Since the advent of the cloud, there has been an ongoing battle between software licensing and Software as a Service (SaaS). The former involves a company signing a licensing contract that permits them to operate a physical piece of software onsite at their location. Meanwhile, the latter involves no physical software product and no licensing contract; rather, the product is available to the company on the cloud as a platform that is hosted by a third-party SaaS provider.
For contact center managers approaching a workforce optimization (WFO) software license renewal, there may be some temptation to leave their binding contract for a more flexible, pay-as-you-go SaaS agreement. We don’t blame them; after all, research shows that on-premise IT solutions are set to drop from 60 percent to 23 percent in the coming year as cloud gains momentum.
But this may not be enough to convince some managers who, for the most part, have been pleased with their licensing agreement. You yourself may be one of them. So, why make the move to SaaS, verses renew a WFO software license? Here are three irrefutable reasons why you should not sign when it comes time for your WFO software license renewal:
- Outrageous Fees
With maintenance fees as high as nearly 25 percent of the initial licensing agreement, research has found that—over the course of a 10- to 15-year term—cumulative fees begin to outweigh original licensing costs. Additionally, licensing involves upgrade costs as well as any costs needed to fix glitches in the system. Considering this, it’s not surprising to hear that companies spend between 50-60 percent of their IT budget on software.
Conversely, the positive impact of cloud/hosted technology on business is astounding. According to Dimension Data’s “2016 Global Contact Center Benchmarking Report,” 84 percent of companies saw reduced costs when using cloud/hosted technology. SaaS does not lock users into working with one single WFO product or solution, meaning users can pay as they go. The cost benefits associated with this kind of payment model are huge.
2. Basic Functionality
A physical software solution can only enable contact center improvement so much. Conversely, SaaS is known to have far fewer restrictive elements, enabling managers to maximize the solution’s overall impact. In fact, 89 percent of companies surveyed by Dimension Data said that cloud/hosted technology enabled them access to new functionality.
Supported by advanced SaaS WFO, managers can:
- Better measure WFO goals across digital channels (digital channels account for 42 percent of all customer interactions, according to Dimension Data)
- Implement agent analytics in order to gain deeper insight into the nuances of every agent
- Better align strategic and operational initiatives
3. Limited Flexibility
Today’s leading organizations understand the importance of agility; they are able to shrink and expand in order to satisfy internal needs, adapt to market changes and meet ever-changing CX demands. Physical WFO software likely doesn’t support this need for agility. In fact, Dimension Data found in its report that “WFO needs to be more evenly applied across the board and be configured to meet the needs of a multitude of operating models.”
On the other hand, 84 percent of companies surveyed by Dimension Data reported an increase in agility and speed-to-market with cloud/hosted technology. All in all, a more agile WFO solution opens the door to true contact center transformation.
If you’re of the “If it ain’t broke, don’t fix it” mentality, remember: just because there’s nothing glaringly wrong with your licensing agreement doesn’t mean it’s the best option for your organization. SaaS is a powerful and secure option with today’s modern WFO providers, and it can be on premise or in the cloud.
Interested in learning more about SaaS WFO? We’ve got you covered.