America remains the largest contact center market, and APAC the fastest growing.
The contact center market has been registering a positive growth rate for the past five years, and this growth is expected to gain momentum in the coming years. Innovation and proliferation of digital technologies has changed customers' interaction with companies, and customers are now using different channels such as the web and self-service options. Many organizations prefer to include a contact center as a strategic part of their organization. Moreover, some organizations prefer to outsource their call center functions to a third party to improve the customer experience.
Americas - The Largest Contact Center Market
The contact center market in the Americas is expected to exceed USD 5 billion by 2019, growing at a compound annual growth rate (CAGR) of over 7 percent predicts Technavio.
The U.S., Canada, and Latin America are the key regions in this market. The U.S. held a major market share of about 50 percent of the market in the Americas in 2014. Latin American countries such as Brazil, Costa Rica, Guatemala, and Argentina are key adopters of contact centers.
The close proximity to clients and proficiency in English and Spanish languages are some of the advantages of contact centers in Latin America. However, the strong currency in the region, language barriers in Brazil, and the unstable political environment in Mexico are some of the factors that impede the growth of the contact center market in this region.
EMEA - The Major Contributor
The contact center market in EMEA is expected to exceed USD 3 billion by 2019, growing at a CAGR of over 11 percent.
Europe is the major contributor in this region. However, countries in Eastern Europe and Africa are seen as potential markets for contact center functions. EMEA's close proximity to business service outsourcing clients in the U.S. and Europe offers the benefits of time-saving, high-quality service, and customer satisfaction, making the region a favorable location for contact center functions.
Some countries in EMEA such as South Africa, Tunisia, Ghana, Kenya, Poland, Hungary, the Czech Republic, and Slovakia are expected to be the key contributing countries over the next five years.
APAC - The Fastest Growing Market
The contact center market in APAC is expected to exceed USD 1 billion by 2019, growing at a CAGR of almost 13 percent.
In 2014, APAC accounted for 11 percent of the global contact center market. Countries such as China, India, Australia, the Philippines, Vietnam, and Malaysia are expected to be the leading contributors to the market in this region and are expected to witness an increased growth rate over the next five years.
Globally, the key vendors are Alcatel-Lucent, Avaya, Cisco Systems, and Huawei Technologies. Some of the other prominent vendors are 3CLogic, 8x8, Aastra, Altitude Software, Aspect Software, Connect First, Convergys, CRMXchange, Enghouse Interactive, Five9, Fujitsu, Genesys, HP, and IBM.
An Evolving Market
Over the last decade, contact centers have experienced an extensive evolution.
The new tech-savvy consumers seek instant and painless gratification in their interactions via the channel of their choice. There is growing realization that contact center outsourcing is not just a cost-containment measure, but also a means to drive strategic initiatives impacting business outcomes. These changes present an opportunity for service providers to have a significant impact on their clients' performance. They also mean a departure from the growth strategy used by providers so far - expanding operations to leverage economies of scale.
In line with rapid changes in global economic conditions, the dynamics of this market are also changing across various business environments. Contact centers have now become more focused on using advanced technology to provide the best service to their customers. Currently, contact centers are adopting new technologies to perform multichannel operations.
The proactive reach of multiple channels in contact centers through the use of cutting-edge modern technologies such as unified communications and business intelligence (BI) tools help in managing and analyzing big data. For instance, many organizations are adopting BI software systems that largely work only on structured data. The actual voice of the customers forms the most important database of BI in a company. The majority of organizations are providing all-in-one single contact center platforms that are available on the cloud, on premises, or through managed services.
Connected Analytics for contact centers. The need to integrate contact channels such as mobile, chat and social media, and implement omni-channel customer-experience strategies is driving companies to upgrade their contact center systems and capabilities. They have already begun to invest in application functionalities and last-generation technologies that enable transparency, delivery of a high-quality, personalized experience, and greater awareness about their customer base.
Many contact centers are now using analytics and reporting to focus on call quality and make sure that customers receive optimal experience. Real-time customer data combined with predictive analytics will allow customer service to go beyond basic automation. Analytics such as call analysis, wrap-up code analysis, and agent analysis can boost operational efficiency in the call center. This helps lower operating costs and boost revenue.
Simplifying big data is one way that analytics help contact centers break down the information they gather on a daily basis and sort it in ways that are manageable, easy to understand, and just as easy to turn into actionable strategies for improvement.
Key metrics related to cost and employee forecasting can help accurately plan for seasonal and other cyclical business changes and project expected results. Once implemented, analytics show exact gains and losses from implemented changes and further steps where refinements can be made to optimize operations.
The emergence of an intelligent support layer will enable actions to be taken based on real-time data and predefined automatic processes.
