The fourth annual Hosted Contact Center Infrastructure Market Report provides
a thorough analysis of this rapidly evolving technology sector. It addresses
vendors, product functionality and technology, planned innovation, market
trends and challenges, market share, adoption rates, benefits, return on
investment, pricing, implementation best practices, customer satisfaction, and
company reviews. The Report gives readers a deep appreciation of the full
range of hosted contact center infrastructure offerings, their strengths,
weaknesses, opportunities and pricing. The 2011-2012 Hosted Contact Center
Infrastructure Market Report is specifically designed to give business and IT
managers the information and tools to help them select the right solution for
their operating environment.
While it does not happen often, every now and again something so compelling
comes to market that every vendor wants to be part of it and every user stands
to benefit in some way. This is the story of hosted/cloud-based contact center
infrastructure. Still an emerging sector by formal definition, this market is
maturing rapidly. New vendors and new solutions from existing vendors continue
to come to market, making it highly innovative and competitive and giving
users an unprecedented number of choices. Today, all but the most traditional
contact center users are including cloud-based solutions as part of any
selection process.
2011 was an excellent year for the hosted contact center market, as users'
needs for virtual, multi-channel servicing infrastructures, and a recovering
economy converged to create strong demand. Hosting offers an array of benefits
including no major capital outlays, lower start-up costs, faster
implementations, scalability, no upgrade fees, and no need for in-house IT
resources. Cloud-based providers also have the great advantage of being able
to deliver new capabilities and functionality without having to address
backward compatibility with older versions or upgrades. This enables them to
give users what they want quickly and efficiently - a standout difference from
their premise-based counterparts.
While traditional contact center infrastructure market leaders remain on the
sidelines trying to figure out how to enter the hosted market without damaging
their traditional revenue stream, users have made it clear that they like the
option of acquiring all types of contact center solutions and applications on
a hosted basis. The hosted vendors are wasting no time improving their
solutions' performance and scalability, creating third-party integrations, and
investing in enhancements and new functionality to come closer to functional
parity with the leading premise-based solutions. DMG expects premise-based
leaders to come off the bench with hosted offerings over the next 12 to 18
months.
In the meantime, the premise-based vendors know they are under siege. The
hosted market continues to exhibit strong and steady momentum. Seat counts
grew by 26.3% between 2008 and 2009, and by an even more impressive 42.4%
between 2009 and 2010. This sector's revenue grew by at least the same amount,
as prices increased during the year and many vendors expanded their offerings.
The 2010 adoption rate of 3.5% is a 29.6% increase from the 2009 hosted
contact center infrastructure penetration rate of 2.7%. This significant
increase is supported by the 42.4% growth in hosted contact center seats. DMG
continues to be bullish about the performance of the cloud-based contact
center market, despite the sluggish economy, which is actually one of the key
drivers for adopting hosted solutions. DMG predicts the hosted contact center
infrastructure market will grow by 25%, 20%, 18% and 18% each year from 2011
to 2014, respectively.
DMG expects hosted contact center solutions to continue to be highly
differentiated for the next five to eight years. This puts the burden on end
users to carefully review the functional capabilities of all solutions they
are considering, especially as the most innovative of the solutions are
expected to reach true parity with their premise-based competitors and then
surpass them. As the market matures, DMG expects to see continued innovation,
specifically around unified communications (UC), routing, social media and
desktop analytics.
End users now have more choices for purchasing a contact center infrastructure
solution than ever before. Despite the classic benefits of hosted offerings,
hosting is not the right choice for all companies. Organizations that require
heavy customization, have the resources to maintain a solution, and plan to
keep it in place for five or more years are good candidates for the
traditional approach. However, DMG recommends that any organization
considering an acquisition/replacement of a contact center infrastructure
solution add cloud-based providers to their selection process. While the
prices for hosted solutions have risen, vendors are flexible and are looking
to gain market share.
The 475-page 2011-2012 Hosted Contact Center Market Report is the most
comprehensive, fact-based, timely analysis of this technology sector. The
Report provides a thorough look at this rapidly evolving technology sector,
including trends, challenges, market share, adoption rates, and projections.
It details the vendor, product, functionality, technology, pricing, benefits,
return on investment (ROI), and best practices information that contact center
and IT managers need to determine if hosting is right for them, and to select
the ideal technology and partner for their operating environment. This Report
covers 13 vendors, eight in-depth and five at a higher level. The vendors
covered in detail are: Echopass, 8x8 (acquired Contactual), Five9, inContact,
Interactive Intelligence, LiveOps, NewVoiceMedia and Transera. Convergys,
Noble, USAN, VoltDelta and West, whose solutions are still emerging, are
covered at a high level.
Report Highlights
2011 was a strong year for the hosted contact center market: The
benefits of hosting, coupled with the advantage of being able to receive new
capabilities and functionality quickly and efficiently, made 2011 a banner
year for the hosted contact center infrastructure market. Contact centers of
all sizes are realizing that hosting can benefit their organizations and are
seriously considering these solutions.
