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2015-2016 Contact Center Workforce Management Product and Market Report

DMG Consulting's eighth annual ‘Contact Center Workforce Management Product and Market Report’ provides the most accurate, comprehensive coverage of this technology sector. The Report's 374 pages contain all of the vendor, product, trend and market data that contact center, backoffice and IT leaders need to find the right WFM solution for their environment, and to implement it successfully.

For more than three decades, workforce management (WFM) has been an indispensable tool for contact centers. WFM solutions have a long history and proven track record of delivering productivity improvements, but there has been little in the way of innovation in these products for many years. It looks like 2015 is going to be a turning point for the WFM sector, however. The market is finally waking up, due to new opportunities in back-office operating areas and branches and the ability to more easily deliver the solution to smaller companies via the cloud.

Although early adoption of WFM in the back office and branches has been slow, these parts of the collective enterprise employ millions of workers, and there is significant opportunity for users to leverage the benefits WFM delivers. In addition, the cloud is helping to make WFM functionality accessible to contact centers and operating areas of all sizes, which is expanding the addressable market for these valuable solutions. These factors are combining to initiate an overdue wave of vendor investments and research and development (R&D), which is attracting the attention of enterprises that are eager for improvements to mission-critical WFM applications.

2014 was a strong year for the WFM market, given its maturity, albeit not quite as good as 2013. The WFM sector grew by 11.2%, an increase of 900,556 seats. NICE, Verint and Aspect continue to lead the WFM market with a combined 60% share, but many smaller and emerging competitors are gaining traction - notably some hailing from outside of the United States.

WFM solutions are intended to reduce servicing, sales and processing costs through better agent/employee utilization, since agents are the most expensive resource in most enterprises. These solutions provide forecasting capabilities - some are now using new simulation modeling in addition to the traditional algorithms - so organizations can best anticipate the number of agents they need. They also offer scheduling tools, the best of which empower employees to make and change their own schedules (to the extent permitted by management). And now, vendors are innovating and retrofitting their front-office WFM solutions to take advantage of what DMG estimates to be a back-office WFM opportunity that is 2.6 times larger than the contact center sector.

Solutions from larger competitors continue to be the most advanced, but emerging players are seeing growing adoption due to their flexibility, newer functionality and ease of use. Users are clamoring for better, more accurate WFM solutions, and no longer feel tied to their incumbent vendors, since there are so many options available. The entire vendor community - especially the newer competitors - is striving to make WFM solutions more appealing by investing in R&D features to meet back-office and branch needs, as well as improving user interfaces and enhancing omni-channel capabilities.

As has been the case for a few years, prospects can purchase a WFM solution in a variety of ways: as a stand-alone product, as part of a workforce optimization (WFO) suite, or from their automatic call distributor (ACD) vendor. The functionality, price, ease of use and benefits vary greatly. DMG advises buyers to conduct thorough due diligence before choosing a WFM technology provider, specifically studying the detailed differences between solutions designed for the front and back office.

DMG expects WFM revenue to grow by 13% in 2015 and 2016, and 12% in 2017 and 2018. The primary drivers of this growth will be further development of the back-office and branch opportunity, increasing adoption of cloud-based solutions by small and mid-sized businesses, and the replacement cycle of outdated WFM solutions with newer, easier-to-use applications.

The ‘2015 - 2016 edition of the Contact Center Workforce Management Product and Market Report’ provides a detailed review of nine leading and contending WFM vendors. The vendors covered in-depth in this Report are: Calabrio, Interactive Intelligence, NICE/IEX, Noble Systems, Teleopti and Verint. Three solutions - inContact, Intradiem and WorkFlex - are covered at a high level.

Key Reasons to Buy This Report

  • Overview of the enterprise WFM market segments
  • Examination of the core, value-added and optional functional components that comprise top WFO suites, including the defining characteristics and capabilities of each module and a high-level comparative analysis of the WFM suite capabilities of the nine featured solution providers
  • Review of service delivery options available for WFM solutions, and the advantages and drawbacks of each
  • Discussion of new WFM functionality that has recently been introduced and is planned to be delivered in the next 12 - 18 months
  • A look at the trends and challenges that are driving investments by enterprises and WFM vendors
  • Focus on how WFM is being applied to address the top market, business and servicing trends, including multi-channel WFM and agent engagement and empowerment
  • A critique of WFM intra-day management capabilities and the reasons why they are not doing the job
  • Review of the challenges involved in accurate forecasting
  • Discussion of how real-time adherence capabilities keep staffing levels and agent performance on track
  • Analysis of the emerging back-office and branch capabilities of the six featured WFM suite providers
  • WFM market activity and market share analysis, adoption rate, and four-year projections for 2015 - 2018
  • Review of the WFM competitive landscape
  • Company snapshots and product overviews for the six featured WFM vendors, including high-level functional and technical summary
  • Analysis of ROI and the benefits enterprises should expect to realize from a successful WFM implementation
  • Implementation analysis, including vendor best practices, maintenance and support policies, workshops, training and professional services
  • Comprehensive vendor satisfaction survey results that measure and rank vendor approval ratings across 24 product components and 11 vendor categories
  • Vendor pricing analysis for 75-, 300- and 500-seat on-premise, cloud-based, and managed service WFM implementations
  • In-depth, side-by-side comparative analyses of the key functional and technical capabilities of the six leading and contending WFM vendors covered in detail in this Report
  • Company reports for the nine leading and contending vendors, analyzing their products, functionality and future product development plans
  • Comprehensive WFM Vendor Directory, featuring contact center and back-office WFM competitors

