Welcome!

News Feed Item

Frost & Sullivan: Moderate growth for Australia's contact centre applications market as momentum shifts towards hosted and cloud based solutions

-- As on-premise vendors struggle to drive growth, the emerging cloud based contact centre market will grow at a CAGR of 38.9%

SYDNEY, Feb. 4, 2014 /PRNewswire/ -- The Australian contact centre applications market grew 11.3% in 2012 from the previous year. Frost & Sullivan anticipates the on premise contact centre market to record moderate growth at a Compound Annual Growth Rate (CAGR) of 6.2% from 2012 to 2019. Performance optimisation, quality management and multimedia applications continue to be the main drivers of growth.

Large contact centres running complex solutions are more inclined towards on-premise solutions, but these tend to be resource and capital intensive to deploy and maintain. In addition, most on-premise deployments come with long contract terms, which organisations are becoming increasingly reluctant to commit to. Audrey William, Head of Research, ICT Practice, Frost & Sullivan ANZ says, "Organisations are increasingly evaluating alternative solutions offering similar capabilities with more flexible deployment and payment models; this is driving demand for hosted and hybrid solutions, where vendors such as Interactive Intelligence have been particularly successful."

While the market awareness of hosted contact centre solutions is high, the fully cloud based contact centre market is still at a nascent stage of growth. The cloud based contact centre market in Australia is expected to experience very high growth at a Compound Annual Growth Rate (CAGR) of 38.9% from 2012 to 2019 due to a small market base and growing demand from organisations adopting cloud based contact centre solutions.

Hosted contact centres are the preferred option for organisations moving away from the on-premise model. However, the cloud based contact centre market is in the early stages of growth as organisations remain concerned about reliability, security and availability issues of a fully cloud based contact centre model. A hosted contact centre solution with dedicated infrastructure mitigates most of these concerns, thereby serving as the preferred option for organisations.

"As momentum gathers towards third party hosted and delivered contact centre solutions, telcos with their network expertise, will be advantageously positioned to capitalise on this trend. Telcos will be well positioned to leverage their market reach to offer bundled solutions. Telstra and Optus have strong vendor partnerships to go with their carrier and local data centre capabilities. Additionally, global telcos such as BT are strengthening their market presence through vendor partnerships," adds William.

As the market matures, current challenges such as security and lack of vendor choice will be mitigated as the high growth rate will attract new entrants, increasing competition and improving market understanding of cloud based contact centre solutions. 

Future cloud contact centre market developments will focus on building local data centre capabilities to address security concerns. Vendors without local data centre capability will be severely challenged to secure customer wins and generate growth. Partnerships between major telcos and systems integrators, such as IPscape's with Telstra Global, to address the cloud based market, will be a strategic focus for cloud contact centre vendors.

Frost & Sullivan's research, Australian Contact Centre Market 2013 reports that while on-premise deployments are currently the preferred deployment model for Australian contact centre solutions, the market is moving towards a third party managed and delivered model. Interactive Intelligence and Nuance were the only vendors to record double digit revenue growth in 2012, indicating a shift in the contact centre applications market. Nuance holds the advantage of operating in a niche market segment of voice and speech based technologies, where it holds a dominant market share. On the other hand, Interactive Intelligence has achieved growth through its ability to offer a breadth of solutions over on-premise or hosted deployment models. Although growing from a small base, its growth is reflective of the demand for flexible deployment models.

Contact centre vendors, Verint Systems and NICE Systems, have leveraged their expertise in surveillance and data monitoring to offer analytics and optimisation solutions. The ability to convert data into actionable information combined with strong industry and channel partnerships gives these vendors a strong presence in the market.

Anand Balasubramanian, Industry Analyst, ICT Practice, Frost & Sullivan ANZ, says "The growing focus on analytics and big data has encouraged specialised vendors to enter the market. For example, [24]7 started with contact centre solutions and now focuses almost entirely on customer experience solutions and analytics, differentiating itself from other analytics focused vendors by using predictive analytics. With contact centres moving beyond IVRs and ACDs to include other applications such as optimisation and analytics, new vendors offering integrated or specialised stand-alone applications will emerge."

Contact centre vendors are also integrating social media engagement and analysis capabilities with core contact centre solutions. "Offering proactive support, monitoring and tracking of trends across social media sites such as Facebook, Twitter, LinkedIn and Instagram provides a single platform for information consolidation, enabling businesses to spot specific trends and extend customer support over social networking sites. Genesys is promoting its Social Engagement platform as an integrated application while Interactive Intelligence acquired Buzzient, which specialises in integrating business applications such as CRM with social media sites. Social media and customer experience focused vendors such as RightNow (Oracle) will benefit from the demand and offer solutions to integrate with a vendor's contact centre platform," added Balasubramanian.

