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

DMG Consulting’s annual Workforce Optimization (Quality Management/Liability Recording) Mid-Year Market Share Report presents a detailed analysis of the financial performance of the workforce optimization (WFO) market and its 45 vendors during the first six months of 2012. This Report complements DMG’s annual Workforce Optimization Market Share Report, which looks at WFO market performance and activity for the full year.

2012 has been another high-performing year for the WFO market. Total company GAAP revenue grew by 8.8%, from $1,244.3 million in the first half of 2011 to $1,354.3 million in the first half of 2012. NICE was the WFO market leader in the first half of 2012, with total company GAAP revenue of $422.5 million, up 9.0% from $387.7 million in the first half of 2011. NICE’s share of the WFO market for the first half of 2012 was 31.2%, the same as in the first half of 2011. Verint came in second place, with revenue of $409.1 million in the first half of 2012, up 10.2% from $371.3 million in the first half of 2011. Verint’s share of the WFO market was 30.2% in the first half of 2012, up slightly from 29.8% in the first half of 2011.

Between the first half of 2011 and the same period in 2012, contact center WFO revenue grew from $563.4 million to $615.4 million, an increase of 9.2%. This growth was due in large part to acquisitions that introduced new revenue sources into the sector. NICE and Verint both acquired companies to enhance their contact center WFO portfolios - NICE acquired CyberTech, Merced Systems and Fizzback, and Verint bought GMT and Vovici.
While NICE and Verint continued to account for 60%-90% of the various WFO segments, the 2012 Quality Management/Liability Recording Mid-Year Market Report indicates there was still no clear third-place competitor in the contact center WFO sector during the first half of this year. DMG believes this "opening" has motivated a few vendors to up their competitive game, enhancing features and functionality, improving service and support, and adding sales staff. This has created a highly competitive WFO market with many strong vendor and solution options. DMG is watching Calabrio, CallCopy and, for the first time, Zoom International, as serious contenders for the third-place slot.

Looking ahead, sustained economic challenges in Europe and the slowdown in India are likely to catch up with the WFO vendors in the second half of 2012, slightly slowing revenue growth. Despite the challenging times, DMG projects that the WFO market will grow by 9% between 2011 and full-year 2012, by 7% - 9% in 2013 and 2014, and by at least 10% in 2015, due to a long overdue pick-up in the worldwide economy. A large percentage of this growth will be due to acquisitions by leading WFO vendors who are expected to continue to acquire companies from other IT sectors, many of whom are not currently counted as part of the WFO market. This will help grow the WFO revenue base, even if organic growth is not as robust.

DMG anticipates cross-functional benefits, including a number of emerging capabilities such as cross-channel analytics, real-time guidance and real-time speech analytics, to play an increasing role in the future of this market. DMG is also looking for WFO vendors to push their solutions more strongly to the back-office sector, which is more than three times larger than the front-office segment.

The 2012 Workforce Optimization (Quality Management/Liability Recording) Mid-Year Market Share Report provides a detailed breakdown of revenue for the following 26 vendors: ASC, Aspect, Cacti, Calabrio, CallCopy, ComputerTel, Coordinated Systems, CTI Group, dvsAnalytics, Enghouse Systems (which acquired Telrex), Envision, Hewlett-Packard (HP, which acquired a control of Autonomy on October 3, 2011), HigherGround, Interactive Intelligence, KnoahSoft, Magnetic North, NICE Systems, OAISYS, OnviSource, TantaComm, TelStrat, Verint Systems, VirtualLogger, VPI, Xarios, and Zoom International. These vendors comprise 98.8% of the WFO market; the remaining 1.2% (19 vendors) are addressed in the "Other" category.

All of the vendors included in this Report offer a suite of products for contact center quality management (QM)/quality assurance (QA) and recording, along with at least 4 of the supplementary modules - performance management, speech analytics, surveying/voice of the customer (VOC), coaching, eLearning, workforce management, desktop analytics and text analytics - that have been added to these suites during the past decade. DMG Consulting produces separate in-depth industry reports for most of these supplementary WFO application segments. These reports include detailed market share analyses of their respective sectors, covering both WFO suite providers and stand-alone vendors.

Report Highlights:

• 2012 will be another good year for the WFO market: Although the second half of the year may lag a bit, WFO made an overall strong showing in the first half of 2012. Total company GAAP revenue grew by 8.8%, from $1,244.3 million in the first half of 2011 to $1,354.3 million in the first half of 2012. Contact center WFO revenue grew from $563.4 million to $615.4 million, an increase of 9.2% over last year.
• Third place in the contact center WFO market is still up for grabs: NICE and Verint continue to dominate the contact center WFO market, but there is no clear third-place leader. This opening has created a highly competitive and feature-rich market, giving end users many good solution acquisition options.
• The WFO market will continue to show growth over the next several years: Driven by emerging cross-functional capabilities and a push into the back office, DMG projects that the WFO market will grow by 9% between 2011 and 2012, by 7% -  9% in 2013 and 2014, and by at least 10% in 2015, due to a pick-up in the worldwide economy and acquisitions by leading WFO vendors.

Key Reasons to Buy this Report:

• Detailed revenue and market share analyses by vendor, based on GAAP revenue for total company, and broken down by contact center WFO segment, quality management/recording (WFO) sector, call recording, and applications
• Growth rate comparisons for first-half 2012 versus first-half 2011
• Detailed analysis of leaders and contending vendors for the various WFO segments
• Market projections by application segment for the four-year period from 2012 to 2015, for recording, quality assurance/quality management, performance management, speech analytics, eLearning, coaching, surveying/VOC, workforce management, desktop analytics and text analytics

Table of Contents

Sample Figure:
First-Half 2012 Total Company Market Share for WFO Competitors

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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