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CCaaS: meaning and complete guide

This is a comprehensive guide to the ins and outs of Contact Center as a Service (CCaaS) solutions. Find out what CCaaS is, why it’s revolutionizing contact centers in every sector and how competition and industry analysts are driving the design of high-quality innovative platforms.

To navigate through the page please click on the topic which interests you:

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What is CCaaS?

CCaaS solutions are a customer interaction and contact center management platform. They are different from traditional contact center solutions because the software is maintained by the provider on their servers and contact centers access all the cutting-edge features through the cloud using a secure login protocol. This means agents can work from anywhere while also being supervised and frees contact centers from installation and maintenance of complex on-premises setups.  

Why was CCaaS developed and how has it evolved?  

CCaaS emerged as a response to the limitations of traditional on-site contact center solutions. The rapid evolution of technology commonly outstripped the adaptability of static on-site systems. These legacy solutions are often complex, costly, and necessitate manual updates, rendering them less efficient and more resource intensive. Operational constraints also arise when trying to scale in real-time to meet demand and from the rise of remote work. CCaaS’s cloud-based architecture addresses these issues by providing an agile, scalable, and accessible platform, aligning with dynamic modern business needs.  

As the variety of cloud-based software and APIs has increased, CCaaS solutions have evolved to offer a more open architecture facilitating integration of other platforms and tech. One area generating a lot of interest is the integration of Generative AI.

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How does CCaaS differ from a traditional contact center? 

CCaaS solutions are not a replacement for contact centers, they are just a much-needed replacement for the traditional on-site technology contact centers used to rely on.  
CCaaS solutions can be used in a physical contact center location or by agents working remotely. Their purpose is to enhance scalability, accessibility, and flexibility so contact centers, irrespective of the operational model (on-site or remote) can cater to the demands of modern customer service. 

What are the key features and benefits of CCaaS?

CcaaS solutions

CCaaS solutions provide a wide variety of customer contact channels  

Traditional phone calls are still very important to customers, and modern CCaaS systems include advanced call management and distribution features like AI-infused IVR (Interactive Voice Response) for qualification and dynamic call routing. For personalization, 24/7 service and on-the-go convenience many other channels are also included:

Email

offers an asynchronous channel which many customers still use to send inquiries, report issues, or seek assistance.

Live chat

offers real-time online assistance from customer service agents.

SMS

is still widely used and trusted.

Social Media

integration offers both support and cultivates brand communities on platforms like Facebook, Twitter, or Instagram. 

Instant Messaging

like WhatsApp is widely used and trusted by customers. 

Video calls

can be especially useful for visual support or troubleshooting.

Voicebots, chatbots and AI can partially or fully automate interactions on all these channels, the exception being video.  

CCaaS solutions offer a range of features  

CCaaS solutions offer a comprehensive package of features which can be grouped and summarized by application:

  • Channels and interaction management  
  • Call management capabilities 
  • Omnichannel functionalities 
  • Supervision 
  • Advanced supervision and quality management features 
  • Workforce management functionalities 
  • Operational efficiency and performance features 
  • Reporting, analytics and data visualization 
  • Automation and AI-driven capabilities

These benefit contact centers in multiple ways including customer experience benefits and business benefits. 

Business features and benefits 

CCaaS solutions offer a variety of features and advantages for businesses:  

Cloud-based platforms

provide scalability, flexibility, and cost-efficiency. Businesses can easily adjust to meet changing demands.

Integration capabilities

for example with a CRM create a unified view of customer interactions and empower data-driven decision-making, improving customer experiences and operational efficiency.

Contact center features and benefits 

CCaaS (Contact Center as a Service) solutions offer a host of features and advantages tailored to contact center operations: 

Workforce management

supports hybrid working schedules and includes forecasting capabilities to efficiently predict and plan staffing needs.

Supervision features

enhance quality management, coaching and agent support, for example, real-time alerts, data visualization, call whispering, call barging, and call recording.

Customization options

allow routing and reporting to adapt to the unique requirements of different contact centers.

Automation

optimizes agent workflows, streamlines back-office tasks, and generates reports to enhance visibility and decision-making.

AI features

support agents and customers with next-step suggestions, voicebots and chatbots for self-service touchpoints, and refine qualification and routing processes, resulting in an all-around higher-performance contact center.

Customer experience features and benefits 

  • Routing, omnichannel histories and collaboration tools improve personalization and first call resolution.  
  • Automated and AI-led touchpoints provide 24/7 customer support at a lower cost-to-serve.  
  • Complete interaction history details and agent-assist features like next-step suggestions enhance personalization and offer customers greater value. 
  • Channel choices, like voice, SMS, IM, live chat, video and email provide customers with convenience on the go and agent-led experiences for complex queries. 

