|By PR Newswire||
|April 1, 2014 10:44 AM EDT||
LONDON, April 1, 2014 /PRNewswire/ -- Reportbuyer.com just published a new market research report:
Opportunities in a Mature Contact Center Market
Growth in Hosted ACD, Chat, and Integration with UC Systems
Frost & Sullivan forecasts that the total number of contact center seats will shrink from 4.1 million in 2012 to 4 million by 2017. Even so, there are opportunities for vendors in this mature market. For example, consider hosted solutions. Hosted delivery allows companies to cut costs by buying only the applications and capacity they need, an attractive on-demand value proposition. Hosting also provides companies with business continuity that allows them to support their customer contact operations when disasters strike.
According to Frost & Sullivan research, customers prefer to initiate contact with customer service agents rather than having agents contacting them. In turn, the inbound contact center has been built around the automatic call distributor (ACD), which routes most contacts to contact center agents.
But Frost & Sullivan also feels that the demand for both inbound and outbound contact centers, and by extension the demand for inbound contact routing (ICR) and dialling solutions, will slowly decline in North America. Frost & Sullivan forecasts that the total number of contact center seats will shrink from X million in 2012 to Xmillion by 2017.
Even so, there are opportunities for vendors in this mature market. For example, consider hosted solutions. Hosted delivery allows companies to cut costs by buying only the applications and capacity they need, an attractive on-demand value proposition. Hosting also provides companies with business continuity that allows them to support their customer contact operations when disasters strike.
Today's economy has forced companies to focus on acquiring and retaining high-value customers through improving the Customer Experience. The International Monetary Fund forecasts that the U.S. economy will expand from X percent in 2013 toX percent in 2014 and that the Canadian economy will grow fromX percent toXpercent over the same period. Meanwhile, the U.S. Census Bureau asserts that real median household income was X percent lower in 2012 than in 2007. Also, a study from UC Berkeley reports that incomes of the bottom X percent eked out a X percent increase from 2009 to 2012. But incomes of the top one percent expanded by Xpercent over the same time-frame (the "top" also captured 95 percent of the income gains over this period).
These dynamics are impacting the contact center marketplace in the following specific ways:
• Relentless Productivity Improvements. Companies continue to look for ways to shrink agent headcount. These methods include inbound and outbound call blending to avoid idle staff, improving agent performance to shorten calls and avoid follow-up calls (first contact resolution), and accurate schedule forecasting. Companies also are increasing the use of internal social communities that allow agents to quickly resolve customer issues.
Frost & Sullivan forecasts that hosted agent performance optimization (APO), which include call recording, customer interaction analytics, performance and quality management, and workforce management, will have the strongest growth of any contact center product segment. The North American hosted APO segment may experience an X percent compound annual growth rate (CAGR) from 2012 to 2017, compared with aX percent CAGR for the hosted contact center market and a Xpercent CAGR for the on-premise contact center systems market over the same period.
• Redoubled Focus on Cost Cutting. Companies are looking for additional savings in the face of revenues and profits that may be less than shareholders' expectations. And IT expenditures, like the contact center and its related technologies, are prime targets for cost reduction regardless of driver. Often, senior management sees contact centers as "infrastructure" that supports their companies' core business, but which does not produce core products or services. Management will look for underutilized applications, personnel, and facilities with a view toward consolidation.
Cloud/hosting ICR helps these executives meet these goals while maintaining a quality Customer Experience. For example, cloud solutions minimize the disruption to operations caused by traditional "rip-and-replace" of one vendor's on-premise software that might occur in the wake of an acquisition.
• Shift of Conversations from Agent Voice to Self-service and Social Channels. Customers now tend to initiate interactions with organizations through Web self-service before calling contact centers. Frost & Sullivan research shows that more customers are satisfied with Web self-service than with any other channel, including live agent calls.
Moreover, feedback from third party vendor surveys supports the argument that a large majority of consumers prefer using self-service mobile apps to other channels. Meanwhile, customer or peer assistance also will increase as more customers become more "social." Informal peer or formal company-sponsored social communities enable customers to exchange information, solve problems, and discuss products. These communities also provide benefits to companies by providing insight into the customer, helping build loyalty, and deflecting contacts away from live agents.
Table of Contents
Market–Shaping Trends 3
Demand for Hosted Solutions 7
Summary and Recommendations 11
Legal Disclaimer 14
The Frost & Sullivan Story 15
Read the full report:
Opportunities in a Mature Contact Center Market