Contact Center Solutions Featured Article

Survey: Postponing Contact Center Technology Upgrades Costs More than Finishing Them on Schedule

September 21, 2009

Companies that embarked on carrying out contact center technology upgrades in the past year but then postponed them due to the downturn in the economy lost more money on those projects than if they had stayed the course and completed them on schedule, a recent survey conducted by the Customer Experience Foundation (CEF) shows.

The survey of 100 companies (all of which had recently undertaken contact center technology upgrades) in the UK, commissioned by network test solutions provider Empirix, shows that delaying a contact center technology upgrade can add as much seven months of extra project time and can boost the original project cost by as much as 90 percent.

The survey also reveals that poor project management can as much as quadruple the cost, as compared with contact centers that apply best practices in their management of technology roll-outs.
 
One important aspect of project management that is often overlooked, the survey finds, is testing for network readiness. A lot of companies fail to accurately test their networks prior to the rollout of new contact center technologies and also fail to test how well these new systems will work under different “worst case” network traffic congestion scenarios before deployment.

As such, the survey reveals an “inverse relationship” between companies’ investment in contact center testing and budget overruns when updating or rolling out new technologies. In other words, the less testing they do, the more likely they are to run into problems that boost the overall cost of the project.

Tracking project costs was another area where companies could be doing much better, the survey finds (and it’s easy to understand how tracking costs becomes more complicated once a project is postponed and then resumed). More than three-quarters of respondents confessed to either not tracking project costs or only tracking certain ones. And while most believed that roll-out delays had a negative impact on customer interactions, none of the respondents said they tracked exactly how the day-to-day running of their contact centers had been affected.

Survey respondents estimated that, on average, between a quarter and a third of technology projects – such as installing new Interactive Voice Response (IVR) or automatic call distribution (ACD) systems – get delayed.

“It is difficult to comprehend how these huge cost overruns and delays happen in at least 25 percent of these types of projects,” commented Professor Morris Pentel, founder and chairman of the CEF. “We believe this is the first time anyone has shown what a massive problem the industry has here. The study also makes it clear that the impact of delays is not only financial, but also affects the customer experience of the contact center and the brand behind it.”

Trevor Richer, contact center marketing manager, Empirix (News - Alert) said, “It is clear that building testing into the project plan shows attention to detail and a type of organizational commitment that will minimize delays and budget overruns, and avoid the project descending into ‘fire-fighting.’”

For more details about the survey, click here.

Patrick Barnard is a contributing writer for TMCnet. To read more of Patrick’s articles, please visit his columnist page.

Edited by Patrick Barnard

Article comments powered by Disqus

Related Contact Center Solutions Articles

Cost Savings or Customer Experience? It Doesn't Have to be a Choice

It's a simple fact - customers expect quality. They expect things to work. They expect not to have problems. That said, most accept they may encounter issues from time to time but, when they do, they expect quick and easy resolution. In other words, they expect your customer service to work. "Work," though, may mean very different things in terms of having appropriate resolution mechanisms in place, depending largely on the personal preferences of the customer. [ Read More ]
10/20/2014

Sitel Looking to Add 200 Jobs to Florida Call Center

As one report after another shows that call centers are returning to the United States in droves, communities all over the country are reaping the benefits. One such community is Lake City, Florida; where Sitel has just announced its plans to add as many as 200 positions to its call center. Sitel is one company that has made a rather productive go of it when it comes to the call center business. The firm has been so successful as a matter of fact that it actually has received business from other… [ Read More ]
10/20/2014

TicketNetwork Creates Jobs

TicketNetwork, a ticketing software provider, recently announced that it successfully hosted an open house job fair at its South Windsor headquarters. As per officials from the company, more than 45 applicants participated and 20 percent of them got the offers. Most of the professionals were hired for regular and seasonal inbound sales representative positions in its call center. [ Read More ]
10/20/2014

Contact Center Solutions Week in Review: Dell, Opower, TeleTech Address Customer Experience

The week in contact center solutions saw the introduction by Opower of a new solution to the marketplace, the partnership of Dell and Medallia, the announcement of a new TeleTech call center in the lone star state, and the awarding of accolades to Ambs Call Center. [ Read More ]
10/18/2014
Subscribe here for your FREE Contact
Center Solutions
enewslettter.

Events

Weekly Live Demo
Contact Center Solutions

Register Today!


Weekly Live Demo
CaaS Small Center

Register Today!