chinese contact center applications market: is the growth locking down?
TRANSCRIPT
Chinese Contact Center Applications Market: Is the growth locking down?
Shuishan Lu, Research AssociateInformation & Communication Technology
30 Dec 2011
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Agenda
• Brief Market Background• Market Drivers and Restraints• Market Size and Forecast• Chinese Market’s Position in Asia Pacific• Adoption Trends• Vendors’ Go-to-Market Strategies• Key Takeaways
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Brief Market Background
1st
• Basic telephony hotline system based on PBX with simple ACD functionalities
2nd
• Solutions integrated with IVR features (e.g. China Telecom’s “114” contact center services)
3rd• Solutions integrated with
CTI technology
4th
• IP Contact Center with multi-media web based access and customized applications
Four Generations of Contact Center Solutions in China
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Market Drivers and RestraintsM
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Low
High
Low
HighSource: Frost & Sullivan.
System Upgrading & Expansion
Demand of Multi-media Applications
Low Adoption Rate of Advanced Applications
Reducing Price PointsIncreasing
Competition from Local Vendors
Increasing Level of Market Saturation
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Market Size and Forecast
CAGR: 11.05%
CAGR: 6.63%
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Chinese Market’s Position in Asia Pacific
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Adoption Trends - Applications
Contact Center Application Adoption, 2010
• Major adoption from ACD, IVR, CTI and Call Monitoring applications, others such as WFM and Speech Technology are increasing.
• Demand of Self-service and Outbound applications rose.
• Customers are more open to innovative and customized apps.
• Emerging verticals include Education, F&B, Retail etc.
• BFSI and Public sectors have shifted their focus to customized software and value-added services.
5 Major Adoption Trends
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Adoption Trends – Horizontal & Vertical
Adoption Trends by Vertical, 2010 & 2017
Adoption Trends by Horizontal, 2010 & 2017
• SMBs’ contact centers with less than 50 seats generated fast growth in 2010 as most of them chose to build their own contact centers instead of outsourcing.
• Some of the large enterprises were still expanding their contact centers, however the number of deals is declining.
• Both new and existing customers were from Government & Education, Hospitality in 2010. Some of the sub verticals such as Retailing, F&B and Healthcare have witnessed high revenue growth.
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Vendors’ Go-to-Market Strategies
• Global Vendors
1. Streamline their channel programs (main approach)
2. UC vendors: bundled CC applications with their UC solutions
3. More focus on large local enterprises (BFSI, Government, E-commerce etc) and mid market in the future
• Local Vendors
1. High touch with existing customers to secure future contracts and deals
2. Acceleration on R&D to offer the customized and industry-specialized solutions
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Key Takeaways
• The Chinese Market will remain moderate growth in the short term, however, in the long run, the application market is getting mature till 2017.
• More investment is predicted to take place on the management of Contact Centers (operational efficiency, agents training, Tele-marketing etc.)
• Emerging verticals, namely E-Commerce, Hospitality, retails and utilities, are expected to generate higher revenue growth.
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For Additional Information
Donna JeremiahCorporate CommunicationsAsia Pacific+603 6204 [email protected]
Carrie LowCorporate CommunicationsAsia Pacific+603 6204 [email protected]
Shuishan LuResearch [email protected]
Jessie LohCorporate CommunicationsAsia Pacific+65 6890 [email protected]