Popularity of IP Contact Centers Boosts the Interaction Customer Relationship Management Solutions Market

Internet protocol (IP)-based contact centers are poised to emerge as the next big trend in the interaction customer relationship management (ICRM) market. As enterprises reach the end of their product lifecycle in the Asia Pacific market, replacement of existing applications such as automatic call distributor (ACD) with IP-ACD solutions have gained priority. IP contact centers are expected to find greater uptake in countries that do not have fully developed voice networks. However, to firmly establish themselves in the contact center market, IP technology vendors need to resolve certain glitches in three areas - quality of service, infrastructure reliability, and network security. ICRM is expected to get another boost with the increasing demand for self-service solutions, as contact centers look for ways to cut costs. This is creating wider markets for e-mail, interactive voice response (IVR), and speech technologies.

The Frost & Sullivan research service examines the Asia Pacific ICRM market and it segments it into ACD, computed telephony integration (CTI), IVR, outbound systems, call monitoring, workforce management, speech technology, e-mail management, and real time Web collaboration. It analyses major industry challenges, market drivers and restraints, and potential threats faced by the market participants along with a comprehensive analysis of the market.

Cost Reduction Initiatives Promotes Hosted Contact Centers

The Asia Pacific market for hosted telephony, despite being at an early stage of inception, is rapidly gaining momentum. Incumbents have been launching hosted IP telephony services across many countries and other participants are expected to follow their lead. The incumbents can rely on their strong brand image and competent distribution channels to market the service effectively and spur growth. Both large companies and small and medium enterprises (SMEs) have emerged as early adopters of hosted contact center service offerings.

"Hosted contact centers are likely to expand the market size by bringing informal contact centers to the mainstream, as they offer cost advantage with low initial investment," says the analyst of this research. "Outsourcing telecommunication requirements helps enterprises reduce their maintenance and support staff, shift the technology risk onto the service provider, and gain access to newer services at lower cost due to scalability and competition."

Strategies Aimed at the SME Segment to Contribute to the Expected Double Digit Growth Rate

The Asia Pacific market is projected to increase at a compound annual growth rate (CAGR) of 11.3 percent from 2004 to 2011, mainly due to the returns from the IP contact centers, hosted contact centers, and self-service solutions. This growth rate can be improved once market participants effectively tap into the price-sensitive SME market. "There is a strong focus in selling packaged applications to the SME market," notes the analyst. "Vendors have to position themselves with key channels in the most lucrative SME regions to offer lower-priced solutions tailored for call monitoring for the less than 50 seats segment."

Vendors have to offer multimedia capabilities; ACD, CTI, and IVR functionalities; and statistical reporting tools to better manage incoming calls and agent staffing. Vendors and channel partners have to strategize innovatively, as they need to factor in the budget constraints of the SMEs, which differ significantly among countries.