- 1 Definition / Scope
- 2 Market Overview
- 3 Key Metrics
- 4 Market Risks
- 5 Top Market Opportunities
- 6 Market Drivers
- 7 Market Restraints
- 8 Industry Challenges
- 9 Technology Trends
- 10 Other Key Market Trends
- 11 Market Size and Forecast
- 12 Market Outlook
- 13 Technology Roadmap
- 14 Distribution Chain Analysis
- 15 Competitive Landscape
- 16 Competitive Factors
- 17 Key Market Players
- 18 Strategic Conclusion
- 19 Further Reading
- 20 Appendix
Definition / Scope
Contact centers are the facilities that manage client’s contacts through various mediums such as letter, e-mail, fax, telephone and online live chat. Contact center is defined as a synchronized system of people, strategies, technologies and processes that provides access to resources, data and expertise, through suitable channels of communication. These communication channels enable interaction among various business departments that creates value for the customers and organizations. Companies worldwide are continuously searching for cost-effective approaches with cloud based partners to optimize the effectiveness of their contact center systems and applications. The introduction of cloud computing in the contact center market is playing a vital role in renovating the mature contact center technology sector. Most of the categories of contact centers and customer service applications have been cloud enabled.
The Asia-Pacific Hosted/Cloud Contact center market is estimated to be worth USD 1.96 Billion in 2018 and is expected to reach a market size of USD 5.79 Billion in 2023 growing at a CAGR of 24.2%.
The call routing and queuing segment is expected to have the largest market size during the forecast period(2018 to 2023).Call routing designates certain calls to different agents and locations depending on a variety of factors. Focusing on call routing enables organizations to manage thousands of calls continuously without compromising with the customer satisfaction.
The Retail Sector is set to witness the Highest Growth Rate in the Forecast Period (2018 to 2023), this is due to the intensifying competition in the retail marketplace and the emerging trends in customer services, expectations, behaviors, and e-commerce operations are driving the growth for the cloud-based contact centers market.
Managed services segment to grow at a higher CAGR during the forecast period (2018 to 2023). The growth in the adoption of cloud-based contact center solutions in organizations has increased the need to upgrade the existing systems and provide assistance for solving issues related to solutions. This adoption is expected to fuel the demand for efficient cloud-based contact center services. Hence, the managed services segment is anticipated to grow at a higher CAGR, as compared to the professional services segment, during the forecast period.
Among deployment models, the public cloud segment is estimated to grow at the largest market size in 2017. The reason for the high adoption of public cloud is its ease of access and fast deployment. The public cloud deployment model offers various benefits, such as scalability, reliability, and flexibility, to organizations.
The APAC Cloud Based Contact Center Market has been segmented on the basis of organization sizes into Small and Medium-sized Enterprises (SMEs) and the large enterprises. The large enterprises' segment is expected to have the larger market share because of enhanced cloud-based contact center systems helping to enhance customer experience.
|Base Year||2018||Researched through internet|
Vendor lock-in is a major barrier to the adoption of cloud computing, due to the lack of standardization. Also current solutions and efforts tackling Vendor lock-in are technology oriented. The Vendor lock-in issue arises as a result of lack of standard interfaces and open APIs, the lack of open standards for VM format and service deployment interfaces as well as lack of open formats for data interchange. These issues affects the interoperability between cloud services of different cloud service providers, it also affects the interoperability of cloud resources and the internal legacy systems. As a result of heterogeneity in the cloud provider solutions (i.e Hardware and Software) and service interfaces is a crucial problem as it forces customers to stick with the cloud technology offered by a single vendor due to the high cost associated with the porting of applications and data to a different vendors interface. Many cloud vendors provide services based on custom-built policies, infrastructure, platforms and APIs that make the overall cloud landscape heterogeneous. Such variation cause interoperability, portability and integration very challenging.
Some providers have penalties if the number of seats falls below a certain number, or even if there is a need to significantly increase the number of contact center agents. The latter is to help the cloud provider pay for additional infrastructure to support the new requirements. Such contract terms can be a problem if the company gets downsized, acquired or if an Enterprise acquire another company.
Perceived lack of control
Non-cloud users’ growing concerns are around a loss of control and to a lesser extent, a lack of reporting capability. the need to rely on third parties continues to be an issue for many. Data security is a consistent concern, even amongst experienced users of cloud, who know the potential risk from a breach. Customization and integration are also areas of potential concern.
