Contact centres need to migrate from legacy technology to the cloud
There it is, plain and simple. Across key vertical markets, including housing, retail and finance, an average of 84% of contact centres use at least one cloud-based application in their contact centre. From scalability to operational agility, these are the advantages that contact centres can enjoy by leaving legacy technology behind.
However, that transition comes with a few barriers that need to be overcome. Through the latest edition of ContactBabel’s ‘UK Contact Centre Decision-Makers’ Guide’, we can examine what these barriers are, and what contact centres can do to overcome them. By knowing the state of play, contact centres can benefit from a cloud-based future that inspires the journey to epic CX.
Know your barriers
To just show how popular cloud-based functionality is, 34% of contact centres plan to make their workforce management cloud-based in the next two years. On top of that, only 1% have no intention in taking their call recording software to the cloud.
However, 13% of contact centres don’t have plans to migrate to the cloud in the first place. This is probably due to the perceived difficulty in overcoming common barriers to adoption.
These common barriers include:
- Legacy technology: These systems are deeply embedded in their operations, meaning it can be complex and costly to either integrate or replace them. 42% of contact centre leaders state that technology is holding them back and cannot yet be replaced.
- Security and compliance: Nobody wants to play fast and loose with cybersecurity, and there is a perception around the security risk of cloud-based applications. In 2024, 50% of businesses were the victim of some type of cybersecurity attack.
- Costs: The cloud can cut expenditures, but there are always concerns about initial transition fees or ongoing expenditures. 40% of leaders would also say that legacy applications are too costly to replace. Businesses need to know how cloud-based solutions can improve processes that cut costs in other areas. Worth noting that over 50% of business cite cost efficiency as a primary factor for migrating.
- Integration: When relying on CRM and workforce management tools, it’s integral for cloud-based platforms to be able to integrate with them easily. Approximately 90% of businesses have cited integration as a ‘common/very common’ challenge, and only 12% would say legacy applications are fully integrated.
- Control and visibility: Some organisations worry that shifting to the cloud means they lose operational control, including performance monitoring and real-time reporting. However, 71% of leaders would say that cloud-based solutions have made it easier to make changes to their systems.
The perception around these barriers can stall the move to a cloud-based future. But knowing is half the battle; now, we can look at the strategies on how to overcome them, and what contact centre leaders need to consider when embarking on their journey to the cloud.
Integration is integral
On average, 75% of contact centres already have fully integrated applications optimised for the user journey. Adding cloud-based systems may give off the perception that it could complicate things, but it’s quite the opposite.
Cloud vendors can provide APIs that are compatible with existing CRM systems, call recording technology and other third-party tools. These applications can then seamlessly integrate with existing systems, while any updates to APIs are handled by these providers. IT teams can then focus on other business critical tasks, while reducing overall operational costs.
These applications are also compatible across different devices and operating systems, which makes mobile and desktop integration even easier. With data being stored in a central location, each device can access and share that data. Real-time analytics are extremely useful in improving contact centre performance; 77% of leaders, for example, can use that data to suggest better ways for agents to handle their calls.
By keeping integration capabilities in mind, contact centre leaders can contribute to that seamless cloud migration.
Focus on functionality
For 60% of agents, technology that lacks functionality is stopping them from handling customer requests effectively. Once migrating to the cloud, 73% of contact centres experienced more powerful functionality.
Integrating with existing tools is one thing, but the impact of cloud migration also rests on the impact it has on a contact centre’s functionality. 14% of contact centre leaders cited increased functionality as their main reason for migrating to the cloud.
Sophisticated functionality, including agent scheduling and mobile working, is a must-have in any modern contact centre. Since 2019, a greater proportion of contact centre have taken their workforce management solutions to the cloud. The rise in mobile working has driven that adoption, and smaller businesses feel more encouraged to trial functionality that may have previously been too costly to maintain.
79% of contact centres use the cloud for their call recording and routing functionalities. Further to that, 34% plan to take their workforce management systems to the cloud. Since 75% of contact centre costs come from agents themselves, a more effective way to manage the workforce is important for long-term cost efficiency.
Understand functionality, both in the present and the future, can make that cloud migration much smoother.
Reliability is rated
We’ve already touched on downtime when talking about integration, but let’s put a bit more emphasis on reliability. Service providers can test their systems to make sure they meet that 99.999% availability and avoid any penalties associated with falling short of that target. Reputable, market-leading providers will deliver an SLA that guarantees that kind of uptime.
That improved availability helps to provide the consistent experience that customers want. Those kind of customer journeys can lead to a 20% boost in customer satisfaction and 15% increased revenue. In the long-term, that’s vital for any growing business.
A reliable cloud-based contact centre solution also has the right architecture to support future demand. Scalability is a desirable trait to have, especially when contact centres must deal with a large influx of inbound calls. Again, a high standard of customer service can be maintained and build upon.
At 13%, reliability is one of the most useful and valuable skills that an agent can have – for a cloud-based contact centre, we’re sure 100% agree that reliability is beyond valuable.
Scouting for security
For the 10% of contact centres who aren’t concerned about an external IT attack, we commend your bravery.
Customer data is a valuable resource, particularly for contact centres who have a duty of care to keep it safe. Contact centre leaders, when migrating to the cloud, need to be assured that data stored in a third-party environment is appropriately protected. Data encryption, authentication and proactive monitoring are just some of the ways that contact centres can keep their cloud-based data protected.
Market-leading providers will also have the desired accreditations and certifications around data security. ISO27001 and PCI DSS, for example, are just two of the industry standards that contact centres need to keep a look out for. With almost £1.2 billion lost to fraud in 2023, that compliance over payment data can calm any nerves about migrating to the cloud.
Helps when contact centres build a resilient human firewall, too.
Champion cost-cutting
While only 4% of contact centres listed reduced capital expenditure as their main reason for using cloud-based solutions, the financial benefits are abundant. Over a five-year period, for example, costs can be lowered by 43% when moving away from an on-premises infrastructure.
Streamlined processes help contact centres cut down on their operational expenditures. AI-driven chatbots and intelligent call routing, for example, can improve operational efficiency and allow agents to focus their time and efforts on more intensive issues. In the long-term, that translates to greater ROI as inquiries are handled more efficiently.
Those same providers have the right in-house skills and expertise to develop and manage a cloud-based platform. Businesses can cut their overhead IT expenses while these providers handle any updates or security patches. Taking contact centre operations to the cloud also avoid any ongoing costs around upgrading or maintaining legacy systems.
Cloud platforms also reduce both energy consumption and the physical space required for on-premises hardware. Businesses operating a cloud infrastructure can reduce energy usage by nearly 80%, which contributes to both cost-efficiency and energy efficiency goals.
The cost-cutting benefits behind cloud migration are obvious, and while moving to a whole new infrastructure looks to be a costly, inflexible process, leading providers can manage that process with ease.
The cloud is calling
Despite only 15% of contact centres placing cloud technology in their top 5 of investment priorities, this may be down to the high usage of the cloud in present-day contact centres. Remember; 84% of contact centres are using at least one cloud-based application already, so cloud spending may not be top of the agenda. But the fact remains that these organisations have already started their cloud migration and are overcoming those perceived boundaries.
Innovative cloud-based solutions from a reputable provider like Gamma can supply that epic CX all contact centres are striving for. There’s no reason why contact centres need to rely on legacy technology when the cloud is there for the taking.
Migrating seems like a hard and expensive process, but not when working with Gamma.