Predicted Diallers – Hosted vs Premise Solutions

Outbound contact centres rely heavily on dialler technology to significantly increase their operational efficiency, and the most commonly used dialler in modern call centres is the Predictive Dialler.

Predictive diallers are used to make multiple outbound calls to a pre-determined set of telephone numbers, and then connect answered calls through to call centre agents. The main difference between a predictive dialler and other types of diallers is that a predictive dialler will use complex statistical algorithms aimed at reducing the amount of time an agent is waiting between calls, whilst reducing the chance of a call being answered whilst there is no agent available. This technology has evolved over a number of years to a point where contact centres have the choice of whether to have the predictive dialler hosted on premise, or hosted externally by a dialler service provider. The purpose of this article is to explore the strengths and weaknesses of each of these solutions.

What is a Hosted Dialler?

A hosted dialer can be described as a virtual, or web based dialer due to the fact that there is no requirement for physical hardware and other equipment to be installed on premise for the dialer to function. All that is required for a hosted dialer to operate is a computer for the campaign manager to control the dialer, and an internet connection.


The most significant benefit of using a hosted dialer service is that there is no significant financial outlay required to buy a physical dialer, which can cost in excess of £100,000. Other benefits of hosted dialer services is that they can be implemented quickly, the services are offered are flexible and scalable, and support, upgrades, and training are typically included in the service charge.


The most obvious weakness of the hosted dialer service is the dependence upon a stable and dedicated internet connection for the service to work effectively. This may require a separate broadband connection to be set up to ensure a smooth service (although most businesses that decide to move to VoIP will already have a separate connection set up). In addition to this, the ability of the contact centre to operate depends entirely on the third party organisation that is providing the hosted dialler.

See What Is Hosted Dialler? for more information.

What is a physical dialler?

A physical dialler is physical hardware and other equipment that is installed on the premises of the call centre.


Once the equipment has been purchased there is no requirement to pay monthly service charges. Another strong benefit of using a physical dialler is that there is no dependance on a third party to supply the dialler service as everything can be controlled in house. Data security can also be ensured as all data is transmitted over the local network.


The most obvious weakness of purchasing a physical dialler is that there is a significant financial outlay for equipment that will ultimately become obsolete over time. In addition to this, any upgrades or maintenance of a physical dialler is the responsibility of the contact centre, and will require a specialist member of staff to carry out such tasks. There is often a decision to be made about whether a business should outsource the service or employ staff internally to set up and maintain the equipment.


Essentially, the decision on whether to choose a hosted or a premise solution will depend upon the call centre in question. However, in contact centre environments where the main priorities are reducing costs and increasing profitability, it is hard to look beyond the hosted dialler solution based upon the minimum financial outlay required for setup, coupled with a service that will be integrated, upgraded, and maintained at no extra cost to you.

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