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2014-2015 Contact Center Workforce Management Market Report

DMG Consulting's seventh annual ‘Contact Center Workforce Management Market Report’ provides the most comprehensive coverage of this technology sector. Its 358 pages are packed with all of the vendor, product, trend and market data that contact center, back-office and IT leaders need to find the right WFM solution for their environment, and to implement best practices for success.

The workforce management (WFM) competitive landscape is mature, but continues to evolve. The addressable market is growing, and many organizations are replacing outdated, complex, inflexible WFM solutions. And still others that may not have considered or believed they needed WFM in the past are now taking advantage of the powerful functionality available via cost-effective, flexible cloud-based solutions. The number of WFM seats grew by 20.4% between 2011 and 2012, and by 18.7% between 2012 and 2013. Much of this growth came from contact centers, but some of it was from the back office.

Combine this evolving landscape with the fact that vendors are finally making much-needed investments in their products and services, and you have unprecedented success rates and a snowball effect the market has never before seen: vendors investing to make their solutions better... interest from first-time buyers, large numbers of replacements from established customers... vendors eager to invest even more... and the cycle of success and innovation continues.

On the whole, WFM solutions help lower servicing, sales and processing costs through better agent/employee utilization, avoidance of overstaffing, and reduced overtime costs, while ensuring the right people with the right skills are available to deliver a great customer experience at the right time. WFM solutions also provide forecasting and scheduling capabilities that support blending and omni-channel staffing efficiency and optimization, which is increasingly critical in today's front- and back-office environments.

Vendors are working on new offerings as well as on improving features such as ease of use, intra-day management, agent self-service, and accuracy, to name a few. And many of the modeling techniques and algorithms that emerging WFM vendors are introducing are intended to handle newer channels, including chat, email, and social media. The forecasting requirements for the social media channels are different from voice calls (including deferred activities, carry-over, and the need for agents to handle multiple interactions at the same time).

This is great news for everyone involved, because WFM software remains the most important productivity tool in many contact centers and is rising in importance in the back office, as well. The better the solutions get, the more users will adopt, and the better the customer experience will be for consumers across industries and geographies. The ripple effect is almost immeasurable.

Prospects can now purchase a WFM solution on a stand-alone basis, as part of a workforce optimization (WFO) suite or from their automatic call distributor (ACD) vendor. The functionality, price, level of integration and benefits vary greatly, and no two systems are the same. DMG advises buyers to conduct thorough due diligence before making a WFM selection, as the degree of differentiation among offerings has never been greater.

DMG expects WFM revenue to grow by 10% in 2014, 12% in 2015, and 12% in 2016. A majority of the projected increase is due to the potential of selling WFM into back offices and branch operating departments. DMG also expects to see a large volume of contact center WFM replacements in 2015 and 2016, as well as smaller companies adopting WFM due to the ease of doing business in the cloud - a substantial growth driver for the next three years.

The 2014 - 2015 edition of the ‘Contact Center Workforce Management Market Report’ provides a detailed review of eight leading and contending WFM vendors. The vendors covered in this Report are: Aspect, Calabrio, Genesys, Interactive Intelligence, NICE/IEX, Noble, Teleopti and Verint. Four other solutions - InVision (injixo), Intradiem, Uptivity and WorkFlex - are covered at a high level..

Report Highlights

  • Vendor investment and an evolving landscape are driving adoption: Although the contact center WFM market is mature, it continues to change. Vendors are investing in their solutions, companies with older products are looking to upgrade to newer, more flexible ones, and new organizations that have never had WFM before are adopting due to the ease of business and reduced-headache factor of the cloud. WFM seats grew by 18.7% between 2012 and 2013.
  • Innovation is running high from old and new vendors alike: Some of the established players are working to improve their usability and accuracy, among other things, while newer entrants are releasing functionality and algorithms that can improve staffing and productivity for new and emerging channels like chat and social media.
  • The back-office opportunity for WFO is tremendous: At 2.6 times the size of the contact center market opportunity, the back-office sector could transform the WFO market. To take advantage of the opportunity, contact center WFO vendors need to adapt their solutions to address back-office challenges, which are substantially different from the front office.
  • More growth is coming: DMG expects WFM revenue to grow by 10% in 2014, 12% in 2015, and 12% in 2016, as adoption increases in the cloud and in the back office, where the addressable market is nearly three times as large as the contact center market.

