2013 North American Hosted IVR Market Share Leadership Award

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1 2013 North American Hosted IVR Market Share Leadership Award 2013

2 Market Share Leadership Award Hosted IVR North America, 2013 Frost & Sullivan s Global Research Platform Frost & Sullivan is in its 50 th -plus year in business with a global research organization of 1,800 analysts and consultants who monitor more than 300 industries and 250,000 companies. The company s research philosophy originates with the CEO s 360-Degree Perspective, which serves as the foundation of its TEAM Research methodology. This unique approach enables us to determine how best-in-class companies worldwide manage growth, innovation, and leadership. Based on the findings of this Best Practices research, Frost & Sullivan is proud to present the 2013 North American Market Share Leadership Award in Hosted IVR to Verizon. Significance of the Market Share Leadership Award Key Industry Challenges Addressed by Increased Market Share IVR is the largest of the hosted contact center market segments covered by Frost & Sullivan research. Most customers still use the phone to contact organizations, and IVR provides a low-cost, reliable, and secure call direction front-end to customer calls and a customer self-service application. This is beginning to change as the Millennials, who prefer to use text-based channels, enter the consumer mainstream. Still, Frost & Sullivan forecasts the hosted IVR market will continue to grow as a result of several factors. One of them is the evolution of IVR technology, with conversational speech recognition, visual or touch-screen menus, and virtual assistants, many of which will appeal to the Millennials that are accessible through their wireless devices. Meanwhile, predictive analytics applications will make IVR-conducted interactions more successful. The adoption of hosted automated proactive voice and text-based customer contact (PCC) solutions is another factor behind hosted IVR s momentum. Frost & Sullivan forecasts continued growth in the hosted outbound customer contact solutions market, driven principally by the demand for PCC applications. PCC-launched contacts ask customers to call back, and returned calls are then processed by hosted IVR units. Companies use PCC to cut costs by deflecting calls and improve the Customer Experience by alerting customers to relevant issues related to billing and service and sales matters. Also consider that when it comes to replacing or incorporating new IVR solutions, companies are showing an increased preference for the lower costs and on-demand port flexibility offered by the cloud relative to on-premise licenses. Indeed, many legacy on-premise IVR solutions that companies acquired twelve to fifteen years ago are at or near end-of-life Frost & Sullivan 1 We Accelerate Growth

3 Meanwhile, IVR also is a key component in companies business continuity/disaster recovery (BC/DR) strategies due to the fact that it provides reliable customer service when contact center agents are overloaded or when they are not available. Disasters, such as Hurricane/Superstorm Sandy, have awakened companies to the need to step up their BC/DR programs. At the same time, today s hosted IVR applications are more integrated with ACD, outbound dialing, and agent performance optimization (APO) solutions, in many cases forming all-inone suites. The tight integration supports companies omni-channel strategies by minimizing the risk of losing customers and data when they transfer between channels. Finally, another dynamic to consider is that original equipment manufacturers (OEMs) are acquiring IVR vendors (consider Aspect s acquisition of Voxeo and Genesys s acquisition of Angel and SoundBite). The OEMs, mainly Genesys, also supply many third-party IVR hosting firms. These third parties now have to compete with their suppliers. All of these developments make the hosted IVR market more competitive. Best-of-breed third-party hosting firms will have to be more innovative and aggressive in capitalizing on their unique value propositions. Best Practice Award Analysis for Verizon The Frost & Sullivan Award for Market Share Leadership is presented to the company that has demonstrated excellence in capturing the highest market share within its industry. The Award recognizes the company's leadership position within the industry in terms of revenues or units, as specified. Verizon s Performance in the Hosted IVR Market For the seventh consecutive year, Frost & Sullivan s market analysis recognizes Verizon as the overall market share leader in the North American Hosted IVR Market. Verizon is far larger in terms of revenues and in market share than its nearest competitor. Even though Verizon s share has slipped in a competitive, but fragmented market, it overshadows its communications provider and best-of-breed peers. Verizon, unlike many of its competitors, offers a variety of hosted and premises based IVR solutions, including a Genesys IVR solution, and it may face this supplier in competitive bids. Even so, Verizon s hosted IVR services will likely keep it ahead of the pack. For example, Verizon offers a unique pay-per-use Voice Call Back service, which is powered by Virtual Hold Technologies (VHT) Frost & Sullivan 2 We Accelerate Growth

