Asia Pacific Contact Center Applications Market

H1 2010

P4C3-76

February 2011
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P4C3-76 2
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 Table of Contents

Executive Summary .. 9
Market Definitions.13
Asia Pacific Contact Center Applications Market, H1 2010.17
Australia Market ....... 29
China Market ............... 31
Hong Kong Market ....... 33
India Market ................. 35
Indonesia Market ............ 37
Japan Market ...............39
Malaysia Market ............ 41
New Zealand Market .......... 43
Philippines Market ....... 45
Singapore Market .......... 47
South Korea Market ............ 49
Taiwan Market ............ 51
Thailand Market ............ 53
Vietnam Market ............... 55
About Frost & Sullivan ................57

P4C3-76 4
 List of Figures

Contact Center Applications Market: Market Drivers Ranked in Order of Impact (Asia Pacific), 2010-2016 23
Contact Center Applications Market: Market Restraints Ranked in Order of Impact (Asia Pacific), 2010-2016 24

P4C3-76 5
 List of Charts
Contact Center Applications Market: Market Engineering Measurements (Asia Pacific), H1 2010 10
Contact Center Applications Market: Revenues by Application (Asia Pacific), H1 2010 11
Contact Center Applications Market: Market Definitions (Asia Pacific), 2010 14
Contact Center Applications Market: Market Engineering Measurements (Asia Pacific), H1 2010 18
Contact Center Applications Market: Revenues by Application (Asia Pacific), H1 2010 19
Contact Center Applications Market: Hosted Opportunity (Asia Pacific), 2009 and 2016 20
Contact Center Applications Market: Vertical Opportunity (Asia Pacific), H1 2010 21
Contact Center Applications Market: Horizontal Opportunity (Asia Pacific), H1 2010 22
Contact Center Applications Market: Market Share by Revenues (Asia Pacific), H1 2010 25
Contact Center Applications Market: Market Size by Country (Asia Pacific), H1 2010 28
Contact Center Applications Market: Market Engineering Measurements (Australia), H1 2010 29
Contact Center Applications Market: Revenues by Application (Asia Pacific), H1 2010 29
Contact Center Applications Market: Vertical Opportunity (Australia), H1 2010 30
Contact Center Applications Market: Horizontal Opportunity (Australia), H1 2010 30
Contact Center Applications Market: Market Share (Australia), H1 2010 30
Contact Center Applications Market: Market Engineering Measurements (China), H1 2010 31
Contact Center Applications Market: Revenues by Application (China), H1 2010 31
Contact Center Applications Market: Vertical Opportunity (China), H1 2010 32
Contact Center Applications Market: Horizontal Opportunity (China), H1 2010 32
Contact Center Applications Market: Market Share (China), H1 2010 32
Contact Center Applications Market: Market Engineering Measurements (Hong Kong), H1 2010 33
Contact Center Applications Market: Revenues by Application (Hong Kong), H1 2010 33
Contact Center Applications Market: Vertical Opportunity (Hong Kong), H1 2010 34
Contact Center Applications Market: Horizontal Opportunity (Hong Kong), H1 2010 34
Contact Center Applications Market: Market Share (Hong Kong), H1 2010 34
Contact Center Applications Market: Market Engineering Measurements (India), H1 2010 35

