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
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
In his session at Cloud Expo, Alan Winters, U.S. Head of Business Development at MobiDev, presented a success story of an entrepreneur who has both suffered through and benefited from offshore development across multiple businesses: The smart choice, or how to select the right offshore development partner Warning signs, or how to minimize chances of making the wrong choice Collaboration, or how to establish the most effective work processes Budget control, or how to maximize project result...
Five years ago development was seen as a dead-end career, now it’s anything but – with an explosion in mobile and IoT initiatives increasing the demand for skilled engineers. But apart from having a ready supply of great coders, what constitutes true ‘DevOps Royalty’? It’ll be the ability to craft resilient architectures, supportability, security everywhere across the software lifecycle. In his keynote at @DevOpsSummit at 20th Cloud Expo, Jeffrey Scheaffer, GM and SVP, Continuous Delivery Busine...
"Software-defined storage is a big problem in this industry because so many people have different definitions as they see fit to use it," stated Peter McCallum, VP of Datacenter Solutions at FalconStor Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, discussed the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
"Our strategy is to focus on the hyperscale providers - AWS, Azure, and Google. Over the last year we saw that a lot of developers need to learn how to do their job in the cloud and we see this DevOps movement that we are catering to with our content," stated Alessandro Fasan, Head of Global Sales at Cloud Academy, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessio...
As organizations shift towards IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. Commvault can ensure protection, access and E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his general session at 18th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Part...
Andi Mann, Chief Technology Advocate at Splunk, is an accomplished digital business executive with extensive global expertise as a strategist, technologist, innovator, marketer, and communicator. For over 30 years across five continents, he has built success with Fortune 500 corporations, vendors, governments, and as a leading research analyst and consultant.
To Really Work for Enterprises, MultiCloud Adoption Requires Far Better and Inclusive Cloud Monitoring and Cost Management … But How? Overwhelmingly, even as enterprises have adopted cloud computing and are expanding to multi-cloud computing, IT leaders remain concerned about how to monitor, manage and control costs across hybrid and multi-cloud deployments. It’s clear that traditional IT monitoring and management approaches, designed after all for on-premises data centers, are falling short in ...
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his general session at @DevOpsSummit at 19th Cloud Expo, Eric Robertson, General Manager at CollabNet, will discuss how customers are able to achieve a level of transparency that e...
It is ironic, but perhaps not unexpected, that many organizations who want the benefits of using an Agile approach to deliver software use a waterfall approach to adopting Agile practices: they form plans, they set milestones, and they measure progress by how many teams they have engaged. Old habits die hard, but like most waterfall software projects, most waterfall-style Agile adoption efforts fail to produce the results desired. The problem is that to get the results they want, they have to ch...
Organizations planning enterprise data center consolidation and modernization projects are faced with a challenging, costly reality. Requirements to deploy modern, cloud-native applications simultaneously with traditional client/server applications are almost impossible to achieve with hardware-centric enterprise infrastructure. Compute and network infrastructure are fast moving down a software-defined path, but storage has been a laggard. Until now.