Sample Figure:

Contact Center WFM Building Blocks

Source: DMG Consulting LLC, March 2014

Table of Contents

1. Executive Summary

2. Introduction

3. DMG Consulting Research Methodology

  • 3.1. Report Participation Criteria

4. Workforce Management Market Segments

5. Workforce Management Functional Building Blocks

  • 5.1. Core, Value-Added and Optional Modules

6. WFM Service Delivery Models

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

7. Workforce Management Trends and Challenges

  • 7.1. WFM Market Challenges

8. Workforce Management Market Innovation

  • 8.1. New Product Features
  • 8.2. Future Enhancements

9. Workforce Management Roles and Responsibilities

10. Workforce Management for the Multi-Channel Contact Center

  • 10.1. Vendor Multi-Channel Capabilities
  • 10.2. Algorithms

11. WFM for Back Office/Branch

  • 11.1. Activity Tracking, Monitoring and Measurement
  • 11.2. Optimizing Staff Resources to Meet Business Needs
  • 11.3. Solving the Work Allocation and Management Problem

12. Meeting the Challenge of Intra-Day Management

  • 12.1. How Intra-Day Management Should Work
  • 12.2. Alternative Solutions
  • 12.3. Vendor Intra-Day Management Capabilities

13. Empowering the New Workforce

14. Vendor Capabilities for Self-Service

15. WFM Market Activity

  • 15.1. Validating Market Numbers
  • 15.2. WFM Market Share Analysis

16. Workforce Management Market Adoption

17. WFM Projections

18. WFM Competitive Landscape

19. Workforce Management Vendors and Solutions

  • 19.1. Company Snapshot
  • 19.2. Market Segments
  • 19.3. Vendor Offerings and Products

20. High-Level Functional Summary

21. High-Level Technical Summary

  • 21.1. Security
  • 21.2. System Administration

22. Workforce Management Benefits and Return on Investment

  • 22.1. Building an ROI Model
  • 22.2. Tips For Increasing Benefits From WFM Solutions
  • 22.3. WFM Application Selection Criteria
  • 22.4. Vendor ROI Analysis

23. Implementation Analysis

  • 23.1. Implementation Process
  • 23.2. Implementation Best Practices
  • 23.3. Training and Professional Services
  • 23.4. Maintenance and Support

24. Workforce Management Vendor Satisfaction Analysis

  • 24.1. Summary of Survey Findings and Analysis
  • 24.2. Detailed Survey Findings and Analysis
  • 24.3. Customer Insights
    • 24.3.1. Activities Supported by WFM

25. Pricing

  • 25.1. Premise-Based Pricing
  • 25.2. Cloud-Based Pricing
  • 25.3. Managed Service Pricing

26. WFM Suite Detailed Functional Analysis

  • 26.1. Forecasting
  • 26.2. Scheduling
  • 26.3. Real-Time Adherence
  • 26.4. Time-Off Management
  • 26.5. Reporting, Dashboards, Alerts and Scorecards
  • 26.6. Long-Term Planning and Budgeting

27. Company Reports

  • 27.1. Aspect
  • 27.2. Calabrio
  • 27.3. Genesys
  • 27.4. Interactive Intelligence
  • 27.5. Intradiem
  • 27.6. InVision
  • 27.7. NICE Systems
  • 27.8. Portage Communications
  • 27.9. Teleopti
  • 27.10. Uptivity
  • 27.11. Verint
  • 27.12. WorkFlex