Top Market Opportunities
Speech and Text Analytics
As businesses adapt to ever-increasing expectations for stellar customer service, insights from analytics have been found to be particularly powerful assets for improving the customer experience and boosting sales. Organizations are leveraging the capabilities of contact center speech analytics to gain a more complete, holistic picture of customer pain points and preferences. Here’s how companies are using the insights gained from customer service phone calls to drive growth and stay competitive.
Enhanced workforce management (WFM) capabilities
Contact center analytics are also valuable for monitoring and enhancing employee performance. Speech analytics can, for example, highlight areas where a particular agent needs additional training. Such insights can also help a business maximize talent resources by escalating certain types of calls to specific representatives who have the right experience and knowledge to resolve issues. They can analyze trends among their top-performing agents to develop best practices for other team members to follow. A supervisor who has access to this information in a dashboard can use it to provide hands-on guidance to new agents or develop workforce optimization strategies that further enhance the call center’s capabilities.
Ease of provisioning and managing multi-site operations
It is increasingly important for mid-size businesses as they grow and expand into new regions. Most small businesses cannot afford to have on-site IT staff at every office location, but they need to be able to deploy advanced contact center solutions to all their agents, regardless of where they are located; and they need to know that those remote users will have the management and support they need to get their jobs done.
Disaster Recovery/Business Continuity
The trends impacting contact center BC/DR include customer and investor expectations, regulations, the use of higher skilled agents, global interconnectivity, mobility, and social media. Given the variety and increasing frequency of events impacting BC/DR–including weather disasters, political changes and terrorist threats–the need to create and deploy BC/DR strategies is clear. Best practices include smarter site selection, placing centers away from vulnerable areas; using “multi-shoring”; enabling employees to work from home; placing applications and data in the cloud; employing multiple backup and response tools and channels; alerting customers with out-bound messaging; and improving contact center access control. Cloud-based solutions offer all these options, and because they have their own redundant infrastructure, users know they will always be up and running, even if one data center goes down.
Cost Savings are consistently rated high in importance among businesses of all sizes. Cloud-based solutions can significantly reduce system maintenance and management costs. They do not require much, if any, up-front capital investment, which is a secondary economic driver but one that is still rated as important by most organizations.
Rapid time to deployment
Time to deployment is of particular interest these days, as technology evolves at a very fast pace, Cloud-based solutions ensure that all end users are up on the most recent version of the software, all the time, with no upgrades or re-installs needed. Adding new users can be almost instantaneous, and companies can be up and running on the most advanced contact center systems in a matter of hours or days, rather than weeks or months. This makes it easy to enter new or emerging markets or add agents during seasonal busy times. It is equally easy to de-activate users as needed, when agents leave the organization, or after periods of high volume and seasonal staffing.
Flexibility and scalability
Flexibility and scalability are critical for business agility, which is a key driver across all business and technology implementations. Cloud-based contact centers make it simple and very cost effective for companies of all sizes to add new agents as needed, in any location, and on any network or device. This enables seasonal staffing and quick response to growth or one-off crises, allowing mid-size companies, in particular, to take advantage of new opportunities and react to market shifts without having to invest in infrastructure and applications beyond their needs. Cloud-based solutions also make it easy for companies to grow into large enterprises–without having to sacrifice their preferred contact center applications and services.
Regulations and standards govern how the data is collected and used. They also dictate the fines and penalties for not following the guidelines. On the inbound side, there are things like the Payment Card Industry (PCI) rule and SOC compliance. HIPAA laws also perform a role, as do ISO/IEC 27001 information security standards. On the outbound side, there’s the TCPA. The number of standards could grow as the state and federal government continue to work to protect consumers and their personally identifiable information. There is a prolonging issue with complying to Regulations as most cloud-based solution providers are not aware of the compliance requirements and mostly end up failing to comply with the Regulatory standards as they compromise on quality requirements set by these regulations.
Authentication and Authorization issues
In cloud computing, interoperability means the ability of an organization to move its workload easily from one cloud environment to other. As the resources are being shared among the servers and users, the files or data is more vulnerable to attacks. Thus interoperability brings with it the challenges of security and privacy. There exists a possibility for unauthorized users to enter and access the data in cloud. In this situation virtual machines are allotted to the cloud users. These machines have legitimate logins which can be easily cracked.
