Navigating Change....
The PELORUS Group
Market Research and Consulting Services

FOR IMMEDIATE RELEASE

Date: March 19, 2002
Contact:  Greggory S. Blundell
Phone:  908-707-1121
Fax:  908-707-1135
E-mail:  Info@pelorus-group.com

PELORUS CITES SHIFTING CONTACT CENTER DYNAMICS

Raritan, NJ - According to an exhaustive report from The PELORUS Group entitled “The Future Of Contact Centers,” the contact center market has extended well beyond the confines of historic functions, splintering off into potentially lucrative growth areas on the back of new capabilities.  Partly because of technological efficiencies, and in light of an uncertain economy that emphasizes cost containment, the core revenue model has evolved.  But according to the report, with the right vision and strategies, vendors can move forward from today’s crossroads to capture market share and realize significant gains.

Al Fross, President of The PELORUS Group, notes, “In 2001, contact center vendors generated revenues approaching $1.8 billion, despite the fact that elements of the economy began to slow as early as late 1999.  Indeed, in response to economic uncertainties, many companies have cancelled contact center expansion while others have closed centers altogether.  Nevertheless, some forward-looking enterprises continue to cautiously expand operations in ways that leverage the efficiencies delivered through technologies and capabilities such as media integration, speech recognition, and IP telephony. As this process has unfurled, we have witnessed a concomitant shifting in market shares as vendors nimble enough to react to the adverse environment respond aggressively and intelligently.  This reshuffling of market positions will continue over the next two years, as the market redefines itself and once again solidifies.”

The report cites several factors influencing the market’s future.  Improvements in contact center functionality have leveraged agent productivity, allowing centers to manage more calls with fewer agents.  Intelligent routing capabilities, media integration, and advanced administrative tools have enabled centers to distribute more calls amongst a declining pool of agents without any significant degradation in service levels. Improvements in IVR and advanced speech recognition, plus the increasing availability of hybrid IP solutions, have also minimized pressure to expand agent positions when budgets are tight.

The report estimates that in 2001, in terms of the number of agents shipped, Avaya commanded the lead share, Nortel Networks placed second, with Siemens, Aspect, and NEC rounding out the top five.  The top five industry segments into which shipments were placed were (in ranked order), Finance/Insurance/Banking, Telecommunications, Retail, Manufacturing, and Computer/Software/Technology.  Rounding out the top ten were Health Care, Service Bureaus, Legal/Consulting/Professional Services, Government, and Travel/Tourism.