P4C3-76 6
 List of Charts (Contd)
Contact Center Applications Market: Revenues by Application (India), H1 2010 35
Contact Center Applications Market: Vertical Opportunity (India), H1 2010 36
Contact Center Applications Market: Horizontal Opportunity (India), H1 2010 36
Contact Center Applications Market: Market Share (India), H1 2010 36
Contact Center Applications Market: Market Engineering Measurements (Indonesia), H1 2010 37
Contact Center Applications Market: Revenues by Application (Indonesia), H1 2010 37
Contact Center Applications Market: Vertical Opportunity (Indonesia), H1 2010 38
Contact Center Applications Market: Horizontal Opportunity (Indonesia), H1 2010 38
Contact Center Applications Market: Market Share (Indonesia), H1 2010 38
Contact Center Applications Market: Market Engineering Measurements (Japan), H1 2010 39
Contact Center Applications Market: Revenues by Application (Japan), H1 2010 39
Contact Center Applications Market: Vertical Opportunity (Japan), H1 2010 40
Contact Center Applications Market: Horizontal Opportunity (Japan), H1 2010 40
Contact Center Applications Market: Market Share (Japan), H1 2010 40
Contact Center Applications Market: Market Engineering Measurements (Malaysia), H1 2010 41
Contact Center Applications Market: Revenues by Application (Malaysia), H1 2010 41
Contact Center Applications Market: Vertical Opportunity (Malaysia), H1 2010 42
Contact Center Applications Market: Horizontal Opportunity (Malaysia), H1 2010 42
Contact Center Applications Market: Market Share (Malaysia), H1 2010 42
Contact Center Applications Market: Market Engineering Measurements (New Zealand), H1 2010 43
Contact Center Applications Market: Revenues by Application (New Zealand), H1 2010 43
Contact Center Applications Market: Vertical Opportunity (New Zealand), H1 2010 44
Contact Center Applications Market: Horizontal Opportunity (New Zealand), H1 2010 44
Contact Center Applications Market: Market Share (New Zealand), H1 2010 44
Contact Center Applications Market: Market Engineering Measurements (Philippines), H1 2010 45
Contact Center Applications Market: Revenues by Application (Philippines), H1 2010 45

P4C3-76 7
 List of Charts (Contd)
Contact Center Applications Market: Vertical Opportunity (Philippines), H1 2010 46
Contact Center Applications Market: Horizontal Opportunity (Philippines), H1 2010 46
Contact Center Applications Market: Market Share (Philippines), H1 2010 46
Contact Center Applications Market: Market Engineering Measurements (Singapore), H1 2010 47
Contact Center Applications Market: Revenues by Application (Singapore), H1 2010 47
Contact Center Applications Market: Vertical Opportunity (Singapore), H1 2010 48
Contact Center Applications Market: Horizontal Opportunity (Singapore), H1 2010 48
Contact Center Applications Market: Market Share (Singapore), H1 2010 48
Contact Center Applications Market: Market Engineering Measurements (South Korea), H1 2010 49
Contact Center Applications Market: Revenues by Application (South Korea), H1 2010 49
Contact Center Applications Market: Vertical Opportunity (South Korea), H1 2010 50
Contact Center Applications Market: Horizontal Opportunity (South Korea), H1 2010 50
Contact Center Applications Market: Market Share (South Korea), H1 2010 50
Contact Center Applications Market: Market Engineering Measurements (Taiwan), H1 2010 51
Contact Center Applications Market: Revenues by Application (Taiwan), H1 2010 51
Contact Center Applications Market: Vertical Opportunity (Taiwan), H1 2010 52
Contact Center Applications Market: Horizontal Opportunity (Taiwan), H1 2010 52
Contact Center Applications Market: Market Share (Taiwan), H1 2010 52
Contact Center Applications Market: Market Engineering Measurements (Thailand), H1 2010 53
Contact Center Applications Market: Revenues by Application (Thailand), H1 2010 53
Contact Center Applications Market: Vertical Opportunity (Thailand), H1 2010 54
Contact Center Applications Market: Horizontal Opportunity (Thailand), H1 2010 54
Contact Center Applications Market: Market Share (Thailand), H1 2010 54
Contact Center Applications Market: Market Engineering Measurements (Vietnam), H1 2010 55
Contact Center Applications Market: Revenues by Application (Vietnam), H1 2010 55
Contact Center Applications Market: Vertical Opportunity (Vietnam), H1 2010 56
Contact Center Applications Market: Horizontal Opportunity (Vietnam), H1 2010 56
Contact Center Applications Market: Market Share (Vietnam), H1 2010 56

