Contact Center Workforce Management Market Report

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1 ABSTRACT Contact Center Workforce Management Market Report DMG Consulting s seventh annual Contact Center Workforce Management Market Report provides the most comprehensive coverage of this technology sector. Its 358 pages are packed with all of the vendor, product, trend and market data that contact center, back-office and IT leaders need to find the right WFM solution for their environment, and to implement best practices for success. The workforce management (WFM) competitive landscape is mature, but continues to evolve. The addressable market is growing, and many organizations are replacing outdated, complex, inflexible WFM solutions. And still others that may not have considered or believed they needed WFM in the past are now taking advantage of the powerful functionality available via cost-effective, flexible cloud-based solutions. The number of WFM seats grew by 20.4% between 2011 and 2012, and by 18.7% between 2012 and Much of this growth came from contact centers, but some of it was from the back office. Combine this evolving landscape with the fact that vendors are finally making much-needed investments in their products and services, and you have unprecedented success rates and a snowball effect the market has never before seen: vendors investing to make their solutions better... interest from first-time buyers, large numbers of replacements from established customers... vendors eager to invest even more... and the cycle of success and innovation continues. On the whole, WFM solutions help lower servicing, sales and processing costs through better agent/employee utilization, avoidance of overstaffing, and reduced overtime costs, while ensuring the right people with the right skills are available to deliver a great customer experience at the right time. WFM solutions also provide forecasting and scheduling capabilities that support blending and omni-channel staffing efficiency and optimization, which is increasingly critical in today s front- and back-office environments. Vendors are working on new offerings as well as on improving features such as ease of use, intra-day management, agent self-service, and accuracy, to name a few. And many of the modeling techniques and algorithms that emerging WFM vendors are introducing are intended to handle newer channels, including chat, , and social media. The forecasting requirements for the social media channels are different from voice calls (including deferred activities, carry-over, and the need for agents to handle multiple interactions at the same time). This is great news for everyone involved, because WFM software remains the most important productivity tool in many contact centers and is rising in importance in the back office, as well. The better the solutions get, the more users will adopt, and the better the customer experience will be for consumers across industries and geographies. The ripple effect is almost immeasurable. Prospects can now purchase a WFM solution on a stand-alone basis, as part of a workforce optimization (WFO) suite or from their automatic call distributor (ACD) vendor. The functionality, price, level of integration and benefits vary greatly, and no two systems are the same. DMG advises buyers to conduct thorough due diligence before making a WFM selection, as the degree of differentiation among offerings has never been greater. DMG expects WFM revenue to grow by 10% in 2014, 12% in 2015, and 12% in A majority of the projected increase is due to the potential of selling WFM into back offices and branch operating departments. DMG also expects to see a large volume of contact center WFM replacements in 2015 and 2016, as well as smaller companies adopting WFM due to the ease of doing business in the cloud a substantial growth driver for the next three years. The edition of the Contact Center Workforce Management Market Report provides a detailed review of eight leading and contending WFM vendors. The vendors covered in this Report are: Aspect, Calabrio, Genesys, Interactive Intelligence, NICE/IEX, Noble, Teleopti and Verint. Four other solutions InVision (injixo), Intradiem, Uptivity and WorkFlex are covered at a high level. Order Information: To order a copy of the Contact Center Workforce Management Market Report contact Deborah Navarra at or You may also purchase the report online at

