Contact center technology: Types, benefits, and trends

Contact center vs call center technology: Where does legacy software fall short?

Traditionally, delivering a great customer experience was all about providing excellent service through a call center. For years, this model worked, but as customer expectations evolved, the limitations of even the most successful call centers became clear:

• Long queues left customers waiting for extended periods, leading to frustration.

• Traditional IVR systems often used exhaustive and confusing phone menus, making it hard for customers to find the right options.

• No self-service options forced customers with simple queries to wait unnecessarily for an agent.

• Multiple transfers meant customers frequently spoke with several agents before reaching someone qualified to help.

• Repeated explanations required customers to repeat their concerns to each new agent, wasting time and causing frustration.

The contact center model addresses all these pain points and enhances customer experiences in every regard:

• Reduced queue times. Contact centers offer customers more ways to connect with a brand, like chatbots, social media messaging, and email, easing the load on phone lines.

• Agentic AI for hyperpersonalization. AI eliminates layered phone menus by creating faster, personalized interactions.

• 24/7 self-service options. Chatbots let customers handle simple queries anytime, withoutneeding an agent.

• Intelligent routing. Built-in AI matches customers with the best agent for their issue, reducing transfers and wait times.

• Comprehensive customer context. AI copilots give agents a full history of the customer’s interactions across all channels, so customers never have to repeat their concerns.

While the goal of satisfying customer concerns remains the same, contact center technology modernizes the approach, delivering a faster, more satisfying experience.

Where is contact center technology located?

On-premises call center technology was once the go-to solution for organizations looking to streamline customer service. However, this required significant investments in hardware, infrastructure, and maintenance. Today, brands can choose cloud-based contact center technology.

On-premises contact center technology: more local control comes with higher costs and manual maintenance.

On-premises contact center technology refers to customer service systems hosted and managed on an organization’s own physical infrastructure. This setup involves the installation of hardware, such as servers and networking equipment, and software that operates entirely within the company’s data centers. Businesses using on-premises solutions are responsible for maintaining and upgrading the system themselves, often with dedicated IT staff.

Benefits of on-premises contact center technology:

• Full control. Businesses have complete control over their contact center infrastructure, including custom configurations and security protocols.

• Data security. Since all customer data is stored locally, organizations can maintain tighter security measures to meet compliance needs.

• Customization. On-premises solutions can be tailored to meet the specific requirements of an organization’s unique workflows or industry standards.

• Reliability. When managed effectively, on-premises systems can offer consistent performance without relying on external internet connectivity.

However, on-premises contact center technology also comes with huge drawbacks, including:

• High upfront costs. Significant investments in hardware, software, and installation are required to set up the system.

• Maintenance burden. Ongoing updates, repairs, and system monitoring are the organization’s responsibility.

• Limited scalability. Expanding capacity often involves purchasing and installing additional hardware, making it less agile than cloud-based solutions.

• Accessibility constraints. On-premises systems are less flexible for remote or hybrid work environments, which may limit agent availability.

Cloud contact center technology: Internet-reliant systems with lower upfront costs and greater scalability.

Cloud contact center technology is a customer service solution hosted on remote servers and accessed over the internet. Unlike on-premises systems, cloud-based platforms don’t require businesses to invest in or maintain physical hardware. Instead, providers manage the infrastructure and software, delivering updates, maintenance, and scalability on demand. Organizations simply pay a subscription fee, making this an accessible and flexible option.

Consider the main benefits of cloud contact center technology:

• Lower upfront costs. No need to purchase or maintain expensive hardware, businesses only pay for what they use.

• Scalability. Organizations can easily scale their contact center operations up or down to meet changing needs without significant delays or costs.

• Remote accessibility. Agents can work from anywhere with an internet connection, making it ideal for hybrid or fully remote teams.

• Faster implementation. Cloud solutions can be deployed very quickly compared to the lengthy installation process of on-premises systems.

• Continuous updates. Providers handle software updates and maintenance, ensuring the system is always up-to-date and secure.

Now, let’s go over the limitations of cloud contact center technology:

• Internet dependence. The system relies on stable internet connectivity, which can be a risk in areas with unreliable service.

• Data security concerns. Since data is stored remotely, organizations must trust their provider’s security measures and compliance with regulations.

When compared to on-premises systems, cloud-based contact centers are 27% more cost-effective and experience 35% less downtime. The flexibility and adaptability to evolving customer needs make cloud-based solutions a smart, modern choice for businesses.

