subject: Choose Voip For Business Only When It Makes Sense [print this page] With the increasing number of companies shifting to VoIP for their business communication needs, a growing number of businesses are finding themselves hard pressed to follow suit and join the bandwagon. The considerable savings that could be derived from VoIP - both from cheaper call costs and relatively inexpensive system maintenance - are irresistible enticements for many, particularly during these uncertain economic times.
But is switching to VoIP now the most practical thing for all businesses? The benefits from lower telephone costs are understandably highlighted by VoIP providers to sell their services, but these shouldn't be the only consideration in making a decision to shift. In the end, it will ultimately depend on the business requirements.
Single location businesses
If your company is located in one place only - say a neighborhood pizza delivery service whose customers mostly come from within a three-mile radius of the store location, and the store staff only makes calls within the locality mostly to confirm orders - it may not be the best thing to switch to VoIP. This is since there would be no significant benefits that could be derived in switching: the savings are quite minuscule compared to the start-up cost needed to shift to Internet telephony, and there may not be enough productivity improvement to justify the shift to VoIP.
However, if your business is single site but doing a lot of non-local calls - for example a small call center business with many out-of-state and overseas clients, you should take a closer look into the calling patterns and associated costs. An analysis of the aggregate expenses for voice calls and data networking can be conducted to see if the combined monthly expenditures would justify switching to VoIP. In most cases, these types of businesses can benefit greatly IP based communications
Multilocation businesses
Except for rare instances of multi-branch businesses that doesn't require always-on voice and data connectivity with remote branches such as drugstores and specialty shops, almost all multilocation companies can greatly benefit from shifting to VoIP.
This is especially true for travel agencies, insurance companies, healthcare providers and other businesses whose operations require constant interactions with other branches or offices both locally and in other cities or states. VoIP can greatly benefit these businesses in terms of reducing the costs for calls as well as minimizing if not altogether eliminating most of the monthly recurring charges usually billed by phone companies such as fees for local access lines, add-on call features and the corresponding taxes for these fees.
Business locations and spending patterns are not the only factors that must be taken into account when evaluating whether it is cost-effective to shift to VoIP; other relevant inputs such as long term plans and cash flows must also be considered to prevent redundant changes that may escalate the total costs of switching to VoIP. Ultimately, the bottom-line for businesses is the question of whether a VoIP alternative would result in a significant reduction of operating cost or if it would increase revenue enough to pay back the initial transition cost.
by: Andrew Wiggin
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