BY STAFF REPORT
The market for contact center applications in Latin America will reach $757.9 million in 2018, says market research firm Frost & Sullivan.
The applications market made $407 million in 2011, with Brazil leading the region with more than 50 percent market share.
According to the analyst firm, an investment-friendly atmosphere and the rapid development of new markets are driving the growth. In the Andean and Southern Cone region, the market is expected to grow at 10.3 percent and 9.8 percent respectively till 2018, says the report.
“Market expansion in Latin America will lead to substantial contact center application development to ensure efficient customer interaction,” said Frost & Sullivan Research Analyst Martin Ramirez. “Proactive tools will also be in high demand as contact centers will be focusing on business intelligence in order to implement a personalized approach to customer relationships.”
Among the applications, agent performance optimization (APO) has become the most preferred application by companies. Interactive voice response (IVR) tools are also popular with industries such as banking and telecommunications. End users have also become accustomed to and prefer IVR, the report noted.
The report forecasted that inbound contact routing (ICR) system income would reach $500.2 million in 2018. “Since ICR is the primary contact center tool needed to attend to end users, it will remain in demand as new companies enter the region and expansion plans continue,” the report noted.
The analyst firm says that Brazil’s dominance makes the rest of the region overly dependent on its economic future, putting the market’s long-term growth in jeopardy. “Economic insecurity in key countries such as Argentina and Colombia could restrain expansion,” the report warns.
The low penetration of social media technologies is mainly due to the fact that companies have no clear understanding of its real value for the business. Indeed, despite the awareness of the benefits of social media, pricing concerns force companies to evaluate the return on invest of these solutions.
“However, demand for new and effective solutions may lead to increased interaction through social media,” concluded Ramirez. “As the large-center segment reaches maturity, vendors must come up with new strategies to penetrate the small and medium business market and stay competitive.”