cx-landscape-evolves

[cx-landscape-evolves]

What should you consider when making the decision?

As the CX landscape evolves, contact centers face a critical decision; stick with on-prem solutions or migrate to the cloud? This choice isn’t just a matter of following trends, it’s about aligning technology with business goals and customer needs.

The shift towards cloud-based contact centers has gained momentum, yet on-premises solutions persist. A 2023 Metrigy study revealed that only 29.5% of global organizations have switched to Contact Center as a Service (CCaaS).

However, 48% of these businesses – that’s almost half! – are considering changing CCaaS platform providers, with 14% even contemplating a return to on-premises platforms. This shows that the decision to move away from on-prem operations is not that straightforward of a decision—and making the the right choice for your organization is extremely important.

What’s driving the move towards cloud contact centers?

For many businesses, cloud solutions offer lower capital expenditure, improved security, and access to cutting-edge technologies. These benefits are particularly attractive now, where customer expectations are constantly evolving, and businesses need to adapt quickly.

Cloud-based contact centers also facilitate seamless integration with broader CX processes. For example, many organizations are moving their CRM systems to the cloud. Having a cloud-based contact center allows for easier integration, enabling a more holistic view of the customer journey and more personalized interactions.

From a vendor perspective, prioritizing cloud solutions makes sense. It’s more cost-effective to maintain and update a single platform rather than supporting both cloud and on-premises versions. This consolidation allows vendors to focus their resources on innovation and improvement, potentially leading to better products and services for their customers.

Should your CX be on-prem?

While the cloud offers numerous advantages, there are valid reasons why some organizations choose to maintain on-prem solutions. Regulatory requirements in certain industries and jurisdictions may require keeping data and systems on-site. For example, financial services or healthcare organizations often face strict data privacy and security regulations that can be easier to manage with on-premises solutions.

Data sovereignty and governance are also important concerns, particularly for multinational corporations or those operating in regions with strict data localization laws. On-premises solutions provide greater control over where data is stored and how it’s managed, which can be crucial for compliance.

Some organizations prefer the level of control and customization that on-premises solutions offer. They may have unique integrations or workflows that are hard to replicate in a cloud environment. Plus, for businesses with massive investments in existing infrastructure, the cost considerations of “sweating the assets” can make staying on-premises more attractive in the short term.