2 Key Reasons to Buy This Report Overview of the contact center WFM market segments and competitive landscape Analysis and review of the core, value-added and optional functional components that comprise leading and contending WFM solutions, as well as their service delivery options Analysis of the trends and challenges that are driving technical and functional innovation, usability and market adoption Evaluation of new product features, enhancements, and a preview of what the vendors plan to deliver in the next months Market activity and market share analysis, adoption rate, and three-year projections Detailed side-by-side comparative analyses of the functional and technical capabilities of the eight leading and contending WFM vendors Analysis of return on investment (ROI) and the benefits enterprises should expect to realize from a successful WFM implementation Implementation analysis, including vendor best practices, maintenance and support policies, workshops, training and professional services Comprehensive vendor satisfaction analysis, addressing each vendor s products, implementation, training, professional services, support, innovation/ responsiveness and pricing Detailed pricing comparison and analysis for premise-based, hosted and managed service WFM solutions Discussion of WFM roles and responsibilities who is needed to manage and maintain these solutions A look at how the WFM vendors are supporting multi-channel forecasting and scheduling requirements A critique of WFM intra-day management capabilities, and the reasons why intra-day environments need an overhaul Discussion of how self-service modules empower and engage the new workforce WFM Vendor Directory featuring 49 contact center and back-office WFM competitors Report Highlights: Vendor investment and an evolving landscape are driving adoption: Although the contact center WFM market is mature, it continues to change. Vendors are investing in their solutions, companies with older products are looking to upgrade to newer, more flexible ones, and new organizations that have never had WFM before are adopting due to the ease of business and reduced-headache factor of the cloud. WFM seats grew by 18.7% between 2012 and Innovation is running high from old and new vendors alike: Some of the established players are working to improve their usability and accuracy, among other things, while newer entrants are releasing functionality and algorithms that can improve staffing and productivity for new and emerging channels like chat and social media. The back-office opportunity for WFO is tremendous: At 2.6 times the size of the contact center market opportunity, the back-office sector could transform the WFO market. To take advantage of the opportunity, contact center WFO vendors need to adapt their solutions to address back-office challenges, which are substantially different from the front office. More growth is coming: DMG expects WFM revenue to grow by 10% in 2014, 12% in 2015, and 12% in 2016, as adoption increases in the cloud and in the back office, where the addressable market is nearly three times as large as the contact center market. Sample Figure: Contact Center WFM Building Blocks Source: DMG Consulting LLC, March 2014

3 Table of Contents 1. Executive Summary 2. Introduction 3. DMG Consulting Research Methodology 3.1 Report Participation Criteria 4. Workforce Management Market Segments 5. Workforce Management Functional Building Blocks 5.1. Core, Value-Added and Optional Modules 6. WFM Service Delivery Models 6.1 DMG Service Delivery Definitions 6.2 Vendor Service Delivery Options 7. Workforce Management Trends and Challenges 7.1 WFM Market Challenges 8. Workforce Management Market Innovation 8.1 New Product Features 8.2 Future Enhancements 9. Workforce Management Roles and Responsibilities 10. Workforce Management for the Multi-Channel Contact Center 10.1 Vendor Multi-Channel Capabilities 10.2 Algorithms 11. WFM for Back Office/Branch 11.1 Activity Tracking, Monitoring and Measurement 11.2 Optimizing Staff Resources to Meet Business Needs 11.3 Solving the Work Allocation and Management Problem 12. Meeting the Challenge of Intra-Day Management 12.1 How Intra-Day Management Should Work 12.2 Alternative Solutions 12.3 Vendor Intra-Day Management Capabilities 13. Empowering the New Workforce 14. Vendor Capabilities for Self-Service 15. WFM Market Activity 15.1 Validating Market Numbers 15.2 WFM Market Share Analysis 16. Workforce Management Market Adoption 17. WFM Projections 18. WFM Competitive Landscape 19. Workforce Management Vendors and Solutions 19.1 Company Snapshot 19.2 Market Segments 19.3 Vendor Offerings and Products 20. High-Level Functional Summary 21. High-Level Technical Summary 21.1 Security 21.2 System Administration

