beck gordonNot long ago my agency was faced with the daunting task of upgrading and replacing a phone system that we had all grown to KNOW and love (notice I emphasized know). At the end of the day, that is the hardest part of getting away from something you are so used to using and so accustomed to operating with, building your infrastructure around and trouble shooting in times of functional travesties.

Our call center lives center around two main “organs” in our operational bodies, our heart and our brain if you will. The brain being how we dial and operate in terms of compliance and our heart, which is the platform or system with which we dial. In the end, the heart is the most important because without our heart (the phone system) there is no need for the brain (which is compliance in how we do it).

When opening up our fourth location in the fall of this year we were in a position that was somewhat unexpected. As we were working with our hardware, software and telephony providers it was brought to our attention that we could not expand our existing telephone system. Rather, we could, but it would not be supported under our existing platform due to the expiration of the service and support system on which our platform was based.

As you can imagine, this scared me to death. I was basically told that not only was I now looking into the gaping jaws of a very large bill for a new system, but in the meantime, if my system were to crash and burn, it could not be fixed. In the four months that it took to find, purchase, receive and implement our new system I woke up every morning with unparalleled paranoia that this could be the day that we go down with no hope of return. However, I also had the peace of mind that I was one day closer to my replacement.

This is the type of up and down mental roller coaster that we want to try and prevent and something every collection professional should know: Don’t be caught unprepared and know what to expect when going through the daunting process of finding your new phone system!

The following 9 steps will provide you a 40,000-foot view of what you need to know and expect when purchasing your new system. Keep in mind, each call center has a unique infrastructure so this article isn’t long enough to discuss every little detail, but it should give you a very good idea of not only what to expect, but also what you can expect to spend.

1. It is absolutely vital you have a local company that can walk you through this process.

There are too many moving parts and it is very easy to get gouged if you are relying on the hardware/ software company to give you the best advice. This local company should be contracted on a permanent basis to not only service the system, but to aid in the negotiation process, installation of the wiring and hardware as well as the programming of the software. Most phone system providers will provide additional training on new products to your local service provider.

2. Find the Product

Your local support company will aid in this process. You want to find an established provider, not so much with the actual hardware, but the software. There are many fly by night retailers and tons of “new” software out there. You will want to check references and ensure that the company has dealt in actual call centers, not just commercial accounts. Pay very close attention to software versions. If you see version 1.1, for instance, beware. This means it is very new software that has not had all the bugs worked out. There are not many call centers out there that can afford downtime so it is absolutely critical that you find out the company’s “mean-time” between failures. Stewart Bray, the main contact at our local service provider says, “When researching the best phone systems it is vital to look for the best software solution, but be careful of the flashy power points and sales pitches. Be very aware of the software version, don’t be someone’s guinea pig.”

3. Go with an I.P. Platform

Many existing call centers that have had their current phone system for three years or longer are most likely on an analog or digital product. Manufacturers are steering clear of these systems because technology is driving them to the internet. I.P. phone systems are the future of call center dialing technology and will pave the way in terms of future platforms as well. Don’t go backward in time, go forward with the future. It will save your company thousands down the road.

4. Set Up your Infrastructure

You will want POE Network switches to start. POE, meaning Power Over Ethernet, will allow you to power the phone through the Ethernet cable and will also provide you with your connection to the phone for dialing capability. HP is a well-known brand for these switches which must be programmed to support VoIP infrastructure and they run about $6,000 per switch. One switch will service 48 work stations so a 500 seat call center will require 12, 11 to run the floor with 1 back up. This will cost approximately $72,000.

5. Cabling

When making calls through the internet it is vital for the fastest speeds, ensuring the best call quality. The cabling is the most critical component in making this happen. CAT 5E cabling or better is recommended, but CAT 6 is preferred. This wiring will prove to be necessary because it will determine the call quality, delays and functionality within the phone system. The wiring, adapters, plugs, crimping, labor, etc. will run you about $150-200K for a 500 seat center. This is the most extensive part of the process so it must be logistically planned over a long weekend to avoid down time.

6. Controllers

This terminology describes the servers that will power the software system. For best call quality we have found it is best to have one controller for every 100 users. You can do more than this, but will risk latency. For a 500-seat center you will need seven controllers to ensure you have two redundant backups. A controller will cost approximately $8,000 a piece and one user license will be about $175. There will also be other licensing involved, including SIP trunk licensing and other software licensing that is dependent upon the system you purchase.

7. Tracking Software

This is better known as the “Call Center Suite” that allows you to track and monitor all incoming and outgoing calls, both internal and external. All reporting is done by this software to monitor usage and functionality on your floor. This software is $20,000.

8. Phones

Mitel is a great product, they have excellent functionality for a call center environment and as most phone companies provide, they have phones for agent level all the way up to executive level that range in cost from $300 to $500 a piece. If you find phones for less than $250, be cautious as the quality, warranty and serviceability will be undoubtedly second rate. Naturally the phone system needs to be compatible with the software that is installed and configured on the controllers.

9. Call Recording

It is not recommended to house a premise-based platform for recording. For starters, just from sheer volume, a 500-seat center would need at least two recording servers. This includes the backup and they cost about $80,000 a piece and do not guarantee lifetime storage. It is recommended that you utilize an outside VoIP source for your long distance calling, such as LiveVox, that will not only make your calls in a VoIP environment with very low per-minute usage, but will also record and store all of your outgoing and incoming calls. They will store the recordings for as long as you are willing to pay and when that storage expires you can copy all calls on disc and archive them for future usage. For PCI compliance, you can contract with a speech analytics organization that can work with LiveVox to redact credit card numbers from the recordings before they are stored.

As you can see, finding and purchasing a new phone system is not easy to do. As a matter of fact, it’s hard, but we all know that nothing with a great result was easy to accomplish. All in all, for a 500-seat call center, you can expect to spend anywhere from $450,000 to $700,000 and this depends on many factors such as the quality of the cabling to the amount of redundancy you want in your environment. Being successful at finding the right local company with the knowledge to guide you through this purchase is the most important part of the process. We all know that the phones are our tool to drive the money. You never want to be behind your competitors, or worse, operating on a system that is no longer supported. In our world, without our phones, we have nothing.


Gordon Beck is the Chief Operating Officer and Chief Marketing officer for Diversified Consultants, Inc. headquartered in Jacksonville, Florida. DCI is a telecom specific collection agency specializing in the recovery of Wireless, Landline, Cable, Satellite, Internet, VoIP and Home Security Systems.