Managing regulated customer communications today means walking a fine line between much needed control and complexity around those communications.
There are growing demands for personalization, faster delivery, multiple channels and regulatory compliance. As this complexity increases, organizations are rethinking how they host and manage their Customer Communications Management (CCM) software and required workflow.
There’s no one-size-fits-all answer. Hosting models vary in their costs, risks, and operational implications. Whether you’re maintaining legacy systems or preparing for cloud transformation, it’s important to understand what makes sense for your organization within each approach.
I wanted to explore the three most common hosting models — on-premise, fully outsourced, and hosted managed services — that we see at Ricoh and how we advise on the best option for any organization.
On-premise: full control, full accountability
Many organizations have relied on having their software on-premise to keep their CCM platforms and distribution of the regulated communications under direct control. This model can be reassuring, especially for those in heavily regulated industries or with strict data residency requirements.
The benefits are clear:
Complete oversight of infrastructure
Security protocols
Customization
Integrations
But this control comes at a cost. Maintaining infrastructure, staffing technical teams, managing compliance updates, and scaling capacity can quickly become resource and cost-intensive.
For organizations that are confident in their IT capacity and want granular control, on-premise may still make sense. But for many, it’s becoming harder to justify the overhead.
Fully outsourced: low overhead, less flexibility
Some businesses choose to hand off their entire CCM operation to a print service provider, which includes everything from platform and infrastructure to design, production and delivery. This approach simplifies internal operations and ensures predictable costs.
However, outsourcing can introduce limitations. It may reduce visibility into the status of communications and create delays when changes are needed.
This model is best suited for companies that can operate comfortably within the guardrails set by a vendor. For others, particularly those needing high agility or tight integration with their own workflows, systems and processes, it may feel too restrictive.
Hosted managed services (HMS): shared responsibility, strategic flexibility
Hosted Managed Services offer a hybrid approach. Your organization retains strategic control over communications, such as branding, content, rules, and delivery channels, while a partner manages the technical infrastructure and day-to-day operations.
This model is increasingly popular because it strikes a balance. It allows businesses to offload complexity while staying engaged in the customer experience. HMS is also a strong fit for companies in transition: those modernizing legacy systems, adopting cloud-first strategies, or expanding to new channels.
By working with a partner to handle system management, updates, scaling, and integrations, you reduce operational strain and free up your teams to focus on what really matters: delivering value to customers.
What to consider when choosing a model
No matter which direction you take, your decision should be guided by the following:
Internal capacity: do you have the technical resources to manage infrastructure long-term?
Regulatory needs: what compliance standards apply to your communications and how flexible must your hosting solution be?
Speed to change: how often do you update communications and how important is speed-to-market?
Integration needs: do you need to connect communications with other systems like CRMs, payment platforms, or customer journey tools?
Customer experience goals: how central are communications to the overall experience you want to deliver?
Final thoughts: the best solution is the one that balances risk and reward
Each model has its place. On-premise may appeal to those who prioritize total control. Full outsourcing may suit organizations looking to simplify. But for many, HMS offers a way to stay agile and involved while reducing operational drag.
If you’re evaluating your options, consider how each model aligns with your business strategy and not just your current IT capabilities. The right hosting choice should support both operational efficiency and long-term CX goals.
When you're ready, let us help you explore the best approach for your CCM environment; whether that’s hosted, hybrid, or something entirely your own.
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