P4C3-76 8
Executive Summary

9
 Executive Summary

Key Market Trends Contact Center Applications Market: Market

Engineering Measurements (Asia Pacific), H1 2010
Trends

The Asia Pacific Contact Center Applications

Measurement Name Measurement Trend
1 Market returns to positive growth in H1 2010,
after a double digit decline in 2009 over 2008. Market age Growth Increasing
As the global economy revives spending on
Revenues (H1 2010) $334.5 million Increasing
Customer Service has returned. While the focus in
2 2009 was on customer retention, in H1 2010, in
Potential revenues (2016) $1,254.6 million Increasing
most markets of Asia Pacific, focus returned to
customer acquisition.
Market Growth Rate (H1 10/09) 3.4% Increasing
Domestic demand for customer service continued
to see good growth in developing markets such as CAGR (2009-2016) 9.3% Decreasing
3
India, China, Indonesia and Vietnam.
Saturation (current/potential) 57.9% Increasing

Domestic Outsourcing saw a strong growth in Price range $150 to $2,500 Decreasing
markets like India, Australia, China. Offshore
4 Outsourcing demand was feeble in H1 2010, Price sensitivity Medium to High Increasing
however, there are positive signs of recovery in
the H2 2010. Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan

Impact of the depreciating US dollar also had a

5
slight positive impact on the market revenues.

P4C3-76 10
 Executive Summary (Contd)

Key Market Trends

Trends

Increased activity towards self-service

applications and using IVR as a tool for call
6 resolution instead of call routing. IVR market is
expected to grow at a CAGR of 10.9% from 2009 Contact Center Applications Market: Revenues by
to 2016 Application (Asia Pacific), H1 2010

Strong interest and initial adoption of Analytics Outbound

11% CM/QM
solutions were seen in H1 2010. Speech Analytics, 20%
Multimedia Analytics (Screen-capture), and Data IVR
7 13%
Analytics were part of the discussion with many
Banks, Outsourcers and Telecom companies. WFM
4%
Integrated suites of Quality Monitoring, CTI Speech
Workforce Management and Analytics are seeing 26% ACD 2%
8
good adoption in the market. 22% Multimedia
2%
Very high on the agenda for most contact centers
was the topic of Social Media. Leading contact Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan

9 centers especially in Australia, are in the

experimental stages of using social media as a
customer service channel

P4C3-76 11
 Executive Summary (Contd)
Regional Opportunity
Trends
The Asia Pacific Contact Center Applications
market in H1 2010 was worth $334.5 million, and
puts its on track to grow at a positive growth of
1 5%-7% by the end 2010 over 2009. This would be a
decent recovery after the negative growth of 12%
in 2009 due to the economic recession.
The different markets in the region present
different set of opportunities. Mature markets
such as Australia, Singapore and Hong Kong are
investing in applications such as Analytics and
2
Social Media integration. High growth markets of
India, China, Philippines are investing in Workforce
Optimization and self-service applications.
Investment per seat is higher in markets such as
Australia, Singapore, Korea, Japan where the
3 pricing as well as the sophistication of applications
deployed are higher, compared to China, India, and
other markets of ASEAN.
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Competitive Landscape
Trends
The top 5 vendors in the Asia Pacific Contact Center
Applications market contribute over 65 percent of the
1 total market. These 5 vendors are Avaya (including Nortel),
Genesys Labs, Verint, NICE Systems and Aspect Software.
Given the almost 100% in-direct business model for most
vendors, global vendors focused on channel expansion in
2 H1 2010. New distributors and system integrator
relationships were signed up in H1 2010 by the leading
vendors.
Increasing activity from local vendors such as Huawei to
expand into other parts of the region outside China.
3
Huawei saw increased presence in Philippines, India, and
Indonesia.
In H1 2010, there were more bundled offers of different
Contact Center applications (such as Workforce
4
Optimization) as well with other solutions (such as Unified
Communications)
Increased activity from players such as Cisco, Interactive
5
Intelligence, Salesforce.com and RightNow.
12
Market Definitions

13
 Asia Pacific Market Definitions

Contact Center Applications Market: Market Definition (Asia Pacific), 2010

CONTACT CENTER APPLICATIONS MARKET

Automatic Call Computer Interactive

Outbound Workforce
Distributor Telephony Voice
Systems Integration (CTI)
Management
(ACD) Response (IVR)

Speech Multimedia
Call Monitoring
Technology Systems

Source: Frost & Sullivan

Revenues in this report represent product license revenues

Revenues associated with professional services and maintenance are excluded from the study.

