In-house vs. hosted IVR systems

One key decision to make when choosing an IVR system is whether you want to run the system at your location, or use a hosted version that the vendor manages.

A dedicated telecom closet in your office holds all the necessary servers, switches, and other equipment. Having locally-hosted IVR hardware and software gives you the greatest amount of control over the system, but requires that you either have the technical expertise on staff to handle maintenance or pay for regular visits from technicians.

If you choose an on-site system, the majority of your costs will be tied to the upfront purchase and installation fee, including new hardware. You may also pay smaller ongoing fees for support and access to upgrades.

Hosted IVR solutions
In contrast to locally-hosted systems, hosted providers run the server and software for you in their data center. Phone calls are answered there, then transferred to your office as needed. In most cases, you'll have a web-based interface for reporting and basic account management.

The main advantage of a hosted IVR system is that it's maintained by IT professionals at the vendor’s office. They provide standby power and regular backups to ensure that the system is always available to answer calls. Payment for hosted IVR solutions is based on a smaller setup fee and ongoing monthly payments.

Which is right for you?
Locally hosted systems are more familiar to many users. However, the hosted model is gaining popularity, particularly as application service providers (ASPs) are proving to be excellent sources for critical software systems like CRM or HR. Here are some areas you should consider when deciding between hosted and locally-run IVR solutions:

• IT staff - If your IT staff has the time and expertise, an in-house solution might be right for you. Smaller companies with little-to-no IT expertise are probably better off choosing a hosted solution.
• Budget – While hosted systems require a much smaller up-front investment, the ongoing costs will usually surpass locally-hosted versions in the long run.
• Timetable – To get started quickly, hosted solutions are the best choice, since they leverage the expertise of the provider in setting up all the necessary hardware.

You can also start off with a hosted service then move to an in-house solution: hosted IVR providers should offer a seamless migration path that allows you to easily export your data. Some vendors offer both hosted and in-house systems, making the transition easy. This approach can be an easy way to get started without committing fully to either option.