SaaS to thrive in the crisis

| November 25, 2008 | 0 Comments

By Sonia Han, CommsDay

Hosted contact centre provider Global Speech Networks has said that hosted services can thrive in the economic downturn where retaining customers becomes a priority.

The company MD Nick Rodda told CommsDay that it isn’t all doom and gloom for the Australian ICT industry in the financial crisis. He said that despite ICT budget cuts, hiring freezes and the bid to avoid capex cost, businesses can provide high level customer services by leveraging SaaS and hosted technologies, especially in the contact centre space.

“With the economic downturn… capital constrains… basically a risk return equation which has been focused on much more closely,” said Rodda. “With a hosted service… the headcount freeze isn’t a problem either from a technology point of view because you are actually outsourcing specialised functions of the IT services as part of the subscription, so you only pay a subscription fee so there is no capital and there is no headcount increase from a technology management point of view so it’s a good fit with the current crisis.”

Rodda believes that to cut spending in the customer service sector is the “beginning of an end” for businesses in the economic downturn. “Smart players will see this as an opportunity to differentiate themselves with customer services while others are going the opposite [way],” he said. “You need to focus on your customer… you can’t afford to cut spending on delivering to your customers or you’re losing on the top end… We’ve had very strong growth, and we expect a very strong growth as a result of the economic downturn.”




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