Where Next for Global Contact Centers? New market opportunities, growth sectors and effective sales strategies

Table of Contents

• Market outlook
• Market opportunities
• Hosted contact centers
• New technology developments in contact centers
• Outsourcing contact centers
• Improving the sales pitch

• What is this report about?
• Who is this report for?
• Definitions
• Agent positions
• Contact center
• Inbound hardware
• Inbound software
• Outbound
• Workforce Optimization Technologies (WOTs)
• Agent analytics (AA)
• eLearning
• Quality monitoring (QM)
• Workforce management (WFM)

• Summary
• Market dynamics
• Creating the customer-centric enterprise
  • Utilizing SIP and presence to enable contact center virtualization
• Communicating in the IP world
• Managing diverse regional markets for contact center technology
  • Taking advantage of growth in emerging contact center markets
• Selling solutions to the contact center market
• Less mature verticals are increasing their contact center spending
• Taking the long view
• The short term
• The medium term
• The end game

• Summary
• The geographical opportunities
• Western Europe
  • Slow growth is a combination of factors
  • Selling to Western Europe
• Central and Eastern Europe
  • Market drivers
  • The CEE market opportunity
  • Pitfalls
  • Selling to Central and Eastern Europe
• The vertical opportunities
• Selling contact center solutions to financial services
• Selling contact centers
  • Outbound services in the regulation era
  • True multi-channel capabilities are an absolute necessity
  • Compliance cannot be compromised
• Key tactics to maximize a go-to-market strategy
• Selling contact center solutions to the public sector
• The efficiency driver
  • Implementing the right technologies will drive effectiveness and deliver efficiency
  • Multi-channel contacts may deliver efficiency, but can marginalize some constituents
  • Helping the budget-conscious
  • Encouraging a two-way flow of communication will improve community-government relations
• Selling contact centers to the public sector
  • Profiling the authority is crucial in targeting appropriately
  • Vendor attributes
  • Certain vendor characteristics may hinder decisions
  • Pricing and purchasing strategies need to be modified
  • Networking and hosted contact centers provide an alternative for purchasing contact centers

• Summary
• Introduction
• To host or not to host?
• Benefits of the hosted contact center
  • Overall cost reduction
  • Access to the latest technology
• Barriers to the initial uptake of hosted contact centers
  • Security and reliability
  • Control
  • Risk
  • Existing alternative arrangements
• Selling hosted contact centers
  • Reason number 1: Distributed contact centers become a reality with hosted technologies
  • Reason number 2: Accessibility to WOTs in a hosted environment can make better use of operational and customer data
  • Reason number 3: SIP - is it really a successor to CTI?
  • Reason number 4: Mobile workforces are altering the dynamic of the contact center

• Summary
• Video contact centers
• Who is likely to purchase video contact centers?
• Barriers to uptake
  • Is it all in the mind?
  • Gadgets for every occasion
  • Hidden call costs for the consumer
  • Costs for the end user contact center provider
• Virtual contact centers
• The customer-centric enterprise
• Remote working
• IP telephony
  • Growth forecasts for IP contact centers
  • Session Initiation Protocol (SIP)
  • Small and Greenfield contact centers
  • Hosted IP contact centers
  • Implications for vendors
• Supporting virtual contact centers
• Barriers to virtualized contact centers
• Selling virtualized contact centers
• Work in partnership with global systems integrators (SIs)
• Educating the market and delivering flexible solutions is the key focus

