Cloud based Contact Center Market

Market Overview

The global cloud based contact center market size was valued at USD 14.5 billion in 2021 and is projected to reach USD 82.43 billion by 2030 at a CAGR of 21.3% from 2022 to 2030.

There are apps, a suite of tools, cloud-hosted services, including advanced call routing, multiple communication channels, multiple agents, and analytics in the cloud based contact center. The solution enables businesses to access and use data via the cloud. It enhances the effectiveness of a systematic approach and provides a key element in the performance of enterprises. Cloud based contact center solutions allow businesses to be able to leverage the offerings of partner companies.

These solutions streamline the process of providing customers with modernized, up-to-date services and customize these services to meet their preferences and requirements to provide the benefits of minimal investment in the capital, 24/7 technical support, and high levels of reliability, security, and scalability. Finally, as they are becoming increasingly embedded in industrial processes, the solutions are expected to see increasing demand.Using communication APIs, modern communication methods can be integrated (APIs). To create personalized experiences, insight-driven analysis can provide the necessary context. It also provides 24/7 customer service and centralized agents can work to offer this service remotely.

Cloud based alternatives are slowly replacing mobile-based call centers. According to the State of Customer Experience 2018, the migration to the cloud of 39% of contact centers in the U.K., with 57% of them chalking out an action plan to move to cloud based call centers within the next three years shows the overall market potential. The current requirement is widespread for cloud based solutions and is widely accepted by different verticals. The simplicity of cloud deployment and small primary investments that contribute to market development and are better recognized by companies of all sizes.

Market Dynamics

Increasing Adoption of SMAC Technologies

Contact centers are evolving from single-channel models to multi-channel units that handle more than direct customer service. Modern age contact centers provide both in-bound and out-bound services, including email, web inquiries, and chat sessions. To achieve better results, organizations are using robust social media, mobile, analytics, and cloud (SMAC) technologies to infuse their contact centers.

These technologies enable businesses to expand the scope and scale of their operations by addressing shifting customer preferences and evolving usage patterns. Modern contact centers are focused on providing abilities, such as communication as a service, social media capabilities, smartphone access, video enablement, virtual contact centers to reduce costs and complexities, and advanced analytics to analyze unstructured data in bulk and deliver key insights into customer behavior.

Moreover, the rate of innovation in this market is accelerating the rate of adoption of cloud based contact center infrastructure. Vendors of cloud based contact center infrastructure are increasing their investment in R&D to get a competitive edge. The cloud model has enjoyed huge success in the contact center market and has led to widespread growth. The market is expected to experience significant growth due to the increasingly diverse applications and functions that will be shifted to the cloud in the coming future.

Hindrance of Business Operation Due to Cyber Attacks

The digital age has resulted in the availability of critical information from a variety of sources. The fact that corporations are currently vulnerable to cybercriminals is one of the greatest challenges to data security today. Contact centers sometimes retain valuable customer information, as with other databases. Contact centers regularly accumulate a vast amount of sensitive customer information that is subsequently targeted at cyber-criminal abuse.

Besides, the growing popularity of smartphones and mobile apps has stimulated increased customer demand for online customer support. Businesses need to be able to support this growing and important medium, ensuring that their clients can reach them at any time, anywhere and in the media they prefer. These factors may exacerbate the challenges facing the growth of this market.

Better Customer Experience to Enhance the Adoption of Cloud based Data Center

The major component of the future business landscape is customer experience, as businesses concentrate on customer engagement, reducing churn rates, and increasing revenue. Customer experience enables businesses to learn about their customers' real-life experiences linked to different products and services.

Improved customer experience is key to customer retention as well as to the development of superior products and services. Organizations can connect with their customers for better, efficient, and insightful customer experiences using cutting-edge technologies such as artificial intelligence, machine learning, and analytics. To gain new loyal customers and retain the existing ones, everyone focuses on building robust customer experiences.

Regional Analysis

Burgeoning Demand for Cloud based Contact Center in North America

In North America, the shift to desktop-based call centers continues to dominate in mid-2018. However, the growing benefits of cloud computing are anticipated to increase its use. Organizations are now focusing on cloud based solutions to improve efficiency and scalability. In partnership with Serenova, PHH Mortgage, one of the largest residential mortgage sub-service providers in the United States, has moved its contact center to the cloud.