4 Table of Contents (continued) 22. Workforce Management Benefits and Return on Investment 22.1 Building an ROI Model 22.2 Tips For Increasing Benefits From WFM Solutions 22.3 WFM Application Selection Criteria 22.4 Vendor ROI Analysis 23. Implementation Analysis 23.1 Implementation Process 23.2 Implementation Best Practices 23.3 Training and Professional Services 23.4 Maintenance and Support 24. Workforce Management Vendor Satisfaction Analysis 24.1 Summary of Survey Findings and Analysis 24.2 Detailed Survey Findings and Analysis 24.3 Customer Insights Activities Supported by WFM 25. Pricing 25.1 Premise-Based Pricing 25.2 Cloud-Based Pricing 25.3 Managed Service Pricing 26. WFM Suite Detailed Functional Analysis 26.1 Forecasting 26.2 Scheduling 26.3 Real-Time Adherence 26.4 Time-Off Management 26.5 Reporting, Dashboards, Alerts and Scorecards 26.6 Long-Term Planning and Budgeting 27. Company Reports 27.1 Aspect 27.2 Calabrio 27.3 Genesys 27.4 Interactive Intelligence 27.5 Intradiem 27.6 InVision 27.7 NICE Systems 27.8 Portage Communications 27.9 Teleopti Uptivity Verint WorkFlex Appendix: Workforce Management Vendor Directory

5 Table of Figures Figure 1: WFM Market Segments Figure 2: Contact Center WFM Building Blocks Figure 3: DMG s Service Delivery Model Definitions Figure 4: WFM Vendor Service Delivery Options Figure 5: WFM Market Trends Figure 6: WFM Market Challenges Figure 7: New Product Features Figure 8: Future Application Enhancements Figure 9: Common WFM Roles and Responsibilities Figure 10.1: Multi-Channel/Blended Capabilities Figure 10.2: Multi-Channel/Blended Capabilities Figure 11.1: Algorithms Figure 11.2: Algorithms Figure 12: Desktop Analytics Defined Figure 13: Work Allocation and Management System Figure 14.1: Intra-Day Management Figure 14.2: Intra-Day Management Figure 15.1: Self-Service Figure 15.2: Self-Service Figure 16: WFM Market Activity as of December 31, 2013 Figure 17: WFM Market Activity by Segment Figure 18: WFM Market Share by Number of Seats as of December 31, 2013 Figure 19: WFM Market Share by Number of Seats as of December 31, 2013 Figure 20: Total Number of WFM Seats/Agents, 2013 vs Comparison Figure 21: Total Number of WFM Seats, Trends Figure 22: WFM Market Projections, Figure 23.1: Company Information Figure 23.2: Company Information Figure 24: WFM Market Segments Figure 25: Product Modules Figure 26.1: High Level Functional Summary Figure 26.2: High Level Functional Summary Figure 27.1: Security Figure 27.2: Security Figure 28.1: System Administration Figure 28.2 : System Administration Figure 29: First-Time WFM Implementation Figure 30: Replacement WFM Implementation Figure 31: Projected Savings for First-Time WFM Implementations and Replacement Solutions Figure 32: WFM Selection Framework Figure 33: Return on Investment (in months) Figure 34: Vendor Top 5 Quantifiable Benefits for Building a WFM ROI Model Figure 35.1: Implementation Figure 35.2: Implementation Figure 36.1: Implementation Figure 37.1: Training, Documentation and Professional Services Figure 37.2: Training, Documentation and Professional Services Figure 38.1: Maintenance and Ongoing Support Figure 38.2: Maintenance and Ongoing Support Figure 39: Customer Survey Rating Categories Figure 40: Average Satisfaction Ratings, by Category Figure 41: Product Satisfaction Ratings, by Category Figure 42: Ease of Configuration and Set-Up Satisfaction Ratings, by Customer Figure 43: Ease of Ongoing Use and Maintenance Satisfaction Ratings, by Customer Figure 44: Ease of Integration with Third-Party Applications Satisfaction Ratings, by Customer Figure 45: User Interface Ease of Use Satisfaction Ratings, by Customer Figure 46: Ability to Customize System to the Client s Needs Satisfaction Ratings, by Customer Figure 47: Forecasting Accuracy Satisfaction Ratings, by Customer Figure 48: Scheduling Features and Effectiveness Satisfaction Ratings, by Customer Figure 49: Intra-Day Management Capabilities Satisfaction Ratings, by Customer Figure 50: Real-Time Adherence Features Satisfaction Ratings, by Customer Figure 51: Agent Self-Service Features Satisfaction Ratings, by Customer Figure 52: Ability to Support Agent Preferences Satisfaction Ratings, by Customer Figure 53: Ability to Support Complex and Varied Work Rules Satisfaction Ratings, by Customer Figure 54: Time-Off Management Features and Functionality Satisfaction Ratings, by Customer

