Legacy contact centers rushing to cloud to support emerging technologies

Sandie Simms
Feb. 10 2020
Office building

As companies continue transitioning their contact centers to the cloud, legacy infrastructures fail to support newer channels such as social media and chatbots. This helps fuel explosive growth in the cloud-based contact center market, which is expected to grow 25% by 2025, according to a new analyst report.

Rapid growth

Mordor Intelligence predicts the cloud-based contact center market will hit $49 billion in the next five years. In 2019, the market was valued at $13 billion.

“Legacy contact centers operate on older technologies that cannot support newer channels, such as social media, mobile app chats, or videos,” the report says. “Cloud-based contact centers can help companies meet these demands.”

A 2017 report cited in the study shows that 39% of contact centers in the United Kingdom migrated to cloud-based while 57% had plans in the works to transition in the next three years. Cloud-based call centers are very scalable, saving businesses millions of dollars in operating costs and leaking revenue, according to the report.

“Cloud contact centers have become a necessary step for companies to adopt a systemic approach that enhances performance, channels support and engagement, reporting and analytics to successfully support a customer base where customer preferences keep changing,” the report says. “The challenge for enterprises lies in choosing the right cloud contact center solution and strategic partner to achieve these goals.”

Retail industry

Retailers are expected to invest the most in cloud call center technology in the coming years. The need to comply with recent and future regulations regarding GDPR and live call monitoring/recording is also contributing to growth.

Contact centers are viewed as revenue generators in the retail industry, leading to smaller companies investing in newer the latest technologies.
Learn more: Test Automation for the Retail Industry

Experts agree

Mordor Intelligence is one of several analyst firms that are predicting massive growth in the cloud contact center space.

According to Synergy Research Group, the number of cloud-based call center agents reached 5 million in 2019. Though cloud-based roles are still in the minority, they’re outpacing traditional customer service roles 20% to 5% annually. Frost & Sullivan predicts that hybrid and cloud contact center system implementations will contribute to overall market growth from 2018-2014.

In late 2019, Frost & Sullivan also praised Empirix’s solutions for being depoyable in the cloud, on-premise or hybrid and for integrating with third-party data sources within virtualized network infrastructures. Frost & Sullivan picked Empirix as recipient of the 2019 Best Practice Award for Global Network and Test Monitoring Product Line Strategy Leadership.

“In additional to the Hammer Cloud Platform, Empirix offers a cloud-native, probe-free monitoring solution for enterprises and service providers to troubleshoot their physical, hybrid, or virtualized network infrastructure,” the analysts wrote in the award summary, which can be downloaded here.

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