Contact Center Workforce Management Market Report
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1 ABSTRACT Contact Center Workforce Management Market Report DMG Consulting s sixth annual Contact Center Workforce Management Market Report gives contact center, back-office and IT managers unparalleled vendor, product, functional, technical and pricing information. The 368-page Report provides analysis and insights about products, vendors, industry trends and challenges, as well as best practices to help users realize the greatest continuing return on their technology investments. The Contact Center Workforce Management Market Report is designed to help organizations select the right solution, technology, functionality and partner to meet their current and future workforce management (WFM) needs. The contact center WFM market has been enjoying a solid run for the last few years, and 2012 was no exception. WFM solutions are evolving, becoming more robust and easier to use. New vendors continue to enter the market, bringing with them new ideas and increasing pressure on incumbent leaders. Delivery models are becoming more flexible, enabling users to take advantage of WFM on-site or in the cloud with ease. And businesses are realizing how valuable and effective WFM solutions are when they re in use and not sitting on the shelf. Evolving organizational needs and a series of trends are converging, driving unprecedented interest and innovation in WFM solutions. Trends include the continued growth of cloudbased offerings, the increasing needs of back-office and branch operations, and the changing workforce that now includes Millenials who require a work/life balance that can be effectively addressed with a workforce management solution. The Cloud Acquiring a WFM solution has become easier in recent years with the advent of the cloud. This lower-cost yet functionally sound delivery method is gaining ground among small and mid-sized businesses, as well as the larger organizations. The cloud may not be the right path for all organizations, but there are significant time, cost and flexibility benefits to be realized for the right users. Most WFM vendors claim to have cloud-based WFM offerings, but there is more to it than simply placing a solution in a cloud-based data center. DMG advises end users to make sure vendor claims are backed by a true cloud-based value chain, including architecture, provisioning, support structure and implementation model. The Back Office Contact centers have historically used WFM to forecast interaction volumes and determine the proper number of resources with the necessary skills to achieve service level goals. Back-office managers, under pressure to reduce operating and staff-related costs, rework and backlog, are looking to the contact center for help. However, DMG cautions users that WFM solutions developed solely for contact centers are not designed to meet back-office needs today. DMG expects interest in and application of WFM solutions in back-office operating groups to grow substantially over the next five years, particularly as more solutions come to market that are customized to address these departments unique challenges. The New Workforce The always-on American way of working does not sit so well with the next generation of employees now joining the workforce the Millenials. They feel strongly that their work-life balance is as important as their paycheck. Most employers are hard-pressed to evolve and adjust their culture. Some of today s WFM solutions include features and automation that support agent empowerment and satisfaction, helping supervisors balance productivity demands with agent expectations. An important module for empowering agents is the Web-based self-service portal, which allows agents to enter their schedule preferences and automate time-off management; prioritizing agent preferences in scheduling is a global trend that has been important in Europe for years and is now starting to catch on in North America. Most of these self-service modules are mobile-enabled, allowing tech-savvy agents to receive timely notification of schedule changes or responses to requests. DMG expects to see growing interest in the area of self-service scheduling and agent preference management in the next few years to address the demands of new workforce, or risk creating an unprecedented attrition challenge. Vendors are responding to a multitude of opportunities to improve the effectiveness of workforce management solutions with new solutions or enhancements such as improved user interfaces (UIs) and new functionality with more flexible features to accommodate complex environments. End