The adoption of full-suite cloud services for contact centers can reduce costs and integration complexity for small and mid-sized businesses, according to a report from Frost & Sullivan.

The study finds that the hosted/cloud model, comprising full-suite interactive voice response (IVR), automatic call distributor (ACD), chat, outbound, and agent performance optimization (APO) applications, has emerged as the preferred deployment model for contact center applications.

“Small- and mid-sized contact center organizations are showing a marked preference for full-suite cloud contact center solutions to reduce costs and integration complexity as they move more applications to the cloud,” Nancy Jamison, Frost & Sullivan contact centers principal analyst, said in a statement.

“However, with more than 60 providers offering a range of best-of-breed, suite and point solutions, customers often feel overwhelmed by the profusion of choices,” Jamison said.

The cost and complexity of managing hybrid (premises and cloud) infrastructure remains a challenge for most companies, the report notes. Therefore, integrating newer contact channels such as mobile contact, chat and social media, and enabling omni-channel customer experience strategies will go a long way in convincing companies to upgrade to newer contact center solutions.

“Leading on-premises product vendors continue to expand their hosted/cloud offerings, both directly and through channel partners, to avoid customer loss to pure-play hosted/cloud solution providers,” Brendan Read, contact center research analyst at Frost & Sullivan, said in a statement.

“At the same time, contact center BPO [business process outsourcing] providers are expanding their cloud offerings, as their customers are seeking technology-enabled solutions as part of their BPO services.”

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