What is “on premise IVRS (Interactive Voice Response System)”?
On premise IVR system can be defined as Interactive Voice response System (IVRS) which is installed in the premise of the company who is using IVRS for providing various services to its customers. On Premise IVR systems are also known as “Legacy IVRS” which are normally developed specifically for the company, using native API functions of CTI boards. It is tightly integrated with CTI board used, PBX or telephone operator, Operating System of the machine and normally written in a well defined languages like C++, .NET C# etc.

While, hosted IVR may provide many advantages, mainly outsourcing of maintenance and low initial investment, but on premise or legacy IVR systems are going to stay, in my opinion.

1. Recurring Cost
Hosted IVR services are normally rented. So, it is a recurring cost for a company. Hosting service provider may restrict services when some call spikes take place. Unlimited calls and one time cost is more beneficial in terms of ROI for many large corporates than paying for every calls handled by hosted IVR. Many companies already maintains various computer servers and PBX systems and putting one more server ( the IVR System) is not another heavy investment.

2. Long term Operation
Can a large enterprise afford to change their customer care number overnight ? What happens when hosted IVR service provider company stops its services as it closes down? With experience of recent recession in the world where many large companies went out of business, this is a real danger now where a Hosted IVR service providers close their shop, leaving their customers high and dry. Even the companies using their IVR services may close down, but they wont be needing IVR services too, right ?

3. Control and Integration
Some facility or control may not be available on hosted IVR. For example, transferring IVR call to some person in office. It can be done free of cost with in house PBX. While it may not be at all possible in case of hosted IVR or would cost money for making the outbound IVR call. Integration with PBX gives many features to IVR application, which otherwise will not be available in a hosted IVR. Another advantage would be to access IVR generated voice recordings/complaints on local LAN quickly by many people.
On premise IVR provides complete data security, protection along with customer caller IDs!

4. IVR development Tools
Now a days, there are many IVR development tools which can be easily learned and used for creating IVR applications. So, it is not difficult to manage IVR application any more. These tools can be used to develop any IVR applications in matter of days, if not hours! So, the advantage of hosted IVR for “going live quicker” can be matched with on premise IVR systems too.

5. Initial Investment
With easy availability of low cost CTI boards like Donjin, Synway etc., the initial investment for putting up a on premise IVR is no longer a deterrent. Many Telephone companies provide ISDN leased lines for voice at low rental, making it affordable to many medium sized companies too.

Many will still prefer hosted IVR over on-premise IVR systems and choice between them would largely depend on the IVR application and usage. When number of calls remains more or less constant and data security is required, than on premise IVR systems seems a better choice.

I think, on premise IVR systems are going to stay.

I have posted one article how IVR can be used to generate revenue, mainly from caller paying to use the IVR services through a voice portal in collaboration with a telecom operator. No doubt, it is a lucrative Voice VAS(Value Added Service) for many M-VAS companies as well as telecom operators, but there are other ways too where one can use IVR to generate revenue, even without any collaboration with any telecom operator.

Also, one of the negative side of collaborating with telecom operator is, they take away majority of the revenue generated while IVR service provider does all the investment as well as majority of the promotions for the IVR services.

There comes in IVR E-Com portal! One may actually generate revenue by establishing an IVR e-com portal! IVR e-com portal can be thought of as corresponding voice portal for an e-com ( e-commerce) web portal. While an e-com portal is accessed using a web browser on a PC/Laptop or mobile phone, IVR e-com portal is accessible by any phone or mobile phone. A successful IVR e-com portal can be even hosted on a toll free number where caller will not be charged anything!

An IVR e-com portal would be capable of selling products like music album after listening to music trailers, can buy movie tickets after hearing some famous dialogues of the movie etc.

Credit card can be charged securely on IVR e-com portal for making payment. Delivery of products would be just like e-com portal, by using courier or postal service.

There are few advantages of IVR e-com portal. For example :-

1. Easy browsing
User will be focused on browsing category wise and will not be distracted by many colorful links as in a e-com web portal. Browsing of products are quick and to the point.

2. Selling Adult products
Many people, specially in India, are unable to buy many products like condom from a chemist shop. There have been many advertisements by governments and other NGOs encouraging people to buy condoms from chemist shops boldly. Using IVR e-com portal, everybody would be able to buy condom or other adult products without any inhibition.
3. Listen trailer
For products like musical album, children CD, etc. could be heard on IVR e-com portal by browsing through them. They can also listen user feedback in original voice form by celebrity users or common users. It will increase authenticity of testimonial of the products.

