Business Process Outsourcing (BPO) or using a third party to take care of some business processes is not unheard of. It in fact is becoming a more common practice. This method of having third party providers does help save the business a lot of resources. That is exactly what hosted CRM software does. Using hosted CRM software is like having an IT department without actually having one.

Here are several advantages of using this business solution.

  • Fast in finding sources of information. All the information and resources needed are found online.
  • Cost is a lot lower than investing in a separate Information Technology (IT) department.
  • Device independence enables users to access tools and information using any device that can connect to the internet.
  • Location independence enables users to access the information and resources from anywhere in the world.
  • Scalability enables users to add resources as they are needed. More software applications can be added as the business finds use for it.
  • Maintenance is a lot easier when a business uses hosted CRM software. The company that provides the service takes care of that.

As there are advantages, there are some disadvantages as well.

  • Downtime is unpredictable. There are times when the hosted site is down.
  • Security can be a problem.
  • Integration is difficult for some businesses.
  • Making processes that supposedly have a human touch is seen as a disadvantage by some.

Managers cannot do anything when the site is down. Much like conducting business in buildings with generators, there are also certain precautions that can be made. Precautions to ensure that the business keeps on running even if there are outages. Redundant sites can be used when the main website is down. Also, there are hosted CRM software providers that allow users to work offline.

Security has always been an issue in working with the internet. However, there are certain companies that provide best practice standards for security. These are especially made for e-commerce and businesses that make use of the internet. Backups of the main database can also be done from time to time to be safe.

Many people think that automating some processes using hosted CRM software removes the “human factor” in customer service. Customer Relationship Management (CRM) deals with acquiring and maintaining customers. It also aims to enhance the customer’s experience in dealing with the company. All that can be easily achieved using hosted CRM software. It also does not necessarily have to mean losing the human touch. Consider the situation of companies that have millions of customers. There’s no way for the customer service representatives to really know each one of them. With hosted CRM software, that’s possible.

There are many applications that can be used. Software applications for sales force automation, tracking, marketing and customer support are just a few. Hosted CRM software also helps different departments function together. Having all the information online helps marketing, sales and customer service work as one.

Even large corporations that can afford to run their own IT department still make use of hosted CRM software. Simply because it is convenient and makes everything more efficient.

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