All revenue numbers are in US dollars.

All revenue numbers are based on end-user pricing.

P4C3-76 14
 Asia Pacific Market Definitions (Contd)
Automatic Call Distributor (ACD)
An ACD system is the software and hardware that routes inbound calls
to a group of agents based on certain intelligent routing and skill-based
criteria stored in the database. The ACD system may work on traditional
circuit-switched (TDM) or IP technology. ACD systems included in this
research service include proprietary stand-alone ACD systems that are
integrated with private branch exchange (PBX) systems or key
telephone systems (KTS), stand-alone hardware-based ACD systems or
software-based ACD systems that are included with a server. The ACD
system processes inbound calls on a first-come-first-served basis. In the
case that agents are unavailable to take the call, the ACD system holds
the calls in a queue and then transfers the call to the first available
agent. ACD systems can also be configured to route calls made to a
particular number for priority handling.
Interactive Voice Response (IVR)
An Interactive Voice Response (IVR) system is a telephony technology
that allows users to interact with enterprise databases connected to the
system in order to retrieve or enter data. Traditional IVR systems have
been around for a decade now, and most of them employ a touch-tone
or dual-tone multi-frequency (DTMF) user interface. Speech enabled
IVR systems are the next generation of products that allow callers to
use their own voice rather than DTMF inputs to complete transactions.
The most common uses of IVR systems include checking bank accounts
and credit card balances, obtaining travel information such as flight
arrival and departure and directory assistance. IVR systems find the
greatest use in verticals with high transaction volumes and emphasis on
customer satisfaction. For example Finance and Banking, Insurance,
Healthcare, Travel, Government etc.
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Computer Telephony Integration (CTI)
Basic computer telephony integration is defined as the tying of the
information received over the telephone to a computer system. In the
case of the call center, this is the ACD link, with screen pop being the
associated application. Using automatic number identification (ANI), a
computer detects the callers telephone number, routes the call to the
appropriate agent, retrieves the customers information record from a
database, and displays this record via a screen pop on a monitor in front
of the agent. Enterprise CTI goes beyond the basic screen pop
functionality to enable multiple points of interaction and link the contact
center with broader enterprise applications. In essence, this technology
is the middleware that allows multiple devices and applications to
communicate.
Outbound System (OB)
Outbound Dialing systems are defined as hardware and software or
software-only solutions that facilitate the placement of large volumes of
outbound calls in contact centers. When these solutions feature
sophisticated pacing algorithms, they are called predictive dialing
systems. Outbound dialing systems can comprise of a variety of dialing
modes to cater to differing requirements. Predictive dialing tends to be
the best mode for large, high volume outbound dialing contact centers
where a great number of agents need to be matched with a large
number of calls. This option provides the greatest value in traditional
outbound dialing environments such as credit collections, proactive
customer service etc. Preview dialing is a mode that is suitable for lower
volume call center environments. This mode typically lacks the
algorithms and database access required to accurately predict agent
availability, but is able to push a lower volume of calls to agents along-
with contact information pulled from customer databases.
15
 Asia Pacific Market Definitions (Contd)
Call Monitoring (CM)
In this report call monitoring includes both selective recording and full
recording. Selective recording is a software application that allows
supervisors to monitor agent voice and data interactions on a frequency
basis. Recordings are tapped from the service observe feature of the
ACD or PBX. With full recording all interactions are recorded from
communications paths through trunk or station-side ports to the
ACD/PBX. Full recording (also referred to as "logging") usually requires
vendor-supplied servers and circuit cards to assure the high levels of
reliability and performance required for compliance recording.
Revenues in this segment only reflect revenues from the contact center
segment.
Speech Technology (ST)
Speech Technology comprises mainly of ASR (Automatic Speech
Recognition), Text to Speech and Speaker Verification technologies. This
research looks at the ASR segment only. ASR is the most widely
deployed among speech technology product, and represents the central
software of the speech platform. The product essentially converts
spoken words into computer text by first digitizing speech and then
matching it against a dictionary of coded waveforms. Natural Language
Understanding (NLU) has become closely intertwined with ASR. The
allure of NLU is the creation of a more conversational experience by
establishing the context and meaning of a call.
P4C3-76
Workforce Management (WFM)
Workforce management software uses data from automatic call
distributors (ACDs) or computer telephony integration (CTI) statistics
servers to allow contact center managers to maintain appropriate levels
of customer interaction processing by determining the optimal staffing
schedules. This is done by managing and forecasting contact volume and
activity changes occurring on an hourly, daily, monthly, or seasonal
basis.
Multimedia Systems (MM)
This is a two-tier application that comprises of two segments, E-mail
management software and Real Time Web Collaboration software. For
all intents and purposes, Multimedia systems software licenses are
based on the combined revenues of both e-mail and web software.
E-Mail Management Software typically performs several functions. First,
the incoming e-mail is routed to the appropriate boxes. The software
may also perform filtering functions to match email addresses with
customer records and assign a tracking number to the e-mail to create
an audit trial with the specific inquiry or customer. Next, an automated
response is generated to inform customers that their e-mail has been
received. Finally, the software will either generate an automatic
response or assist agents by suggesting a response.
Real-Time Web Collaboration software automates the enterprise front-
office operations and facilitates real-time customer interaction through
multiple access channels such as telephony, facsimile, text-chat, call
back, call through, and voice and video over Internet Protocol. Revenues
in this analysis are recognized for real-time web collaboration solutions
that provide text chat, call back and call-through capabilities.
16
 Asia Pacific
Contact Centre Applications
Market, H1 2010