Do CCaaS solutions integrate with other platforms and software?

CCaaS solutions are evolving to offer more integrations, thanks to open architecture, as organizations look to eliminate informational siloes and improve agent experiences.

CCaaS solutions integrate seamlessly with a range of other tools and software, including CRM systems (like Salesforce), Unified Communications as a Service (UCaaS) platforms (such as RingCentral or Teams), AI-driven solutions (like Google Dialogflow), and more.  

This allows businesses to harness a wider range of capabilities while also streamlining their operations and providing a more comprehensive customer experience.

Which industries are CCaaS solutions designed for? 

CCaaS solutions have the features every contact center needs to function. The diversity of features and ability to customize them also make CCaaS solutions great at tackling the unique challenges and pain points in any industry or vertical market.  

Healthcare

Challenge Solution Outcome 
Data security and compliance ✔️ Security features  ✔️ Quality assurance Trust and security 
Continuity of care ✔️ Real-time data sync  ✔️ Omnichannel history Case progression not repetition 
Cost-efficient 24/7 care ✔️ Automated and AI-led touchpoints Decreased cost-to-serve 

Public Sector 

Challenge Solution Outcome 
Diverse customer base ✔️ Priority services  ✔️ Refined qualification  Personalized service 
Efficient inquiry handling ✔️ Advanced routing   ✔️ Case collaboration tools like UCaaS integration Increased FCR 
Cost-efficiency ✔️ Automated and AI-led touchpoints Decreased cost-to-serve 

Financial Services 

Challenge Solution Outcome 
Legacy system challenges ✔️ Cloud-based solution  ✔️ Software integrations  Real-time information 
Branch closures ✔️ Voice and video channels ✔️ Case collaboration tools like co-browsing and UCaaS integration Personalization and increased FCR 
Security ✔️ Secure login,  ✔️ Certifications and security features Customer trust  

Utilities 

Challenge Solution Outcome 
Legacy system challenges ✔️ Cloud-based solution  ✔️ Software integrations  Real-time information 
Call spikes ✔️ WFM and forecasting  ✔️ Automated and AI-led touchpoints  Plan for and react to call spikes in real-time  
Customer sentiment ✔️ Omnichannel history   ✔️ Sentiment analysis  Enhanced personalization mitigates negative sentiment 

Travel and Tourism 

Challenge Solution Outcome 
Seasonal fluctuations  ✔️ Pay-per-use pricing   ✔️ WFM and forecasting  Rationalized costs 
Complex queries  ✔️ UCaaS integration for collaboration  ✔️ Outbound messaging to share knowledge resources Increased FCR  
Customer updates ✔️ Outbound campaigns    ✔️ Digital channels like IM   Proactive care and customer satisfaction   

Retail 

Challenge Solution Outcome 
Connected journeys  ✔️ Omnichannel interactions  ✔️ Software integrations  Streamlined experiences  
Delivering personalization  ✔️ AI-generated next-step suggestions  ✔️ Sentiment analysis   Tailored offers and support   
Proactive engagement  ✔️ Outbound campaigns    ✔️ Channel choice Enhanced engagement  

Telecom 

Challenge Solution Outcome 
Connected journeys  ✔️ Omnichannel interactions  ✔️ Software integrations  Up-to-date advice  
Proactive engagement  ✔️ Outbound campaigns   ✔️ Digital channels   Increased up-selling and loyalty   
Maintaining loyalty  ✔️ AI-generated next-step suggestions    ✔️ Sentiment analysis  Enhanced personalization  

Are there real-life examples of CCaaS successes?  

There are many success stories accessible via the websites of CCaaS providers. Some of the most impactful are those that emerged during the COVID pandemic which highlight both the customer experience benefits and unexpected agent benefits.  

Belgium Telecom company VOO

The Belgium Telecom company VOO switched from on-site to fully remote in one week. Everything was achieved under the pressure of the health crisis and the amazing results were testament to the teamwork and collaboration of RingRing and Odigo. Initially, absenteeism dropped by almost 50% as the 188 agents were able to work in safety, at home

Customer Serveys

Strong evidence supporting the use of CCaaS also comes from numerous customer surveys which highlight the importance of personalized service, connected experiences and how highly great service influences loyalty and repeat purchases.

