New IDC On-Demand Contact Center Services Forecast Shows U.S. Spending Will Grow to $1.6 Billion in 2018

In a newly released study, International Data Corporation (IDC) forecasts that U.S. spending for on-demand (cloud) contact center services will grow at a compound annual growth rate (CAGR) of 17.5% to $1.6 billion in 2018. A majority of companies are using or evaluating a hosted or on-demand solution for their contact center, according to IDC demand-side data.

“End consumer demands combined with a need for speed, flexibility, and cost reduction are all driving companies to evaluate hosted and on-demand solutions,” said Melissa O’Brien, Research Analyst,Worldwide Contact Center Services.

Key research findings include:

While the majority of companies are still using on-premise contact center solutions, most of them are also using or evaluating a hosted or on-demand contact center service. IDC survey data shows that 39% of respondents were using a hosted or on-demand service, 38% were evaluating a hosted or on-demand service, and only 23% were using an on-premise system and not evaluating the hosted or on-demand model.

Factors contributing to the growth of hosted and on-demand contact center services include cost reduction and pricing model, cloud-based outsourcing, increased shift in spending, and multi-channel customer care.

As customer experience becomes more of a strategic focus for enterprises and the pressures for speed, flexibility, and multi-channel increase, hosted and on-demand contact center services must continue to evolve to keep up to client expectations and support consumers’ future channels of preference.

The IDC study, Hosted and On-Demand Contact Center Services 2012-2018 Forecast: Customer Experience Driving Contact Center Interactions to the Cloud (IDC #246546) provides IDC’s forecast for the hosted and on-demand contact center services market for 2012–2018. This study highlights key assumptions and drivers that are creating changes and driving growth in this market.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. In 2014, IDC celebrates its 50th anniversary of providing strategic insights to help clients achieve their key business objectives. IDC is a subsidiary of IDG, the world’s leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.