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Application Brief
Call Center Solutions: Legacy vs. PC Based Solutions
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External lines Predictive Dialer
ACD
Legacy System
CT Link CT
Server
System Configuration
IVR Database Server 1
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60 CO Lines 24 Agents (Inbound + Outbound Calling) 30 line IVR 8-line Integrated Fax Capability 8-line Predictive Dialer Heterogeneous Database Connectivity TCP/IP LAN Environment Extendible, Open APIs for Customization
Agent Desktops
Database Server 2
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LAN
PC Based System
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ACD
IVR, Voice mail Fax Server Predictive dialer GUI call control TCP/IP network ODBC access
Parsec Multimedia Call Center L A N
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Database Server 1
Agent Desktops Database Server 2
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The Case for PC Based Call Centers
What is a Call Center?
Parsec identifies a “call center” as anyplace where: a) Work revolves around talking on the phone b) Call volume is sufficiently high c) Quality of service goals are sufficiently ambitious; d) Call types are sufficiently small in number; e) Staff and overhead are sufficiently expensive to justify the purchase and deployment of call processing and transaction-support technology. In other words, a call center is any place it makes sense to install an ACD (automatic call distributor) and related call routing/completion systems. Which, in the modern corporation, means almost anywhere, including telesales and customer service (of course), and in-house help-desk, technical support, human resources, and other departments. Why use PC Based Call Centers? Till the recent past, call center infrastructure was complex and prohibitively expensive -- hard to cost-justify, except in large installations doing big-money business. Today, however, things have changed with the advent of PC Based Call Centers. It is possible to set up small centers with as few as 4-6 agents, and still be cost effective. How has this transition happened? The traditional architecture has not kept pace with the rapid changes in the computer industry. Telecom was a relatively protected industry and products and technology were evolving much slower than the computer industry. Thus while computer systems power and reliability were growing and costs coming down in accordance with Moore’s law, the telecom equipment market saw near stagnation. Thus a PC based call center now costs far less (see Table No. 1) than the traditional architecture. Table 1 Cost Comparison Legacy Systems PC-Based Call Centre Systems ACD (60 x 64) @ US$ 1k per line = 124K Server Hardware Agent Keypads (24 nos.) @ US$ 1k = 24K 5k IVR and Fax-on-demand (30 lines) @ US$ 2k per Telephony Hardware line = 90K 20k 8 line Predictive Dialer US$ 3k per line = 24K Call Center Software CT Link and CT Server = 25K 75k System Integration = 30K Total ~ US$ 300,000 Total ~ US$ 100K 2
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Apart from the much lower costs, PC based call centers provide far superior features (see comparison in table 2). The most important aspect of the PC based call centers is the flexibility they provide in increasing the scale of operations. In a traditional architecture, adding agents to the system means that additional hardware systems have to be bought unlike PC based systems, where the ACD, IVR and PD are software components, thus one needs to just buy additional licenses. The other key advantage of PC based call centres is the possibility of web integration, which is very easily done. Most of the information delivery is moving towards the web and hence web integration becomes very important for providing good access to customers. The multi media handling capability of the PC based systems will become crucial in the coming years as communication will be through rich “Hypermedia”, which will seamlessly integrate video, voice and data. Table 2 Feature Comparison Features ACD Capabilities Call Control Conferencing Conversation Recording IVR capabilities MIS & Statistics Architecture Web Integration Multi Media Handling System Integration Legacy Systems Simple Hunt Groups Complex Keypad Only Conferencing Limited and extra Blocking Limited Reports Proprietary and closed Not Possible Not Possible Using proprietary CT server and CT link software Proprietary Protocols 3 Months PC Based Call Center Skill based routing with Virtual Agent Groups Simple Desktop GUI Conferencing and Coaching In-built on all channels Available on all channels All statistics available in open databases Standard Based and Open Built In Possible Using open, published APIs and standard interfaces SNMP based open interface 2 weeks
System Management Setup & Installation
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The Challenges
