VoIP – Low Cost Calls Not Adequate. Fast ROI Essential To Win Contracts
VoIP service providers have been banking on low-priced global calling rates and low service charges to win contracts from businesses that have become increasingly cost conscious. However, IT executives base their decisions on more than per minute price savings. Small business VoIP service providers need to work harder – persuading corporate leaders on the speedy payback potential of implementing VoIP systems.
Short time to break even for technology costs
Trends indicate that companies are looking at technologies that promise breakeven within 6 months – a sharp contrast to customary industry expectations of 18 months. Though VoIP has made great strides in the last few years, this stipulation puts a lot of pressure on its service vendors. They now must substantiate their claims with fiscal break even facts to close deals as financial plans are restricted to projects that show significant returns preferably within the same financial year.
Phased execution of projects
Tight clamps on technology expenditure have made C-level executives rethink strategies to implement projects. Technology requirements are now met in a phased manner. Earlier, moving to a VoIP system was a huge task involving changes in network, servers and desk equipment. But today, interoperable equipment makes it possible for executives to implement parts of a long running project as and when finances are available and business downtime is minimized.
Assessing benefits of VoIP systems
The rewards of implementing VoIP systems can be measured accurately by considering both tangible and intangible results. Voice clarity and other useful features are intangible benefits that contribute significantly to worker efficiency. However, CIOs need factual results that have to be measured differently over a cyclic period. A number of tactics employed by CIOs to measure the performance and savings from a VoIP system include:
- Evaluating the impact of the time spent in reconnecting dropped calls on staff’s efficiency in terms of wasted hours.
- Collecting feedback from clients and analyzing the effect of a clear phone connection on deals that worked out and those that didn’t.
- Comparing the expenditure of managing a tele-presence suite using VoIP services with {an executive’s travel} bills.
- Distributing the net cost of a new VoIP system over the operations and maintenance budget of an existing system over half a year.
A true picture of the financial returns cannot emerge without accounting for the actual cost of ownership. If a VoIP system manages a break even period of half a year, business managers can remove a line item from the budget. No CEO can turn a blind eye to such a cost benefit.
VoIP system vendors – Substantiating claims
VoIP service providers have to come up with sound financial facts to support their claims. They will have to come fully equipped with case studies and statistics to prove the actual cost of ownership over the life of a VoIP system. For example, a system that breaks even in less than half a year and does not need expensive maintenance at least three years is a sure winner with CTOs. The budget assigned to the enterprise’s business VoIP system can be amortized over 36 months.
As VoIP systems move into offices and homes, service providers must deal with tougher expectations from clientele. Enterprise VoIP system providers must prepare themselves with necessary financial information to convince potential buyers of the possibility of seeing returns in 6 months. All high aiming VoIP service providers must gain this expertise to win contracts. Daljeet Sidhu is the author of this article.
Tagged: small business VoIP, voip, voip service, voip service provider
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