Where are the market leaders? Traditional contact center
infrastructure leaders have not yet jumped into the fray, but they will have
to in order to remain competitive. Users have made it clear they like the
option of being able to acquire all types of contact center solutions and
applications on a hosted basis. DMG expects that the premise-based leaders
will come to market with hosted solutions in the next 12 to 18 months.
Hosted vendors can do more with their solutions to attract end
users:Cloud-based vendors need to improve their solutions' supervisory
environments, predictive outbound capabilities and overall system capacity.
Also there is still an opportunity to differentiate their security
capabilities, a critical area that continues to require a great deal of
attention.
The next five to eight years are critical; end users must be
vigilant: DMG expects hosted contact center solutions to continue to be
highly differentiated for the next five to eight years. During this time, the
most innovative solutions are expected to reach true parity with their
premise-based competitors and then surpass them. DMG expects to see continued
innovation to broaden suites and to enhance UC, routing, social media, desktop
analytics and other capabilities.
Hosting is not the answer for everyone: End users now have more
choice than ever. Despite the benefits of hosting, it is not the universal
“right” choice. Organizations that require heavy customization,
have internal resources to maintain their contact center solution, and plan to
keep it for five or more years are good candidates for the traditional
approach.
There is more to come for hosted solutions: DMG is bullish about
the performance of the cloud-based contact center market, predicting growth of
25%, 20%, 18% and 18% in each of the four years from 2011 to 2014,
respectively.
Key Reasons to Buy This Report
Overview of hosted/cloud-based contact center infrastructure technology
and applications
Hosted contact center infrastructure market share analysis, projections
and adoption rates
Review of the current state of the market and its competitive landscape,
including trends, challenges and the overall direction
Comprehensive corporate, technical and functional side-by-side comparisons
of the vendors and their solutions, including current products, packaged
solutions and small and mid-sized business (SMB) offerings
An analysis of innovation, including new product features and planned
research and development (R&D)
A guide for navigating the hosted contact center competitive landscape,
including a discussion of market momentum and its impact on premise-based
solutions
Hosted contact center vendor selection guidelines to help end users
acquire the right solution, and best practices for successfully implementing
these new applications
Benefits and return on investment (ROI) analysis to help prospects build
their business case
Detailed pricing analysis for leading and contending vendors, and the
typical price ranges for the market
Comprehensive vendor satisfaction analysis addressing each vendor's
products, implementation, service, training, professional services, innovation
and pricing
Detailed company reports for 13 leading and contending hosted contact
center infrastructure providers, including their planned investments
Complete Hosted Contact Center Infrastructure Vendor Director
Sample Figure:
Typical Hosted Contact Center Infrastructure Solution
Source: DMG Consulting LLC
Table of Contents
Table of Contents
1. Executive Summary
2. Introduction
3. DMG Consulting Research Methodology
3.1. Report Participation Criteria
4. Contact Center Technology and Applications
4.1. The Changing Technology Landscape
4.2. Understanding Unified Communications
4.2.1. What is Presence?
4.2.2. The Future of UC
1. Executive Summary
2. Introduction
3. DMG Consulting Research Methodology
3.1. Report Participation Criteria
4. Hosted Contact Center Technology and Applications
4.1. The Changing Technology Landscape of Hosted Contact Center
Infrastructure Solutions
4.2. Will Hosted Solutions Reach Functional Parity with Premise-Based
Solutions?
4.3. The Role of Integration in the World of Hosted Contact Center
Solutions
5. State of the Hosted/Cloud-Based Contact Center Infrastructure Market
5.1. Hosted Contact Center Infrastructure Trends
5.2. Hosted Contact Center Infrastructure Challenges
6. Hosted Contact Center Infrastructure Innovations
6.1. New Product Features
6.2. Fulfillment Status of 2010
6.3. Upcoming Innovation
7. Hosted Contact Center Competitive Landscape
7.1. Momentum Picks Up
7.2. Vendor Categories
7.3. Impact of Hosting on Premise-Based Vendors
7.4. The Hosted Contact Center Infrastructure Competitive Landscape Guide
8. Hosted Contact Center Infrastructure Vendor Selection Guide
8.1. Hosted Contact Center Infrastructure Vendor Selection Guidelines
9. Vendor Snapshot
