Contact Center Transformation - Software And Service Market By Type (Intelligent Call Routing, Workforce Performance Optimization, Diallers, Interactive Voice Response, Computer Telephony Integration, Analytics And Reporting, Services (Consulting And Managed Services)), By Deployment (On-Premise, Hosted), By Organization Size (Small & Medium Enterprises, Large Enterprises), By End-User Vertical (BFSI, It & Telecom, Media & Entertainment, Retail & Consumer, Healthcare, Others) And By Region (North America, E

Contact Center Transformation - Software And Service Market definition and estimation:

While a call center handles inbound and outbound calls over the phone, contact centers handle all other modes of communication such as online chat, social media, SMS text and more. Both these centers share a common goal of improving customer experience. However, contact centers permit businesses to deliver real-time customer experience, in an increasingly competitive market, using advanced technologies like artificial intelligence, cloud, big data, etc. These centers are evolving the future of customer care through features like real-time & on-demand service, personalized attention and response, video conferencing, analytics and more.

The contact center transformation - software and service market size was USD 24.32 billion in 2019 and expected to reach USD 97.37 billion by 2027; this converts into a compound annual growth rate (CAGR) of 18.94% for the forecast period.

Contact Center Transformation - Software And Service Market Overview:

With more and more transactions gravitating towards the digital mode, traditional contact and call centers, operating on conventional technologies, are playing a supportive rather than a lead role in improving customer experience. The advancements in cloud technologies are pushing for the development of contact centers. Cost-efficient, easier to set up & maintain, better control over operations, and increased effectiveness are a few benefits that have led to the growth of the contact center transformation – software & service market. Government regulations restrict the overall expansion of the market, whereas compliance with data laws could challenge its growth. Overall, the market is expected to witness steady growth in the coming years.

The market is segmented to include:

By Type:

• Intelligent Call Routing
• Workforce Performance Optimization
• Diallers
• Interactive Voice Response
• Computer Telephony Integration
• Analytics and Reporting
• Services (Consulting and Managed Services)

By Deployment:

• On-premise
• Hosted

By Organization Size:

• Small & medium enterprises
• Large enterprises

By End-user vertical:

• BFSI
• IT & telecom
• Media & entertainment
• Retail & consumer
• Healthcare
• Others

Interactive voice response solutions have the ability to interpret tones and accents much more accurately than traditional speech recognition software. Therefore, the segment is envisaged to witness a CAGR of close to 20.5% during the forecast timeline. Nevertheless, in 2019, the services segment, comprising of consulting and managed services, accounted for around USD 4.8 billion i.e., a little under 20% of the market share.

On-premise deployment is the oldest and conventional approach for implementing contact center solutions. The deployment of this solution is done at the client’s premises. It provides reliability, the ability to integrate, and the option to customize. As a result, the on-premise segment led the market, capturing more than 65% in 2019. It garnered around USD 16 billion in revenue. However, the hosted deployment type offers the option to scale and is hence, anticipated to register an approximate 21% CAGR between 2020 and 2027.

Driven by the need to address customers across various regions, large enterprises continuously adopt advanced technologies. Furthermore, solutions and services that enhance profit are preferred among these enterprises. Consequently, the large enterprise segment secured a little under 80% of the market which is equivalent to nearly USD 19.5 billion, in 2019. The small & medium enterprise segment, however, is predicted to display a CAGR of more than 20%, owing to the rising awareness regarding the benefits of using such software and services as well as the surge in implementation of customer care solutions.

The retail end-user segment is projected to expand at the fastest rate among the end-user vertical segmentation. The transition towards digital mediums to adapt contact center solutions for providing improved customer experience is a major contributor to the segment’s approximate 20% CAGR. However, the others segment held a market share of around 30% in 2019.

Contact Center Transformation - Software and Service Market by Geography Overview:

Based on geography, market is segmented as below:

• North America
• Europe
• APAC
• Latin America (LATAM)
• Middle East & Africa (MEA)

North America held more than 30% of the contact center transformation - software and service market in 2019. The presence of large organizations in the region and the corresponding increase in investments in technologies such as cloud, analytics, big data, etc. have been the major contributing factor for the expansion of the market in the region. Additionally, the upsurge in demand among small and medium enterprises in order to improve outbound and inbound operations will drive the regional market forward.

The market growth rate in Asia-Pacific is anticipated to accelerate at a fast pace during the forecast period. Rising adoption of contact center solutions and supportive government initiatives promoting the use of cloud-based systems and automation will positively impact the market. The steady surge in foreign investments in the region will propel the market growth.

Contact Center Transformation - Software and Service Market Dynamics:

Need for a reduction in the overall cost of contact center management.

The use of an on-premise contact center solution involves the additional cost in maintaining a space required to store related hardware and software tools. In case of a cloud-based solution, these expenses are eliminated and the adoption of such technologies minimizes the overall cost drastically. Therefore, the growing need to reduce overall cost will promote the use of cloud-based solutions and thus drive the market.

Flexible cloud-based contact center solutions.

Cloud-based contact center solutions optimize costs, permit flexible login especially in a remote work scenario, provide the option to scale, reliability, global reach & to add communication channels with ease, streamline customer service and more. All of these benefits are encouraging small to large enterprises to invest in the market.

Difficulty in integrating advanced technologies with legacy systems.

Legacy systems are expensive, difficult to maintain and integrate to. Moreover, a majority of these solutions neither offer integration with technologies such as cloud, artificial intelligence, machine learning, etc. nor support digital and analytics capabilities. With increasing market competition, businesses are required to embrace these technologies and capabilities to stay in the game. Hence, the limitations of legacy systems will propel the market forward.

The market is studied by analysing all the key market participants across the ecosystem. The key players include, but not limited to:

• RingCentral Inc.
• NICE Systems Inc.
• 8x8 Inc.
• Genesys Telecommunications Laboratories
• Five9 Inc.
• Avaya Inc.
• Enghouse Interactive Inc.
• Vocalcom SA
• Mitel Networks Corp
• Altitude Software
• Aspect Software Inc.

Recent news and developments in the market:

1. Atos SE in collaboration with RingCentral, Inc. announced the first release of Unify Office in January 2021. Unify Office is a Unified Communications-as-a-Service (UCaaS) providing corporations to communicate and collaborate with ease from anywhere using any device via a single enterprise solution.
2. In May 2021, NICE CXone, launched by NICE Systems Inc., ranked No. 1 in ‘The Contact Center in the Cloud Value Index, 2021 Vendor and Product Assessment’ from Ventana Research.
3. 8x8 Inc. delivered the industry’s first cloud phone and contact center solution for multinational organizations operating in Mainland China in May 2021.

Frequently Asked Questions (FAQs)

Related Reports