Abstract: 2012 Workforce Optimization (Quality Management/Liability Recording) Market Share Report

DMG Consulting’s annual Workforce Optimization (Quality Management/Liability Recording) Market Share Report, now in its ninth year, provides a detailed analysis of the workforce optimization (WFO) suite providers, applications and sectors for fiscal 2011. Widely regarded as the most comprehensive, accurate source of industry data and insight for this technology segment, the Workforce Optimization (Quality Management/Liability Recording) Market Share Report is essential for vendors and investors who want to understand the current status and expected future performance of the WFO market and its competitors.

As DMG predicted in last year’s report, 2011 was indeed a strong year for the workforce optimization market. Following the recovery of 2010, many segments exceeded highs last seen in 2008. A change at the top of the market, due to Hewlett Packard’s (HP) acquisition of Autonomy, altered the competitive landscape. This Report looks at the market from various perspectives, including:

• Overall WFO Market: Total company GAAP revenue was $2,575.6 million in 2011, down from $3,208.9 million the prior year. The decrease is attributed wholly to the removal of HP/Autonomy’s total company non-WFO GAAP revenue from the analysis. The WFO market would have seen healthy growth for the year if not for this change.
• Contact Center WFO Sector: Contact center WFO revenue grew by 12.2%, from $1,012.1 million in 2010 to $1,135.1 million in 2011. This growth — driven by pent-up demand following the recession and the availability of new analytics applications within WFO suites — is quite significant, especially in a large and mature market.

2012 will be another year of consistent growth for the WFO market, and 2013 is expected to be even better. NICE and Verint will continue to dominate the market, with the other 43 contact center WFO providers doing well enough to remain profitable. A handful of contact center WFO vendors are poised to outperform the others and, as a result, may have a significant opportunity to capture market share and the coveted third-place market leadership position.

Cloud-based or hosted solutions will continue to pick up momentum as users look for easier-to-deploy, more flexible and less capital-intensive alternatives. Vendors around the world now offer WFO solutions in the cloud. Cloud-based workforce management, surveying, performance management and eLearning applications are gaining popularity as the viability of the hosted option becomes more certain.

Analytics is also changing the WFO landscape, and specifically how QA is being executed. A new breed of analytics-enabled QA solutions is giving users an opportunity to refresh their outdated QA applications and practices, and enables vendors to capture new revenue. Vendors will continue to push their analytics-enabled QA/QM applications in the coming year. DMG expects to see significant growth in this area once the economy is fully recovered and stable.

Report Highlights

• 2011 was a strong year for the WFO market: Total company GAAP revenue was $2,575.6 million in 2011, down from $3,208.9 million in 2010. This decline was due to the removal of HP/Autonomy revenue from the analysis. The contact center WFO sector grew by a healthy 12.2%, from $1,012.1 million in 2010 to $1,135.1 million in 2011.

• 2012 and 2013 will bring more of the same growth: The WFO market will continue to grow in 2012, leading the way to an even stronger 2013. NICE and Verint will continue to lead the market, while a few vendors will battle for the third-place position.

• Trends to watch include the cloud and analytics: Cloud-based WFO solutions are rapidly picking up momentum and DMG expects continued growth as users look for reliable, flexible easier-to-deploy and less capital-intensive alternatives for acquiring WFO solutions. New analytics-enabled QA solutions are altering the QA landscape by automating tasks that have been done manually for the past 30 years. DMG expects to see solid growth in this area over the coming years as users replace their outdated QA solutions with these highly beneficial applications.

Key Reasons to Buy this Report

• Total company revenue and market share analysis, based on generally accepted accounting principles (GAAP), for all vendors who sell workforce optimization solutions for contact centers and other uses
• A revenue analysis for the primary industry categories – enterprise and security
• Drill-down analyses of revenue and market share for the contact center WFO market and all of its sectors
• Revenue and market share for 2011 by application for recording (total voice, contact center, non-contact center, time division multiplexing (TDM) and Internet Protocol (IP), and quality management solutions
• Five-year GAAP revenue trend analyses for total company, contact center WFO, geography and vertical, revenue source and sales channel
• Growth comparisons analyzing 2010 and 2011 revenue and market share for total company on a GAAP, contact center WFO, revenue source and sales channel basis
• Three-year revenue trends by application for all workforce optimization segments, including recording (contact center, non-contact center, video and other), quality management/assurance, workforce management (contact center and non-contact center), speech analytics, performance management, surveying, desktop analytics, coaching and eLearning
• Analysis of recording revenue for the two primary call recording sectors — TDM and IP — for contact center and non-contact center uses
• Geographical analysis of revenue and market share for North America, Europe, Asia Pacific, and Caribbean & Latin America/Middle East & Africa (combined), by vendor for each region
• Revenue and market share for 2011 for hardware, software and professional services, for the market and by vendor
• Hosted/cloud-based revenue and market share analysis for 2011, by vendor

*acquired by NICE in March 2011
**acquired Telrex in June 2010
***HP acquired Autonomy in October 2011

Table of Contents

Sample Figure: 2011 Total Company WFO Market Share

Order Information
To order a copy of the 2012 Workforce Optimization (Quality Management/Liability Recording) Market Share Report contact Deborah Navarra at 516-628-1098 or deborah.navarra@dmgconsult.com. You may also purchase the report online.

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