Increasing incidents of Data Breaches
With data breaches on the rise, all companies look to improve their data security measures. Contact centers are particularly vulnerable to privacy breaches, and it is mainly due to what is best described as a security ripple effect. According to Contact Solutions, contact centers need to address potential problems in the way data is stored in IVR systems: Data is stored in the system and subsequently copied to multiple locations, which become targets for fraudsters. Each call should have its own allocated space and resources. The Identity Theft Resource Center (ITRC) reports that breaches increased by 40 percent between 2017 and 2018. The Aite Group also shares a worrying fact: growth in card-not-present (CNP) fraud during the same time period. For contact centers, both points cause concern. The contact center deals with personally identifiable information regularly and, depending on the organization, offers CNP transactions.
Vulnerabilities in Application Security
Contact center agents may use company-approved software to complete their work, but a number of employees turn to other applications to maintain peak productivity and efficiency. The “rogue” apps, while good for the agent, can hamper the company’s security. Security professionals also worry about personal devices compromising network security.
Issues with Integration to Third-Party Platforms
Cloud-based contact center platforms often integrate with third-party platforms. It’s a good capability—critical, in fact. By pooling data, agents have immediate and easy access to needed information about customers and patients. It also reduces data entry errors and hours of time- and labor-intensive work. Integrating APIs, however, poses a vulnerability: the outside applications. Security and privacy are often matters of weakest links, meaning that even if the cloud-based software is secure, it could be breached if a third-party platform isn’t.
High initial deployment costs
One of the most frequently cited restraints for cloud based contact center technology has been the Total Cost of Ownership (TCO). The initial costs of migrating to a cloud-based contact center, adding additional applications and channel are a huge continuing expense. A huge CAPEX payments approach becomes not only a challenge while deploying the cloud-based contact center solutions, but also as enterprises need more and more applications or as agents seats grow, makes it difficult to justify the return on investments.
Lack of Awareness
A lack of Awareness about the usefulness of Hosted / Cloud based Contact centers is preventing enterprises from reaping the benefits offered by cloud computing. The lack of Awareness and understanding of Cloud-based Contact Center is the main cause of slow cloud-based contact center adoption. The lack of benefits and security concerns were stated as the most important drivers for non-adoption. The lack of Awareness could cause security concerns to the end-user.
In an effort to create a more positive and seamless experience and to garner customer loyalty, contact centers are rapidly investing in omnichannel solutions to reach their customers on their preferred channels. As consumers continue to add new forms of communication for businesses to engage with (i.e. email, mobile, social media, apps, short message service, etc.), contact centers should consider taking a multichannel approach to service their customers and deliver messages straight to their desired inboxes. Omnichannel technologies can equip companies with the ability to confirm appointments, send alerts and reminders, launch promotions and send payment processing options across a variety of channels with a click of a button.
Business Intelligence / Artificial Intelligence
A recent study estimated that 85 percent of customer service interactions will be handled without a human agent by 2020. Deploying technology, such as business intelligence (BI), can help contact centers track and monitor consumer behavior and identify sales patterns/trends, while artificial intelligence (AI) enables companies to analyze, predict and make suggestions about a company’s business forecast. Both BI and AI can be leveraged to automate critical metric tracking, monitor and measure call campaign costs and return on campaign investments, predict call volumes and staffing needs, as well as identify problematic trends and issues before they arise. In fact, both BI and AI can identify, flag and suggest appropriate “upselling opportunities” for products and/or services for each customer interaction. The utilization of BI and AI in the contact center space is just beginning. Looking down the road, BI and AI are expected to be more intelligent, automated and comprehensive within the next five years.
Other Key Market Trends
As technology evolves and customers rely on more communication channels, contact centers will have to continue to adapt and grow. Contact center trends that have affected contact center communications in recent years, and continue to do so, include:
Social media -- social media platforms, such as Twitter, have become popular customer communication platforms, making it important for companies to support these channels.
Mobile access -- customers demand support for mobile-friendly communication services, such as application and text support.
Video telephony -- IP/video telephony services such as FaceTime and Skype enable customers to interact with companies using video chat, allowing for more personal, face-to-face interactions.
