Hosted Contact Center Market Set to Flourish

Contact centers, both in-house and outsourced, help enterprises in many ways—from providing a better customer experience to increasing productivity to providing the latest technologies for generating valuable business intelligence. When the contact center is hosted in the cloud, additional benefits abound, such as assured disaster recovery, ease of compliance management, and greater scalability and flexibility.

Company reliance on various technologies and the Internet to operate profitability is expected to intensify, with a corresponding increase in cloud-based contact center market size. According to a new report from MarketsandMarkets, the market is expected to grow from $5.43 billion in 2016 to $15.67 billion by 2021, at a compound annual growth rate of 23.6 percent.

This growth is also being fueled by a high demand for outbound dialer systems and outsourced contact center services. Advances in dialer technology, especially features such as dynamic filtering—search indexes that control which leads are called—and do-not-call list management, are popular because they increase Communicator talk time, leading to greater productivity.

Outsourcing the contact center function enables companies to reduce spend on networks and IT. Cost benefits will drive companies to outsource customer services across the board—from inquiries to order processing to technical support. Plus, the increase in the number of an organization’s functional areas (e.g., sales and marketing) being served by contact centers has increased the complexity of deploying in-house contact centers.

Another key to cloud-based contact center growth is the role the contact center is playing in the e-commerce space. Innovation and the proliferation of digital technologies have changed customers’ interaction with retailers; they are now using different channels such as live chat and self-service options. The vendors in this vertical market rely on the cloud environment to attain customer loyalty all along consumer touchpoints such as retail stores, Web catalogs and the contact center.

The only growth inhibitors for the cloud-based contact center market are an ongoing fear of data risk and initial deployment costs. Enterprises are mitigating the potential data risk, however, by side stepping total cloud immersion. They are bridging the gap between low-security public cloud and high-security private cloud by creating hybrid cloud networks. This gives them the scalability and flexibility of the cloud while retaining secure computing environments on-premises.

Enterprises that make customer satisfaction and experience a priority are strategically using contact centers to maximize their success in these areas. Outsourcing contact center functions to a managed service provider can help in this regard by providing crucial elements of high-quality customer service without all the infrastructure complications of on-premises solutions. As the cloud-based contact center market grows, consider ways in which you, too, can leverage the cloud to push your business to the next level.