17
 Key Market Trends

Key Market Trends Contact Center Applications Market: Market

Engineering Measurements (Asia Pacific), H1 2010
Trends

The Asia Pacific Contact Center Applications

Measurement Name Measurement Trend
1 Market returns to positive growth in H1 2010,
after a double digit decline in 2009 over 2008. Market age Growth Increasing
As the global economy revives spending on
Revenues (H1 2010) $334.5 million Increasing
Customer Service has returned. While the focus in
2 2009 was on customer retention, in H1 2010, in
Potential revenues (2016) $1,254.6 million Increasing
most markets of Asia Pacific, focus returned to
customer acquisition.
Market Growth Rate (H1 10/09) 3.4% Increasing
Domestic demand for customer service continued
to see good growth in developing markets such as CAGR (2009-2016) 9.3% Decreasing
3
India, China, Indonesia and Vietnam.
Saturation (current/potential) 57.9% Increasing

Domestic Outsourcing saw a strong growth in Price range $150 to $2,500 Decreasing
markets like India, Australia, China. Offshore
4 Outsourcing demand was feeble in H1 2010, Price sensitivity Medium to High Increasing
however, there are positive signs of recovery in
the H2 2010. Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan

Impact of the depreciating US dollar also had a

5
slight positive impact on the market revenues.

P4C3-76 18
 Key Market Trends (Contd)

Key Market Trends

Trends

Increased activity towards self-service

applications and using IVR as a tool for call
6 resolution instead of call routing. IVR market is
expected to grow at a CAGR of 10.9% from 2009 Contact Center Applications Market: Revenues by
to 2016 Application (Asia Pacific), H1 2010

Strong interest and initial adoption of Analytics Outbound

11% CM/QM
solutions were seen in H1 2010. Speech Analytics, 20%
Multimedia Analytics (Screen-capture), and Data IVR
7
Analytics were part of the discussion with many 13%
Banks, Outsourcers and Telecom companies. WFM
4%
Integrated suites of Quality Monitoring, Speech
CTI
8 Workforce Management and Analytics are seeing 26% ACD 2%
good adoption in the market. 22% Multimedia
2%
Very high on the agenda for most contact centers
was the topic of Social Media. Leading contact Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan
9 centers especially in Australia, are in the
experimental stages of using social media as a
customer service channel.

P4C3-76 19
 Key Market Trends (Contd)

Key Market Trends

Trends

Increasing discussion on Cloud computing also

spurred the Hosted Contact Center market in the Contact Center Applications Market: Hosted
10 region. Frost & Sullivan expects the Hosted Opportunity (Asia Pacific), 2009 and 2016
Contact Center market to grow at a CAGR of
300
15.4% from 2009 to 2016.

