- Bantu Shrestha
- Last Updated: 28 Jun 22
- 7 min read
Centralized Vs Decentralized Call Center: Which One is Better?
- Bantu Shrestha
- Last Updated: 28 Jun 22
- 7 min read
There’s a management strategy in every organization that helps track daily operations and systems. Every business uses managerial systems to trace and manage its business rules by executing decentralized or centralized call center facilitation to have clear communication.
There are worthwhile advantages of centralized and decentralized call center management methods. More often, it is specified by the size of the company’s workforce, the breadth of its product coverage, services, and international market allocation.
However, it is the most crucial decision for call center managers to keep records of the center either through centralized or decentralized methods.
During this article, you will comprehensively understand centralized Vs decentralized call centers and which one is more beneficial and can be considered in the call center field in 2022.
First of all, let’s understand!
What is a Centralized Call Center?
As the name suggests, a central location or hub acts as the physical heart of the organization, which is responsible for all logistics operations, and may or may not serve more diminutive spots like stores or marts.
It is the more orthodox approach, but one may be more familiar with it, at both work-life and otherwise. The centralized call centers are a considerable single hub, especially for international companies doing business in various regions.
It handles the entire centralization policy with the bulk of the organization’s function to retain all the powers in the central location and has full control over the activities of the middle or low-level management, encouraging personal leadership and coordination that can be seen as well as work disputed easily among workers.
Advantages of Centralized Call Center
The advantages of a centralized call center are:
- Reduce the cost of data storage and facility expenses.
- Data management is easier and more efficient
- New solutions and technologies are easier to apply.
- Should improve product availability.
- Lower conveyance costs in the upstream (when in bulk).
Disadvantages of Centralized Call Center
The disadvantages of a centralized call center are:
- Downstream shipping expenses are significantly higher.
- Possibilities for expansion are more constrained (when moving to new markets)
- Outliers have longer transit and shipment times.
- Catastrophe alertness is inflexible.
What is a Decentralized Call Center?
A decentralized call center distributes workloads among several devices instead of depending on a single central server.
Decentralized has rapidly affected the call center market with its advancements in desktop and laptop computers. It attracted the business with its performance capabilities.
Decentralized is self-established holds and planning in the different spots with a managed decentralized logistics network. It is more spread out and does not rely on a central hub or warehouse.
It is significantly more adaptable than its alternative, which is why it is also known as the nodes method of collecting information.
It helps businesses benefit from selecting strategic warehouse locations, as some are better than others.
Advantages of Decentralized Call Center
The advantages of a decentralized call center are:
- With on-demand options, delivery times are drastically reduced.
- Improved customer service and service fulfillment.
- A significant level of operational flexibility is required.
- Significantly improved disaster readiness
- Much lower node-to-node transfer costs
Disadvantages of Decentralized Call Center
The disadvantages of a decentralized call center are:
- Costs of operations have increased, and there are several facilities.
- There is a greater chance of products being misallocated.
- As more nodes are added, operational controls get cut.
- Inventory management is less efficient, and minimum stock levels are higher.
Know the difference between centralization and decentralization to get more of what your call centers require.
Centralized Vs Decentralized Call Centers: Comparison Chart
The comparison chart given below is important so far as it shows how centralization and decentralization are concerned on different factors:
|Centralized Call Center||Decentralized Call Center|
|A centralized call center is organized and has a constant concentration of authority at the central hub.||A decentralized call center has been organized in the distribution methods, even in the authority board.|
|The centralized call center is perfect for a startup, small businesses, and freelancing||Decentralized is best for large-business, enterprises, and industries-based call centers.|
|A centralized call center executes the formal communication||There’s somehow stretches communication in all directions in a decentralized call center.|
|It provides power to the single person, which affects the decision and is found as time-consuming.||Decentralization distributes the power, and regarding decision-making, it is more effective.|
|Full leadership and coordination are needed in a centralization call center to get executed well.||Decentralization conveys the responsibility of the top-level managers.|
|When the call center has insufficient control over the management, it should apply the centralization of the call center.||When the call center has full control over its management, decentralization should be applied.|
How to Understand Customer Needs with Centralized and Decentralized Call Centers?
We have faced the pandemic but still connect to everyone with modern technologies and new distribution. Consumers now don’t think about the resources available at a place but believe in quality and satisfying experiences from the business.
It has involved the new evolution of consumer needs, chains, and fulfillment. It made many companies rethink their operations and restructure to accommodate faster call attendants, and management, and provide various services that can help them enhance their business.
However, if you want to understand the customers’ needs. Some questions clarify your doubts:
- What budget can you allocate, being centralized or decentralized?
- What resources do your customers seek?
- How is your experience involved during centralized and decentralized?
- Where is the bulk of your customer base located?
- Are you prepared to give a better performance?
- Are your features available for everyone and everywhere?
- Do you have a sufficient workforce and infrastructure to manage a decentralized call center?
Acknowledging these questions and your answer can help clients’ requirements from your call center whether you implement centralized or decentralized call centers.
Centralized Vs Decentralized Call Center: Which one is better?
The centralized vs. decentralized call center debate is a bit silly. Why?
Because depending on the call center, its geographic location, and regular operations, both centralized and decentralized call centers can be ideal.
A centralized call center approach will benefit some businesses, while a decentralized call center will plan benefits for others. Furthermore, both models can incorporate advanced automation to boost efficiency and provide outsourcing options.
A company could, for example, rent or lease a warehouse or even a small portion of one and use it as their company’s decentralization. They may even share the warehouse with other firms, with a third-party service provider handling inventory management and order fulfillment.
At the same time, a decentralized strategy could present major issues during unexpected occurrences like COVID, where a gathering of people is soaring and restricted, but more inventory, and products are required.
Central call center warehouses are often significantly larger, contain much more goods, and have more resources, such as hardware and machinery, to perform the work — including complex warehouse automation systems.
Strong communication between executive call center headquarters and warehouses is critical to successful operations in both models, whether decentralized or centralized call centers.
KrispCall is a modern call center software that helps you improve your business’s communication by making it seamless and hassle-free. Get in touch with Krispcall or schedule a free demo today to learn more about the product and for efficient internal and external cloud communication in your centralized or decentralized call center.
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