Continuing Adoption of Cloud Computing
The continuing adoption of cloud computing is well-documented; enterprises of all sizes are particularly receptive to the possibilities for their contact centers and customer interaction environments. This results in better customer experience and enables customer expectations to be met with advanced level of interaction.
The global cloud-based contact center market is expected to grow from USD 4.68 billion in 2015 to USD 14.71 billion by 2020, at a CAGR of 25.7 percent.
A dominant factor driving the growth of this market is the financial benefit of moving expenses from capital expenditure to operating expenditure, thereby avoiding costly infrastructure. By deploying cloud-based contact centers, businesses can avoid upfront investment in infrastructure and vendor licenses, and can opt for a payment model based on the usage. A cloud-based contact center is easy and fast to deploy as the services are offered over the Internet. Cloud call centers also enjoy unlimited scalability and flexibility as compared to on-premise centers.
The cloud-based contact center market has seen rapid adoption across various verticals, such as banking, financial services, and insurance (BFSI), IT and telecom, media and entertainment, and retail, which has led to rapid growth of the market, globally. Cloud-based solutions have a wide scope as they find acceptability across all verticals. Ease of deployment of cloud and low initial investments are the contributing factors for the growth of the market and are finding increased acceptance among the enterprises of all sizes.
Business leaders are turning to the cloud to achieve differentiation in customer service rather than immediate and long-term cost savings. Cloud tools such as automatic call distribution and dialers, agent performance optimization, and interactive voice response allow contact center managers to get more out of their agents, while reducing the time that customers wait on the phone. Many contact centers are now using analytics and reporting to focus on call quality and make sure that customers receive optimal experience. Calls can be tracked and analyzed, and this is driving improved results.
The cloud-based contact center market is consolidated with key players such as Interactive Intelligence, Cisco Systems, Five9, Oracle Corporation, and Genesys Telecommunications. These players adopted various strategies of new product developments, partnerships, collaborations, and business expansions to cater to the needs of the market. The market players have adopted new product launches and enhancements as a major strategy to expand their security portfolio, market shares, and customer base.
People generally think contact center solution as a call center or BPO solution only. But the fact is contact center solution is the backbone of all businesses communication. Wherever you need to connect people on phone call/SMS/email, etc., you need contact center solution to manage your communication professionally. It can be corporate, SME, help desk, PSU, government department, or an NGO. And the latest trend of connectivity is not just telephone calls, but peopleprefer to connect their clients with all communication mediums like phone call, SMS, email, mobile app, social media, fax, web portal, etc.,and should connect to your existing CRM/ERP web portal. The best contact center solution can handle all communication mediums together ona single platform. Another trend is that it is not necessary for call center executives to sit in office; these days, people prefer to connectthem on the move, which means that our agent can be connected on IP phone, existing PBX, mobile phone, landline, etc.
Contact center solution does not mean a complicated technology but it isthe technology which makes your life easy and helps you to manage communication professionally. People misunderstand that it is a very costly technology and that they need to buy from some MNC. But the fact is that world-standard technology is available here in India itself.
CEO & Founder,
Aria Telecom Solutions (P) Limited
Great Momentum in the Cloud-Based Contact Center Infrastructure
The past 12 months have been outstanding for the cloud-based contact center infrastructure market, the best in the history of this sector. Companies are moving their contact centers to the cloud to realize the flexibility, agility, scalability, and cost benefits of this implementation model. The new seats are coming from competitive replacements of dated on-premise solutions and a growing number of first-time users who are attracted to the cloud-based model, with its low start-up costs and ready availability of experienced vendor resources to assist with implementations and ongoing operations.
There is great momentum in all aspects of the cloud-based contact center infrastructure solutions market. The 150+ cloud-based contact center vendors are bringing a great deal of innovation, creativity, and expertise to the market, giving enterprises a large and growing number of options. The platforms have improved tremendously, and vendors are starting to deliver 99.999 percent reliability. Contact center departments in most verticals, including financial services, which have been one of the holdouts, have started to adopt cloud-based contact center infrastructure.
Cloud-based contact center solutions are not a perfect fit for every organization, and there remain compelling reasons for companies to purchase premise-based contact center infrastructure solutions. Enterprises of all sizes, however, need to be able to respond rapidly to changing market conditions and customer needs. As more innovation comes from the nimbler cloud-based contact center infrastructure vendors, businesses will increasingly look to acquire solutions from these providers, especially when they are challenged by financial, resource, or time constraints.
With so many factors in its favor, the future of the cloud-based contact center infrastructure market looks very bright. DMG projects that the number of cloud-based contact center infrastructure seats will grow by 30 percent in 2015, 25 percent in 2016 and 2017, and 20 percent in 2018 and 2019. At the same time, the breadth and depth of these solutions will increase, growing the rate of revenue faster than the seat count.