Advanced analytics -- analytics play an increasingly important role in predicting customer behavior. Speech analytics is also used to monitor, evaluate and train contact center employees.
Market Size and Forecast
The Asia-Pacific Hosted/Cloud Contact center market is estimated to be worth USD 1.96 Billion in 2018 and is expected to reach a market size of USD 5.79 Billion in 2023 growing at a CAGR of 24.2%. The Asia-Pacific region is anticipated to expand at a faster rate owing to the growing recognition of cloud-based solutions coupled with the adoption and growth of promising technologies such as the Internet of Things.
China Hosted/Cloud Contact Center Market Size
- USD 588.2 Million – The estimated market size of the Chinese Hosted/Cloud Contact Center Market in 2018
- 24.2% - The CAGR growth rate of the Chinese Hosted/Cloud Contact Center market in the forecast period 2018 to 2023
- USD 1.73 Billion- The expected market size of the Chinese Hosted/Cloud Contact Center Market in 2023
Japan Hosted/Cloud Contact Center Market Size
- USD 470.4 Million – The estimated market size of the Japanese Hosted/Cloud Contact Center Market in 2018
- 20.7% - The CAGR growth rate of the Japanese Hosted/Cloud Contact Center market in the forecast period 2018 to 2023
- USD 1.20 Billion- The expected market size of the Japanese Hosted/Cloud Contact Center Market in 2023
India Hosted/Cloud Contact Center Market Size
- USD 376.3 Million – The estimated market size of the Indian Hosted/Cloud Contact Center Market in 2018
- 28.5% - The CAGR growth rate of the Indian Hosted/Cloud Contact Centermarket size in the forecast period 2018 to 2023
- USD 1.31 Billion- The expected market size of the Indian Hosted/Cloud Contact Center Market in 2023
South Korea Hosted/Cloud Contact Center Market Size
- USD 225.7 Million – The estimated market size of the Indian Hosted/Cloud Contact Center Market in 2018
- 23.5% - The CAGR growth rate of the Indian Hosted/Cloud Contact Centermarket size in the forecast period 2018 to 2023
- USD 648.43 Million- The expected market size of the Indian Hosted/Cloud Contact Center Market in 2023
The Market Size of the Asia-Pacific Hosted/ Cloud Contact Center Market is estimated to be worth USD 1.96 Billion in 2018 and is expected to reach a market size of USD 5.79 Billion in 2023 growing at a CAGR of 24.2%
The China market holds the largest market share in Asia Pacific Private & Hybrid Cloud Deployment Cloud-Based Contact Center Market by Country in 2018 and would continue to be a dominant market till 2023; growing at a CAGR of 24.2 % during the forecast period.
The Japan market is expected to be worth USD 470.4 Million in 2018 and is expected to witness a CAGR of 20.7% during (2018 - 2023) in Asia Pacific Public Cloud Deployment Cloud-Based Contact Center Market.
In Japan, Large Enterprises will reach a market size of US$1.3 Billion by the close of the analysis period (2018 to 2023).
The India market is expected to witness a CAGR of 28.5% during (2018 – 2023) with the market size set to rise from USD 376.3 Million in 2018 to USD 1.31 Billion in 2023.
The Healthcare market is expected to witness a CAGR of 26.1% during (2018 - 2023).
The Retail & Consumer Goods market would attain market value of $56.3 million by 2023.
Evolving Beyond Multiple Vendor Partnership
Choosing the right technology partner to deploy a hosted contact center is vital to develop a successful growth strategy. Enterprises are no longer only looking for multiple vendor partnerships to provide them with their evolving contact center needs. Achieving long-term success by improving the overall end-user experience requires investment in a more comprehensive solution that offers a uniform global customer experience, with better manageability and single ownership. For MNCs, it is very important to have a consistent end-user experience and overall quality control across geographies through centralized control. In the current context, contact center solutions have come a long way from siloes-based platforms to a more integrated platform. Network uptime, negligible multi-vendor management cost, flexible and unified service level agreements (SLAs), global reach of network and voice and managed support services are some of the important factors that should be considered by MNCs and large BPOs, before shifting their infrastructure on cloud.