The increasing popularity of omnichannel sales, combined with increasing e-commerce, is driving the demand for the contact center. Due to its vast economic opportunities, companies are expanding their business presence in the region. ZaiLab, a cloud based, omnichannel contact center software provider, has also announced plans to expand its North American market. Europe is made up of several major technology hubs and plays an important role in the promotion and adoption of modern technology. Cost problems have caused many organizations to shift to the cloud and the benefits of cloud based employee mobility.

In Europe, people are investing heavily in digital infrastructure but at the same time, private and public initiatives have been launched to fill the skills gap and accelerate the pace of cloud adoption. In their economies, the governments of Bulgaria, Poland, and Romania are committed to digitization, and the Government of Ukraine is well ahead of its target of doubling ICT R&D spending by 2020.

Asia-Pacific's rapid growth in the adoption of cloud based contact centers is driven primarily by increased demand for analytics services, an increasing number of start-ups, and customers' willingness to adopt new technologies, therefore driving the growth of the cloud based contact center market.

Segmental Analysis

Solution Segment Based on the Components Is Projected to Have the Highest Market Share

Enterprises use cloud based solutions and services by outsourcing all contact center operations to cloud based contact center vendors to dramatically reduce overall ownership costs and increase business agility and productivity. Growth in the cloud based contact center market has been driven by increasing demand and awareness among public and private organizations, which has increased the scalability and agility of operations. Besides, the availability of cloud based contact center solutions at low prices with new and different capabilities is another good reason for interest.

On the Basis of Organization Size, Large Organizations Dominated the Market

With 1,000+ employees, the organizational category is identified as the large enterprise segment. Large businesses have large customer bases and a lot of channels of distribution. A top priority for the company is improving customer satisfaction. The business model and the benefits of a cloud based contact center solution will generate considerable demand among large enterprises for a cloud based contact center solution. For contact center purposes, small and medium-sized enterprises will inherently use the cloud, whereas, large enterprises will only use the cloud for specific functions or departments.

BFSI Segment on the Basis of Industries Is Estimated to Hold the Major Share

BFSI sector is expected to experience significant growth in the coming years. For convenience, many financial institutions have begun to adopt cloud based systems. The banking sector is migrating as physical devices are replaced by digital platforms. Besides, Ameyo offers cloud based contact center services to banking institutions. According to the Ameyo report, the market share of BFSI companies is growing rapidly, increasing the need for high-level customer service. Transactions involving banking institutions and financial institutions are very private. It requires sophisticated customer interaction software that can efficiently and cost-effectively collect, process, and analyze customer information.

It was also reported that 80 % of the bank's IT expenditure was on the maintenance of legacy technology. Furthermore, up to a few hundred million dollars were spent each year on IT management and maintenance of disparate systems. The Internet of Things (IoT) forces banks to invest in a cloud solution for seamlessly connecting systems whether on-site, private, and public cloud services.

Based on the deployment model, hybrid cloud held the largest market share in 2019. This surge in this market is primarily attributable to the elasticity and the services of the hybrid cloud. In hybrid-cloud, if an organization is big they can deploy a highly sophisticated private cloud for their premium member and a pubic cloud for normal or free users, in this way, they would be able to satisfy the needs of all its customers. Hence, making it the most preferred deployment model amongst others.

Impact of covid-19

With a continuous COVID-19 outbreak, businesses have to deal with the overall impact on their business of COVID-19. Patients need healthcare solutions information, employees need to link technology support, and portfolio performance concerns investors. As it offers a flexible, scalable, and low-cost alternative to traditional solutions, cloud solution growth is expected to increase.

As a means of protecting staff and improving efficiency, several businesses across the industry have adopted home telecommunications. Calls are increasing in the contact center industry as the virus spreads disproportionately.

Recent Developments

• In April 2020, in response to the COVID-19 pandemic, Genesys launched a Rapid Response to help businesses change their processes to accommodate Genesys Cloud over a short period. This offer includes automated support, self-service features, voice and email routing, and customer recording and collaboration tools.
• In 2019, ZephyrTel and AWS have announced that they have established a strategic collaboration to integrate ZephyrTel solutions into Amazon products and services.