Salesforce

In 2023 the 6th Edition of Salesforce’s State of the Connected Customer shows that 65% of customers expect companies to adapt to their changing needs/preferences and 88% of customers say good customer service makes them more likely to purchase again. Without the omnichannel strategies and integration capabilities of a CCaaS solution, living up to these expectations is difficult.

How to choose a CCaaS provider 

When choosing a CCaaS provider it’s important to remember that while they all provide for the basic/core needs of any contact center, not all contact centers are the same! What are the specific needs of your contact center and customer base and the high priority or specialized needs to do with your working processes, industry regulation and security?  

Key criteria for evaluating and choosing a CCaaS provider 

1. Platform and connectivity 

Cloud options

While public cloud offers a great many benefits, in some instances hybrid/private cloud options are required. Assess if the provider offers options and solutions which align with your security and data requirements.

Integration capabilities

Evaluate seamless integration with CRM, UCaaS, analytics tools, and essential software. 

Network quality and presence

Examine the provider’s network infrastructure, PoP locations, and global connectivity. 

Scalability

Ensure flexibility to accommodate fluctuating call volumes and business growth. 

2. Security and compliance 

Security features

Verify robust security measures, encryption, and compliance with industry regulations. 

Compliance and certifications

Check for relevant certifications (ISO, PCI DSS) based on your industry. 

3. Operational excellence 

Pricing structure

Understand the transparent pricing model, avoiding unexpected costs. 

Customer support and SLAs

Assess the quality of support and adherence to Service Level Agreements. 

Disaster recovery and redundancy

Inquire about plans for business continuity and data redundancy. 

4. Advanced features    

Reporting and analytics

Evaluate capabilities for insights into performance and customer interactions. 

Multichannel support

Confirm the channels your customers need are provided.  

AI and automation

Ensure appropriate AI-driven automation features are included, like qualification, routing and agent-assist.    

5. Global operations 

Global reach

Verify support for multiple languages, currencies, and time zones if operating internationally. 

User-friendly interface

Ensure an intuitive platform for both agents and administrators. 

References and case studies

Request references and review successful case studies. 

Questions to ask a prospective CCaaS provider 

After reviewing the features and specifications of a CCaaS solution follow-up questions are often needed for more in-depth planning like deployment, optimization and customization questions.

1. Customization and functionality

  • What features can we customize in-house?  
  • How flexible is the user interface, and can it be tailored to meet the preferences and needs of both agents and administrators? 
  • If the solution does not offer a native integration to our other solutions, is it possible to design one?

2. Operational processes

  • What is your training and onboarding process for our agents? 
  • Is there support for scripting and guided processes? 

3. Agent productivity and collaboration

  • What tools does the platform provide for monitoring and improving agent performance? Are there customizable metrics and dashboards? 
  • How does the platform support collaboration among agents and teams? Are there features that enhance communication and knowledge sharing? 
  • Are there quality assurance tools that allow us to customize evaluation criteria and ensure consistent service quality? 

4. Scalability and resource management

  • How does the platform support scalability, especially in terms of adding new features or accommodating an increase in contact volume? 
  • Can we tailor resource allocation strategies within the platform to optimize efficiency and meet changing demands? 
  • How can we customize the workforce management functionalities to optimize staffing levels and schedules according to our specific operational needs?  

What are the most important security, compliance and data privacy considerations when choosing a CCaaS provider?  

There are many aspects of data privacy and compliance that are a contact center’s responsibility. CCaaS solutions have comprehensive security features but do not replace the need for robust data privacy policies to meet the requirements of, GDPR for example. There are also outbound calling regulations and industry-specific requirements to consider but here are some of the many security features that CCaaS solutions offer:

  • Robust identity and access management processes using unique IDs, passwords, and individual profiles for agents. 
  • Encryption services prevent unauthorized access and ensure secure data transmission within the cloud. 
  • Cloud architecture segregates data for enhanced control and prevents unauthorized access, ensuring data integrity. 
  • Regular audits and certifications such as ISO-27001 and ISO-9001 help with adherence to industry standards.  
  • Anti-malware and SIEM software monitor, detect, and alert any security events. 
  • Vulnerability management continuously scans to identify weaknesses for early detection for swift response to potential leaks. 

The CCaaS industry is highly competitive and there are several well-known analysts like ISG, Gartner and Frost & Sullivan who assess and compare the quality of major providers such as Odigo, Genesys, Talkdesk, 8×8, Five9, Puzzel, Nice and Amazon. These analysts also undertake research to project and predict future trends. 

Which major analyst reports evaluate and compare CCaaS solutions?  

