organizations operate 75 percent or more
idle capacity every day during the much of the year for the "just in case"
scenario of an extremely busy season or even a single busy day. For this
reason, on-premises operating costs are flat month over month, year over year,
and higher than needed because of the excess. By paying for only for the
capacity they use as they use it, hosting can save tens or even hundreds of
thousands of dollars in operating expense. This model also means that if IVR
call volume decreases due to callers choosing other channels, IVR costs also
Hosting virtually eliminates the cost of operating
the IVR. Hosted customers don't have to
build or lease data center space for the IVR, nor do they incur the costs
associated with the reliability
and redundancy of IVR data centers and infrastructure. Hosting vendors
commit to a service level agreement with financial penalties for service
disruption. Organization can focus their IT personnel on initiatives that are
critical to the business.
Hosted IVR platforms are always current, so organizations
are freed from having to plan and pay for forklift upgrades. The savings from
the newest, highest performing technologies, as well as the elimination of
software maintenance expense, adds up fast. For example, companies that use the
OnDemand platform report a 20 to 30 percent increase in performance over
other solutions, translating into millions of dollars in annual contact center savings.
Companies are also are flocking to hosted speech
for the competitive advantages they provide. They finally have the ability to deliver a branded,
conversational customer service experience that's far superior and more agile
than what they could have delivered with on-premises IVRs. For example, US
Airways is using the audio innovations available on the Nuance OnDemand platform
to provide a high-quality, conversational audio experience that clearly defines
the US Airways brand in the ears of travelers.
Hosted IVR solutions are the fastest, most cost-effective
way for organizations to extend self-service and natural language capabilities
across multiple channels - such as IVR and mobile
- while ensuring a consistent customer experience and single company persona.
Imagine a friendly, convenient phone call reminder about a payment due that
also allows the caller to make a payment right then and there using natural
language IVR. Or imagine a virtual
assistant mobile app that connects users right to the contact center and
preserves all of the data so the agent knows exactly what that customer was
doing before she requested assistance. All this is possible using intelligent,
If you've already run the numbers on hosted vs. on-premises speech IVR,
it may be time to take another look. That's because as the rate of innovation
and evolution continues to accelerate, the price of remaining tethered to an
on-premises system becomes harder to justify every day. For a view of how much you could save with
hosted IVR, email me at firstname.lastname@example.org
to get exclusive access to Nuance's new TCO tool as soon as it's available.
12-13-2012 10:50 AM
Filed under: customer experience, Voice XML, self-service, IVR optimization, customer service, hosted IVR, cloud computing, IVR hosting, customer care, customer satisfaction, IVR, hosted, cloud
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