Contact Center Solutions Featured Article

June 12, 2006

Automatic Call Distributor Systems Market Strong Due to SMBs

By Susan J. Campbell

TMCnet Contributing Editor

Internet protocol (IP)-based automatic call distributor (ACD) systems have proliferated among small- and medium-sized contact centers in North America. The ability to build virtualized contact centers has created great demand for these systems. It is anticipated that this rapid uptake of IP by smaller customers is likely to open up an unexplored market for ACD vendors.

According to Frost & Sullivan, North American ACD markets earned $975 million in revenues for 2005 and forecasts that this number could reach $1.29 billion by 2012. For further results from the latest Frost & Sullivan analysis, North American Automatic Call Distributor Systems, Market Outlook, contact Mireya Castilla in Corporate Communications.

Frost & Sullivan Strategic Analyst, Ian Jacobs, noted that the maturity of the large contact center market has led to declining revenues and remains a significant concern for ACD vendors. However, the increase in sales of IP-based ACDs to smaller customers is counterbalancing this decline.

Initially, small- and medium-sized contact centers were reluctant to consider adopting IP-based systems due to concerns of poor voice quality, reliability and security in addition to high costs. These organizations are beginning to understand the importance of these systems and are starting to implement them.

Vendor education programs and network readiness assessment services to ensure quality of service within converged networks and enable easy migration have led to this technological shift toward IP infrastructure. Customers have also been educated to look beyond the high costs of migration and understand the benefits of IP.

Jacobs added that IP offers clear-cut cost savings for the contact center seeking to operate in a virtual environment in which several geographically distributed sites operate as a single, centrally-administered center. IP also enables enterprise to link remote or home-based agents easily and cost effectively, thus helping these centers to overcome the scarcity of qualified and willing onshore contact center agents.

Vendors are likely to be encouraged to consider mergers and acquisitions as a means to expand product sets as a result of the growing demand for all-in-one contact center suites. The market is also likely to be enhanced by the increasing willingness of verticals such as healthcare and public sector/education to adopt IP-based ACDs as well as the growing trend of bringing outsourced contact centers back to North America.

The virtual contact center is steadily increasing in popularity as enterprises are becoming more educated and open to flexibility in their corporate structures. By considering strategies that are ‘outside the box’, these enterprises can not only expand operations and capabilities, they can also acquire a professional and domestic agent base within their budget. Once adopting an IP-based system, these contact centers can realize a strong ROI in addition to significant growth.

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Susan J. Campbell is a contributing editor for TMC and has also written for eastbiz.com. To see more of her articles, please visit Susan J. Campbell’s columnist page.

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