DMG Consulting’s Cloud-Based Contact Center Infrastructure Product and Market Report
The cloud has become the preferred delivery model for contact center solutions. Companies large and small are taking advantage of the market-changing innovation and automation that the cloud-based solutions provide. On-premise solutions will continue to be available, but a hybrid approach that combines cloud and on-premise applications is enabling companies to migrate gradually to the cloud.
Artificial intelligence (AI) and predictive analytics are profoundly impacting the CBCCI market. Smart analytics are positioning companies to be more proactive in meeting customers’ needs. AI is evolving to become the “brain” of the service department, coordinating routing, workforce management (WFM), quality management (QM), and more. Rather than eliminating jobs for human agents, this technology is freeing up employees to take on more fulfilling and rewarding cognitive tasks.
Cloud-based solutions have reached functional parity with their on-premise counterparts. Now the CBCCI vendors are delivering innovations that are providing vastly improved user interfaces and experiences (UIs and UXs), agent desktops, enhanced routing capabilities, new key performance indicators (KPIs), and better analytics and reporting. The vendors are offering out-of-the-box interfaces and integrations to make it easier to integrate cloud-based solutions with all types of contact center applications. AI is being incorporated into the new generation of solutions as a foundational layer, through acquisitions, or via partnerships with vendors offering sophisticated AI capabilities.
The digital transformation is also driving growth and innovation in the CBCCI market. The CBCCI vendors, while late to the game, have started to push a “digital-first” agenda by delivering omni-channel solutions to address customer demands in an increasingly digital economy. Among the critical components of an omni-channel solution are a universal queue (UQ) that centralizes the handling of voice and digital channels. Other important features are robust UIs and cross-channel orchestration that allow customers to escalate their requests and pivot among channels without losing history or context.
The cloud-based solutions differ from one another in significant ways, and prospects must carefully evaluate the capabilities of each solution to be sure that they meet their organization’s current and future business needs. The infrastructure needs to be fully redundant, scalable and flexible. The vendor must ensure uninterrupted service 99.999%+ of the time. It is also essential for the vendor to report performance for their entire environment at the customer level and not exclude “planned” downtime from their service level calculations.
The CBCCI market is performing very well and is expected to continue to pick up momentum. The growing demand for CBCCI solutions is attributable to the classic benefits of any cloud-based solution, as well as the innovations being delivered by the vendors who are striving to differentiate themselves. The number of CBCCI seats in the market grew by 20.1% between 2017 and 2018, and as of July 31, 2019, DMG Consulting estimates that there were 3,257,832 cloud-based contact center infrastructure seats worldwide. The number of competitors continues to grow, with more value-added resellers (VARs) entering the market. DMG anticipates mergers and acquisitions in this sector and between contact center IT sectors over the next 3 years, as there are too many competitors vying for customers. DMG expects CBCCI market leaders to emerge in the next few years, based on their ability to envision change and execute it with innovative new capabilities; deliver an open architecture that enables easy integration; provide outstanding system reliability and performance; and make it easy for customers to conduct business with them.
- The cloud-based delivery model is the future of contact center solutions: CBCCI offerings have reached functional parity with on-premise solutions. Although there is still a place in the market for on-premise solutions, most companies are migrating contact center applications to the cloud, some selecting a hybrid approach that utilizes both cloud-based and on-premise applications.
- AI-based functionality and predictive analytics are profoundly impacting CBCCI solutions: AI and predictive analytics are changing the dynamics of CBCCI solutions, which are becoming more proactive and attuned to customers’ service needs. AI is going to evolve into an overarching role for the many applications that comprise contact centers.
- The digital transformation is driving growth and innovation in the CBCCI sector: CBCCI solutions are providing enhanced UIs/UXs and cross-channel functionality to address the proliferation of digital interactions. Omni-channel service is becoming the norm, and the vendors are responding by ramping up their support of digital channels, including acquisition of best-of-breed digital platform providers.
- The CBCCI market is performing well and continuing to pick up momentum: Sales of CBCCI solutions are coming from replacements of on-premise solutions, switching from one CBCCI provider to another, and small and mid-size enterprises (SMEs) purchasing their first contact center systems. Growing demand is being driven by the classic CBCCI benefits as well as innovation being delivered by the vendors who are striving to differentiate themselves in a crowded market.