Somewhere along your path to delivering world-class customer experiences, you’re bound to ask, “what’s the difference between contact centers vs call centers, and which one should I choose?”
And you’d be wise to ask that. CX questions like this are important since 85% of your customers will spend significant effort to find a replacement for you if you don’t live up to their standards.
Understanding the difference between call centers and contact centers can start you on the path to providing exceptional customer service by giving you the best tools.
What is the Difference Between a Contact Center and a Call Center?
As with many terms, there are a couple of different ways to define call center and contact center. The two main options in this case are 1) to look at them each as a team in a company, and what their responsibilities include, or 2) to look at them as the software that each team uses and examine the capabilities of each.
Here, we’ll use the later definition and look at the differences between the call center or contact center software.
What is a Call Center?
Call center software is a platform that makes or receives communications, typically via voice calls. Call centers have been around for a long time, though they have not always been software, but rather on-premises hardware and a network of physical devices. A call center is focused mainly on voice communications, hence the name “Call Center.”
What is a Contact Center?
In recent decades, a new term has been needed to encompass the abilities of new communication platforms. No longer are they focused only on voice, but also other methods of contact such as messaging. These have been named “Contact Centers” as a call is only one of several contact methods they support.
Key Differences
A call center primarily focuses on handling large volumes of voice calls, which makes it a good solution for businesses that rely only on phone-based customer interactions. Agents answer inbound calls, assist with troubleshooting, and may also make outbound calls for sales or follow-ups.
Call centers typically operate using a phone system, with Interactive Voice Response (IVR) for basic automation. However, they are limited to voice communication, which can create bottlenecks in customer service.
Contact centers on the other hand expand beyond voice calls to provide multichannel support. Often, they are cloud based (such as contact centers for Microsoft Teams) and offer other advanced features like AI capabilities and external integrations.
| Contact Centers | Call Centers | |
|---|---|---|
| Definition | Platforms supporting multiple communication channels in addition to voice | Platforms focused primarily on handling voice calls |
| Communication Channels | Voice calls, email, live chat, social media, SMS, etc. | Primarily voice calls |
| Technology Overview | Intelligent IVR, AI chatbots, Automation, Sentiment analysis, CRM integrations | Basic telephony systems, basic call routing and IVR |
| Services Provided | All Call Center services plus advanced IVR systems, AI chatbots & virtual assistants, Technical support & troubleshooting, Inbound customer service, Self-service options, Multichannel communication | Inbound & outbound calling, Sales & telemarketing, Appointment scheduling, Customer inquiries & complaints, Billing & payment support |
| Agent Skill Set | Versatility across channels, writing/typing skills for chat and email, social media etiquette | Proficiency in voice communication and call handling |
| Scalability | More scalable: agents can handle multiple simultaneous interactions across different channels | Requires additional agents due to one-on-one call handling |
| Analytics | Advanced data collection across communication channels | Limited to call metrics and voice analytics |
| AI & Automation | AI Chatbots, Sentiment analysis, Agent assistance | Limited |
| Self-Service Options | Ability to access external data bases to check order status, account balances, etc. | Usually limited to manual selections within IVR |
| Integrations | Extensive integrations with CRMs, databases, etc. | Limited |
| Cloud-Based Costs | $20-$200 per user/month, MS Teams-integrated: $60-$100 per user/month | $15-$150 per user/month, Basic plans: $15-$30 per user/month |
| On-Premise Costs | $700-$1000 per seat (one-time) Plus 15-25% annual maintenance | $700-$1000 per seat (one-time) Plus 15-25% annual maintenance |
| Best For | Organizations with a diverse customer base requiring various contact methods, Growing businesses needing advanced features and AI assistance | Organizations relying completely on large volumes of voice interactions |
Contact Center Services vs Call Center Services
What services do contact centers vs call centers offer? In many cases, the lines are blurred here, with contact centers generally offering more services than call centers. Nevertheless, here are some examples of common services offered or made possible by each.
Contact Center Services
IVR (Interactive Voice Response) Systems
IVRs automate call routing—sometimes using natural speech recognition—and can even provide self-service options. Imagine a university student calling the admissions office to check their application status. Instead of waiting on hold, they interact with an IVR menu, selecting the option for an automatic status update or simply saying, “I want to check my application.” If they need more help, the system routes them to a live representative.