Hosted Seats (Thousands)

250
As domestic demand for customer services rises,
the market saw a surge in SMB contact centers 200
with less than 50 100 seats. This segment is also
11 150
expected to drive the move to a Hosted model or
look at Domestic outsourcing options. 100

50
Significant shifts in the vendor landscape
following the acquisition of Nortel Enterprise by 0
Avaya, as well as the closer integration of ALU 2009 2016
Enterprise and Genesys Labs. In H1 2010, as these
12 leading vendors were focused internally, it Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan

opened up opportunities for other players such as

Cisco, Interactive Intelligence to make some
inroads.

P4C3-76 20
 Key Vertical Trends

Key Vertical Trends

Trends

Increased contribution by the BFSI (Banking,

Financial Services and Insurance) sector as
domestic banks in the region resumed their Contact Center Applications Market: Vertical
1 upgrade and expansion plans. In H1 2010, close to Opportunity (Asia Pacific), H1 2010
30% of all spending on Contact Center Retail &
applications was by the BFSI sector. Travel &
Hospitality Utilities
4% 4%
The growth of Domestic Outsourcing has helped Govt & Edu
increase the contribution of the Outsourced 7% BPO/ITeS
2 Contact Center segment, even as the Offshore 18%
Telco
Outsourcing sector remained feeble in H1 2010.
27%
Others
11%
Telecom and Retail sectors are expected to see
BFSI
steady growth in the market in H2 2010 and 2011,
3 29%
especially in the markets of India, Indonesia,
China and Korea
Note: Healthcare, Media, Real Estate, Agricultural, Food & Beverage,
Government spending on citizen services in the Energy etc.
ASEAN markets, India and China is growing at a
4
double digit rate, and contributed close to 7% in Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan
H1 2010 to the market revenues.

P4C3-76 21
 Key Horizontal Trends

Key Horizontal Trends

Trends

Increased spending and contribution by the less

than 200 seat contact centers. In 2009, the
1
contribution by this segment was 60.3%, and in H1 Contact Center Applications Market: Horizontal
2010, it has increased to 61.1% Opportunity (Asia Pacific), H1 2010
Growth in Domestic markets is seeing an increase in
the number of contact centers across the region. In More than
2 2010, Frost & Sullivan expects close to 28,000 200 seats
contact centers in Asia Pacific compared to 26,500 40%
in 2009.
Consolidation of contact centers would lead to an 51 - 200
increase in spending from the more than 200 seat seats
3 43% Less Than 50
contact center segment in the markets of China,
Australia and Japan. seats
17%
Investments in Analytics and Workforce
4 Management applications is being driven by the Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan
more than 200 seat contact center segment.
Social media integration is a trend that is applicable
5 across the spectrum, and is seeing experimental
adoption in the more than 50 seats segment.

P4C3-76 22
 Market Drivers

Contact Center Applications Market: Market Drivers Ranked in Order of Impact (Asia Pacific),
2010-2016

Rank Driver 1-2 Years 3-4 Years 5-7 Years

1 Increasing domestic demand for contact High High Medium
centers & customer service

2 Focus on efficiency & cost reduction to drive High High Medium

Optimization & Analytics applications

3 Increasing need to include social media and Medium High High

other multimedia channels

4 Gen Y and the need to drive self-service High Medium Medium

5 Domestic outsourcing from within Asia Pacific High Medium Medium

6 Offshore outsourcing to Asia Pacific Medium Medium Medium

Source: Frost & Sullivan

P4C3-76 23
 Market Restraints

Contact Center Applications Market: Market Restraints Ranked in Order of Impact

(Asia Pacific), 2010-2016

Rank Restraint 1-2 Years 3-4 Years 5-7 Years

1 Shift from on-premise infrastructure to Medium High High
Hosted or Cloud-based apps

2 Emergence of new offshoring destinations Medium High High

in Eastern Europe and Africa

3 Increasing saturation of the contact center Medium Medium High

industry in the region

4 Reducing price points due to bundled Medium Medium High

application sales and commoditization

Source: Frost & Sullivan

P4C3-76 24
 Competitive Landscape

Competitive Landscape
Trends
The top 5 vendors in the Asia Pacific Contact Center
Applications market contribute over 65 percent of the
1 total market. These 5 vendors are Avaya (including
Contact Center Applications Market: Market Share
Nortel), Genesys Labs, Verint, NICE Systems and by Revenues (Asia Pacific), H1 2010
Aspect Software.
Given the almost 100% in-direct business model for Verint
Nuance
most vendors, global vendors focused on channel 11%
2%
2 expansion in H1 2010. New distributors and system NICE Others
integrator relationships were signed up in H1 2010 by Aspect 9% 30%
the leading vendors. 9%

