2018 Workforce Optimization Mid-Year Market Share Report

DMG Consulting's 14^th annual Workforce Optimization Mid-Year Market Share Report provides an in-depth analysis of the financial performance of the WFO market and its approximately 39 worldwide vendors during the first half of 2018, and compares that market activity to the sector's performance in the same period in 2017. The mid-year report complements DMG's annual ‘Workforce Optimization Market Share Report’, which covers full-year WFO financial and market activity, and the Workforce Optimization Product and Market Report, which presents a comprehensive examination of the WFO vendors, their solutions, functionality, technology, competitive landscape, trends and challenges, benefits, return on investment, pricing, customer satisfaction, implementation best practices, and more.

The WFO market has performed well in the first half of 2018; GAAP revenue of $1,685.1 million was up $101.7 million, a 6.4% increase compared to the first half of 2017. This represents solid growth for this mature IT sector. First-half 2018 produced particularly strong results for the contact center WFO segment, which grew 24.2% during this period, increasing from $695.0 million in the first half of 2017 to $863.6 million in first-half 2018.

The WFO market is in transition, with customers looking to have their applications delivered via the cloud. The architectural and pricing model adjustments required to migrate from on-premise deployments to the cloud have put downward pressure on revenue for the WFO suite vendors. Merger and acquisition (M&A) activity has decreased the number of vendors in the WFO market from a high of 45 in 2015 to 39 providers in 2018. M&A activity in a mature market is normal, and DMG expects more of it in the next 18 - 24 months, leading to a more significant transformation that will involve other IT sectors.

The pace of change in the WFO sector is expected to heat up, largely due to the digital transformation and the introduction of artificial intelligence (AI) and robotics process automation (RPA) into the market. AI can act as the “brain” that oversees the contributions of all of the component solutions of WFO suites, making sure the right applications and analytics are applied at each step of the customer journey. RPA has become a necessity for companies of all sizes. Both attended and unattended RPA can automate routine activities and provide real-time guidance to agents during their interactions with customers. DMG anticipates growth rates for RPA of 100% of more per year for the next 5 years.

Additionally, enterprises need interaction analytics (IA) to help analyze customer conversations in the contact center and across the enterprise. IA, in conjunction with customer journey analytics (CJA), gives enterprises insight into what is happening with customers and prospects at every touchpoint in the customer journey. This can help businesses win and retain customers, as well as avoid regulatory or transaction handling missteps that might otherwise result in onerous fines or negative exposure in the press or social media.

The ‘2018 Workforce Optimization Mid-Year Market Share Report’ provides a detailed breakdown of revenue for the following 22 named vendors: 8x8, ASC, Aspect, Avaya, Calabrio, ComputerTel, Coordinated Systems, DVSAnalytics, Enghouse, Envision, Genesys, HigherGround, Mitel, NICE, OnviSource, OpenText, Serenova, TantaComm, Verint Systems, VirtualLogger, Xarios and ZOOM International. These vendors comprise 99.3% of the contact center WFO market; the remaining 0.7% (17 vendors) is addressed in the “Other” category.

To be considered a WFO suite provider, a vendor must offer the two core WFO applications - recording and quality management (QM)/quality assurance (QA) - and at least 2 more named applications. Named applications include: workforce management (WFM), contact center performance management (CCPM), gamification, speech analytics (SA), text analytics (TA), desktop analytics (DA), robotic process automation (RPA), enterprise feedback management (EFM)/ surveying, customer journey analytics (CJA), and eLearning/coaching. (Annually, DMG Consulting produces in-depth industry reports for most of these applications segments, providing detailed market share analyses for their respective sectors.)

Key Reasons to Buy this Report:

• Market projections by WFO application segment for the 5-year period from 2018 to 2022, for recording, QM/QA, WFM, CCPM, gamification, speech analytics, text analytics, desktop analytics, robotic process automation, EFM/surveying, customer journey analytics, and eLearning/coaching

• Detailed revenue and market share analyses by vendor, broken down by total company GAAP revenue, the contact center WFO segment, WFO and recording solutions, voice recording, contact center and non-contact center voice recording, and QM/QA

• Growth-rate comparisons by vendor for the first half of 2018 vs. the same period in 2017

• Detailed analyses of the 22 leaders and contending vendors in the various WFO sectors

Report Highlights:

• Transformation of the WFO market is expected to accelerate: The digital transformation is driving change in the WFO sector. Companies around the world are redesigning their front- and back-office servicing strategies and operations to make it easier to conduct business. The introduction of AI and RPA into WFO solutions is delivering to this goal and helping enterprises provide a personalized, outstanding customer experience cost effectively

• Merger and acquisition activity is continuing in the WFO market: M&A activity has reduced the number of vendors in this market by 13.3% from 2015 to the present. There are now 39 known vendors, down from a high of 45. Consolidation is expected to continue, which is expected in a mature market. This will lead to a much more significant transformation that will involve other IT sectors.

