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VoIP - Inexpensive Calls Not Enough. Accelerated ROI Essential to Win Contracts

By: Aeronx Mc Mall

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VoIP providers have been banking on low-priced international and domestic calling rates and low service fees to win contracts from businesses that have become increasingly cost conscious. However, C-level financial heads do not make decisions based just on per minute price savings. VoIP service providers need to work harder - convincing corporate leaders on the speedy returns of investing in VoIP systems.

Short time to break even for technology expenses

Trends indicate that companies are looking at technologies that promise breakeven in less than six months - a sharp contrast to prevailing industry expectations of 18 months. In spite of significant progress in VoIP technology and products, this requirement is tough on its service providers. They now need to produce financial break even facts to win contracts as corporate budgets are restricted to projects that show significant returns preferably within the same financial year.

Phased execution of projects

Limits on technology costs have made CIOs, CFOs, and IT managers rework their project roadmaps. Executives no longer make purchases in one go but in a phased fashion. Earlier, implementing a VoIP system was a gargantuan undertaking involving upheaval in data lines, servers and desk equipment. The situation today is much improved. Interoperable equipment makes it possible for executives to implement parts of a long running project according to when money is available and business disruption is minimized.

Measuring results of VoIP systems

To measure the gains of installing or upgrading a VoIP system, CTOs have to consider both quantifiable and unquantifiable results. Voice clarity and other useful features are intangible results that contribute significantly to worker output. Apart from this, CIOs need factual results that have to be measured in ways that truly reflect their impact. A number of strategies used by CIOs to gauge the performance and cost savings from a VoIP system include:

* Evaluating the impact of the time expended in reconnecting dropped calls on an employee's output in terms of unproductive hours.
* Collecting feedback from customers and analyzing the impact of a clearer phone connection on sales lost or gained.
* Comparing the cost of running a tele-presence solution over VoIP services with an executive's travel expenses.
* Spreading the net price of a new VoIP system over the operations and maintenance budget of an existing project over a period of 6 months.

Return on investment (ROI) cannot be determined without accounting for the true cost of ownership. If a VoIP system successfully breaks even in 6 months, business heads can look forward to removing a line item from the budget. No CEO can turn a blind eye to such an advantageous proposition.

VoIP system vendors - Substantiating claims

VoIP service providers have to come up with sound financial facts to support their claims. They need to arm themselves with case studies and facts to prove the real cost of ownership over the existence 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 CIOs. 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 customers. Enterprise VoIP system resellers must prepare themselves with necessary financial information to influence prospective buyers of the possibility of a six-month ROI. All high aiming VoIP service providers must learn this skill to win contracts.

Article Source: http://depositarticles.com/

Daljeet Sidhu is at Tradeseam B2B Marketplace. Read Small Business VoIP advice. Compare VoIP Service quotes.

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