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Despite the global recession, 2009 was actually a good year for vendors of software-as-a-service or “cloud”-based call center solutions. That’s because organizations are increasingly recognizing the advantages today’s cloud-based call center solutions have over on-premises systems – including improved scalability, flexible deployment options, simplified pricing, and access to the latest applications sporting the most advanced features and functionality.

And it appears that the steady migration to SaaS (News - Alert)-based call center solutions will continue through 2010 and beyond. A September report from market research firm DMG Consulting predicts that the SaaS-based call center software market will grow about 35 percent in 2010 and about 20 percent in 2011 – this following growth of about 30 percent in 2009.

“The worldwide economic recession actually drove many types of organizations in all verticals to consider hosted contact center infrastructure solutions,” DMG officials said at the time the report was released. “It is interesting to note that many of these companies are not risk takers in the classic sense, but rather companies that see hosting as an opportunity to do business differently, without a significant initial investment.”

San Carlos, Calif.-based Contactual, one of the leading cloud-based call center software providers, has been benefiting from this trend. The company, which caters to the SMB market, had an extremely productive 2009 -- starting with the release of Contactual OnDemand Contact Center Version 6, announced in February; the awarding of a U.S. patent for the company’s method of simplifying management of a multimedia, skills-based contact center, announced in March; a new partnership with workforce management software provider Pipkins (News - Alert), announced in June; the establishment of a UK sales and support office, as well as infrastructure build-out in the region, announced in July;  and availability of Contactual’s (News - Alert) SaaS-based call center software on salesforce.com’s AppExchange, announced in November.

Recently TMCnet interviewed Mansour Salame (News - Alert), CEO and chairman of the board for Contactual, about the company’s accomplishments for 2009 – and also to find out what it has in store for customers in 2010. Our full exchange follows:

TMCnet: Looking back at 2009, can you highlight some of the most important advancements or trends that emerged in the market you serve?  What were the key trends that impacted your business?

Mansour Salame: We continue to see strong growth in the on demand/hosted call center technology space, primarily driven by three trends: First, we continue to see increased market awareness and acceptance of SaaS-based solutions for call centers. From our experience this is no longer a “niche” market as organizations of all sizes shift their call centers in to the cloud. Small businesses are discovering they can finally afford full-featured call center technology solutions, and enterprise customers are adopting this new model for department-level applications.

Second, there continues to be a strong emphasis on demonstrating rapid time-to-value for new technology purchases. Access to capital remains tight, and more and more companies are finding the pay-as-you-grow model that a SaaS based solution provides allows them to move forward with technology upgrades that can quickly deliver real value to the organization.

Third, the home-based/work-at-home agent (WAHA) model continues to have strong growth. On demand solutions like Contactual’s break down the walls of the call center and allow companies to move to the WAHA model effectively. Call center solutions that include real-time monitoring and call recording capabilities allow management to retain control over the quality of their operations when home-based agents are used.

TMCnet: What were your company’s biggest achievements/announcements in the past year?

MS: Contactual released version 6.0 of the OnDemand Contact Center in February. New features included a redesigned agent toolbar, ability to broadcast notices to agent groups, enhanced chat functions and desktop sharing to make agents more productive and improve job satisfaction. Version 6.0 also included enhanced security, a new reporting API and an improved IVR editor.

We continued to expand our distribution capabilities with significant developments in Europe, namely the opening of our new European hosting facility in the UK and a new partnership with Holland-based HTSE.

Lastly the OnDemand Contact Center was made available to Salesforce CRM customers via the salesforce.com AppExchange marketplace. Contactual’s market-leading integration capabilities include an integrated single user console, the ability to store and retrieve call recordings, email interactions, and chat transcripts directly from Salesforce CRM cases, as well as integrated reporting and dashboards.

TMCnet: Looking back at 2009, how would you characterize the year for your company?

MS: 2009 was a great year for Contactual as we continued to execute on our company growth plans while delivering exciting new capabilities that were embraced by both long-time and new customers. With version 6.0 of the OnDemand Contact Center, our new distribution partnerships, and an expanded global footprint, Contactual has made it easier than ever for companies to quickly deploy a world-class contact center.

TMCnet: We started this year in an economic recession, it seems like we’re now pulling out of that, what are your thoughts?

MS: The recession has changed the way many companies approach their technology decisions, and these changes will remain even as the economy recovers. It’s more important than ever to demonstrate rapid time to value. Hosted solutions take the guesswork out of the on-going costs associated with maintaining proprietary infrastructure, and this is a fundamental shift that businesses welcome. We believe the market for hosted call center technology will continue to grow over the next several years.

TMCnet: What are you planning for 2010?

MS: We will continue to deliver the innovation and growth that the market expects from a leader like Contactual – new and exciting product developments, additional growth in our distribution partnerships, and continued high levels of customer satisfaction.