• Automation and analytics are poised to transform the market: Interaction analytics is critical for enabling organizations to analyze customer conversations and derive essential insights about what is happening at every touchpoint. Enterprises are also looking for ways to improve visibility into their staff's performance and increase productivity. The new generation of WFO solutions, enhanced with AI and RPA capabilities, is designed to help meet the current and future needs of the market.

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TABLE OF CONTENTS

• 1. Executive Summary

• 2. Introduction

• 3. Financial Information Sources

• 4. Debates about Methodology

• 5. Methodology

• 6. Market Projections for 2018 through 2022

• 7. Total GAAP Revenue and Market Share, First-Half 2018 vs. First-Half 2017 (all QM/recording-related vendors)

• 8. Total Contact Center WFO Revenue and Market Share, First-Half 2018 vs. First-Half 2017

• 9. WFO and Recording Solutions Revenue and Market Share (excluding video), First-Half 2018 vs. First-Half 2017 Comparison

• 10. Total Voice Recording Revenue and Market Share, First-Half 2018 vs. First-Half 2017 Comparison

• 11. Total Contact Center Voice Recording Revenue and Market Share, First-Half 2018 vs. First-Half 2017 Comparison

• 12. Total Non-Contact-Center Voice Recording Revenue and Market Share, First-Half 2018 vs. First-Half 2017 Comparison

• 13. Total Voice Recording Revenue and Market Share

• 14. QM/QA Application Revenue and Market Share, First-Half 2018 vs.First-Half 2017 Comparison

TABLE OF FIGURES

• Figure 1: WFO Application Projections, 2018 - 2022
• Figure 2: Total Company GAAP Revenue and Market Share, First-Half 2018 vs. First-Half 2017 Comparison
• Figure 3: Total Company GAAP Revenue, First-Half 2018 vs. First-Half 2017 Comparison
• Figure 4: First-Half 2018 Total Company Market Share for WFO Competitors
• Figure 5: Contact Center WFO Revenue and Market Share, First-Half 2018 vs. First-Half 2017 Comparison
• Figure 6: Total Contact Center WFO Revenue, First-Half 2018 vs. First-Half 2017 Comparison
• Figure 7: Total Contact Center WFO Market Share, First-Half 2018
• Figure 8: WFO and Recording Solutions Excluding Video, First-Half 2018 vs. First-Half 2017 Comparison
• Figure 9: WFO and Recording Solutions, Excluding Video Revenue, First-Half 2018 vs. First-Half 2017 Comparison
• Figure 10: First-Half 2018 WFO and Recording Solutions Excluding Video Market Share
• Figure 11: Total Voice Recording, First-Half 2018 vs. First-Half 2017Comparison
• Figure 12: Total Voice Recording Revenue, First-Half 2018 vs. First-Half 2017 Comparison
• Figure 13: Total Voice Recording Market Share, First-Half 2018
• Figure 14: Contact Center Voice Recording Revenue and Market Share, First-Half 2018 vs. First-Half 2017 Comparison
• Figure 15: Total Contact Center Voice Recording Revenue, First-Half 2018 vs. First-Half 2017 Comparison
• Figure 16: Total Contact Center Voice Recording Market Share for First-Half 2018
• Figure 17: Non-Contact-Center Voice Recording, First-Half 2018 vs. First-Half 2017 Comparison
• Figure 18: Total Non-Contact-Center Voice Recording Revenue, First-Half 2018 vs. First-Half 2017 Comparison
• Figure 19: Total Non-Contact-Center Voice Recording Market Share, First Half 2018
• Figure 20: Total Voice Recording, First-Half 2018 Revenue ($ in millions)
• Figure 21: Total Voice Recording, First-Half 2018 vs. First-Half 2017 Revenue Comparison ($ in millions)
• Figure 22: Total Voice Recording Revenue, Contact Center vs. Non-Contact Center, First-Half 2018
• Figure 23: Total Voice Recording, First-Half 2018 vs. First-Half 2017 Revenue Comparison Graph ($ in millions)
• Figure 24: QM/QA Applications Revenue and Market Share, First-Half 2018 vs. First-Half 2017 Comparison
• Figure 25: QM/QA Application Revenue, First-Half 2018 vs. First-Half 2017 Comparison
• Figure 26: QM/QA Application Market Share, First-Half 2018