Six powerful benefits of contact center technology.

Contact center technology offers a wide range of advantages, both for brands and the customers they serve. Let’s dive into some of the most powerful benefits that set contact center technology apart from traditional CX solutions.

How does contact center technology improve the customer experience?

96% of customers say inadequate customer service experiences impact their loyalty to a brand, and 76% would abandon a brand after three negative service experiences. Take a look at how contact center technology can improve customer experience: 

1. Customers can more easily connect with brands they care about. Contact center technology simplifies how customers connect with their favorite brands. Customers can choose the communication method they’re most comfortable with, eliminating the frustration of limited options. For example, LegalShield, a leader in affordable legal services for over 50 years, serves more than 1.7 million members and 140,000 businesses across the U.S. and Canada. Talkdesk CX Cloud emerged as the solution of choice, offering powerful omnichannel engagement tools like Proactive Outbound Engagement to reach contacts when and how they want to be reached. 

LegalShield saw a call volume reduction of 10% in the first year of implementation, and service levels improved by 4%, resulting in LegalShield meeting its service level goals. Chats are steadily increasing month over month, with an increase of 154% compared to 2022’s monthly average.

2. Customers can connect with brands in a fraction of the normal time. Contact center technology significantly reduces wait times by leveraging agentic AI features like intelligent routing and self-service options. For instance, Evara Health has revolutionized its patient service approach with Talkdesk, addressing key challenges in remote work, patient access, and operational efficiency. By leveraging Talkdesk Autopilot, Evara Health now efficiently manages 45% of its call volume through automated systems.

Previously, patients faced wait times ranging from 20 to 60 minutes to connect with an agent. With Talkdesk Autopilot, these wait times have been reduced enhancing accessibility and overall satisfaction by nearly 120%.

3. Customers are satisfied by their interactions with their favorite brands. Contact center technology makes customer service faster and easier. By cutting down wait times, simplifying interactions, and removing common frustrations, customers leave feeling valued and happy. 

Farfetch, a global platform for luxury fashion, faced service and quality issues with their contact center. Customers sometimes experienced audio delays of three or four seconds during calls. To help solve this and more, Farfetch implemented Talkdesk CX Cloud, Talkdesk Copilot, and Talkdesk Studio solutions to help them scale faster and streamline their operations. The result? A 30% growth in workload, but only a 12% increase in payroll, and no more audio delays.

How does contact center technology make every agent your best agent?

Contact center technology gives every agent the tools to deliver exceptional service. With features like AI copilots, access to customer history, and mood analysis even newer agents can handle interactions like qualified brand ambassadors.

1. Agents become more productive. Contact center technology streamlines workflows, automates repetitive tasks, and provides agents with all the information they need at their fingertips. With Talkdesk, Canon Europe gained real-time insights and visibility into their call center and integration with Salesforce provided time-saving automation. 

Another example is Michaels, one of North America’s largest arts and crafts retailers. Talkdesk Copilot became a cornerstone of Michaels’ AI strategy, offering agents powerful tools for customer interaction management. As a result, service levels improved from 20% to 89% year-over-year.

2. Agents can solve more customer queries without escalating. Equipped with tools like AI copilots, real-time insights, and access to a customer’s complete interaction history, agents can confidently handle more queries without needing to escalate. For instance, Serta Simmons Bedding uses Talkdesk Retail Experience Cloud to unify all customer interactions into a single view. This allows them to intelligently route customers to the most qualified online or in-store associate, leading to faster resolutions and higher customer satisfaction.

3. Agents can access detailed information about the customer experience. When agents have access to customer data, they can see the full picture—past interactions, preferences, and any issues a customer has faced. This helps them personalize their approach, resolve problems faster, and make the whole experience smoother. For instance, HotelTonight is an online travel agency that leverages the Talkdesk for Zendesk integration to provide their support teams with robust information, helping them deliver exceptional and personalized customer experiences.

Explore AI-powered contact center technology that delivers real ROI.

Contact center technology transforms how businesses engage with customers by making communication faster, smoother, and more personalized—all while delivering measurable returns. Happier customers are loyal customers, and their continued engagement directly impacts your bottom line, driving stronger ROI.

Ready to elevate your customer experience and see real results? Explore Talkdesk Cloud Contact Center technology and discover how it can transform your business and boost ROI.