Report Highlights

  • Growth is strong, and 2015 may be a breakout year: The WFM market grew by 11.2% in 2014, an increase of 900,556 seats. While this is a slower increase than in 2013, it is still a strong showing for a sector that is highly penetrated. 2015 has the potential to see those numbers go up relatively significantly if vendors are able to open up the back-office and branch opportunity, and also take advantage of the upgrade cycle.
  • Innovation is coming back to this mature market: Vendors are finally waking up to the importance of making investments in their outdated solutions. End users in front and back-office operating areas are demanding new and improved user interfaces and functionality. Look for investments in the cloud, back office and branch capabilities, and new functionality, like using simulations for forecasting. R&D investments are strong, especially by the smaller emerging players who intend to give the bigger vendors a run for their money.
  • Back-office/branch opportunities are invigorating the market:With more than 2.6 times the number of contact center employees, the back-office opportunity represents a significant growth opportunity for the WFM sector. DMG expects WFM revenue to grow by 13% in 2015 and 2016, and 12% in 2017 and 2018. With more small and medium-sized companies investing in cloud-based solutions and many organizations updating WFM applications that have been in place for a decade or more, there is the possibility for growth beyond even these predictions.

SAMPLE FIGURE

WFM Functional Building Blocks

                        Source: DMG Consulting LLC, March 2015.

Table of Contents

1. Executive Summary

2. Introduction

3. DMG Consulting Research Methodology

  • 3.1. Report Participation Criteria

4. Workforce Management Market Segments

  • 4.1. WFM Vendor-Supported Market Segments

5. Workforce Management Functional Building Blocks

  • 5.1. Core, Value-Added, Optional

6. Vendor Service Delivery Models

  • 6.1. DMG Service Delivery Definitions
  • 6.2. Vendor Service Delivery Options

7. Workforce Management Trends and Challenges

  • 7.1. Workforce Management Trends
  • 7.2. Workforce Management Challenges

8. Workforce Management Market Innovation

  • 8.1. New Product Features
  • 8.2. Future Enhancements

9. Using WFM to Address Market, Business and Servicing Trends

  • 9.1. Multi-Channel WFM
    • 9.1.1. Vendor Multi-Channel Functionality
    • 9.1.2. Algorithms for Multi-Channel Forecasting and Scheduling
  • 9.2. Agent Engagement and Empowerment
    • 9.2.1. Agent Self-Management Capabilities
    • 9.2.2. Agent Gamification Capabilities
  • 9.3. Adaptive Real-Time Intelligent Routing
    • 9.3.1. “Up Close and Personal” with Adaptive Real-Time Intelligent Routing Strategies
  • 9.4. Mobility

10. The Challenge of Intra-Day Management

  • 10.1. Vendor Intra-Day Management Capabilities
  • 10.2. Re-forecasting

11. Shrinkage

  • 11.1. Vendor Shrinkage Capabilities

12. Real-Time Schedule Adherence and Compliance

13. WFM for the Back Office

  • 13.1. Vendor Back-Office and Branch Capabilities
  • 13.2. Back-Office Implementation Analysis
  • 13.3. Back-Office WFM Benefits and ROI
    • 13.3.1. Vendor Back-Office WFM Benefits
    • 13.3.2. Vendor Back-Office ROI

14. Workforce Management Market Activity Analysis

  • 14.1. Validating Market Numbers
  • 14.2. WFM Market Share Analysis

15. Workforce Management Market Adoption

16. Workforce Management Projections

17. Contact Center Workforce Management Competitive Landscape

18. Workforce Management Vendors and Solutions

  • 18.1. Company Snapshot
  • 18.2. Vendor Offerings and Products

19. High-Level Functional Summary

20. High-Level Technical Summary

  • 20.1. Security
  • 20.2. System Administration

21. Workforce Management Benefits and Return on Investment

  • 21.1. Benefits
  • 21.2. Return on Investment Analysis

22. Implementation Analysis

  • 22.1. Implementation Process
  • 22.2. Implementation Best Practices
  • 22.3. Training and Services
  • 22.4. Maintenance and Support