Appendix: Workforce Management Vendor Directory

Table of Figures

  • Figure 1: WFM Market Segments
  • Figure 2: Contact Center WFM Building Blocks
  • Figure 3: DMG's Service Delivery Model Definitions
  • Figure 4: WFM Vendor Service Delivery Options
  • Figure 5: WFM Market Trends
  • Figure 6: WFM Market Challenges
  • Figure 7: New Product Features
  • Figure 8: Future Application Enhancements
  • Figure 9: Common WFM Roles and Responsibilities
  • Figure 10.1: Multi-Channel/Blended Capabilities
  • Figure 10.2: Multi-Channel/Blended Capabilities
  • Figure 11.1: Algorithms
  • Figure 11.2: Algorithms
  • Figure 12: Desktop Analytics Defined
  • Figure 13: Work Allocation and Management System
  • Figure 14.1: Intra-Day Management
  • Figure 14.2: Intra-Day Management
  • Figure 15.1: Self-Service
  • Figure 15.2: Self-Service
  • Figure 16: WFM Market Activity as of December 31, 2013
  • Figure 17: WFM Market Activity by Segment
  • Figure 18: WFM Market Share by Number of Seats as of December 31, 2013
  • Figure 19: WFM Market Share by Number of Seats as of December 31, 2013
  • Figure 20: Total Number of WFM Seats/Agents, 2013 vs. 2012 Comparison
  • Figure 21: Total Number of WFM Seats, 2007 - 2013 Trends
  • Figure 22: WFM Market Projections, 2014 - 2016
  • Figure 23.1: Company Information
  • Figure 23.2: Company Information
  • Figure 24: WFM Market Segments
  • Figure 25: Product Modules
  • Figure 26.1: High Level Functional Summary
  • Figure 26.2: High Level Functional Summary
  • Figure 27.1: Security
  • Figure 27.2: Security
  • Figure 28.1: System Administration
  • Figure 28.2 : System Administration
  • Figure 29: First-Time WFM Implementation
  • Figure 30: Replacement WFM Implementation
  • Figure 31: Projected Savings for First-Time WFM Implementations and Replacement Solutions
  • Figure 32: WFM Selection Framework
  • Figure 33: Return on Investment (in months)
  • Figure 34: Vendor Top 5 Quantifiable Benefits for Building a WFM ROI Model
  • Figure 35.1: Implementation
  • Figure 35.2: Implementation
  • Figure 36.1: Implementation
  • Figure 37.1: Training, Documentation and Professional Services
  • Figure 37.2: Training, Documentation and Professional Services
  • Figure 38.1: Maintenance and Ongoing Support
  • Figure 38.2: Maintenance and Ongoing Support
  • Figure 39: Customer Survey Rating Categories
  • Figure 40: Average Satisfaction Ratings, by Category
  • Figure 41: Product Satisfaction Ratings, by Category
  • Figure 42: Ease of Configuration and Set-Up Satisfaction Ratings, by Customer
  • Figure 43: Ease of Ongoing Use and Maintenance Satisfaction Ratings, by Customer
  • Figure 44: Ease of Integration with Third-Party Applications Satisfaction Ratings, by Customer
  • Figure 45: User Interface Ease of Use Satisfaction Ratings, by Customer
  • Figure 46: Ability to Customize System to the Client's Needs Satisfaction Ratings, by Customer
  • Figure 47: Forecasting Accuracy Satisfaction Ratings, by Customer
  • Figure 48: Scheduling Features and Effectiveness Satisfaction Ratings, by Customer
  • Figure 49: Intra-Day Management Capabilities Satisfaction Ratings, by Customer
  • Figure 50: Real-Time Adherence Features Satisfaction Ratings, by Customer
  • Figure 51: Agent Self-Service Features Satisfaction Ratings, by Customer
  • Figure 52: Ability to Support Agent Preferences Satisfaction Ratings, by Customer
  • Figure 53: Ability to Support Complex and Varied Work Rules Satisfaction Ratings, by Customer
