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CRM Software For Contact Centers

Customer Relationship Management software adoption in the contact center industry has dramatically increased over the prior four years. The three primary reasons which have collectively contributed to the rise in CRM software from annual single digit growth to low double digit growth for contact center companies include decreased application software costs, new software-as-a-service contact center solutions and the pursuit for increased business process automation and labor efficiencies by contact center management teams.

crm Contact Center SaaS Market

According to industry research group DMG Consulting, 20 percent to 30 percent of all new contact center seat licenses with be hosted by 2008.

Frost and Sullivan states that the hosted contact center industry is expected to grow at a CAGR of 34.1 percent from 2006 to 2013. Frost and Sullivan also predicts that the market for smaller call center software solution deployments of less than 100 seats is expected to outpace overall market growth, expanding at a CAGR of 41.3 percent over the same period.

Gartner estimates that in 2006, 1.9 million contact center seat licenses were sold worldwide, representing a growth of 7.1 percent over 2005. Frost and Sullivan suggests that the underpinning of this market growth is an ongoing shift from traditional on-premise software systems to hosted contact center solutions that deliver several material benefits including:

  • lower total cost of ownership (TCO)
  • higher returns on investment (ROI)
  • little to no up front capital investment for software or hardware
  • rapid solution deployment
  • less disruption to the business during the implementation process
  • simpler integration with related customer relationship management systems
  • increased 24 by 7 system reliability backed with a service level agreement (SLA)
  • elimination of complex and costly new version upgrade implementation projects
  • a significant reduction in IT labor when compared with on-premise applications
  • the elimination of software maintenance costs associated with on-premise software systems
  • the elimination of hardware maintenance costs as well as accelerated hardware obsolescence and continual upgrades or replacement of hardware associated with on-premise applications

The growth in the contact center software market is driven by a number of factors, including the growth in the number of contact center agents, the introduction of new applications that drive contact center efficiency and the migration to Voice over IP (VoIP) systems. During the prior six years, the communication market as a whole has experienced a transition from TDM to IP-based communication technologies


crm Global Software as a Service Growth

Industry research from nearly all recognized analyst firms points to the growing adoption of the SaaS model in nearly all industries. A net polling of SaaS market growth projects the industry to reach $30 billion by 2013, representing half of the total application software market. According to Gartner, the worldwide market for SaaS solutions is expected to grow from $6.3 billion in 2006 to $19.3 billion by the end of 2011, representing a compound annual growth rate (CAGR) of over 25 percent.

On Demand ERP Systems  

Contact Center Software Solutions

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SaaS CRM Advantages
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Lower total cost of ownership

Accelerated implementation
Budget predictability
Reliability backed with SLA
No more costly upgrades
Shared risk with vendor


tags Tags:
erp questions
on demand contact center software, hosted call center software, on-demand customer support software, contact center saas erp, on-demand call center systems, contact center crm systems, saas, front office customer support software as a service applications, ivr systems








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