The 2009 Quality Management and Liability Recording Mid-Year Market Report

According to DMG Consulting, after eight straight years of market growth, the first six months of 2009 saw a decrease in revenue for many segments of the WFO market, from call center monitoring to call center quality assurance applications. While WFO performance was not stellar, it still outpaced the majority of other contact center and IT segments. Overall revenue for vendors fell by 1.6%, from $1,336.2 million in the first half of 2008 to $1,315.5 million in the first half of 2009. DMG expects that full-year 2009 revenue will be flat or will shrink 1% to 2% as compared to 2008. Growth in 2010 is expected to be 2% to 4%, mostly due to a strong fourth quarter. DMG predicts that 2011 will be a strong year where the market will increase by 5% and 6% over 2010.  

Highlights from the DMG 2009 Quality Management and Marketing Report:   

•Total WFO revenue fell 1.6%, from an all-time high of $1,336.2 million in the first six months of 2008 to $1,315.5 million in the first half of 2009. The second half of 2009 is expected to recover slightly and come in flat or shrink by 1% to 2%, as compared to the same period in 2008. DMG predicts that the WFO market will show an increase of 2% to 4% over 2009, and that 2011 will be a strong year, with growth of at least 5%.

•Contact center WFO revenue decreased by 5.9%, from $507.7 million in the first half of 2008 to $477.7 million in the first half of 2009. This decrease shows how enterprises cut back on all but essential contact center investments during tough economic times.

•While the recession slowed purchases of WFO solutions in the first half of 2009, overall R&D continued at a surprisingly rapid rate; many of the competitors are setting themselves up to be in a stronger position when the market recovers.

•Total voice recording revenue decreased by 13.6% between the first six months of 2009 and the same period in 2008. This segment shrank from $280.9 million in the first six months of 2008 to $242.5 million in the first half of 2009. This contraction is significant because recording remains the foundation module for WFO suites.

•For the first half of 2008, non-contact center voice recording revenue was greater than contact center revenue. During the first six months of 2009, the proportion flipped, showing that in tough economic times organizations are more likely to invest in contact center recording than non-contact center recording.

 

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