Market Research Report
2018 Workforce Optimization Mid-Year Market Share Report
|Published by||DMG Consulting LLC||Product code||319612|
Delivery time: 1-2 business days
|2018 Workforce Optimization Mid-Year Market Share Report|
|Published: November 14, 2018||Content info:||
DMG Consulting's 14th 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.)