There are several yearly analyst reports that look at CCaaS solutions, for example: 

  • Frost Radar™: European Contact Centre Market  
  • Gartner® Magic Quadrant™ for Contact Center as a Service 
  • ISG Provider Lens™ for Contact Centre as a Service  

CCaaS providers qualify for these reports depending on eligibility factors, not necessarily quality factors.  

The most significant trends in the customer experience (CX) and CCaaS market are the ones which deliver real-world effects like decreasing effort and frustration for customers and turning contact centers into profit centers.

Seamless interactions

It’s been talked about for a long time but customer frustration suggests contact centers aren’t maximizing on the omnichannel potential of CCaaS solutions.

AI mystery shoppers

Forbes suggests companies will create synthetic customers using generative AI and real-time data to gain insights into real customers’ behavior and predict optimal outcomes.

Sustainable CX

For many customers’ ethical choices are important and businesses and their CCaaS providers will need to showcase sustainable values.

Security-centric CX

As regulations continue to tighten and cybercrime evolves customers need assurances and contact centers need advanced protection.

Appropriate automation

Numerous surveys highlight the frustration of customers with self-service. Advances in AI will not replace the need for the right self-service strategy.

CX-driven value

Companies will prioritize building CX strategies that increase metrics like average order value and customer lifetime value, rather than competing solely on price.

How will CCaaS solutions change as technology evolves? 

CCaaS will continue to adapt to integrate more technologies, perhaps the most imminent changes are those which will normalize technology which is already in limited use in the customer service industry:  

Deeper integrations

UCaaS, CRM and 3rd party AI integrations.

Generative AI integration

AI-driven chatbots and personalization. 

Sentiment-driven CX

Real-time emotional analysis for tailored interactions. 

Immersive tech

Virtual reality and augmented reality experiences

Are there any challenges to overcome when deploying a CCaaS solution? 

Common challenges faced by businesses when adopting CCaaS 

While a CCaaS solution is technically ready to use, deploying one without a well-thought-through plan for change management will not result in a great experience. Leading providers have systems in place so contact centers can start experiencing benefits from day one.

  • Integrating legacy systems or migrating data.  
  • Planning detailed customer journeys. 
  • Customizing features for the best launch experience. 
  • Training and on-boarding to maximize user adoption.  
  • Monitoring and optimizing the initial configuration. 

Common challenges faced by businesses when migrating to the cloud 

When it comes to cloud migration there are both practical challenges during actual migration and the cloud migration myths which can stand in the way of organizations choosing to move to the cloud.  

Plenty of prominent organizations, like Forbes, McKinsey and Gartner, have highlighted the problems with generalizing the pros and cons of cloud migration. That’s why knowing the right questions to ask a prospective vendor is important.   

One key point is that deployment of a solution and migration to the cloud often occurs simultaneously. However, they present different challenges and providers should have clear strategies that address the pain points of both. For example:   

1. Immersion: 

    • Engage in a consultative process involving your business and IT teams. 
    • Gain a deep understanding of your challenges and solution requirements. 

    2. Identification: 

      • Establish and refine critical processes to seamlessly integrate the cloud-based solution. 
      • Ensure smooth alignment with your existing business applications.  

      3. Test:

      • Customize your CCaaS (Contact Center as a Service) solution to match your specific customer experience and business objectives. 
      • Rigorously test the solution to guarantee optimal performance.   

      4. Deployment :

      • Initiate the final migration phase after thorough testing and seamless integration. 
      • Ensure your CCaaS solution is fully prepared to enhance customer experiences and support your business goals.

      What’s the best way to guarantee a smooth CCaaS deployment?  

      Choosing an experienced CCaaS provider means a tried and tested deployment strategy. These providers, with more advanced solutions, also design and build a platform that’s a natural fit for your organization, prior to deployment. 

      Here are a few other ways to guarantee a smooth deployment, many of which are factored into the plans of experienced providers

      Staged deployment

      gradually rolls out a new CCaaS solution to different teams or departments. This allows for thorough testing, troubleshooting, and adjustments before full-scale deployment.

      Preserve the customer-facing experience

      so that throughout the deployment process, the disruptions to customer interactions are minimal and service quality is maintained.

      Optimize features for your contact center

      so they align with your specific needs and goals. Customize workflows, routing, and reporting to maximize efficiency.

      Tailor features to customer needs

      by designing journeys based on their preferences and requirements.

      Integrate other software

      such as CRM, analytics, and productivity tools to ensure a cohesive and efficient operation across your organization.

      Head of Odigo University

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      Patricia Barrière
      Patricia Barrière Head of Odigo University