AI Chatbots & Virtual Assistants
Chatbots can handle frequent customer inquiries by drawing from a knowledge database, which reduces the workload for human agents. An online retailer’s chatbot might answer questions about return policies, order status, or available discounts without needing human interaction. If a customer asks a complex question—like how to return an item after the refund period—the chatbot can escalate the conversation to a live agent, offering human support when needed.
Technical Support & Troubleshooting
A contact center could provide expert troubleshooting, often using screen sharing, remote diagnostics, or guided step-by-step solutions. For example, a software company’s support team helps a business user resolve an issue with their Microsoft Teams integration. The agent can remotely guide them through setup and confirm that the software works as expected.
Inbound Customer Service
Customers often contact support for order tracking, complaints, or general inquiries. A good example is an airline customer calling to reschedule a flight due to an emergency. The contact center agent can access the passenger’s booking, suggest alternative flights, and handle rebooking.
Multichannel Communication (Phone, Email, Chat, SMS, Social Media)
A contact center provides multichannel support, allowing customers to switch between communication channels. A university applicant may start by chatting with a virtual assistant on the school’s website about admission deadlines. Later, they receive an SMS reminder about missing documents. If they need further help, they can call a support agent, who can instantly access their previous interactions.
Call Center Services
Inbound & Outbound Calling
Call centers handle both incoming and outgoing calls to manage customer needs efficiently. For example, a health insurance provider’s call center receives inbound calls from policyholders requesting claim updates, while also making outbound calls to remind customers about policy renewals.
Sales & Telemarketing
Call centers play a role in generating leads and closing sales through phone campaigns. For instance, a telecom provider’s call center reaches out to existing customers to offer an exclusive discount on a new unlimited data plan. The agent answers questions, highlights benefits, and secures an upgrade, producing upsells through personalized service.
Appointment Scheduling
Many businesses rely on call centers to schedule and manage customer appointments. An example is a medical clinic’s call center, where patients call in to book appointments, or confirm availability.
Customer Inquiries & Complaints
Handling customer concerns and resolving issues is an important function of a call center. Imagine a hotel chain’s call center, where a guest calls to report a booking error. The agent quickly pulls up the reservation, corrects the mistake, and offers a discount for the inconvenience. The call center makes this fast response a possibility.
Billing & Payment Support
Call centers assist customers with billing questions, payment processing, or disputes. A utility company’s call center helps a customer set up autopay, clarify a billing discrepancy, or extend a payment deadline.
FAQ: What is an example of a contact center service?
An example of a contact center service is an advanced Interactive Voice Response (IVR) system, which automates call handling by directing customers to the right department or offering self-service options.
For instance, Landis Contact Center for Microsoft Teams offers an IVR that has the features to enable building a natural language auto attendant. It can also use external data dips to retrieve caller information that can be used for self-service such as checking an account balance. If additional assistance is required, the IVR can use this data to route the call to the appropriate agent.
Contact Center vs. Call Center Costs
Contact center pricing is a huge and widely varied subject, but we will try to make sense of the general cost landscape.
Pricing for contact center and call center solutions is typically quoted per agent (user) per month, but it varies widely by platform, feature set, and deployment (cloud vs. on-premise). Below, we break down typical costs and trends.
Contact Center Costs
Cloud-Based Plans
Basic cloud-based plans typically start at $20 per user per month, while advanced plans with AI-powered analytics, omnichannel capabilities, and workforce management tools can cost up to $200 per user per month. Some providers offer tiered pricing based on feature access, while others offer all-inclusive packages with volume discounts for large deployments.
On-Premise Systems
On-premise call centers and contact centers require a significant upfront investment in hardware, software, and licensing. While the exact cost structure varies, organizations typically spend several thousand dollars on servers, networking equipment, and handsets, in addition to software licenses. Some vendors price their solutions based on the number of users, while others charge a flat rate based on the infrastructure required.
