DMG Consulting recently released a report showing that the recession resulted in a significant decrease in investment in call center workforce optimization solutions in 2009.

According to DMG’s 2010 Quality Management/Liability Recording (WFO) Market Share Report, released in July, revenues for the 45-plus vendors offering workforce optimization solutions fell by 6.4 percent, from $991.2 million in 2008 to $928.2 million in 2009. Last year marked the first time in seven years that revenues declined for this dynamic and highly competitive market.

However the news isn’t all bad: The reports notes that “despite the drop in contact center WFO sales in 2009, total company GAAP revenue continued to grow from $929.1 million in 2004 to $2,912.2 million in 2009, due primarily to the performance of one company.”

Leading the pack were the WFO market’s two largest competitors, Verint (News - Alert) and NICE, both of which continue to play “a significant role in the success of the overall sector.”

DMG predicts that smaller WFO vendors will come on strong in 2010. However, “those who do not pick up momentum and improve their profitability this year are expected to be actively seeking acquisition partners over the next few years.”

“Although 2009 was a challenging year for the contact center WFO sector due to the recession, DMG predicts that 2010 will be a good year for most WFO vendors around the world,” said Donna Fluss, president of DMG Consulting. “Some regions, such as Europe, may lag slightly, but we expect to see them fully recover in 2011-2012.”

“Many of the contact center WFO vendors have used the last 18 months to enhance their products and sales and marketing strategies,” Fluss added. “These companies will come out of the recession stronger than they went in, and are well positioned for significant growth.”