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Industry Research : Cost Savings and Business Benefits of Hosted Contact Center Model Resonate
The global economic downturn and budget constraints for technology spending have compelled a number of businesses to explore options beyond capital-intensive premise-based solutions that do not require huge capital investments. This mindset paved the way for hosted contact center models to be adopted across all sizes of enterprises in the Asia Pacific markets.
New analysis from Frost & Sullivan, Analysis of Asia Pacific Hosted Contact Center Services Market, finds that the market earned revenues of US$181.9 million in 2011 and estimates this to reach US$465.0 million in 2018.
While pricing is significant for smaller companies, service providers will have to possess substantial understanding of customers' business objectives to close deals with larger enterprises. Vendors also have to proactively demonstrate return on investment (ROI) for hosted solutions, as most enterprises are reducing technology spending.
"Premises-based vendors will have to clearly articulate their cloud migration strategies," said Frost & Sullivan Industry Manager Krishna Baidya. "Companies lacking a clear roadmap for such new technology platforms are likely to have trouble adapting to the influx of low-cost, easy-to-operate applications offered by competitors."
An increasing section of the market is looking to leverage the hosted model to gain access to the more sophisticated applications that helps them optimize their resources and gain better efficiency. Flexibility and scalability of hosted solutions ideally suit expansion, overflow, and disaster recovery needs, which are not always predictable in the current business scenario.
While the hosted model's popularity among the small- and medium-sized business (SMB) sector is natural owing to its cost benefits, it is its adoption among enterprises – particularly the 200 plus seat segment – that validates its maturity, robustness, and business benefits.
Once the benefits of a hosted model are apparent to different business segments, it is likely to become a mainstream market, growing at compound annual growth rate of 17.4 percent. By 2018, hosted contact centers are likely to account for 9.8 percent of the overall seats in the region.
Though the adoption rates have been growing manifold, the perceived lack of network security and customer data privacy issues remain, especially among customers in the financial services and healthcare verticals.
Enterprises that have made substantial investments in on-premise technology and training of staff are likely to postpone the adoption of hosted technology. However, such enterprises can still take advantage of hosted offerings when there is a need for expansion.
"The service providers' initiative in promoting hosted solutions is pivotal to this market's growth in the short term," noted Baidya. "Going forward, a broader variety of contact center applications are likely to be offered for use on hosted platforms, enticing a wider spectrum of potential enterprise users."
Analysis of Asia Pacific Hosted Contact Center Services Market is part of the Contact Centers Growth Partnership Services program, which also includes research in the following markets: Assessment of the Asia-Pacific Contact Center Market, Asia Pacific Contact Center Applications Market, Asia-Pacific Contact Center Outsourcing - Domestic and Offshore Markets, and Asia-Pacific Contact Center Services Market - Opportunity Landscape for Channels All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
Posted by Veronica Silva Cusi, news correspondent
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Published: Monday, September 17, 2012