Distribution Chain Analysis
The Key players in the Supply Chain of Hosted/Cloud based Contact Center Market includes:
Original Equipment Manufacturers (OEMs)
An original equipment manufacturer (OEM) makes equipment or components that are then marketed by its client, another manufacturer or a reseller, usually under that reseller's own name. An OEM may make complete devices or just certain components, either of which can then be configured by the reseller.
Telecom Service Providers
Contact center telephony is the communication and collaboration system used by businesses to either manage high volumes of inbound queries or outbound telephone calls keeping their workforce or agents productive and in control to serve or acquire customers. This business communication system is an extension of computer telephony integration (CTI).
An application service provider (ASP) is a company that offers individuals or call centers access over the Internet to applications and related services that would otherwise have to be located in their own personal or enterprise computers. Sometimes referred to as "apps-on-tap," ASP services are an important alternative, not only for smaller companies with low budgets for information technology, but also for larger companies as a form of outsourcing and for many services for individuals as well. Call center applications include remote access serving for the users of a call center. Many smaller call centers can use ASPs for a lower cost and the same functionality. System Integrators
System Integrators provide call center software solutions, with a focus on both inbound and outbound solutions. The list includes players such as EDS, Accenture and CSC, Dimension Data, Sykes and Indus.
The cloud-based contact center market has witnessed major trends, for example, the effective use of chatbots & artificial intelligence, and increasing dependence on interactive voice response (IVR). Many global players have adopted chat bots & artificial intelligence to increase their enterprise value in the market.
Many players are also concentrating on mergers and acquisitions for sustaining in the competitive environment of the cloud-based contact center. In December 2016, Genesys acquired InIn for USD1.4 billion which is the largest transaction ever in the cloud center industry. With this, Genesys is able to support clients in all the industries with complete portfolio available in the cloud and on-premise. In May 2017, Extreme Networks acquired Avaya Networking for USD 100 million. This acquisition was aimed at expanding the company's state-of-the-art portfolio of data centers, core, campus, and edge networking.
Some of the Competitive Factors in the Managed Hosted/Cloud Contact Center Market include:
The Hosted/Cloud Contact CenterServices requires answering the rising demands during peak hours. Enterprises encounter fluctuations in voice call volume and demand for data services. The business can encounter massive spike in inbound customer service calls anytime now. Regardless of whether the same demand is encountered the Hosted/Cloud Contact Centerprovider must scale to meet demands is important. The Service Providers that offer scalable solutions are the front-runners in the Sector.
Reliability and Availability
Hosted/Cloud Contact Centermust be reliable in order to deliver the utmost in user productivity. If Hosted/Cloud Contact CenterServices is expected to play a major role in increasing user productivity it has to be reliable, dependable and consistent in its delivery. This is no easy task. When Hosted/Cloud Contact Centeris down, productivity is down, and users and enterprise customers are dissatisfied. The unreliable delivery of Hosted/Cloud Contact Centerservices will damage the reputation of Hosted/Cloud-based Contact Center. It will be harder to regain the user's confidence to return to the Hosted/Cloud Contact Centerfunctions than it was to convince the user to try Hosted/Cloud Contact Centerin the first place. Technology vendors and providers often throw around the term five nines (99.999%) availability when discussing their products or services, and the Hosted/Cloud Contact CenterServices market is no different. The term is used so often that the average technologist doesn't think twice about it. First of all, five nines does NOT refer to reliability. It refers to availability. Availability is the probability that a device or service will be working when you go to use it. Thus the Service Provider offering higher reliability and availability are set to dominate the market.
Key Market Players
The Key Market Players in the APAC Hosted/Cloud Contact Center Market includes:
8x8, Inc. provides voice-over-Internet protocol creation platforms, hosted Internet PBX solutions, voice and video semiconductors, and related software. The Company offers service providers the tools to create next-generation Internet protocol network services, while providing telecommunications manufacturers with embedded technology, software stacks, and reference designs.
Five9, Inc. provides cloud contact center software. The Company offers real-time and historical reporting, recording, quality monitoring, workforce, and customer relationship management integrations. Five9 serves customers worldwide.
Cisco Systems, Inc. designs, manufactures, and sells Internet Protocol (IP)-based networking and other products related to the communications and information technology (IT) industry and provide services associated with these products and their use. The Company provides products for transporting data, voice, and video within buildings, across campuses, and globally.