users have more choices, thanks to European market contenders and emerging US-based competitors who are introducing new approaches and cost-effective solutions for companies of all sizes. The challenge for current and prospective users is to find the application that will best meet their needs. Many of the old faithfuls, though proven effective and packed with features, are increasingly perceived as unnecessarily complex and expensive. On the other side are the more nimble, less costly newcomers that offer a streamlined user experience but perhaps not the depth of functionality or referenceability of their larger competitors. DMG expects to see substantial investments from both emerging and existing competitors during the next few years, which will result in better WFM solutions coming to market. Today, however, there is something for everyone on the WFM menu. It is more important than ever for users to perform due diligence and assess the pros and cons of various offerings, as not all of the solutions are ready for prime time. Overall, the contact center WFM market is stronger than ever was the best year in its history. The market is at the start of a refresh cycle that is expected to last for the next five years, so DMG expects WFM to attract replacements and new sales at unprecedented rates. DMG projects that the WFM market will grow by 10% in 2013 and 2014, and by 8% in The 2013 Contact Center Workforce Management Market Report is the most comprehensive, fact-based and timely analysis of this mature yet changing technology sector. This Report evaluates both market leaders and lesser-known competitors to give readers an appreciation of the range of offerings available in the market. It provides a detailed review of seven leading and contending WFM vendors: Aspect, Calabrio, Genesys, Interactive Intelligence, NICE/IEX, Teleopti and Verint. Four other providers eg solutions, Holy-Dis, Intradiem and WorkFlex are covered at a high level. Although the 2013 Contact Center Workforce Management Market Report focuses on contact center solutions, it also addresses the needs of the emerging backoffice market, and includes a WFM Vendor Directory listing 44 providers of WFM capabilities. Order Information: To order a copy of the Contact Center Workforce Management Market Report contact Deborah Navarra at deborah.navarra@dmgconsult.com or You may also purchase the report online at
2 Key Reasons to Buy This Report State of the market: Overview of the contact center WFM market with a breakdown and review of the core, value-added and optional functional components (building blocks) that comprise a contact center WFM solution Competitive overview and market share analysis: High-level review of the competitive landscape, along with comprehensive corporate, technical, financial and functional side-by-side comparisons of 11 leading and contending vendors and their solutions, market share data, adoption analysis and projections Product comparisons: Company reports examining all aspects of generally available and upcoming WFM solutions, including differentiators, challenges and future research and development (R&D) plans, along with criteria for choosing a delivery model Insights into new and emerging functionality: A look at product innovation that has recently been introduced into the market, as well as what is expected over the next months, including a preview of emerging back-office WFO solutions and their core and value-added modules Pricing and ROI: Detailed pricing comparisons and analyses for premise-based, cloud and managed service WFM solutions, and an examination of the ROI and benefits enterprises should expect to realize from a successful WFM implementation Best practices for end users and vendors: Review of operational best practices for contact center managers and agents, insight into what end users should expect from a successful WFM implementation, and vendor best practices for implementing WFM solutions End-user commentary: Comprehensive, independent vendor satisfaction analysis revealing end users opinions of each vendor s products, implementation, training, professional services, support, innovation/responsiveness and pricing Comprehensive WFM Vendor Directory featuring 44 leading and contending WFM competitors Contact center WFM is a hot commodity: Adoption of contact center and back-office WFM solutions increased to 47.2%. The market is changing, solutions are improving and users are realizing significant quantifiable benefits as well as a happier workforce. The cloud, the back office, and an evolving workforce spell change for WFM: Several factors, including changing user needs, are affecting this