Click here to close now.

SYS-CON MEDIA Authors: Elizabeth White, Liz McMillan, Carmen Gonzalez, AppDynamics Blog, Roger Strukhoff

News Feed Item

Frost & Sullivan: Moderate growth for Australia's contact centre applications market as momentum shifts towards hosted and cloud based solutions

As on-premise vendors struggle to drive growth, the emerging cloud based contact centre market will grow at a CAGR of 38.9%

SYDNEY, Feb. 4, 2014 /PRNewswire/ -- The Australian contact centre applications market grew 11.3% in 2012 from the previous year. Frost & Sullivan anticipates the on premise contact centre market to record moderate growth at a Compound Annual Growth Rate (CAGR) of 6.2% from 2012 to 2019. Performance optimisation, quality management and multimedia applications continue to be the main drivers of growth.

Large contact centres running complex solutions are more inclined towards on-premise solutions, but these tend to be resource and capital intensive to deploy and maintain. In addition, most on-premise deployments come with long contract terms, which organisations are becoming increasingly reluctant to commit to. Audrey William, Head of Research, ICT Practice, Frost & Sullivan ANZ says, "Organisations are increasingly evaluating alternative solutions offering similar capabilities with more flexible deployment and payment models; this is driving demand for hosted and hybrid solutions, where vendors such as Interactive Intelligence have been particularly successful."

While the market awareness of hosted contact centre solutions is high, the fully cloud based contact centre market is still at a nascent stage of growth. The cloud based contact centre market in Australia is expected to experience very high growth at a Compound Annual Growth Rate (CAGR) of 38.9% from 2012 to 2019 due to a small market base and growing demand from organisations adopting cloud based contact centre solutions.

Hosted contact centres are the preferred option for organisations moving away from the on-premise model. However, the cloud based contact centre market is in the early stages of growth as organisations remain concerned about reliability, security and availability issues of a fully cloud based contact centre model. A hosted contact centre solution with dedicated infrastructure mitigates most of these concerns, thereby serving as the preferred option for organisations.

"As momentum gathers towards third party hosted and delivered contact centre solutions, telcos with their network expertise, will be advantageously positioned to capitalise on this trend. Telcos will be well positioned to leverage their market reach to offer bundled solutions. Telstra and Optus have strong vendor partnerships to go with their carrier and local data centre capabilities. Additionally, global telcos such as BT are strengthening their market presence through vendor partnerships," adds William.

As the market matures, current challenges such as security and lack of vendor choice will be mitigated as the high growth rate will attract new entrants, increasing competition and improving market understanding of cloud based contact centre solutions. 

Future cloud contact centre market developments will focus on building local data centre capabilities to address security concerns. Vendors without local data centre capability will be severely challenged to secure customer wins and generate growth. Partnerships between major telcos and systems integrators, such as IPscape's with Telstra Global, to address the cloud based market, will be a strategic focus for cloud contact centre vendors.

Frost & Sullivan's research, Australian Contact Centre Market 2013 reports that while on-premise deployments are currently the preferred deployment model for Australian contact centre solutions, the market is moving towards a third party managed and delivered model. Interactive Intelligence and Nuance were the only vendors to record double digit revenue growth in 2012, indicating a shift in the contact centre applications market. Nuance holds the advantage of operating in a niche market segment of voice and speech based technologies, where it holds a dominant market share. On the other hand, Interactive Intelligence has achieved growth through its ability to offer a breadth of solutions over on-premise or hosted deployment models. Although growing from a small base, its growth is reflective of the demand for flexible deployment models.

Contact centre vendors, Verint Systems and NICE Systems, have leveraged their expertise in surveillance and data monitoring to offer analytics and optimisation solutions. The ability to convert data into actionable information combined with strong industry and channel partnerships gives these vendors a strong presence in the market.

Anand Balasubramanian, Industry Analyst, ICT Practice, Frost & Sullivan ANZ, says "The growing focus on analytics and big data has encouraged specialised vendors to enter the market. For example, [24]7 started with contact centre solutions and now focuses almost entirely on customer experience solutions and analytics, differentiating itself from other analytics focused vendors by using predictive analytics. With contact centres moving beyond IVRs and ACDs to include other applications such as optimisation and analytics, new vendors offering integrated or specialised stand-alone applications will emerge."

Contact centre vendors are also integrating social media engagement and analysis capabilities with core contact centre solutions. "Offering proactive support, monitoring and tracking of trends across social media sites such as Facebook, Twitter, LinkedIn and Instagram provides a single platform for information consolidation, enabling businesses to spot specific trends and extend customer support over social networking sites. Genesys is promoting its Social Engagement platform as an integrated application while Interactive Intelligence acquired Buzzient, which specialises in integrating business applications such as CRM with social media sites. Social media and customer experience focused vendors such as RightNow (Oracle) will benefit from the demand and offer solutions to integrate with a vendor's contact centre platform," added Balasubramanian.

In July 2013 Frost & Sullivan surveyed 227 IT decision makers in Australia to understand views toward contact centres and some of the findings include:

  • 60% of Australian organisations are using on-premise contact centre solutions. 17% of organisations are using hosted contact centres. Just over 10% of organisations have partly migrated to a fully cloud based contact centre solution, where the vendor offers the solution from its own or partner hosted data centres.
  • Over 60% of organisations are likely to evaluate or deploy cloud based solutions in the next two years.
  • The main requirements for contact centres over the next two years will be providing multi-channel support and implementing optimisation solutions.