23. Workforce Management Vendor Satisfaction Analysis

  • 23.1. Summary of Survey Findings and Analysis
  • 23.2. Detailed Survey Findings and Analysis
  • 23.3. Customer Insights
    • 23.3.1. Activities Supported by WFM

24. Pricing

  • 24.1. Premise-Based Pricing
  • 24.2. Cloud-Based Pricing
  • 24.3. Managed Service Pricing

25. WFM Suite Detailed Functional Analysis

  • 25.1. Forecasting
  • 25.2. Scheduling
  • 25.3. Time-Off Management
  • 25.4. Long-Term Planning and Budgeting
  • 25.5. Reporting, Dashboards, Alerts and Scorecards

26. Company Reports

  • 26.1. Calabrio
  • 26.2. inContact
  • 26.3. Interactive Intelligence
  • 26.4. Intradiem
  • 26.5. NICE Systems
  • 26.6. Noble Systems
  • 26.7. Teleopti
  • 26.8. Verint
  • 26.9. WorkFlex

Appendix: Workforce Management Vendor Directory

TABLE OF FIGURES

  • Figure 1: WFM Market Segments
  • Figure 2: WFM Market Segments Supported, by Vendor
  • Figure 3: Contact Center WFM Building Blocks
  • Figure 4: Service Delivery Models, Advantages and Disadvantages
  • Figure 5: DMG's Service Delivery Model Definitions
  • Figure 6: WFM Vendor Service Delivery Options
  • Figure 7: WFM Trends
  • Figure 8: WFM Challenges
  • Figure 9: New Product Features
  • Figure 10: New Product Features, by Category
  • Figure 11: Future Application Enhancements, by Category
  • Figure 12: Multi-Channel Contact Center
  • Figure 13: WFM Multi-Channel Functionality
  • Figure 14: Multi-Channel Servicing Requirements
  • Figure 15: Erlang C is NOT Always the Answer
  • Figure 16: Algorithms
  • Figure 17: Agent Self-Service
  • Figure 18: Agent Self-Management Capabilities
  • Figure 19: Gamification
  • Figure 20: Adaptive & Intelligent Real-Time Routing Defined
  • Figure 21: Benefits of Adaptive and Intelligent Routing
  • Figure 22: Adaptive Real-Time Intelligent Routing Strategies
  • Figure 23: WFM Mobility Features
  • Figure 24.1: Intra-Day Management
  • Figure 24.2: Intra-Day Management
  • Figure 25.1: Vendor Re-Forecasting Capabilities
  • Figure 25.2: Vendor Re-Forecasting Capabilities
  • Figure 26: Shrinkage
  • Figure 27: Real-Time Adherence
  • Figure 28: Vendor Back-Office Branch Capabilities
  • Figure 29: Back-Office Implementation Timeframes, by Vendor
  • Figure 30: Benefits of Back-Office WFM Suites
  • Figure 31: Quantifiable Benefits for a Back-Office WFM Solution, by Vendor
  • Figure 32: Back-Office WFM Return on Investment (in months)
  • Figure 33: WFM Market Activity, as of December 31, 2014
  • Figure 34: Intra-Day Management Market Activity by Vendor, as of December 31, 2014
  • Figure 35: WFM Market Activity by Vendor, as of December 31, 2014
  • Figure 36: WFM Market Share by Number of Seats, as of December 31, 2014
  • Figure 37: WFM Market Share by Number of Seats, as of December 31, 2014
  • Figure 38: Total Number of WFM Seats, 2014 vs. 2013 Comparison
  • Figure 39: Total Number of WFM Seats, 2007 - 2014 Trends
  • Figure 40: WFM Projections, 2015 - 2018
  • Figure 41.1: Company Information as of December 31, 2014
  • Figure 41.2: Company Information as of December 31, 2014
  • Figure 42: Product Modules
  • Figure 43: High-Level Functional Summary
  • Figure 44: High-Level Technical Summary
  • Figure 45: Security
  • Figure 46: System Administration
  • Figure 47: Benefits
  • Figure 48: Return on Investment (in months)
  • Figure 49: Implementation Process
  • Figure 50: Implementation Best Practices
  • Figure 51: Training, Documentation and Professional Services
  • Figure 52: Maintenance and Ongoing Support
  • Figure 53: Customer Survey Rating Categories
  • Figure 54: Average Satisfaction Ratings, by Category
  • Figure 55: Product Satisfaction Ratings, by Category
  • Figure 56: Ease of System Configuration and Set-up Satisfaction Ratings, by Customer
  • Figure 57: Ease of Ongoing Use and Maintenance Satisfaction Ratings, by Customer
  • Figure 58: Ease of Integration with Third-Party Applications Satisfaction Ratings, by Customer