Unlike cloud-based solutions, on-premise systems do not have recurring subscription fees, but they do incur ongoing expenses. These include IT staff, support contracts (which often cost 15–25% of the initial license price annually), and monthly charges for phone lines—typically around $20 per line. Additionally, many on-premise systems require physical desk phones, adding to the overall cost.
While on-premise solutions offer a high degree of control and security, their total cost of ownership (TCO) can be higher over time, especially for smaller organizations without dedicated IT resources.
Contact Centers for Microsoft Teams
Microsoft Teams-integrated contact centers have a more predictable price range, generally costing $60 to $100 per user per month. Some vendors provide fixed pricing, while others offer custom quotes based on deployment size and feature requirements. Large organizations may qualify for volume discounts.
However, it’s important to understand what’s included with the subscription and check if there are one-time fees such as setup, CRM integrations, recording, etc., to make sure you compare accurately.
Cost Drivers
The price of a contact center solution depends on several factors:
- Feature Depth – More advanced routing, analytics, AI-powered chatbots, and omnichannel capabilities increase costs.
- Number of Agents – Larger teams may benefit from bulk discounts.
- Support & Professional Services – Some vendors include support in their base price, while others charge extra for implementation, training, or 24/7 customer support.
- AI & Usage-Based Pricing – While most contact centers prices are not affected by volume of interactions, as AI features become more common, they may be billed this way.
What to Watch Out For
Before committing to a contact center solution, consider:
- Are there setup fees? Some providers charge one-time implementation costs, especially for complex deployments.
- What is the cost of support? Is support included, or are different levels of support billed differently?
- Are there contract commitments? Some providers require long-term contracts (12+ months), while others offer month-to-month flexibility.
Call Center Costs
Cloud-Based Plans
Call center solutions tend to be slightly more affordable than full-featured contact centers, as they often focus primarily on voice-based communication rather than omnichannel engagement. Pricing generally ranges from $15 to $150 per user per month, depending on the level of functionality.
Basic cloud-based call center plans start at $15 to $30 per user per month, offering standard features like call routing, IVR, and basic reporting. More advanced plans, which include predictive dialing, call analytics, and CRM integrations, can reach $100 to $150 per user per month. Some providers also bundle unlimited domestic calling in the base price, while others charge per-minute rates.
On-Premise vs. Cloud-Based Call Centers
The cost structure for on-premise vs. cloud-based call centers is similar to that of contact centers.
Like Contact Centers, on-premise call centers require a large upfront investment. While there are no recurring software subscription fees, ongoing maintenance, IT staff, monthly phone line charges and support contracts add to the total cost of ownership.
Cloud-based call centers usually operate on a subscription model, with predictable monthly costs and easier scalability. They eliminate the need for upfront hardware investments and are often favored for their flexibility.
Usage-Based Pricing Options
Unlike contact centers, some call center providers offer usage-based pricing models, such as billing per minute or per call rather than per user. This model can be cost-effective for businesses with part-time agents or low call volumes, as they only pay for the actual usage. However, for organizations with high call volumes, a per-user subscription model may be more predictable and economical.
Cost Drivers
The price of a call center solution depends on:
- Feature Set – More advanced features like predictive dialers and call recording increase costs, but these advanced features tend to be less plentiful in call centers vs contact centers.
- Billing Model – Subscription-based pricing is more predictable, while usage-based pricing can be cheaper for businesses with fluctuating call volumes.
- Number of Agents – More agents typically lower the per-user cost with volume discounts.
- Telephony Costs – Some plans include unlimited domestic calling, while others charge per-minute fees for inbound or outbound calls, especially for international and toll-free numbers.
What to Watch Out For
- Are there hidden telephony costs? Some plans include unlimited calling, while others charge extra for minutes, toll-free numbers, or international calls.
- Is support included? Some providers offer free basic support, while others charge for premium service levels.
- Are there contract commitments? Some vendors lock customers into multi-year contracts, while others offer flexible, pay-as-you-go options.
FAQ: What is Call Center vs. Contact Center Cost?
Contact centers generally cost more than call centers due to their additional features like omnichannel communication, AI tools, and workforce management.
- Cloud-based Contact Centers: Range from $20 to $200 per user per month, depending on feature depth.