Frost & Sullivan Australian Contact Centre Market Report 2013, forms a part of the Frost & Sullivan Enterprise Communications Research program. All research services included in this subscription provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants. The report also includes survey results and statistics of 227 IT decision makers in Australia to understand market behaviour and views towards Unified Communications and Contact Centre Solutions. Respondents were senior management level executives, IT managers and IT decision makers with control of or insight into the technology budget and strategy of their organisation.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies? Contact us: Start the discussion

Contact:

Donna Jeremiah
Corporate Communications – Asia Pacific
P: +61 (02) 8247 8927
F: +61 (02) 9252 8066
E: [email protected]

http://www.frost.com

SOURCE Frost & Sullivan

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
The true value of the Internet of Things (IoT) lies not just in the data, but through the services that protect the data, perform the analysis and present findings in a usable way. With many IoT elements rooted in traditional IT components, Big Data and IoT isn’t just a play for enterprise. In fact, the IoT presents SMBs with the prospect of launching entirely new activities and exploring innovative areas. CompTIA research identifies several areas where IoT is expected to have the greatest impac...
Wearable devices have come of age. The primary applications of wearables so far have been "the Quantified Self" or the tracking of one's fitness and health status. We propose the evolution of wearables into social and emotional communication devices. Our BE(tm) sensor uses light to visualize the skin conductance response. Our sensors are very inexpensive and can be massively distributed to audiences or groups of any size, in order to gauge reactions to performances, video, or any kind of present...
There is little doubt that Big Data solutions will have an increasing role in the Enterprise IT mainstream over time. 8th International Big Data Expo, co-located with 17th International Cloud Expo - to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA - has announced its Call for Papers is open. As advanced data storage, access and analytics technologies aimed at handling high-volume and/or fast moving data all move center stage, aided by the cloud computing bo...
The 4th International Internet of @ThingsExpo, co-located with the 17th International Cloud Expo - to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA - announces that its Call for Papers is open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
Every day we read jaw-dropping stats on the explosion of data. We allocate significant resources to harness and better understand it. We build businesses around it. But we’ve only just begun. For big payoffs in Big Data, CIOs are turning to cognitive computing. Cognitive computing’s ability to securely extract insights, understand natural language, and get smarter each time it’s used is the next, logical step for Big Data.
There's no doubt that the Internet of Things is driving the next wave of innovation. Google has spent billions over the past few months vacuuming up companies that specialize in smart appliances and machine learning. Already, Philips light bulbs, Audi automobiles, and Samsung washers and dryers can communicate with and be controlled from mobile devices. To take advantage of the opportunities the Internet of Things brings to your business, you'll want to start preparing now.
DevOps Summit, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developmen...
In a world of ever-accelerating business cycles and fast-changing client expectations, the cloud increasingly serves as a growth engine and a path to new business models. Dynamic clouds enable businesses to continuously reinvent themselves, adapting their business processes, their service and software delivery and their operations to achieve speed-to-market and quick response to customer feedback. As the cloud evolves, the industry has multiple competing cloud technologies, offering on-premises ...
The 5th International DevOps Summit, co-located with 17th International Cloud Expo – being held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the...
Over the years, a variety of methodologies have emerged in order to overcome the challenges related to project constraints. The successful use of each methodology seems highly context-dependent. However, communication seems to be the common denominator of the many challenges that project management methodologies intend to resolve. In this respect, Information and Communication Technologies (ICTs) can be viewed as powerful tools for managing projects. Few research papers have focused on the way...
As the world moves from DevOps to NoOps, application deployment to the cloud ought to become a lot simpler. However, applications have been architected with a much tighter coupling than it needs to be which makes deployment in different environments and migration between them harder. The microservices architecture, which is the basis of many new age distributed systems such as OpenStack, Netflix and so on is at the heart of CloudFoundry – a complete developer-oriented Platform as a Service (PaaS...
In high-production environments where release cycles are measured in hours or minutes — not days or weeks — there's little room for mistakes and no room for confusion. Everyone has to understand what's happening, in real time, and have the means to do whatever is necessary to keep applications up and running optimally. DevOps is a high-stakes world, but done well, it delivers the agility and performance to significantly impact business competitiveness.
17th Cloud Expo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises a...
Hybrid IT is an approach to delivering IT services that matches business requirements and application needs with different IT deployment modalities. In their session at 16th Cloud Expo, Jeff Katzen, Director of the Cloud Practice at CenturyLink, and Gary Sloper, Area Vice President, Sales Engineering and Operations, at CenturyLink, will go into more depth around those different modalities and how customers have made decisions to choose between them. They will talk to some of the challenges t...
SAP is delivering break-through innovation combined with fantastic user experience powered by the market-leading in-memory technology, SAP HANA. In his General Session at 15th Cloud Expo, Thorsten Leiduck, VP ISVs & Digital Commerce, SAP, discussed how SAP and partners provide cloud and hybrid cloud solutions as well as real-time Big Data offerings that help companies of all sizes and industries run better. SAP launched an application challenge to award the most innovative SAP HANA and SAP HANA...