6 Table of Figures (continued) Figure 55: Multi-Channel Capabilities Satisfaction Ratings, by Customer Figure 56: Mobile Capabilities Satisfaction Ratings, by Customer Figure 57: Ability to Support Blended Channels Satisfaction Ratings, by Customer Figure 58: Long-Term Planning Capabilities Satisfaction Ratings, by Customer Figure 59: Reporting Satisfaction Ratings, by Customer Figure 60: Dashboard Satisfaction Ratings, by Customer Figure 61: Budgeting/Cost Management Capabilities Satisfaction Ratings, by Customer Figure 62: Ability to Support Recruitment/Hiring Management Satisfaction Ratings, by Customer Figure 63: Timekeeping and Payroll Management Features Satisfaction Ratings, by Customer Figure 64: Back-Office Functionality Satisfaction Ratings, by Customer Figure 65: Branch Functionality Satisfaction Ratings, by Customer Figure 66: Implementation Satisfaction Ratings, by Customer Figure 67: Training Satisfaction Ratings, by Customer Figure 68: Professional Services Satisfaction Ratings, by Customer Figure 69: Ongoing Service and Support Satisfaction Ratings, by Customer Figure 70: Innovation Satisfaction Ratings, by Customer Figure 71: Responsiveness to Product Enhancement Requests Satisfaction Ratings, by Customer Figure 72: Vendor Communication Satisfaction Ratings, by Customer Figure 73: Product Pricing Satisfaction Ratings, by Customer Figure 74: Overall Vendor Satisfaction Ratings, by Customer Figure 75: What activities do you use your WFM vendor to support? Figure 76: What channels do you use your WFM vendor to support? Figure 77: What were your top 3-5 primary reasons for selecting this vendor/product as your WFM solution? Figure 78: What are the top 3-5 benefits you have gained from using the WFM solution? Figure 79: Verbatims: Please tell us the top 3-5 strengths of your WFM solution. Figure 80: Verbatims: Please tell us the top 3-5 challenges of your WFM solution. Figure 81: Verbatims: What product enhancements would you like to see? Figure 82: Verbatims: Please feel free to provide any additional comments about your experience with the vendor and/or product. Figure 83: 2013 Premise-Based WFM Solution Price Ranges Figure 84: Price Ranges 500-Seat Premise-Based Solution, 2012 vs Comparison Figure 85.1: Pricing (Premise-Based Solution), 75 Agents Figure 85.2: Pricing (Premise-Based Solution), 75 Agents Figure 86.1: Pricing (Premise-Based Solution), 300 Agents Figure 86.2: Pricing (Premise-Based Solution), 300 Agents Figure 87.1: Pricing (Premise-Based Solution), 500 Agents Figure 87.2: Pricing (Premise-Based Solution), 500 Agents Figure 88: Pricing (Cloud-Based Solution), 75 Agents Figure 89: Pricing (Cloud-Based Solution), 300 Agents Figure 90: Pricing (Cloud-Based Solution), 500 Agents Figure 91: NICE Pricing (Managed Service Solution) Figure 92.1: Forecasting Figure 92.2: Forecasting Figure 93.1: Scheduling Figure 93.2: Scheduling Figure 94.1: Real-Time Adherence Figure 94.2: Real-Time Adherence Figure 95.1: Time Off Management Figure 95.2: Time Off Management Figure 96.1: Dashboard and Reporting and Analytical Capabilities Figure 96.2: Dashboard and Reporting and Analytical Capabilities Figure 97.1: Long-Term Planning and Budgeting Figure 97.2: Long-Term Planning and Budgeting Order Information: To order a copy of the Contact Center Workforce Management Market Report contact Deborah Navarra at or You may also purchase the report online at

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