4 Key Performance Drivers for Verizon Applications Experience Verizon has had many years experience successfully developing and deploying hosted customer contact, including IVR solutions, for a large number of customers. The company s solutions support nearly half-a-million IVR ports on more than 22,000 applications for over 2,000 clients. The company routes more than twenty-two billion minutes each year and processes as many as twenty-three million hosted solution calls a day. Diversified Solutions Verizon continues to develop its IVR hosted solutions, but is also diversifying its market offerings. The company delivers hosted IVR in two principal forms. First, a scalable, network-based IVR, with DTMF and speech recognition, database routing, self-service provisioning, and voice call-back, built to integrate with its hosted Genesys platform, and a customers premises based Cisco or Genesys applications for more advanced routing. Second, the company leverages a Virtual Contact Center (VCC) product, powered by incontact, that is integrated into the Verizon network. The Verizon VCC solution also allows it to serve clients that want an integrated solution. Verizon has also is developed a hosted Proactive Contact solution that will be unique by offering a variety of channel options that can be integrated to the Hosted IVR. Customization and Consultation Verizon makes IVR and contact center solutions deployments that are end-customerintuitive and productive. Verizon s Contact Center Consulting Services team has assisted over 5,000 contact center clients and managed over 29,000 applications. The Verizon team also has helped companies improve the Customer Experience and boost agent productivity, incorporate and manage new contact channels, control costs, and raise service quality. Reliability and Security Verizon has designed its hosted IVR solutions and other customer contact offerings to meet high reliability and security standards. Its service levels exceeded percent in 2012 and Moreover, the company has hosted IVR nodes that are distributed across twenty-two data centers, co-located with its network switches. In addition, the Genesysbased routing platforms are hosted at data centers in four geo-redundant and stable locations. The VCC offerings are supported by InContact in California and Texas Frost & Sullivan 3 We Accelerate Growth

5 Verizon s hosted solutions also are compliant with and/or certified to regulations and standards. The firm is an external PCI Qualified Security Assessor. A key reason for such focus is Verizon s core client base, which is comprised of large and regulated businesses such as financial services, healthcare, and government agencies. Finally, Verizon had its network and services put to the test in late October 2012 when Hurricane/Superstorm Sandy struck the New York/New Jersey area. When other channels, such as Web self-service and social media, slowed down or became unavailable, customers were able to obtain information and support through hosted IVR on voice networks. Conclusion IVR is a large and growing but competitive market for vendors. Verizon has been and continues to be the leader in hosted IVR because it successfully deploys IVR applications with scalability, reliability, and security. However, Verizon is not taking its position for granted. The company is focusing on new opportunities that play into its strengths, such as hosting all-in-one omni-channel contact center solutions and its disaster-survivable network, and its local as well as national and global networks. It also is making its experience available to help advise its clients on how best to provide high-quality and cost-effective customer care. For these reasons Frost & Sullivan is proud to present Verizon with the 2013 North American Market Share Leadership Award for Hosted IVR Frost & Sullivan 4 We Accelerate Growth

6 Critical Importance of TEAM Research Frost & Sullivan s TEAM Research methodology represents the analytical rigor of our research process. It offers a 360-degree view of industry challenges, trends, and issues by integrating all seven of Frost & Sullivan's research methodologies. Our experience has shown over the years that companies too often make important growth decisions based on a narrow understanding of their environment, leading to errors of both omission and commission. Frost & Sullivan contends that successful growth strategies are founded on a thorough understanding of market, technical, economic, financial, customer, best practices, and demographic analyses. In that vein, the letters T, E, A and M reflect our core technical, economic, applied (financial and best practices) and market analyses. The integration of these research disciplines into the TEAM Research methodology provides an evaluation platform for benchmarking industry players and for creating high-potential growth strategies for our clients. Chart 1: Benchmarking Performance with TEAM Research About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents. To join our Growth Partnership, please visit Frost & Sullivan 5 We Accelerate Growth

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