4. Good option for certain disabilities
IVR e-com portal is a solution for people with visual disabilities. Presently, I am not aware if there is any shop or e-com portal for people with visual disabilities. IVR e-com portal can serve them better with many options.

Challenges in running IVR e-com portal
There are some disadvantages of IVR e-com portal. Many products would be difficult to sell on IVR e-com portal. For example, shirts, pants etc.
Also, not many people may want to dial an IVR and pay for the outgoing call. Also many people may not like the idea of pressing keys on phone many times while browsing through products. Clicking on keys are easier than pressing buttons on phones.

Apart from few ticketing IVR service for airlines, IVR e-com portal has not really picked up or even started. Most probably, not many people are thinking in this direction. If you are thinking now to start IVR e-com portal abd make Ebay in IVR, remember me too that I also had this idea. . Jokes apart, in my next articles I would try to list the services which could be sold or how IVR e-com portal could be monetized.

What is IVR Outsourcing ?
A company may outsource IVR operation to IVR supplier or Hosted IVR Service providers. IVR Outsourcing means rent a IVR number where a company’s customer or caller may call and obtain company’s information, resources, avail service, complaints etc. The outsourcing company does not need to invest anything on IVR infrastructure like powerful servers, power backup, CTI boards, IVR software, record voice prompts, Web Server etc. In short, A company may avail everything that an IVR offers him without having to invest initial hardware, software, costly and time consuming development cost of IVR system. Outsourcing company can can view any information, data generated by IVR system real time and get even get alerts for any emergency or urgent requests.

Why outsource IVR operation to IVR Supplier?
According to my opinion, smaller companies which do not have very large number of clients which need IVR support should opt for IVR outsourcing. Here are few advantages of IVR outsourcing:-

1. Fast implementation
One may set up the IVR system quickly as IVR Hosting provider has all the required IVR hardware, Software, voice prompts, skilled and trained IVR professionals are available for quick implementation and customization.

2. Low initial investment and fixed recurring expenses
Large initial required for self hosted IVR can be avoided with IVR outsourcing. Every system that runs 24 hours a day, 365 a day needs few minimum infrastructure, human resource which may not be a viable option. Even after the initial investment, there are recurring expenses like call charges, human resource, power etc.

3. Easy Support
Since, it is outsourced, you may expect less downtime for the IVR system. Some changes in IVR call flow or some instant and urgent high volume of calls for few days could be easily arranged wiht IVR outsourcing company. If there is urgent need for capacity increase in self hosted IVR for few days, it would have been a night mare.

How to choose a IVR outsourcing company or IVR Supplier ?
One may be confused how to choose an IVR outsourcing company as there are now many companies who provide hosted IVR services. Here are few points one may consider while deciding on a IVR outsourcing company :-
1. Infrastructure
How large is the IVR outsourcing company in terms of telephone lines, power back up, skilled manpoer to attend any future IVR up-gradation.

2. Quality of MIS report
MIS report of IVR system is very important for a company. One may actually improve upon its product quality as well as service quality if one is able to analyze IVR call patterns with given MIS report. So I recommend to check MIS report provided but IVR outsourcing company, how well they organise their MIS report, online and offline, alert system

3. Features and Cost
I think cost is also a very important factor. But one may have to pay more for better and more features. A well thought out trade-off is recommended. But one should not compromise essential features. Essential features may be different for different kind of organisation, IVR requirement. Also one should not look over cost of any future upgradation as well as change in IVR call flow.

4. Confidentiality of Information
Some organisation may like to keep their client information confidential. This aspect should also be discussed with IVR outsourcing company.

5. Integration with Existing Software of the Company
This may be real issue while deciding IVR hosting company. Most of the companies use IVR as a force multiplier and they already have large customized software their customer support or any other resources site. Now making them available to IVR system at the IVR outsourcing company may be costly and time consuming affair!

Disadvantages of IVR outsourcing
1. Crucial customer information
2. Problem in integration of existing software of the company.
3. Online monitoring of customer calls.

Finally, I think, IVR outsourcing will grow more and more. IVR is already thought and provided as a service. So it is logical that there will be more IVR hosting provider and even IVR development companies would graduate to become IVR Hosting service provider.