Communication Automation

Cloud-based Call Center Vs On-Premises Call Center

The emergence of cloud-based communication technologies changed the way business interaction takes place around. In the times of high competition everywhere, it became a necessity for businesses to adopt the technologies to deliver unmatched customer experience. Of course, the technologies ensured easy managing of services with higher accuracy and needless to say greater productivity.

A call center can be set up in two ways using cloud communication technologies.

  1. Cloud-based call center
  2. On-premises call center
Cloud-based Call Center

Cloud based call centers are network based communication service model where the provider owns and operates the call center technology and offers the services remotely on a subscription model. This is revolutionary innovation as most of the businesses lack expertise in running the call centers.  Cloud-based call center improves the interaction and enhances customer satisfaction for sure.

On-premises Call Center

On-premises call center uses cloud communications technologies but all the software and hardware required to run a call center placed in the customer’s premises or property. Operations and maintenance are of customer responsibility. As you can see, setting up such an infra requires some investment but once invested, lasts forever except for occasional upgradations.

Both have their own advantages when it comes to running the call center successfully. But, one trend all over the globe stands out when it comes these two types of contact centers, that is many of the big companies increasingly swapping the On-premise contact centers for cloud based call centers for its operational flexibility and efficient call handling.

Let’s compare the Cloud Call Center and On-Premises Call Center in detail

1. Installation

Well, it can’t get any easier than to start a cloud-based call center. All that you have to do is to subscribe to the services from a provider.

Office24by7 is one of the leading call center service providers, you can subscribe their services form here


As is the case with the starting something new, it requires a lot of planning and procuring required hardware, premise and licenses, etc. Obviously, it takes time and requires an investment.

2. Operational and Maintenance Costs

As it doesn’t require any hardware or set up costs except for subscription, it costs far less. But, of course, it needs robust internet connectivity for the smooth running of the operations. Well, internet charges are too small compared to server price. The due renewals of subscription are the only maintenance charges for cloud-based call centers.


As discussed earlier, it does require the purchase of many things including the servers, systems and the equipment. Not to forget the licensing fees. Setting all of these takes efforts and people. Of course, the premises itself needs decent investment as central business districts have serious space crunch allover and demands big spending in advances and as rents, etc.

3. Maintenance

It doesn’t require any maintenance as you don’t have any infrastructure of the call center at your end. Maintenance and all fall under the service provider responsibility. As you can see, when the hardware maintenance is removed there are no significant charges.


Hardware requires maintenance, the software requires upgradation and all of that on a regular basis. Even systems require maintenance. Not to tell about the premise maintenance. So, on-premises call center do need good maintenance budget.

4. Flexibility

Cloud-based call centers offer a lot of flexibility and maneuverability when it comes to operations. You can add or delete a user easily with credentials to log in over a few clicks, Likewise, you can end the subscription as and when you need to.

Apart from that, it offers remote accessibility, where the agents can be available from anywhere.


Lack of flexibility is one of the main stumbling blocks in the on-premises call center. No scope for customization is the other one. If you have to add additional users, you need to upgrade the systems altogether.

As per the maneuverability, it doesn’t offer any remote accessibility. If you have to ensure 24*7 support, you need people at the call center only.

5. Scalability

As again, like everything else, cloud-based call center provides for easy scalability, that to0, unlimited scalability. Most of the service providers do offer unlimited scalability as they use servers on a rotation basis. With additional user subscription fees, you can scale as much as you want. Hence, not only the scalability, scalability at the affordable costs is the advantage.


Scalability is possible but comes with huge costs. For scaling the services, you have to upgrade the server and other infrastructure as well. So, it’s like, setting up the call center all over again incurring a huge cost.