DMG Consulting LLC’s Cloud-Based Contact Center Infrastructure Product and Market Report
This is the 14th annual edition of DMG Consulting LLC’s Cloud-Based Contact Center Infrastructure Product and Market Report.
The 2021-2022 edition continues DMG’s comprehensive analysis of all aspects of the dynamic cloud-based contact center infrastructure (CBCCI) sector. The Report examines the competitive landscape and the business, market and technology trends driving this fast-growing and increasingly vital IT segment. This edition also looks ahead to the strategic and tactical requirements for contact centers to thrive in a post-pandemic world.
The CBCCI market is the fastest
growing IT sector in contact centers because these solutions are giving
enterprises what they want – the agility to meet their customers’ evolving inbound
and outbound needs, in voice and digital channels. These vendors are investing
heavily in research and development (R&D) to enable their clients to
deliver an outstanding and differentiated customer experience, cost
effectively. While the vast majority of contact center seats are still
on-premise, the innovation is focused on cloud-based solutions. The adoption
rate of CBCCI seats was only an estimated 17% as of the end of calendar year
2020, evidencing the substantial opportunities these vendors have to open up
the rest of the contact center market. But this is just a small piece of the
addressable market for these valuable customer-facing solutions. DMG Consulting
predicts that CBCCI functionality will become a standard productivity tool across
enterprises in the next 10 years. This means that CBCCI capabilities will be
used by a large percentage of knowledge workers far beyond the contact center.
The new generation of CBCCI solutions feature robust architectural,
processing and functional innovations that surpass the capabilities and
flexibility of many of the older offerings. The solutions that were introduced
to the market in the last few years leverage the newest technology and design
principles. They can run in private and public cloud facilities and can also be
deployed on-premise or in a hybrid mode.
Convenience is important to end users. Enterprises
want to be able to adapt their customer-facing solutions quickly and easily. They
expect their CBCCI solution to come with workforce optimization (WFO)/workforce
engagement management (WEM) modules (quality management (QM), workforce
management (WFM), surveying, etc.). Enterprises need robust out-of-the-box
capabilities, as well as full integration with leading third-party customer
relationship management (CRM) systems. A majority of the CBCCI solutions
deliver this “all-in-one” functionality. However, organizations that want to
build their own CBCCI solution can purchase an open contact center platform with
programmable application programming interfaces (APIs) that allow full customization.
Enterprises have over 200 CBCCI solutions from which to select, making this a
highly competitive sector and a buyer’s market.
A significant focus of CBCCI innovation in 2021 has been the
user interface (UI). Vendors have made major investments to simplify and
enhance the agent experience by making it easier for agents to meet customers
in their preferred digital or voice channel. The vendors are also introducing a
variety of productivity and empowerment tools into their agent interfaces,
including access to knowledge bases, speech-to-text functionality, contextual
search capabilities, and more. Advanced agent UIs now employ automation to
reduce the amount of repetitive work required of agents and to deliver artificial
intelligence (AI)-enabled next-best-action recommendations and real-time
guidance. These features make it more efficient for agents, regardless of where
they are located, to do their jobs by giving them a single “pane of glass” with
visibility into their customers’ prior interactions and the ability to pivot effortlessly
from one channel to another. This improves the agent experience and also makes
it easier for customers to conduct their business – everyone wins.
Strengthening demand for CBCCI solutions during the past 18
months has driven a surge of activity in this market, including a substantial number
of mergers and acquisitions. Enterprise software vendors from outside the
contact center market are purchasing contact center vendors; CBCCI vendors are
acquiring complementary applications, such as WFO/WEM capabilities; and CRM
vendors are building and/or buying CBCCI capabilities. Given the large number
of CBCCI competitors, it’s logical to expect this market to consolidate, as
this may be the best way for some of the vendors to upgrade their platforms and
quickly grow their customer base.
- The future of contact center technology is in the cloud: Innovation in the contact center market is focused on
cloud-based solutions. Vendors that offer both on-premise and cloud-based
solutions are delivering new and improved features first to the cloud and then
retrofitting enhancements to their premise-based models.
- Cloud-based contact center functionality is expected to
become a standard productivity tool in many enterprises in the next 10 years: DMG
Consulting expects that contact center functionality, including CBCCI solutions,
will be consumed by a majority of enterprise personnel, greatly expanding the
total addressable market for these capabilities.
- 2021 is the year of the UI: A new generation of AI-enabled
agent desktop applications make it easier for employees – whether on-site,
working from home or hybrid – to do their job, while enhancing the customer
experience and reducing the time and cost of servicing.
- The CBCCI market is active, and the future looks very
bright: Enterprise software vendors are purchasing CBCCI solutions and other
complementary contact center applications and capabilities to enhance their
offerings. DMG also expects to see more like-to-like acquisitions of CBCCI solutions
during the next few years as this market continues to grow rapidly.