Software as a Service:
     Is the Contact Center Ready to Switch Over?



                  Keith Dawson, Principal Analy...
Focus Points


•    Definitions of hosting
•    New developments & trends in Hosted Contact Centers
•    Confusion in the ...
Definitions

•      Hosted Contact Center: a network-based service, where a
       service provider hosts a contact center...
Market Trends


•   The hosted contact center services market grew 21.0% over
    2008. The number of ACD seats under lice...
Market Trends


•   Emphasis on reliability and SLAs
•   Platform vendors hedging their bets
•   True enterprise market em...
Industry Challenges


Challenge                                                1-2 Years   3-4 Years   5-7 Years

North Am...
Use of Hosted Contact Center Services


                                                       Use of Hosted Contact Cente...
Factors Influencing Hosted Deployment Decisions




                                     Source: Frost &
                 ...
Factors Influencing Hosted Deployment Decisions




                                     Source: Frost &
                 ...
Recommendations for Vendors and Service Providers


•   Demonstrate robust multi-
    tenant architectures to
    leverage...
Next Steps


 Request a proposal for a Growth Partnership Service to support you and your
 team to accelerate the growth o...
Your Feedback is Important to Us


             What would you like to see from Frost & Sullivan?

Growth Forecasts?

Comp...
Frost & Sullivan on Twitter and Facebook




         Find us @Frost_Sullivan on Twitter




    Become a fan of Frost & S...
For Additional Information



Jake Wengroff                 Craig Hays
Corporate Communications      Sales Manager
Informa...
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Software as a Service: Is the Contact Center Ready to Switch Over?

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Frost & Sullivan analysis of contact center software.

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Software as a Service: Is the Contact Center Ready to Switch Over?

  1. 1. Software as a Service: Is the Contact Center Ready to Switch Over? Keith Dawson, Principal Analyst Contact Centers June 9, 2010 Frost & Sullivan’s Growth Consulting can assist with your growth strategies
  2. 2. Focus Points • Definitions of hosting • New developments & trends in Hosted Contact Centers • Confusion in the marketplace • End user perceptions • Strategic recommendations 2
  3. 3. Definitions • Hosted Contact Center: a network-based service, where a service provider hosts a contact center technology platform and leases out functionality, applications, and features to end-users. The end-user typically pays a usage-based fee on a per-agent-per-month basis for the service. • Dedicated Hosted Contact Center: Refers to a dedicated server, non-partitioned environment per tenant. • Multi-tenant Hosted Contact Center: Refers to a shared server, partitioned environment across tenants. • Managed Services: Refers to an outsourced relationship where a third-party runs applications on a company’s own premises. 3
  4. 4. Market Trends • The hosted contact center services market grew 21.0% over 2008. The number of ACD seats under license increased 19.8%, to approximately 248,600. • Larger, enterprise deployments beginning to outpace the traditional SMB market in 2009 and continuing through the foreseeable future. • Growth of hosted services has come from organic need for more capacity, rather than from out-and-out replacement of premises- based systems with hosted services. 4
  5. 5. Market Trends • Emphasis on reliability and SLAs • Platform vendors hedging their bets • True enterprise market emerging • Moving beyond call routing to APO • Marketing based on proof points, not just price • Market Confusion based on: • Varied new entrants into the market • Variations in how “hosting” and “on-demand” is described by vendors • Lack of a roadmap to success (as evidenced by referenceable customer success stories and TCO models 5
  6. 6. Industry Challenges Challenge 1-2 Years 3-4 Years 5-7 Years North American economic downturn and budget High High High constraints for technology spending spur reconsideration of capital spending. Large legacy premises-based tech investments present High High High growth challenges for the hosted deployment model. New market entrants (especially outsourcers) increase High High Medium the level of competition for hosted solutions. Low barriers to market entry bifurcate the market into High High Medium high- and low-end markets. Overall end-user education on the flexibility and cost Medium High High benefits of hosted contact center solutions still lacking focus. 6
  7. 7. Use of Hosted Contact Center Services Use of Hosted Contact Center Services 2010 (N=311) 2009 (N=332) Outbound 30% Yes 24% 25% No, But Plan to Use within 18 Months 26% 39% No, with No Plans 42% 6% Don't Know 8% Q29. Do you currently use a hosted contact center service? Source: Frost & Sullivan 7
  8. 8. Factors Influencing Hosted Deployment Decisions Source: Frost & Sullivan 8
  9. 9. Factors Influencing Hosted Deployment Decisions Source: Frost & Sullivan 9
  10. 10. Recommendations for Vendors and Service Providers • Demonstrate robust multi- tenant architectures to leverage shared resources, at the same time providing complete tenant autonomy. • Customers at different ends of the size spectrum have very different expectations. • Emphasize IT buy-in and ease of operations/administration • Separate objections based on features from those based on culture and image. 10
  11. 11. Next Steps Request a proposal for a Growth Partnership Service to support you and your team to accelerate the growth of your company. (myfrost@frost.com) 1-877-GoFrost (1-877-463-7678) Join us at our annual Growth, Innovation, and Leadership 2010: A Frost & Sullivan Global Congress on Corporate Growth, September 12-14 2010, Fairmont Hotel, San Jose, California (www.gil-global.com) Register for the next Chairman’s Series on Growth: The CEO's Growth Partnership: Developing a comprehensive action-based strategy to reinvigorate yourself (Tuesday, July 6) (http://www.frost.com/growth) Register for Frost & Sullivan’s Growth Opportunity Newsletter and keep abreast of innovative growth opportunities (www.frost.com/news) 11
  12. 12. Your Feedback is Important to Us What would you like to see from Frost & Sullivan? Growth Forecasts? Competitive Structure? Emerging Trends? Strategic Recommendations? Other? Please inform us by taking our survey. Frost & Sullivan’s Growth Consulting can assist with your growth strategies 12
  13. 13. Frost & Sullivan on Twitter and Facebook Find us @Frost_Sullivan on Twitter Become a fan of Frost & Sullivan on Facebook 13
  14. 14. For Additional Information Jake Wengroff Craig Hays Corporate Communications Sales Manager Information & Communication Information & Communication Technologies Technologies (210) 247-3806 (210) 247-2460 jake.wengroff@frost.com chays@frost.com Ashwin Iyer Research Manager Contact Centers (210) 649-7852 aiyer@frost.com 14

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