long-standing yet very dynamic sector. оо оо оо Report Highlights: Lots of people want to leverage WFM in the cloud, and the available options are plentiful. Vendors that do not yet have a cloud-based offering are working feverishly to secure a spot in the cloud landscape, creating a highly competitive environment that can benefit users. The back office wants to realize the same staffing structure, economies and efficiencies that contact centers have enjoyed by applying workforce management to their environment. The opportunity to bring WFM solutions to the back office is enormous, but applying a front-office WFM application that has not been customized to meet the unique challenges of back-office operations is not the answer. Scheduling is a big deal to Millenials they want to work when they want to work, and live when they want to live. Companies are trying to address this need with enhanced best practices and improved solutions. Vendors are helping by delivering WFM solutions that prioritize agent-scheduling preferences and come with Web-based self-service scheduling tools that are mobile-friendly for the tech-savvy worker. WFM is a two-way street: Vendors are responding to market opportunities in many ways, but the market is more bifurcated than ever. The incumbent market leaders are less flexible and more expensive than their newer competitors. There are real and serious trade-offs that users must carefully consider with regard to functionality, flexibility, ease of use and price. More market activity to come: The contact center WFM market is at the start of a refresh cycle that is expected to last for the next five years. DMG projects that the WFM market will grow by 10% in 2013 and 2014, and by 8% in Sample Figure: Workforce Management Market Projections Source: DMG Consulting LLC, April 2013
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 7. Workforce Management Trends and Challenges 8. Workforce Management Market Innovation 8.1 New Product Features 8.2 Future Enhancements 9. The Emergence of Back-Office WFO 10. The Back-Office Staff Optimization Opportunity 10.1 Optimizing Staff Resources to Meet Business Needs 10.2 Back-Office/Branch Capabilities 11. Multi-Channel Workforce Management Capabilities 12. WFM for the Millennial Workforce 12.1 Balancing Staff Optimization and Agent Schedule Preferences 12.2 Meeting the Millennial Workforce Challenge with Next-Gen WFM Solutions 13. WFM Market Activity Analysis 13.1 Validating Market Numbers 13.2 WFM Market Share Analysis 14. Workforce Management Market Adoption 15. WFM Projections 16. Contact Center WFM Competitive Landscape 17. Workforce Management Vendors and Solutions 17.1 Company Snapshot 17.2 Market Segments Supported 17.3 Vendor Offerings and Products 18. High-Level Functional Summary 19. High-Level Technical Summary 19.1 Security 19.2 System Administration 20. Benefits and ROI of WFM Solutions 20.1 Building a Business Case 21. WFM Implementation Analysis 21.1 Implementation Process 21.2 Implementation Best Practices 21.3 Training and Services 21.4 Maintenance and Support 22. Workforce Management Vendor Satisfaction Analysis 22.1 Summary of Survey Findings and Analysis 22.2 Detailed Survey Findings and Analysis 22.3 Customer Insights 22.4 Activities Supported by WFM 23. Pricing 23.1 Premise-Based Price Ranges 23.2 Cloud-Based Pricing 23.3 Managed Service Pricing
4 Table of Contents (continued) 24. WFM Suite Detailed Functional Analysis 24.1 Forecasting 24.2 Scheduling 24.3 Intra-Day Management 24.4 Real-Time Adherence 24.5 Self-Service 24.6 Reporting, Dashboards, Alerts and Scorecards 24.8 Time-Off Management 24.9 Long-Term Planning 25. Company Reports 25.1 Aspect 25.2 Calabrio 25.3 eg solutions 25.4 Genesys 25.5 Holy-Dis 25.6 Interactive Intelligence 25.7 Intradiem 25.8 NICE Systems 25.9 Teleopti Verint Systems 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: Vendor Service Delivery Options Figure 5: WFM Market Trends Figure 6: Contact Center WFO Challenges Figure 7: New Product Features Figure 8: Future Enhancements by Category Figure 9: Back-Office Workforce Optimization Suites Figure 10: Desktop Analytics Defined Figure 11: Back-Office/Branch Figure 12: The Hard and Soft Benefits of Multi-Channel Service Figure 13: Aspect Multi-Channel Capabilities Figure 14: Calabrio Multi-Channel Capabilities Figure 15: Genesys Multi-Channel Capabilities Figure 16: Interactive Intelligence Multi-Channel Capabilities Figure 17: NICE Multi-Channel Capabilities Figure 18: Teleopti Multi-Channel Capabilities Figure 19: Verint Multi-Channel Capabilities Figure 20: Challenges of Managing a Millennial Workforce Figure 21: Finding Work/Life Balance