- On-premise Contact Centers: Require $700 to $1,000 per seat upfront, plus ongoing maintenance and support costs (15–25% of license cost annually).
- Microsoft Teams-integrated Contact Centers: Typically, $60 to $100 per user per month, with potential hidden costs for third-party services.
Call centers, which focus mainly on voice communication, tend to be more affordable:
- Cloud-based Call Centers: Cost $15 to $150 per user per month, with basic plans starting at $15–$30 per user.
- On-premise Call Centers: Require a $700 to $1,000 per seat upfront investment, similar to contact centers.
- Usage-Based Call Centers: Some providers bill per minute or call, which can be cost-effective for low call volumes but less predictable for high-volume operations.
Contact Center Software & Technology
Modern contact centers rely on powerful software solutions that continue to expand in their capabilities. Landis Contact Center for Microsoft Teams provides advanced features with deep integration into Microsoft Teams, ensuring a seamless, native Teams experience without the need for third-party add-ons.
Software solutions used in modern contact centers
Integration with Microsoft Teams
Landis Contact Center is built natively for Microsoft Teams, offering deep integration with Teams Calling and Presence. Unlike traditional contact centers that require external connectors, Landis works directly within your existing Teams environment.
- Agent Presence-Based Routing: Calls are assigned based on real-time Microsoft Teams presence, ensuring agents receive calls only when available.
- Teams-Based Call Management: Agents can handle, transfer, and escalate calls using familiar Teams interfaces.
- Supervisor Monitoring: Managers can use Listen, Whisper, and Barge features to assist agents in real-time.
- SSO (Single Sign On): Offers higher security by allowing users to log in through their Microsoft 365 credentials, reducing password-related risks.
Integration with CRM Software
A modern contact center needs seamless CRM integration to provide agents with full customer context. Landis Contact Center enables integration with leading CRMs like Microsoft Dynamics, Salesforce, and more through PowerApps or other app builders.
- Screen Pops & Data Dips: When a call arrives, agents see relevant customer information instantly – reducing the need for manual lookups.
- CRM Data Access: Landis supports webhooks that access or log data in CRM systems.
- Click-to-Dial from CRM: Agents can place calls directly from their CRM using Landis Contact Center’s native Teams dialing capabilities.
Features of Advanced Contact Center Software
Multichannel Integration
Landis Contact Center Focus:
- Native Teams Calling for seamless voice interactions.
- Upcoming Features planned for SMS and other omnichannel capabilities.
- Power Automate Support for automating routine tasks.
Advanced Analytics & Reporting
Landis Contact Center Reporting:
- Live Queue Status lets managers monitor active calls and agent availability in real time.
- Queue & Agent Analytics offer historical reporting on call volumes, wait times, and service levels.
- Customizable Dashboards help visualize data and identify trends for better decision-making.
AI Automation & Chatbots
Landis Contact Center AI Capabilities:
- Sentiment Analysis to gauge caller emotions.
- Live Call Transcription for real-time call insights.
IVR Offering Call Routing and Self-Service Options
Landis IVR Features:
- Advanced Call Routing based on skills, Teams presence, or time of day.
- Self-Service Options for balance inquiries, appointment scheduling, and more.
- Power Automate & Azure Integrations for customized IVR workflows.
- AI responses within IVR allowing for natural, conversational interaction.
CRM Integrations
Landis CRM Integration Benefits:
- Screen Pops show customer data when a call comes in.
- Syncs Call Logs & Notes to CRM platforms.
- Webhooks for Custom Integrations allow advanced automation between Teams and CRM.
FAQ: What is Contact Center Software?
Contact center software is a platform that manages customer interactions across multiple channels, improving efficiency, call handling, and agent productivity. Landis Contact Center is a Microsoft Teams-native solution that provides all the features of a contact center at a cost that is lower than some call centers.
Common Features of Contact Center Software:
IVR & Self-Service – Auto attendants to advanced call routing with data dips, and Power Automate workflows for AI integration and customer self-service.
Automatic Call Distribution (ACD) – Uses advanced queue features to route inbound calls to the most appropriate agent based on criteria like skills and availability.
Advanced Analytics & Reporting – Real-time queue monitoring, historical performance insights, and customizable dashboards for data-driven decision-making.
