A simple IVR system only requires a computer hooked up to a phone line through a telephony board and some inexpensive IVR software. The IVR software allows you to pre-record greetings and menu options that a caller can select using his telephone keypad.

More advanced IVR systems include speech-recognition software that allows a caller to communicate with a computer using simple voice commands. On the other end of the phone call, an organization can employ text-to-speech (TTS) software to fully automate its outgoing messages.

Most advanced IVR systems are based on a special programming language called voice extensible markup language (vxml). Here are the basic components of a VXML-based IVR system:

VXML telephony server

This special server sits between the phone network and the Internet network. It serves as an interpreter, or gateway, so that callers can interface with the IVR software and access information on databases.

Web/application server

This is where the IVR software applications live. There might be several different applications on the same server: one for customer service, one for outgoing sales calls, one for voice-to-text transcription.


Databases contain real-time information that can be accessed by the IVR applications. If you call your credit card company and want to know your current balance, the IVR application retrieves the current balance total from a database.


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