Markets for Agent Performance Optimization grow more slowly

2009-08-18 - According to new research by Frost and Sullivan, the North American agent performance optimization (APO) markets are witnessing growth although at a quieter pace, despite the slowdown in spending on capital expenditure in contact centers. A major factor driving growth is that contact centers rely heavily on labor, and are willing to consider spending on tools that optimize headcount productivity if a quick return on investment is possible, the analysts conclude. However, APO vendors are on the lookout for longer buying cycles for their services, involving additional layers of corporate decision makers and placing greater emphasis on valid business cases.

Frost & Sullivan find that the market earned revenues of over 756 million dollars in 2008 and estimates this to reach 1.02 billion in 2015. The study covers quality monitoring, workforce management and performance analytics, including speech analytics and performance management. "It appears that the more customer-facing a vertical market is, the more likely that companies in that market are receptive to APO tools in the down economy," says Frost & Sullivan Principal Analyst Keith Dawson. "For example, vendors report that financial services and telecom companies are among the most interested buyers these days -- they are among the front runners, trying to retain customers in a very competitive environment."

The contact center market in North America is stable and mature, and the high end of the market is largely penetrated for APO tools, Frost & Sullivan report. Although there is still some room for growth, especially in the lucrative add-on market for analytics and performance management software, many vendors are focusing attention on the relatively untapped mid-sized and smaller centers to grow their businesses. "The bulk of the greenfield market is in the harder-to-tap segments of the industry, notably smaller centers," explains Dawson. "They are often reachable mainly by resellers and channel partners, highlighting the importance of partnerships and product 'ecosystems' in this market."

"The economic climate puts a premium on customer retention, and analytics tools (especially speech analytics) provide remarkable insight into the kinds of processes that can help extend customer longevity," concludes Dawson. "Since performance and cost control is paramount in this environment, analytics that involve data, web and speech processing and event notification are gaining in importance across contact centers. Most of the suite vendors and niche providers have already enhanced the baseline analytics products in their portfolios."


Author(s): Sarah Dreps

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