  • Figure 59: Ability to Customize the User Interface to the Client's Needs Satisfaction Ratings, by Customer
  • Figure 60: Forecasting Accuracy Satisfaction Ratings, by Customer
  • Figure 61: Scheduling Features and Effectiveness Satisfaction Ratings, by Customer
  • Figure 62: Intra-Day Management Capabilities Satisfaction Ratings, by Customer
  • Figure 63: Real-Time Adherence Features Satisfaction Ratings, by Customer
  • Figure 64: Agent Self-Service Features Satisfaction Ratings, by Customer
  • Figure 65: Ability to Support Agent Preferences Satisfaction Ratings, by Customer
  • Figure 66: Ability to Support Complex and Varied Work Rules Satisfaction Ratings, by Customer
  • Figure 67: Time-Off Management Features and Functionality Satisfaction Ratings, by Customer
  • Figure 68: Multi-Channel Forecasting and Scheduling Capabilities Satisfaction Ratings, by Customer
  • Figure 69: Ability to Support Blended Channels Satisfaction Ratings, by Customer
  • Figure 70: Mobile Capabilities Satisfaction Ratings, by Customer
  • Figure 71: Gamification Capabilities Satisfaction Ratings, by Customer
  • Figure 72: Long-Term Planning Capabilities Satisfaction Ratings, by Customer
  • Figure 73: Budgeting/Cost Management Capabilities Satisfaction Ratings, by Customer
  • Figure 74: Ability to Support Recruitment/Hiring Management Satisfaction Ratings, by Customer
  • Figure 75: Timekeeping and Payroll Management Features Satisfaction Ratings, by Customer
  • Figure 76: Back-Office Functionality Satisfaction Ratings, by Customer
  • Figure 77: Branch Functionality Satisfaction Ratings, by Customer
  • Figure 78: Dashboards Satisfaction Ratings, by Customer
  • Figure 79: Reporting Satisfaction Ratings, by Customer
  • Figure 80: Implementation Satisfaction Ratings, by Customer
  • Figure 81: Training Satisfaction Ratings, by Customer
  • Figure 82: Professional Services Satisfaction Ratings, by Customer
  • Figure 83: Ongoing Service and Support Satisfaction Ratings, by Customer
  • Figure 84: Current Product Satisfaction Ratings, by Customer
  • Figure 85: Product Innovation Satisfaction Ratings, by Customer
  • Figure 86: Maintenance Cost Satisfaction Ratings, by Customer
  • Figure 87: Responsiveness to Product Enhancement Requests Satisfaction Ratings, by Customer
  • Figure 88: Vendor Communication Satisfaction Ratings, by Customer
  • Figure 89: Pricing Satisfaction Ratings, by Customer
  • Figure 90: Overall Vendor Satisfaction Ratings, by Customer
  • Figure 91: What activities do you use your WFM vendor to support?
  • Figure 92: What channels do you use your WFM vendor to support?
  • Figure 93: What were your top 3 - 5 primary reasons for selecting this WFM solution?
  • Figure 94: What are the top 3 - 5 benefits you have gained from using the WFM solution?
  • Figure 95: Verbatims: Please tell us the top 3 - 5 strengths of your WFM solution.
  • Figure 96: Verbatims: Please tell us the top 3 - 5 challenges of your WFM solution.
  • Figure 97: Verbatims: What product enhancements would you like to see?
  • Figure 98: Verbatims: Please feel free to provide any additional comments about your experience with the vendor and/or product.
  • Figure 99: 2015 Premise-Based WFM Solution Price Ranges
  • Figure 100: Price Ranges - Premise-Based Solution, 2015 vs. 2014 Comparison
  • Figure 101: Pricing (Premise-Based Solution), 75 Agents
  • Figure 102: Pricing (Premise-Based Solution), 300 Agents
  • Figure 103: Pricing (Premise-Based Solution), 500 Agents
  • Figure 104: Pricing (Cloud-Based Solution), 75 Agents
  • Figure 105: Pricing (Cloud-Based Solution), 300 Agents
  • Figure 106: Pricing (Cloud-Based Solution), 500 Agents
  • Figure 107: Forecasting
  • Figure 108: Scheduling
  • Figure 109: Time-Off Management
  • Figure 110: Long-Term Planning and Budgeting
  • Figure 111: Dashboards and Reporting and Analytical Capabilities
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