  • Figure 54: Time-Off Management Features and Functionality Satisfaction Ratings, by Customer
  • Figure 55: Multi-Channel Capabilities Satisfaction Ratings, by Customer
  • Figure 56: Mobile Capabilities Satisfaction Ratings, by Customer
  • Figure 57: Ability to Support Blended Channels Satisfaction Ratings, by Customer
  • Figure 58: Long-Term Planning Capabilities Satisfaction Ratings, by Customer
  • Figure 59: Reporting Satisfaction Ratings, by Customer
  • Figure 60: Dashboard Satisfaction Ratings, by Customer
  • Figure 61: Budgeting/Cost Management Capabilities Satisfaction Ratings, by Customer
  • Figure 62: Ability to Support Recruitment/Hiring Management Satisfaction Ratings, by Customer
  • Figure 63: Timekeeping and Payroll Management Features Satisfaction Ratings, by Customer
  • Figure 64: Back-Office Functionality Satisfaction Ratings, by Customer
  • Figure 65: Branch Functionality Satisfaction Ratings, by Customer
  • Figure 66: Implementation Satisfaction Ratings, by Customer
  • Figure 67: Training Satisfaction Ratings, by Customer
  • Figure 68: Professional Services Satisfaction Ratings, by Customer
  • Figure 69: Ongoing Service and Support Satisfaction Ratings, by Customer
  • Figure 70: Innovation Satisfaction Ratings, by Customer
  • Figure 71: Responsiveness to Product Enhancement Requests Satisfaction Ratings, by Customer
  • Figure 72: Vendor Communication Satisfaction Ratings, by Customer
  • Figure 73: Product Pricing Satisfaction Ratings, by Customer
  • Figure 74: Overall Vendor Satisfaction Ratings, by Customer
  • Figure 75: What activities do you use your WFM vendor to support?
  • Figure 76: What channels do you use your WFM vendor to support?
  • Figure 77: What were your top 3 - 5 primary reasons for selecting this vendor/product as your WFM solution?
  • Figure 78: What are the top 3 - 5 benefits you have gained from using the WFM solution?
  • Figure 79: Verbatims: Please tell us the top 3 - 5 strengths of your WFM solution.
  • Figure 80: Verbatims: Please tell us the top 3 - 5 challenges of your WFM solution.
  • Figure 81: Verbatims: What product enhancements would you like to see?
  • Figure 82: Verbatims: Please feel free to provide any additional comments about your experience with the vendor and/or product.
  • Figure 83: 2013 Premise-Based WFM Solution Price Ranges
  • Figure 84: Price Ranges - 500-Seat Premise-Based Solution, 2012 vs. 2013 Comparison
  • Figure 85.1: Pricing (Premise-Based Solution), 75 Agents
  • Figure 85.2: Pricing (Premise-Based Solution), 75 Agents
  • Figure 86.1: Pricing (Premise-Based Solution), 300 Agents
  • Figure 86.2: Pricing (Premise-Based Solution), 300 Agents
  • Figure 87.1: Pricing (Premise-Based Solution), 500 Agents
  • Figure 87.2: Pricing (Premise-Based Solution), 500 Agents
  • Figure 88: Pricing (Cloud-Based Solution), 75 Agents
  • Figure 89: Pricing (Cloud-Based Solution), 300 Agents
  • Figure 90: Pricing (Cloud-Based Solution), 500 Agents
  • Figure 91: NICE Pricing (Managed Service Solution)
  • Figure 92.1: Forecasting
  • Figure 92.2: Forecasting
  • Figure 93.1: Scheduling
  • Figure 93.2: Scheduling
  • Figure 94.1: Real-Time Adherence
  • Figure 94.2: Real-Time Adherence
  • Figure 95.1: Time Off Management
  • Figure 95.2: Time Off Management
  • Figure 96.1: Dashboard and Reporting and Analytical Capabilities
  • Figure 96.2: Dashboard and Reporting and Analytical Capabilities
  • Figure 97.1: Long-Term Planning and Budgeting
  • Figure 97.2: Long-Term Planning and Budgeting
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