New research shows that the value of the hosted contact-center market hit $1.76 billion in 2012.
Frost & Sullivan says that stat includes combined spending across hosted and cloud-based automatic call distributor (ACD), interactive voice response (IVR), outbound contact, chat, quality monitoring, workforce management and analytics applications.
The research finds that the cloud is quickly outpacing traditional solutions. The hosted contact-center market is forecast to grow at a 12.1 percent compound annual growth rate (CAGR) from 2011-2017, while the contact-center systems market will expand at a 5.5 percent CAGR, Frost & Sullivan said.
Growth is driven by the scalability and flexibility that hosted contact centers provide to companies looking to add new channels and applications.
"Cloud is no longer restricted to small or mid-sized enterprises," said Nancy Jamison, contact centers principal analyst for Frost & Sullivan. "Organizations of all sizes realize initial concerns related to the cloud, including doubts as to the security, have been addressed by solution providers. This includes providers' adherence to strict security requirements, including both physical and on an application layer."
Frost & Sullivan's research finds that even countries with only a nascent hosted contact-centers market are key targets for all top tier players. Latin America alone has seen a 50 percent jump in customer-service operations in the last decade in response to middle-class service demands. During this global market growth, with new players materializing and the industry consolidating, cloud will play a key role to quickly and cost effectively adjust capacity based on traffic, season and business need, Frost & Sullivan said.
"Customers are dictating the transformation of contact centers," said Jamison. "And companies are responding by stepping up from a multichannel approach to omni-channel engagement, which is vital to seamlessly interact with customers from channel to channel without loss of interoperability or history. Fast time to deployment, combined with capabilities related to social and mobile, analytics and integration with the back office, all paint a clear picture of the drivers pushing organizations to wholeheartedly adopt the cloud."
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