Aspect Software, Inc. provides unified communications and contact center software solutions. The Company offers protocol-based voice over, automatic call distribution, predictive dialing, voice portal, internet contact, workflow management, and mulit-channel recording solutions. Aspect Software conducts its business worldwide. BroadSoft, Inc. is a global provider of software that enables fixed-line, mobile, and cable services to deliver voice and multimedia services over their internet protocol-based and IP-based networks. The Company's software enables customers to provide enterprises and consumers with a range of cloud-based, hosted, and IP multimedia communications.
Genesys, (also known as Genesys Telecommunications Laboratories, Inc.), is a company that sells customer experience and call center technology to mid-sized and large businesses. It sells both cloud-based and on-premisessoftware. Genesys is headquartered in Daly City, California.
Serenova, LLC operates as a platform as a service company. The Company offers a platform that provides voice, chatting, email, recording, and SMS communication services. Serenova serves clients in the United States, the United Kingdom, and Canada.
NewVoiceMedia Ltd. develops software-as-a-service communication technology. The Company delivers cloud contact centre solutions, salesforce customer relationship management, and peripheral component interface-decision support system products. NewVoiceMedia serves contact centres, service desks, growing businesses, remote, and disaster recovery clients in the United Kingdom.
Content Guru is a cloud communications provider, based in Bracknell, UK. It provides services in over 30 countries through the storm platform, both direct and with partners such as Vodafone and KPN.
RingCentral is a publicly traded provider of cloud-based communications and collaboration solutions for businesses. The company is considered the leader in Unified Communications as a Service in terms of revenue and subscriber seats.
Altitude Software is a Portuguese information technology company, dedicated to the creation of products and solutions for Contact Centers. It has an installed base of around 900 customers in 60 countries, corresponding to approximately 250,000 users. Altitude Software is the Portuguese information technology company with the largest international presence. It is one of the most prominent European companies in the area of independent software solutions for contact centers.
IFS AB (Industrial and Financial Systems) is a multinational enterprise software company headquartered in Linköping, Sweden. The company develops and delivers enterprise software for customers around the world who manufacture and distribute goods, maintain assets, and manage service-focused operations. IFS has 3,500 employees that supports 10,000 customers worldwide from a network of local offices and ecosystem of partners
Amazon Web Services (AWS) is a subsidiary of Amazon that provides on-demand cloud computing platforms to individuals, companies, and governments, on a metered pay-as-you-go basis. In aggregate, these cloud computing web services provide a set of primitive abstract technical infrastructure and distributed computing building blocks and tools.
The APAC Hosted/Cloud Contact Centermarket is forecast to grow at a CAGR of 24.2% from USD 1.96 Billion in 2018 to USD 5.79 Billion in 2023.
The major challenges pricking the growth of the Asia-Pacific Hosted/Cloud Contact Center market includes High initial deployment costs and Lack of Awareness
The growth of the market is restrained by factors such as Stringent Regulation, Authentication and Authorization issues, Increasing incidents of Data Breaches, Vulnerabilities in Application Security and Issues with Integration to Third-Party Platforms
The growth of the APAC Hosted/Cloud Contact Center market is augmented by Drivers such as Ease of provisioning and managing multi-site operations, Disaster Recovery/Business Continuity, Cost savings, Rapid time to deployment and Flexibility and scalability.
- USD - US Dollar
- CAGR - Compounded Annual Growth Rate
- SMEs - Small and Medium Enterprises
- API -Application Programming Interface
- WFM - Workforce Management
- DR - Disaster Recovery
- BC - Business Connectivity
- PCI - Payment Card Industry
- SOX - Sarbanes-Oxley Act
- HIPAA - Health Insurance Portability and Accountability Act
- TCPA - Telephone Consumer Protection Act
- ITRC - Identity Theft Resource Center
- CNP - Card-Not-Present
- TCO - Total Cost of Ownership
- CAPEX - Capital Expenditure
- BI - Business Intelligence
- AI - Artificial Intelligence
- IP - Internet Protocol
- SLA - Service Level Agreement
- MNC - Multi-National Companies
- BPO - Business Process Outsourcing
- OEM - Original Equipment Manufacturers
- CTI - Computer Telephony Integration
- ASP - Application Service Provider
- IVR - Interactive Voice Response