Financial Services

Japan’s Contact Center Applications Market to Grow at CAGR of 6.4 % to Reach Revenues of US$ 278.4 Million in 2019 Says Frost & Sullivan

Tokyo, September 24th, 2013 – Frost & Sullivan is forecasting Japan’s contact center applications market to increase at a compound annual growth rate (CAGR) of 6.4 per cent (2012-2019) to reach US$278.4 million in 2019.

Mr. Krishna Baidya, Research Manager, ICT Practice, Asia Pacific at Frost & Sullivan said that revenue from the Japanese contact center application market experienced a marginal decline in 2012.

“Besides soft investment outlook, foreign exchange rate impact was quite significant as well. However, the market is expected to bounce back quite strongly as technology refresh as well as investment in new application areas are likely to be on upswing. As many stalled projects are likely to resume across large-sized contact centers immediate future growth will be stable,” he added.

Mr. Baidya also said that although organizations and contact centers alike are focusing on enhancing the customer experience, cost effectiveness proved to be an important factor for contact center operation. Contact centers across the region continued to invest in optimizing their operations and this resulted in a strong demand for workforce management (WFM) solutions, he added.

He said that BCPs (business continuity plans) are expected to drive new adoptions in the next few years. As a part of risk management measures, contact centers are likely to be decentralized.

Mr. Baidya said that the market trend was driven by weakening cost, and the mergers and acquisitions in the finance sector. This development will lead to the consolidation of contact centers and could lead to large deals in this sector, he added.

“Most of the vendors and channels continue to focus on CRM or new solutions using the existing applications such as outbound and speech technology,” he said.
Mr. Baidya noted that the Asia Pacific contact center applications market recorded revenues of US$703.1 million in 2012, of which Japan and Australia, as the two largest markets contributed more than 44 per cent of total revenues in 2012. By 2019, India and China are likely to account for over 31 percent of the total market revenue, he added

He also said that the business, financial and services industry and telecom are likely to remain the top two verticals in the Japan contact center applications market during the forecast period.

“Retail, especially the e-mail order business, is expected to continue to grow for the next few years. The contribution from the government and education sectors are relatively low compared to these sectors’ contribution in other Asian countries,” he added.

Mr. Baidya also said that most importantly, vendors are trying to enhance their partnerships with channels to expand their coverage of the verticals.

He also said that small and medium businesses with 51-200 seats are expected to shift to software as a service (SaaS). Many vendors are offering attractive package applications targeted at SMBs to increase their on-premise solutions.

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Original Source: Japan’s Contact Center Applications Market to Grow at CAGR of 6.4 % to Reach Revenues of US$ 278.4 Million in 2019 Says Frost & Sullivan