Figure 22: Functionality to Support the Millennial Workforce Challenge Figure 23: Contact Center WFM Market Activity by Vendor, as of December 31, 2012 Figure 24: Contact Center WFM Market Share by Number of Seats, as of December 31, 2012 Figure 25: Contact Center WFM Market Share by Number of Seats, as of December 2012 Figure 26: Total Number of Contact Center WFM Seats/Agents, 2011 vs Comparison Figure 27: Total Number of Contact Center WFM Seats, Trends Figure 28: WFM Market Projections Figure 29.1: Company information Figure 29.2: Company information Figure 30: WFM Market Segments Figure 31.1:Product Modules Figure 31.2:Product Modules Figure 32: High-Level Functional Summary Figure 33: High-Level Technical Summary Figure 34: Security Figure 35: System Administration Figure 36: Customer Verbatims: Top 3 to 5 Benefits Realized From WFM Figure 37: Return on Investment Figure 38: Implementation (for contact centers) Figure 39: Implementation Best Practices Figure 40: Training and Services Figure 41: Maintenance and On-Going Support Figure 42: Customer Survey Rating Categories Figure 43: Average Satisfaction Ratings, by Category Figure 44: Product Satisfaction Ratings, by Category Figure 45 Ease of Configuration and Set-Up Satisfaction Ratings, by Customer Figure 46: Ease of Ongoing Use and Maintenance Satisfaction Ratings, by Customer Figure 47: Ease of Integration with Third-Party Applications Satisfaction Ratings, by Customer Figure 48: User Interface Ease of Use Satisfaction Ratings, by Customer Figure 49: Ability to Customize System to Your Needs Satisfaction Ratings, by Customer Figure 50: Forecasting Accuracy Satisfaction Ratings, by Customer
6 Table of Figures (continued) Figure 51: Scheduling Features and Effectiveness Satisfaction Ratings, by Customer Figure 52: Intra-Day Management Capabilities Satisfaction Ratings, by Customer Figure 53: Real-Time Adherence Features Satisfaction Ratings, by Customer Figure 54: Agent Self-Service Features Satisfaction Ratings, by Customer Figure 55: Time-Off Management Features and Functionality Satisfaction Ratings, by Customer Figure 56: Real-Time Capabilities Satisfaction Ratings, by Customer Figure 57: Multi-Channel Capabilities Satisfaction Ratings, by Customer Figure 58: Long-Term Planning Capabilities Satisfaction Ratings, by Customer Figure 59: Process and Workflow Automation Satisfaction Ratings, by Customer Figure 60: Back-Office Functionality Satisfaction Ratings, by Customer Figure 61: Branch Functionality Satisfaction Ratings, by Customer Figure 62: Dashboard Satisfaction Ratings, by Customer Figure 63: Reporting Satisfaction Ratings, by Customer Figure 64: Implementation Satisfaction Ratings, by Customer Figure 65: Training Satisfaction Ratings, by Customer Figure 66: Professional Services Satisfaction Ratings, by Customer Figure 67: Ongoing Service and Maintenance Satisfaction Ratings, by Customer Figure 68: Innovation Satisfaction Ratings, by Customer Figure 69: Responsiveness to Product Enhancement Requests Satisfaction Ratings, by Customer Figure 70: Vendor Communication Satisfaction Ratings, by Customer Figure 71: Product Pricing Satisfaction Ratings, by Customer Figure 72: Overall Vendor Satisfaction Ratings, by Customer Figure 73: What activities do you use your WFM vendor to support? Figure 74: What channels do you use your WFM vendor to support? Figure 75: What were your top three to five primary reasons for selecting this vendor/product as your WFM solution? Figure 76: What are the top three to five benefits you have gained from using the WFM solution? Figure 77: Verbatims: What does your vendor excel at? Figure 78: Verbatims: What can your vendor do better? Figure 79: Verbatims: What type of product enhancements would you like to see? Figure 80: Verbatims: What do you think about your WFM solution s user interface? How would you like to see it improved? Figure 81: Verbatims: Please feel free to provide any additional comments about your experience with the vendor and/or product. Figure 82: Price Ranges 500-Seat Premise-Based Solution Figure 83: Pricing (Premise-Based Solution) 500 seats Figure 84: Pricing (Cloud-Based Solution) 500 seats Figure 85: Forecasting Figure 86: Scheduling Figure 87: Intra-Day Management Figure 88: Real-Time Adherence Figure 89: Self-Service Figure 90: Reporting, Dashboards, Alerts and Scorecards Figure 91: Time-Off Management Figure 92: Long-Term Planning and Budgeting Order Information: To order a copy of the Contact Center Workforce Management Market Report contact Deborah Navarra at deborah.navarra@dmgconsult.com or You may also purchase the report online at
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