Increasing activity from local vendors such as Huawei

to expand into other parts of the region outside China.
3 Genesys Avaya
Huawei saw increased presence in Philippines, India, Labs 22%
and Indonesia. 13%
Cisco
4%
In H1 2010, there were more bundled offers of
different Contact Center applications (such as Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan
4
Workforce Optimization) as well with other solutions
(such as Unified Communications)
Increased activity from players such as Cisco,
5
Interactive Intelligence, Salesforce.com and RightNow.

P4C3-76 25
 Competitive Landscape (Contd)

Competitive Landscape
Trends

Avaya announced its joint roadmap after the Nortel Enterprise acquisition in December 2009. Avaya
ensured that the roadmap did not required existing Nortel customers to migrate to an Avaya platform.
The Nortel customers that had postponed decisions on upgrade or expansion are now beginning to
come back, albeit at a slower pace than expected.
Avaya
Avaya significantly increased its channel presence in the market as it managed to retain a large portion
of the Nortel channel base. Avaya also signed up new distributors in the region and sold its stake in
Avaya Global Connect in India.

Genesys Labs and Alcatel-Lucent become more integrated as their sales team become a single
integrated team that would sell both Genesys and Alcatel-Lucent Enterprise product suite.
Genesys Labs
Genesys Labs was focused on its iWD (Intellient Workload Distribution) story as well as its Self-Service
portfolio.
Verint increased its partnership with Avaya, as it became an OEM partner for the Quality Monitoring
Verint applications. Verint continued to drive customer touch directly with key customers in the region.

Aspect continued to see good growth in the ASEAN market, and increasing penetration in the China
Aspect market. Aspect continued to drive the UC in the CC message with its Microsoft alliance.

P4C3-76 26
 Competitive Landscape (Contd)

Competitive Landscape
Trends
Cisco has increased its focus on the Contact Center market, and saw good traction in the Australia and
ASEAN markets. Cisco is taking an integrated approach of the Contact Center with its Unified
Cisco Communications suite. Cisco has seen good success in the BPO sector as well as Telecom and Banking
sector.

Interactive Intelligence is seeing some success in the Australia market as well as increasing presence in
Interactive the ASEAN market. Interactive Intelligence is looking to increase its reach in the market with more
Intelligence channels. ININ is also driving the message around Communications-as-a-Service for a Hosted contact
center solution.
Huawei increased its presence outside China in India, Philippines and Indonesia. Huawei is focusing on
Huawei the Telecom and BPO market segments.

Salesforce.com has been aggressive in the market with its Cloud-based solution with a skew towards
social media channel integration with the CRM & Agent Desktop. Salesforce.com is seeing some
adoption and pilots in the region.
Other Emerging RightNow is also beginning to see some good tracton for its Agent Desktop solution and increasing its
Players efforts in the ASEAN market for its Contact Center solution.
SAP is also beginning to make inroads in the Contact Center market, and looking to tap into their CRM
customer base and upsell its Contact Center application suite which includes telephony as well as the
routing and reporting apps.

P4C3-76 27
 Market Opportunity

Market Opportunity
Trends

The Asia Pacific Contact Center Applications market Contact Center Applications Market: Market Size by
in H1 2010 was worth $334.5 million, and puts its Country (Asia Pacific), H1 2010
on track to grow at a positive growth of 5%-7% by
1 the end 2010 over 2009. This would be a decent 90
recovery after the negative growth of 12% in 2009

Market Size ($ Million)

75
due to the economic recession.
60

The different markets in the region present 45

different set of opportunities. Mature markets such 30
as Australia, Singapore and Hong Kong are investing
15
2
in applications such as Analytics and Social Media
integration. High growth markets of India, China, -
Philippines are investing in Workforce Optimization
and self-service applications.

