Contact Center Solutions Featured Article

IBISWorld Highlight Market Risks for Helpdesk and Call Center Software

June 24, 2014

IBISWorld, a firm that specializes in industry and procurement research, provides organizations better understanding of market conditions, enabling them to make smarter and faster purchasing and business decisions. Given the restrictive nature of the helpdesk and call center software market, IBISWorld’s updated report is of great significance.

There was a time when call centers and helpdesks required onsite hardware systems and software but the advent of cloud-based solutions has ended provider worries about infrastructure and maintenance. This has not only reduced total cost of ownership but has allowed suppliers to maintain stability in prices in spite of increased demand.

According to IBISWorld procurement analyst Andrew Yang, “an unfavorable market structure reduces buyer power, but pricing trends have been favorable for buyers, with prices remaining stable in the three years to 2014.”

As the ‘Helpdesk & Call Center Software Procurement Research Report’ contains growth forecasts for a three-year outlook period, buyers do not have to worry about rising prices and can take their time while making purchasing decisions.  More importantly, buyers can create more accurate budgets and forecasts.

With the helpdesk and call center software still in the early stage of its product life cycle, providers can afford to keep prices low, encouraging adoption by buyers. But as the economy recovers and wages rise, prices are bound to increase. The report notes that prices will be higher in the three years to 2017 and underscores the market risks that buyers may have to face.

As most of the suppliers are small to midsize companies, Yang notes that they might find it difficult to procure the software; some of them may even go out of business. Those that are still in the run may be forced to raise prices or compromise on quality of their software. With little substitutes available and expensive switching costs, buyers will face vendor lock-in. A lack of financial stability further adds to the market risks.

The only advantage—if any—is that even if prices rise, there will not be severe price fluctuations, and buyers will still be able to manage their budgets and predict prices.

Hence, the IBIS report cautions buyers against making hasty purchases and urges them to evaluate the providers and ensure that the software has all the features they want.



Article comments powered by Disqus

Related Contact Center Solutions Articles

Golden Gate BPO Solutions Partners with NETCAST BPO Services

When it comes to business process outsourcing (BPO) while many parts of the world are gaining traction as places to locate facilities, India and the Philippines because of their large English-speaking talent pools remain the dominant BPO places to operate. This is particularly true for companies whose majority of customers require support in English. [ Read More ]
05/21/2015

AMC Technology Contact Canvas Integrates Contact Center Apps to Microsoft Dynamics CRM

In recognition of the value-added of CRM integration with contact center capabilities, enterprise and contact center application integration software specialists AMC Technology has announced it has telephony enabled Microsoft CRM 2013 and 2015 through its Contact Canvas platform. The AMC platform allows customers to integrate business apps and communications across the enterprise, from contact center agents to knowledge workers and mobile staff. [ Read More ]
05/21/2015

Lazy Dog Restaurants Partners with RRT On Takeout Management Solution

When it comes to the business world, customer satisfaction is the real currency that keeps a company going. This is true whether talking about a retail or restaurant or a call center. Lazy Dog Restaurant and Bar just announced it is taking the next step in increasing its customer service approach thanks to an agreement with Restaurant Revolution Technologies. The agreement will allow Lazy Dog to implement an innovative takeout order management solution that is going to be supported by the compan… [ Read More ]
05/12/2015

Boston Retail Partners' Survey Reveals 87 Percent Plan on Using Gamification

The latest survey from Boston Retailers Partners reveals retailers are implementing customer relationship management (CRM) solutions as a key enabler to influencing customers. And gamification has become an important tool as part of the CRM deployment. [ Read More ]
05/12/2015

Events

Weekly Live Demo
Contact Center Solutions

Register Today!


Weekly Live Demo
CaaS Small Center

Register Today!