Manager Tools – Offers live queue details and live call statistics, wallboards, the ability to pick and complete calls from agents, and real-time supervisor tools such as Listen, Whisper, and Barge In.
Multichannel Capabilities – Unifies communication channels such as voice calls and web chats, with many solutions also supporting email and social media.
Call Recording – Records calls automatically for compliance and training while enabling quality monitoring and feedback.
CRM Integration – Connects to Microsoft Dynamics 365, Salesforce, and other CRMs, providing agents with real-time screen pops with caller context and automatic call logging.
AI Automation & Agent Assist – AI-powered sentiment analysis, live call transcription, and automated workflows to assist agents in real-time.
Cloud-Based Deployment: Delivers scalability, remote accessibility, and simplified maintenance through cloud-hosted solutions.
Microsoft Teams Integration – Enables Teams Presence-based routing and better security through Microsoft SSO logins.
Security and Compliance: Implements robust security measures and adheres to industry regulations to protect sensitive customer data.
How to Choose Between a Contact Center and a Call Center?
Choosing between a contact center and a call center depends on your business needs, customer service expectations, and budget. While both handle inbound and outbound calls, a call center focuses mainly on voice interactions, whereas a contact center supports multiple communication channels like chat, email, and social media.
Factors to Consider
Customer Service Expectations
- If your customers prefer phone-based support, a call center may be sufficient.
- If they expect self-service options, chat, or email support, a contact center is a better fit.
- Landis Contact Center for Microsoft Teams provides a scalable Teams-native voice solution with future omnichannel expansion.
Budget Constraints
- Call centers generally have lower costs, especially for small teams handling only voice calls.
- Contact centers provide more advanced features like AI, analytics, and CRM integrations, which can justify the higher investment for growing businesses.
- Landis Contact Center offers cost-effective pricing for Microsoft Teams users, eliminating the need for complex third-party systems.
Volume & Type of Customer Interactions
- If your business handles high call volumes and simple, repetitive inquiries, a call center may work best.
- If you need to manage complex customer interactions across multiple channels, a contact center provides more flexibility.
Need for Omnichannel Support
- If you only need phone support, a call center is enough.
- If you need chat, email, SMS, or social media integration, a contact center is the right choice.
Recommendations Based on Business Size
For Small Businesses
A call center may be the best option if you primarily handle customer calls and want a low-cost, easy-to-manage solution.
For Medium-Sized Businesses
Many mid-sized businesses assume a call center is all they need, but as they grow, they often benefit from the broader capabilities of a contact center. Landis Contact Center for Microsoft Teams offers an affordable, scalable solution with quick deployment and deep Teams integration. Even if you’re not ready for full omnichannel support today, having the flexibility to expand in the future can be a major advantage.
For Large Enterprises
A contact center is ideal if you require scalable, omnichannel customer engagement and advanced analytics for performance tracking.
The Future of Contact Centers & Call Centers
Customer service is evolving rapidly, driven by AI, cloud technology, and changing customer expectations. As businesses adapt, the future of contact centers and call centers will focus on automation, scalability, and deeper integrations with collaboration tools like Microsoft Teams.
Trends in Customer Support Technology
The Rise of AI Customer Service
- AI-driven chatbots and virtual assistants are reducing agent workload by handling common inquiries.
- AI-powered sentiment analysis helps supervisors monitor and improve customer interactions.
- Landis Contact Center integrates AI with real-time transcription, and sentiment analysis.
The Shift to Cloud-Based Contact Centers
- More organizations are moving away from on-premise solutions to scalable, cloud-based contact centers.
- Cloud solutions offer lower upfront costs, easier deployment, and remote work support.
- Landis Contact Center is a fully cloud-based solution, built natively for Microsoft Teams, eliminating the need for expensive, legacy infrastructure.
Final Thoughts: Choosing the Right Solution
- If your business relies on voice calls only, a call center may be the best fit.
- If you need advanced AI, CRM integration, and multi-channel support, a contact center is the smarter choice.
- Landis Contact Center provides a Microsoft Teams-native solution that offers scalability, real-time reporting, and enterprise-grade call routing, making it an ideal choice for businesses planning for the future.
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