Chinese Contact Center market started up in 1998, and moved to the developing track in 2001, with China successfully joined WTO.Contact Centers are the key channel for Chinese enterprises to maintain good relationship with their customers and provide them with high quality of after-sale service.
Mention the dynamic market situation in China, local vendors are catching up.
Chinese Contact Center Applications Market: Is the growth locking down?
Chinese Contact Center Applications Market: Is the growth locking down? Shuishan Lu, Research Associate Information & Communication Technology 30 Dec 2011
Agenda• Brief Market Background• Market Drivers and Restraints• Market Size and Forecast• Chinese Market’s Position in Asia Pacific• Adoption Trends• Vendors’ Go-to-Market Strategies• Key Takeaways 2
Brief Market Background Four Generations of Contact Center Solutions in China • Basic telephony hotline system based on 1st PBX with simple ACD functionalities • Solutions integrated with IVR features (e.g. China Telecom’s “114” contact center 2nd services) • Solutions integrated with CTI technology 3rd • IP Contact Center with multi-media web 4th based access and customized applications 3
Market Drivers and Restraints High System Upgrading & Expansion Low Adoption Rate of Advanced ApplicationsMarket Drivers Demand of Multi-media Applications Low LowMarket Restraints Reducing Price Points Increasing Competition from Increasing Level of Local Vendors Market Saturation High Source: Frost & Sullivan. 4
Adoption Trends - Applications Contact Center Application 5 Major Adoption Trends Adoption, 2010 • Major adoption from ACD, IVR, CTI and Call Monitoring applications, others such as WFM and Speech Technology are increasing. • Demand of Self-service and Outbound applications rose. • Customers are more open to innovative and customized apps. • Emerging verticals include Education, F&B, Retail etc. • BFSI and Public sectors have shifted their focus to customized software and value-added services. 7
Adoption Trends – Horizontal & Vertical Adoption Trends by Vertical, 2010 & 2017 • Both new and existing customers were from Government & Education, Hospitality in 2010. Some of the sub verticals such as Retailing, F&B and Healthcare have witnessed high revenue growth. Adoption Trends by Horizontal, 2010 & 2017• SMBs’ contact centers with less than 50 seats generated fast growth in 2010 as most of them chose to build their own contact centers instead of outsourcing.• Some of the large enterprises were still expanding their contact centers, however the number of deals is declining. 8
Vendors’ Go-to-Market Strategies• Global Vendors 1. Streamline their channel programs (main approach) 2. UC vendors: bundled CC applications with their UC solutions 3. More focus on large local enterprises (BFSI, Government, E- commerce etc) and mid market in the future• Local Vendors 1. High touch with existing customers to secure future contracts and deals 2. Acceleration on R&D to offer the customized and industry- specialized solutions 9
Key Takeaways• The Chinese Market will remain moderate growth in the short term, however, in the long run, the application market is getting mature till 2017.• More investment is predicted to take place on the management of Contact Centers (operational efficiency, agents training, Tele-marketing etc.)• Emerging verticals, namely E-Commerce, Hospitality, retails and utilities, are expected to generate higher revenue growth. 10
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For Additional Information Donna Jeremiah Carrie Low Corporate Communications Corporate Communications Asia Pacific Asia Pacific +603 6204 5832 +603 6204 5910 firstname.lastname@example.org email@example.com Jessie Loh Shuishan Lu Corporate Communications Research Associate Asia Pacific ICT +65 6890 0942 firstname.lastname@example.org email@example.com 12