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Visual breakdown of call centre infrastructure options

 

20/Jun/2025

Once your business is expanding and the number of customer calls is rising you need to consider a serious thought about your call center environment. Considering that it is one of the most common questions a business is asked, the question is:

It is better to opt out of on-premises call center or adopt a cloud call center?

Each of the two has its merits and restrictions. Here is a blog where we will guide you to have an idea of an on-premise vs cloud call center, simple words, real-life examples and business insights.

Difference between On-Premise and Cloud Call Centres What Is the Difference Between On-Premise and Cloud Call Centres?

On-Premise Call Centre

An on-premise call center is hosted at your physical business location. You own the hardware, install the software, and your in-house IT team handles everything.

Advantages of On-Premise Call Centres:

Complete control over infrastructure and data

Better suited for businesses with strict compliance regulations

Can work independently of internet reliability

Disadvantages:

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High upfront investment

Ongoing maintenance and upgrade costs

Limited remote access capabilities

Cloud-Based Call Centre

A cloud call center (also known as a cloud contact center) is hosted on the internet. Your agents and supervisors log in from anywhere, and the provider handles maintenance, updates, and security.

Advantages of Cloud Call Centres:

Low initial setup costs

Expands and contracts easily

Perfect solution when working with backoffice or mixed teams

Automated software deliveries

Quick implementation (usually in a day, or even two)

Disadvantages:

Internet-dependent

Customization options may be limited

Data security depends on vendor’s policies

Real-Life Example: Small Business Switch to Cloud

As an example, a small e-commerce company based in Mumbai would be logging into an on-premise call center. With the growth of the team and the transition to the remote mode, the infrastructure on the site became costly and complex to manage. The change to a cloud call center application took the current team collaboration to the next level, cut down costs and provided them with the freedom to support their customers wherever they were.

Some Things You Must Know Before You Make Your Decision

 1. Investment and Budget

A cloud call center is also a good option specifically when you tend to work within the confines of a limited budget and a pay-as-you go pricing option.

On-premise might suit you in case you are willing to make a massive one-time purchase and are in need of complete control.

2. Remote Work and Team Flexibility

Cloud systems are perfect for remote customer service teams.

On-premise setups are better if your team works from a central office.

On-premise systems are preferred when your company uses a Central office as a work place.

3. Needs Security, and Compliance

On-premise call centers provide more control on critical data and are suited to get used in the finance, healthcare, and legal sector.

Strength of security and compliance tools (ISO, HIPAA, GDPR) are also available by the leading cloud contact center providers.

4. Scalability, and Growth

Cloud systems will also enable you to add or take away users within a short time- good with the seasonal businesses.

On premise system needs hardware updates that are time consuming and expensive.

On-Premise vs Cloud Call Centre: Side-by-Side Comparison

Feature

On-Premise Call Centre

Cloud Call Centre

Setup Time

Weeks to Months

Hours to Days

Initial Investment

High

Low (subscription-based)

Maintenance

In-house IT team

Managed by vendor

Remote Work Support

Limited

Full access from anywhere

Software Updates

Manual

Automatic

Scalability

Slower, hardware dependent

Instant and flexible

Final Thoughts: Which Call Centre Solution is Best for You?

Choosing between a cloud-based call center and an on-premise call center depends on your company’s:

Budget

Growth plans

IT capabilities

Need for mobility and remote access

Security and compliance requirements

For most modern businesses, especially small and medium-sized ones, the cloud call center model offers better value, faster setup, and more flexibility.

However, if you're in a highly regulated industry or prefer full control over your infrastructure, on-premise call center solutions still have their place.

Consider a Hybrid Call Centre

Hybrid call center is a solution that brings the advantages of both universes as there is a possibility to arrange some processes to work on-premise, and some of them to work in the cloud. This is an awesome strategy when it comes to commercial entities who are changing slowly or are in other parts of the world.