• Summary
• Introduction
• Changes in demand among traditional and emerging vertical markets
• Opportunities in established vertical sectors
• Telco
  • Pricing and quality issues will dominate telco outsourcing investment decisions
  • Segment telco prospects into distinct markets
• Financial services
  • Financial services outsourcing wins will be based on data protection and cost
  • Recognize the diversity of the financial services sector
  • Emphasize data protection capabilities
  • Offer flexible location strategies
  • Leverage self-service options
• Manufacturing
  • Technology manufacturers need outsourcing partners that are cost and culture sensitive
  • Ensure services are price-sensitive
  • Emphasize staff quality
  • Understand the differences among technology clients
• Retail
  • Retail channel diversification means new investment opportunities
  • Emphasize cost savings
  • Attack emerging retail channels
• Geographic markets
  • North American mature markets - growth in US financial services
  • EMEA mature markets - opportunities in financial services and manufacturing
  • APAC mature markets - new growth in manufacturing and retail
  • CALA mature markets - possibilities in manufacturing, financial services and retail
• New and challenging business models
  • Travel and hospitality sector
  • Healthcare
  • Public sector
  • Utlities
  • North American emerging markets - potential in healthcare and government
  • EMEA emerging markets - consistent levels of investment
  • APAC emerging markets - growth across the region
  • CALA emerging markets - revenue potential in healthcare and travel and tourism
• Offshoring - is India still the offshore destination of choice?
• Competitive issues facing Indian contact centers
  • Attrition
  • Pricing
  • Sophistication levels
  • Recruitment
  • Incentives
  • Ongoing offshoring backlash
  • Corruption
  • Lack of middle management
  • Urban locations
• Selling India as an offshore destination

• Summary
• Developing a pricing strategy
• Regional variations have an impact on the price
• Discounting schemes can be complex but help push sales
• Maintenance
• Cost center vs value center
• CAPEX vs OPEX
  • CAPEX helps to plan for the long term
  • OPEX has the advantage of flexibility
• Market pricing hosted services correctly is key
• Usage-based pricing for contact centers
• Concurrent verses log-in pricing
• Bundled minutes and contact center services
• CRM and contact centers
• Value added services
• Professional services and business consulting - sweet spots
• Managed services offer flexibility to the end user
• Vendors need to find the right balance when selling consulting services
• Sources of finance for the end user
• Index

• Figure 3.1: Contact centers and agent positions in EMEA 2006 - 2009
• Figure 3.2: Contact centers and agent positions in North America 2006 - 2009
• Figure 3.3: Contact centers and agent positions in CALA 2006 - 2009
• Figure 3.4: Contact centers and agent positions in APAC 2006 - 2009
• Figure 3.5: Agent positions in EMEA by vertical market 2004 - 2009
• Figure 3.6: Agent positions in North America by vertical market 2004 - 2009
• Figure 3.7: Agent positions in CALA by vertical market 2004 - 2009
• Figure 3.8: Agent positions in APAC by vertical market 2004 - 2009
• Figure 3.9: Contact centers are top priority for US state and local government authorities
• Figure 4.10: What are the three main drivers to purchasing a hosted solution?
• Figure 4.11: What are the three main barriers to purchasing a hosted solution?
• Figure 5.12: Customer service silos
• Figure 5.13: Remote workers as a percentage of total APs globally, 2005-2010
• Figure 5.14: Remote workers components, 2005-2010
• Figure 5.15: Total IP APs and IP APs as a % of total
• Figure 6.16: Breakout of mature outsourcing verticals, 2006 - 2012
• Figure 6.17: Total Indian agent positions, 2004 - 2009
• Figure 6.18: Proportion of Indian offshore APs serving various national markets, 2004
• Figure 7.19: Enterprises consider a number of criteria as important when selecting a vendor

• Table 3.1: Global contact center technology spend 2006-2009
• Table 3.2: Western European Agent Positions (APs), 2006-2009
• Table 3.3: Financial Services contact center technology spending
• Table 4.4: Global hosted APs, 2006 - 2010
• Table 4.5: Global hosted contact center spend 2006 - 2010
• Table 5.6: Regional share of remote workers, 2005-2010
• Table 6.7: Total market size: mature vertical outsourcing markets, 2006 - 2012
• Table 7.8: Typical contact center costs in developed markets
• Table 7.9: Alternative sources of financing