Hosted Contact Center Featured Article

Projected Growth in UCaaS Will Drive Demand for the Hosted Contact Center

November 20, 2014

By Susan J. Campbell,
TMCnet Contributing Editor

Growth is projected for telephony and non-telephony service providers in the enterprise space where Unified Communications (News - Alert) as a Service (UCaaS) is the priority. According to research recently conducted by Wainhouse Research, the 2014 worldwide UCaaS market is forecast to be roughly $5.3 billion by 2018. This growth represents a compound annual rate of 24 percent, with much of the volume coming from the mid-to-large enterprise segment.

The hosted contact center is certainly included in this UCaaS market that focuses on the unified end user experience. Other services include video, audio, IM, presence, desktop/application sharing and group collaboration. The current state of the global UCaaS market is outlined in the report, 2014 Worldwide Unified Communication as a Service Market Sizing & 5-year Forecast, as well as current trends, and risks and opportunities.

Overall, the report examines what has changed in the market and why the higher market growth is expected. It also examines how UCaaS, whether it has telephony or not, will penetrate the market. Observations are shared on enterprise behavior as it relates to UC features and the implications on infrastructure, skill sets, cost models and teams.

"There's a growing preference for cloud-based services, particularly in mid-to-large enterprises, and UCaaS is riding that demand," notes Bill Haskins, Wainhouse (News - Alert) Research Senior Analyst & Partner, in a press release. "Putting unified communications in the cloud makes great economic sense: the infrastructure is there, the support mechanisms are in the place, the training program is ready. Plus, fewer IT and purchasing resources are required to manage it."

The cloud is presenting strong opportunities for growth in communications, especially in the contact center space. Companies want the opportunity to effectively compete for market share, and the flexibility, agility and cost benefits the cloud represents are powerful for even the smallest companies seeking to dominate. The hosted contact center especially offers an opportunity for these companies to get into a competitive space without making significant investments.

Therein lies the primary reason momentum is picking up in the hosted contact center space. Companies of all sizes need a way to efficiently interact with customers. Launching a contact center that is housed on-site is a significant investment and often beyond the financial means of the smaller players. The hosted deployment strategy offers a much lower entrance into the market and enables those willing to make the move the opportunity to level the playing field.

As companies continue to seek viable options for effective communications, the cloud will continue to get attention. When it’s combined with customer care initiatives, the outcome is the hosted contact center.