Market Research Report - 247397
2011 - 2012 Hosted Contact Center Infrastructure Market Report
|Published by||DMG Consulting LLC|
|2011 - 2012 Hosted Contact Center Infrastructure Market Report|
|Published: January 17, 2012||Content info:||
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.
Typical Hosted Contact Center Infrastructure Solution
Source: DMG Consulting LLC
Appendix A: Hosted Contact Center Vendor Directory