There were two major obstacles to overcome for making PC based call centers a viable option, one was being the hardware and the other the Operating System. 1. Hardware Reliability The first problem was reliability of the hardware. That is no longer an issue, with computer reliability as high as the traditional telephony hardware. Apart from that multi nodal systems provide redundancy to ensure fail-safe operation for mission critical applications. 2. The Operating System The other issue was the operating system. Unix boxes had been working extremely well in mission critical applications, but PC operating systems still did not have that kind of reliability. With the advent of WINDOWS NT, this problem has also been solved. NT has emerged as the OS of choice because: • Support of wide area network architecture, which is of particular importance in the multi-site call-center environment. • NT provides for distributed computing – enabling call-center service from multiple servers required for providing redundancy. • Stable reliable OS for mission critical apps. • Scalability and high performance • NT’s openness to other media including video ,voice mail and video conferencing well which are the communication media of the future • One OS for the enterprise (on the server and the desktop). • Ease of Administration -This is specially important in the call center, where IS staff is sometimes limited. Thus now, PC Based call centers are as rugged and reliable as traditional architecture based ones, while providing far greater flexibility and superior features. What is the investment required for setting up a call center ? The PC based call center can be set up for as low as Rs. 50-60 lakh for a 24 agent center compared to a traditional solution costing a few Crore Rupees.. This cost includes all the telephony and computer hardware and software required, and the premises and interior decoration. The main variable costs are telephony charges and agent salaries. These costs make it possible for companies to viably run call centers as small as 8 agent stations. Thus now even smaller companies can take advantage of this technology to improve their customer care management and increase the effectiveness of their sales force. This is particularly true for the booming service industry, where customer attraction and retention is the key to success. For out-sourced domestic call centers, revenues per minute are about Rs 6 for inbound traffic and Rs 9 for outbound traffic. The revenues can range from Rs. 30 to 45 per minute for International traffic. Parsec Technologies 4
Confidential Table 3 Cost Benefit Analysis1 A cost benefit analysis is done for a 24 agent call center. Capital Expenses 5,500,000 5,500,000 5,500,000 5,500,000 5,500,000 Capacity Utilization 40% 50% 60% 70% 85% Operating Cost/minute 2.7 2.6 2.5 2.4 2.4 Other Cost/min 2 1.85 1.8 1.6 1.4 Revenue/min 7 7 7 7 7 Margin/min 2.3 2.55 2.7 3 3.2 Cap Available per month 864000 864000 864000 864000 864000 (call min) Call Minutes Utilized per 345600 432000 518400 604800 734400 month Pay Back Period months 6.9 5.0 3.9 3.0 2.3
Steps to take before setting up a call center
1. Identify processes and transactions The first thing to is understand each of the processes and transactions that will take place in your call center. The activities that accompany telephone calls become such second nature that, unless they are intentionally observed and documented, un-addressed capabilities and opportunities for improvement and automation may be overlooked. Write all the steps down, make flow charts, and get a consensus from management and anyone who will be supervising the call center. 2. Put a monetary value on each call Try to assign a rupee value to the average call. This will ultimately help you justify the expense of setting up the call center equipment and services. Calls that result in a sale may be easiest to value. What about calls to cancel a sale or change an order? The cost of this needs to be considered in terms of how many calls are actually handled to complete a sale. If calls are for customer service, the value of the call may be in the retention of the customer. 3. Identify your callers and how you want them to be handled Who are your callers? Should calls be pooled and handled on a firstcome/first-served basis, or should they be subdivided, categorized, and routed in some special way?
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Assumptions: Two shifts of 5 hours each with 24 agent seats.
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Confidential Answer concrete questions, first. If your call center supports multiple business units or simultaneous campaigns, you’ll need to route calls to the appropriate specialists. Next, think about how fine-tuning your call-routing might help achieve your business goals: more sales, increased profits, improved customer relations, etc. For example, do you want calls from existing customers to have priority over potential new business calls, or vice-versa? 4. Ordering outside lines As with any telephone system, your call center will need outside lines in order for callers to reach you. The important thing to remember here is that you can only have as many callers as you have lines to handle them. Start out by having more lines than you think you need. You can reduce the number later on, if required.
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