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Cloud-Based Contact Center Solutions to Gain Momentum in Australia: Report

November 15, 2012

In Australia, cloud-based contact center solutions are expected to gain momentum in the next three to five years, according to a new Frost & Sullivan’s (News - Alert) report entitled “Australian Contact Centre Market 2012.”

Australia’s contact center market is expected to transform as cloud-based solutions and mobile devices change the way organizations provide customer service, the report notes.

The report predicts that the growth and revenue of traditional on-premises models will decline as most organizations facing a contract renewal or new deployment will be reluctant to commit to long contract terms in a rapidly changing technology landscape.

Anand Balasubramanian, industry analyst for Australia and New Zealand at ICT Practice, said Australia's contact centre market is moving from on-premise to third-party managed solutions.

“While organizations value the level of control offered by on-premises models, cost constraints and flexibility – in terms of scalability and pricing – requirements are causing organizations to evaluate alternative options at the time of a new deployment or upgrade,” he said, adding that organizations are becoming increasingly inclined towards deploying hosted and cloud-based solutions.

A combination of changing business models as well as the impact of enabling factors, including the NBN, is expected to make cloud-based deployments the preferred model for new contact center deployments in Australia.

The report also predicts the entry of several new players in the market as the demand is expected to grow over 2013-2014 timeframe. The rapid deployment of cloud-based solutions will present the “greatest threat” to the traditional premises-based model.

In recent times, customers increasingly prefer hosted and cloud based solutions. The report observes that traditional contact centre vendors will look to supplement their on-premises solutions with cloud-based versions.

According to Frost & Sullivan’s report, existing investments on contact center infrastructure – hardware and software – and perception among organizations are the biggest hurdles for adoption of cloud based alternatives.

Organizations, however, may comprehensively evaluate on-premises alternatives at the time of renewal or end-of-contract and based on the evaluation select a solution. The report also says the changing nature of technology and customer service will make organizations more skeptical to signing long-term contracts.

Recently, Frost & Sullivan noted that online search advertising remains the strongest performing main segment of the online advertising industry, growing 29 percent in 2012 and outperforming online general advertising – online banner, sponsorships, integrated site content, advertorials, EDM / e-newsletters – online directories and online classifieds advertising.

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Edited by Braden Becker

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