9.1. Vendor Strategy and Positioning
9.2. Vendor Offerings
9.3. Packaged Applications
9.4. Small/Mid-Sized Offerings
9.5. Vendor Differentiators and "Sweet Spots"
10. Hosted Contact Center Infrastructure Solutions
10.1. Functional Components
10.2. High-Level Functional Comparisons
10.3. High-Level Technical Analysis
11. Service Delivery Models and Definitions
11.1. DMG Service Delivery Definitions
11.2. Vendor Service Delivery Options
12. Benefits and ROI of Hosted Contact Center Infrastructure Solutions
12.1. Value Proposition
12.2. Return on Investment
12.3. Pros and Cons of HCCI Solutions
13. HCCI Market Share Analysis
14. Hosted Contact Center Market Projections
15. Market Adoption of Cloud-Based Contact Center Solutions
16. Pricing
16.1. Hosted Contact Center Pricing Ranges
16.2. Vendor Pricing
17. Hosted Contact Center Vendor Satisfaction Analysis
17.1. Summary of Survey Findings and Analysis
17.2. Detailed Survey Findings and Analysis
17.3. Customer Background and Insight
17.3.1. Customer Background
17.3.2. Customer Insights
17.3.3. Obstacles to Hosting
18. Hosted Contact Center Infrastructure Technology Analysis
18.1. Detailed Technical Analysis
18.2. Unified Communications
18.3. Multi-Tenancy
18.4. Internet Protocol/Session Initiation Protocol
18.5. Security
18.6. Data Center, Back-Up and Contingency
18.7. Integration Capabilities
19. Detailed Functional Analysis
19.1. Automatic Call Distributor
19.2. Interactive Voice Response Voice Portal
19.3. Computer Telephony Integration
19.4. Dialer
19.5. Customer Relationship Management
19.6. Call Recording
19.7. Quality Management
19.8. Performance Management
19.9. Speech Analytics
19.10. Surveying
19.11. Workforce Management
19.12. Desktop Analytics
19.13. Text Analytics
20. Professional Services and Training
20.1. Training
21. Vendor Implementation Analysis
21.1. Vendor Implementation Best Practices
21.2. Service Level Agreements
22. Company Reports
22.1. 8x8 (formerly, Contactual)
22.2. Convergys Corporation
22.3. Echopass
22.4. Five9
22.5. inContact
22.6. Interactive Intelligence
22.7. LiveOps
22.8. NewVoiceMedia
22.9. Noble Systems
22.10. Transera
22.11. USAN
22.12. VoltDelta
22.13. West Interactive Corporation
Appendix A: Hosted Contact Center Vendor Directory
Table of Figures
Figure 1: Contact Center Infrastructure Technologies and Applications
Figure 2: Typical Hosted Contact Center Infrastructure Solution
Figure 3: DA Redefined
Figure 4: 2012 Hosted Contact Center Infrastructure Trends
Figure 5: 2012 Hosted Contact Center Infrastructure Challenges
Figure 6: Product Innovation
Figure 7: New Product Features
Figure 8: Fulfillment Status of 2010 Enhancements
Figure 9: Upcoming Product Innovation and Enhancements
Figure 10.1: Company Information
Figure 10.2: Company Information
Figure 11: Vendor Strategy
Figure 12: Products and Modules
Figure 13.1: Packaged Applications
Figure 13.2: Packaged Applications
Figure 14.1: Small/Mid-Sized (SMB) Offering
Figure 14.2: Small/Mid-Sized (SMB) Offering
Figure 15.1: Vendor Differentiators and "Sweet Spots"
Figure 15.2: Vendor Differentiators and "Sweet Spots"
Figure 16: Hosted Contact Center Functional Components
Figure 17.1: High-Level Functional Summary
Figure 17.2: High-Level Functional Summary
Figure 18.1: High-Level Technical Summary
Figure 18.2: High-Level Technical Summary
Figure 19: Standard Service Delivery Model Definitions
Figure 20.1: Service Delivery Models
Figure 20.2: Service Delivery Models
Figure 21: The Hosted Contact Center Infrastructure Value Proposition
Figure 22: Hosted Contact Center Infrastructure Payback Analysis
Figure 23: Reasons to Host a Contact Center Solution
Figure 24: Reasons Not to Host Contact Center Infrastructure
Figure 25: Hosted Contact Center Market Activity, as of August 2011
Figure 26: 2010 Hosted Contact Center Market Share Analysis, by Number of
Seats
Figure 27: 2010 Hosted Contact Center Market Share Analysis, by Number of
Implementations
Figure 28: Hosted Contact Center Infrastructure Trend Analysis by Number
of Seats, Three-Year Trend Comparison, 2008 - 2010
Figure 29: Hosted Contact Center Market Share Analysis by Number of Seats,
Three-Year Trend Comparison, 2008 - 2010
Figure 30: Hosted Contact Center Infrastructure Market Share Analysis by
Number of Implementations, Three-Year Trend Comparison, 2008 - 2010
Figure 31: Hosted Contact Center Market Share Analysis by Number of
Implementations, Three-Year Trend Comparison, 2008 - 2010
Figure 32: Hosted CC Infrastructure Seats 2008 Actual - Projected 2014
Figure 104.1: Vendor Implementation Best Practices
Figure 104.2: Vendor Implementation Best Practices
Figure 105.1: Service Level Agreements (SLAs)
Figure 105.2: Service Level Agreements (SLAs)
2011 - 2012 Hosted Contact Center Infrastructure Market Report published by DMG Consulting LLC in January 17, 2012. This report price starts from US $ 4250.
