Seat Leasing pertains to business which allows companies to rent a call center package including space, computers, furniture, and other equipment needed for a call center to operate. Seat leasing is an alternative way to operate a call center business instead of buying an office and all equipment needed to operate. Seat leasing is ideal for small and starting call center companies who do not have the sufficient financial resources to invest in owning its own space and equipment for the company start up operations.
Call center leasing has basically three advantages. First of is the cost advantage of leasing. Leasing can radically cut IT costs because the initial cash outlay for buying IT equipment and infrastructure is high and usually eats up a great portion of investment. A company can also gain savings in maintenance, property accountability and depreciation of the asset. Secondly, with the rapid phase of technological obsolescence, leasing can allow a company to keep itself at pace with the need to upgrade equipment and thus make them more abreast with technological changes and advancements. Finally, leasing liberates a company from the regular inconvenience and problem of disposing fully depreciated equipment.
However, in as much as leasing has its benefits, it equally have its disadvantages. A major disadvantage of seat leasing is the loss of integrity and reliability. A company who does not own its office or have its own equipment may be deemed a “fly by night” company, which could definitely affect its marketing. Secondly, because a company doesn’t own the equipment or seat, all are considered as upfront expenses, which entail cash money for payment. The company cannot claim depreciation expenses or any tax incentives for their IT investment. Finally, a leased property usually has restricted use. One is restricted to the available technology provided by the leaser. In most cases, leasing arrangements involve three parties, the lessee, leaser and the supplier of the leaser. This makes availing of after sales service and maintenance a little more complicated.
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