The cloud-based contact center market was valued at USD 13.67 billion in 2019, and is expected to reach USD 44.86 billion by 2025, at a CAGR of 23.11% over the forecast period (2020 - 2025). Legacy contact centers operate on older technologies that cannot support newer channels, such as social media, mobile app chats, or videos. Cloud-based contact centers can help companies meet these demands.
- Modern channels can be integrated by using communication application programming interfaces (APIs). Analytics-led insights can then be applied to deliver context-rich and personalized customer experiences. Moreover, as there is no centralized workplace, agents can operate remotely to offer round-the-clock customer care service.
- Cloud-based call centers are slowly substituting the on-premise call centers. According to the State of Customer Experience 2018, the migration of 39% contact centers in the United Kingdom to cloud with 57% of them chalking out an action plan to move to cloud-based call centers within the next three years, indicates the potential for the overall market.
- Cloud contact centers have become a necessary step for companies to adopt a systematic approach that enhances performance, channels support and engagement, reporting and analytics to successfully support a customer base where customer preferences keep changing. The challenge for enterprises lies in choosing the right cloud contact center solution and strategic partner to achieve these goals.
- Due to the ongoing outbreak of COVID-19, customers across the industries are trying to cope up with the impact caused by COVID-19. Customers need information about healthcare concerns, newly remote workers require tech assistance for staying connected, and investors are concerned about the performance of their portfolios. Hence, due to this pandemic situation, the contact center industry is experience increased in the number of the call.
Key Market Trends
BFSI to Witness the Highest Growth Rate over the Forecast Period
- The BFSI sector is expected to witness significant growth for cloud-based contact centers. Many financial institutions are adopting cloud-based solutions in order to make the facilities convenient. The banking industry is becoming digital with the increased adoption of cloud platforms.
- For instance, Ameyo, a computer software enterprise offers cloud-based contact center software for the banking sector. According to Ameyo, the customer base for BFSI companies is becoming huge, thus creating the need for high levels of customer service. The customer interactions in the Banks and other Financial Institutions are very sensitive. It requires a sophisticated customer interaction software that helps to store, process and analyze the data in an efficient and cost-effective manner.
- According to Financial News London, 80% of bank's IT spending is on legacy technology maintenance, and up to USD 300 million is spent every year managing and maintaining these disparate systems. This factor is forcing banks to invest in a cloud solution, whether it be on-premises or private and public cloud services, to achieve greater scalability and integrated communication between disparate systems.
Europe is Expected to be the Fastest Growing Market
- Europe region acts as the headquarter of some of the most important tech hubs in the world and a significant driver and adopter of modern technology. Cost and compliance concerns in the region have driven many organization to migrate to the cloud and enable employee mobility.
- For instance, many European countries are investing heavily in its digital infrastructures, but private and public initiatives have been launched to fill the skills gap and alsoaccelerate the rate of cloud adoption. For instance, the governments of Bulgaria, Poland, and Romania have committed to enhancing their digital infrastructures, while the government of Ukraine is well ahead of its target to double the spending on ICT research and development, by 2020.
- Call centers are an important part of many industries in the United Kingdom. It is expected that nearly one in five call center agents in the United Kingdom work in the finance sector, which is responsible for 18% of the entire workforce. Numerous other sectors are also significant in the UK call center industry, including telemarketing, public sectors, IT and telecommunications, and utility providers. Moreover, the contact center sector continues to grow in Spain.
- According to Germany Trade and Invest (GTAI), Germany's contact center industry is booming and helping companies worldwide with its CRM needs in Europe and abroad. Hence, with the adoption of cloud-based services across Germany, the United Kingdom, and Spain, the European market is expected to grow over the forecast period.
The competitive rivalry in the market is high with the presence of large cloud players such as Amazon Web Services, among the pure-play contact center solution providers like Genesys Telecommunications Laboratories Inc., among others. R&D investments and continuous software upgrades characterize the rivalry. Many global players are concentrating on mergers, acquisitions and partnerships for sustaining in the competitive environment of the cloud-based contact center.
- April 2019 - ZephyrTel, announced that it signed a telecom-focused strategic collaboration agreement with Amazon Web Services (AWS) to migrate ZephyrTel solutions to AWS, including OASIS Cloud Contact Centre.
- September 2019 - Avaya rolled out new features to its Cliud-based Contact Center offerings. These include (a) Avaya IX Teamspace - provides media chat and messaging capabilities among customers, agents and back-office staff ; (b) Avaya IX Dashboard - an open, modular dashboard that delivers a snapshot of the performance of the customer journey and associated customer experience with improved analytics; (c) Agent Scripting - a browser-based call-flow scripting platform that provides the ability to define inbound and outbound call flows.
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