Contact Center As A Service Industry Overview
The global contact center as a service market size is expected to reach USD 17.12 billion by 2030, registering a CAGR of 19.1% from 2023 to 2030, according to a new report by Grand View Research, Inc. The contact center as a service (CCaaS) market growth can be attributed to the rising adoption of cloud-based contact center services by enterprises to offer better flexibility and customer convenience. Many organizations are adopting Business Intelligence (BI) technology, as it provides them with a holistic view of agent performance and helps measure how they are achieving organizational goals.
Businesses are widely adopting cloud-based contact centers owing to benefits such as reduced integration, support, and IT-related costs, which could help drive the growth of the market. Moreover, numerous players are developing cloud contact centers to enhance operational functionality and flexibility for users. For instance, in January 2021, Infosys announced the launch of the Infosys Cortex, a customer engagement platform that leverages the technology from Genesys, a cloud contact center solutions provider, along with Contact Center AI and analytics services from Google Cloud.
Numerous CCaaS providers are entering into partnerships with communication companies to deploy contact center software and expand their reach. For instance, in April 2021, Talkdesk announced a partnership with Welltel, a communication and IT company based in Ireland. Under the partnership, Welltel would offer Talkdesk cloud contact center solutions to Irish companies.
The COVID-19 pandemic is expected to have a positive impact on the market. As the pandemic situation continues, cloud-hosted contact centers are gaining more traction as it provides better levels of reliability, availability, and disaster recovery because agents can access the tools they need to perform the job from any place. Moreover, cloud-hosted contact centers provide better workforce elasticity for easily scalable solutions and faster deployment of new capabilities and technology solutions. However, the increasing concerns about data security are expected to hamper the market growth over the forecast period. CCaaS solutions handle huge data volumes and critical financial data of consumers, which could be at risk of malicious attacks.
Contact Center As A Service Market Segmentation
Grand View Research has segmented the global contact center as a service market based on solution, service, enterprise size, end use, and region:
Based on the Solution, the market is segmented into Automatic Call Distribution, Call Recording, Computer Telephony Integration, Customer Collaboration, Dialer, Interactive Voice Response, Reporting Analytics, Workforce Optimization, and Others.
- The automatic call distribution segment dominated the market in 2022 and accounted for more than 22.0% share of the global revenue. The automatic call distribution solution is widely adopted in contact centers as it helps them to handle a large volume of inbound calls. This solution routes the incoming calls to specific agents or departments within an organization based on the pre-set distribution rules. It also assists the callers when the call volume is too high, or the call center agents are busy, thus providing a better customer experience.
- The customer collaboration segment is anticipated to register the fastest CAGR over the forecast period. Customer collaboration provides enterprises with enhanced customer satisfaction by promptly solving and attending to their issues. The increasing need to gather and use customer feedback to improve product or service offerings is expected to drive the segment growth over the forecast period.
Based on the Service, the market is segmented into Integration Deployment, Support Maintenance, Training Consulting, and Managed Services.
- The integration deployment segment dominated the market in 2022 and accounted for more than 40.0% of the global revenue. Growing adoption of the cloud-based contact center as a service to provide better flexibility and customer experience is expected to drive the segment growth over the forecast period. The rapid pace of digitalization across industries is compelling businesses to focus on constant transformation and up-gradation of their IT infrastructure.
- The managed services segment is expected to register the fastest growth over the forecast period. The need to simplify the management of complex systems and deliver continuous operation improvement among contact centers is expected to drive the adoption of managed services over the forecast period. Managed services, streamlined technology operations across applications and network and infrastructure domains for contact centers.
Based on the Enterprise Size, the market is segmented into Large Enterprises, and Small Medium Enterprises.
- The large enterprise's segment dominated the market in 2022 and accounted for more than 54.0% of the global revenue. Large enterprises have a customer base spread widely across the globe, and hence to maintain business continuity efficiently, large enterprises are aggressively investing in the advanced contact center as a service technology.
- The small medium enterprises segment is expected to register the fastest growth over the forecast period. Small medium enterprises prefer cloud-based contact center solutions as the IT support and components expenditure required are less, leading to a low investment cost and better cost savings.
Based on the End Use, the market is segmented into BFSI, Consumer Goods Retail, Government, Healthcare, IT Telecom, Travel Hospitality, and Others.
- The BFSI segment dominated the market in 2022 and accounted for over 25.0% of the global revenue. The growth of the segment can be attributed to the growing amount of customer interaction owing to digitization in the BFSI industry. Customers are increasingly reaching out to banking institutes using various channels. The customer expects the banks to deliver services across all the touchpoints continuously without having to restart the conversation.
- The consumer goods retail segment is anticipated to register a promising CAGR over the forecast period. Shift in consumer demands and buying behavior are reshaping the consumer goods retail segment. The increasing use of online channels for buying consumer goods is fueling the demand for CCaaS solutions in the consumer goods retail industry.
Key Companies Market Share Insights
The competitive landscape of the market is highly fragmented and characterized by the presence of a large number of players. Vendors are focusing on providing fully scalable, flexible CCaaS offerings through a monthly subscription to enable quick deployment of new functions, channels, and features and effectively deliver a lower Total Cost of Ownership (TCO). Moreover, market players are focusing on offering better agent assistance solutions and services.
The vendors are investing in the development of omnichannel solutions for various end-use industries, such as BFSI, government, healthcare, and IT telecom. Market players are also investing in new product development and launches to increase their customer base and strengthen their market positions. For instance, in July 2020, NICE LTD announced the launch of Real-Time Interaction Guidance, a solution powered by the company’s ENLIGHTEN AI platform. Based on predictive behavioral models, the solution helps in determining and scoring agent behavior to increase customer satisfaction and improve sales opportunity identification. This solution forms an integral part of NICE's CXone platform. Some prominent players in the global contact center as a service market include:
- Alcatel Lucent Enterprise
- Avaya, Inc.
- Cisco Systems, Inc.
- Enghouse Interactive Inc.
- Five9, Inc.
- Genesys
- Microsoft Corporation
- NICE inContact
- SAP SE
- Unify Inc.
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About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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