In July 2013 Frost & Sullivan surveyed 227 IT decision makers in Australia to understand views toward contact centres and some of the findings include:

  • 60% of Australian organisations are using on-premise contact centre solutions. 17% of organisations are using hosted contact centres. Just over 10% of organisations have partly migrated to a fully cloud based contact centre solution, where the vendor offers the solution from its own or partner hosted data centres.
  • Over 60% of organisations are likely to evaluate or deploy cloud based solutions in the next two years.
  • The main requirements for contact centres over the next two years will be providing multi-channel support and implementing optimisation solutions.

Frost & Sullivan Australian Contact Centre Market Report 2013, forms a part of the Frost & Sullivan Enterprise Communications Research program. All research services included in this subscription provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants. The report also includes survey results and statistics of 227 IT decision makers in Australia to understand market behaviour and views towards Unified Communications and Contact Centre Solutions. Respondents were senior management level executives, IT managers and IT decision makers with control of or insight into the technology budget and strategy of their organisation.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies? Contact us: Start the discussion

Contact:

Donna Jeremiah
Corporate Communications – Asia Pacific
P: +61 (02) 8247 8927
F: +61 (02) 9252 8066
E: [email protected]

http://www.frost.com

 

 

 

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus o...
Big Data engines are powering a lot of service businesses right now. Data is collected from users from wearable technologies, web behaviors, purchase behavior as well as several arbitrary data points we’d never think of. The demand for faster and bigger engines to crunch and serve up the data to services is growing exponentially. You see a LOT of correlation between “Cloud” and “Big Data” but on Big Data and “Hybrid,” where hybrid hosting is the sanest approach to the Big Data Infrastructure pro...
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
Hardware virtualization and cloud computing allowed us to increase resource utilization and increase our flexibility to respond to business demand. Docker Containers are the next quantum leap - Are they?! Databases always represented an additional set of challenges unique to running workloads requiring a maximum of I/O, network, CPU resources combined with data locality.
In his General Session at 16th Cloud Expo, David Shacochis, host of The Hybrid IT Files podcast and Vice President at CenturyLink, investigated three key trends of the “gigabit economy" though the story of a Fortune 500 communications company in transformation. Narrating how multi-modal hybrid IT, service automation, and agile delivery all intersect, he will cover the role of storytelling and empathy in achieving strategic alignment between the enterprise and its information technology.
In his General Session at DevOps Summit, Asaf Yigal, Co-Founder & VP of Product at Logz.io, will explore the value of Kibana 4 for log analysis and will give a real live, hands-on tutorial on how to set up Kibana 4 and get the most out of Apache log files. He will examine three use cases: IT operations, business intelligence, and security and compliance. This is a hands-on session that will require participants to bring their own laptops, and we will provide the rest.
"We're bringing out a new application monitoring system to the DevOps space. It manages large enterprise applications that are distributed throughout a node in many enterprises and we manage them as one collective," explained Kevin Barnes, President of eCube Systems, in this SYS-CON.tv interview at DevOps at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? In this Power Panel at DevOps Summit, moderated by Jason Bloomberg, the leading expert on architecting agility for the enterprise and president of Intellyx, panelists peeled away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud enviro...
In their general session at 16th Cloud Expo, Michael Piccininni, Global Account Manager - Cloud SP at EMC Corporation, and Mike Dietze, Regional Director at Windstream Hosted Solutions, reviewed next generation cloud services, including the Windstream-EMC Tier Storage solutions, and discussed how to increase efficiencies, improve service delivery and enhance corporate cloud solution development. Michael Piccininni is Global Account Manager – Cloud SP at EMC Corporation. He has been engaged in t...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
@DevOpsSummit at Cloud taking place June 6-8, 2017, at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developm...
"LinearHub provides smart video conferencing, which is the Roundee service, and we archive all the video conferences and we also provide the transcript," stated Sunghyuk Kim, CEO of LinearHub, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
A look across the tech landscape at the disruptive technologies that are increasing in prominence and speculate as to which will be most impactful for communications – namely, AI and Cloud Computing. In his session at 20th Cloud Expo, Curtis Peterson, VP of Operations at RingCentral, will highlight the current challenges of these transformative technologies and share strategies for preparing your organization for these changes. This “view from the top” will outline the latest trends and developm...
Things are changing so quickly in IoT that it would take a wizard to predict which ecosystem will gain the most traction. In order for IoT to reach its potential, smart devices must be able to work together. Today, there are a slew of interoperability standards being promoted by big names to make this happen: HomeKit, Brillo and Alljoyn. In his session at @ThingsExpo, Adam Justice, vice president and general manager of Grid Connect, will review what happens when smart devices don’t work togethe...