Investment per seat is higher in markets such as

Australia, Singapore, Korea, Japan where the pricing Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan

3 as well as the sophistication of applications

deployed are higher, compared to China, India, and
other markets of ASEAN.

P4C3-76 28
 Australia Market

Key Trends Contact Center Applications Market: Market

Engineering Measurement (Australia), H1 2010
Trends
Measurement Name Measurement Trend
The Australian Contact Center Applications market is
one of the most advanced markets in the Asia Pacific Market age Mature -
1 region. The market is fairly mature, however, it is still Revenues (H1 2010) $45.9 million Increasing
expected to grow at a CAGR of 7.5% from 2009 to Potential revenues (2016) $187.0 million Increasing
2016. Market Growth Rate (H1 10/09) 13.6 % Increasing
The key growth drivers in the Australian market are CAGR (2009-2016) 7.5 % Decreasing
adoption of analytics and workforce optimization Saturation (current/potential) 60.2 % Increasing
2 applications, speech applications, integration of social
media channels, as well as hosted contact center Price sensitivity Medium-High Increasing
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan
solutions.
Contact Center Applications Market: Revenues by
The key verticals in the Australian market are the Application (Australia), H1 2010
3 Banking and Telecom sectors. There is good growth in
the Travel & Hospitality sector as well as Government. CM/QM
26%
The average size of a contact center in Australia is Outbound WFM
5% 8%
fairly small (30-50 seats), however, the level of
4
applications deployed are amongst the highest in the IVR Speech
region. 15% 5%
Genesys continues to strong in the market, however, ACD
5 CTI 16% Multimedia
increased penetration by Cisco and Verint in H1 2010. 20% 5%
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan

P4C3-76 29
 Australia Market (Contd)

Contact Center Applications Market: Vertical

Opportunity (Australia), H1 2010

Govt & Travel &

Edu Hospitality Retail &
13% 4% Utilities
5%
Contact Center Applications Market: Market Share
Telco BPO/ITeS (Australia), H1 2010
26% 9%
Others Nuance
BFSI 12% 4% Others
31% Verint 36%
14%
Note: Healthcare, Media, Real Estate, Agricultural, Food & Beverage,
Energy etc.
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan NICE
Contact Center Applications Market: Horizontal 11%
Opportunity (Australia), H1 2010 Aspect Avaya
6% Genesys 12%
More Labs Cisco
than 200 12% 5%
seats
47% Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan

51 - 200
seats Less Than
37% 50 seats
16%
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan

P4C3-76 30
 China Market

Key Trends Contact Center Applications Market: Market

Engineering Measurement (China), H1 2010
Trends
Measurement Name Measurement Trend
The China Contact Center Applications market
continues to be a high growth market driven by the Market age Growth -
rising demand for customer service and contact Revenues (H1 2010) $49.9 million Increasing
1
centers. The market is expected to grow at a CAGR Potential revenues (2016) $228.7 million Increasing
of 12% from 2009 to 2016 and reach close to $230 Market Growth Rate (H1 10/09) 18.5% Increasing
million in revenues by 2016.
CAGR (2009-2016) 12.0 % Decreasing
The growth drivers for the applications market in Saturation (current/potential) 45.0 % Increasing
China include the growing domestic demand,
increasing sophistication and complexity of the Price sensitivity High Increasing
2
contact centers, consolidation of various provincial Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan

contact centers and growth in the domestic Contact Center Applications Market: Revenues by
outsourcing market. Application (China), H1 2010
The Telecom sector is the largest contributor to the Outbound
entire market revenues, and it continues to see 7%
3 IVR
steady growth. The growth sectors include Banking, CM/QM
28% 10%
Travel & Hospitality, Outsourcing and Online Retail.
WFM
Huawei is a major players in the contact center CTI 3%
market, and dominates the Telecom sector. Avaya 21% Speech
ACD 2%
4 and Genesys have good presence in the other 28% Multimedia
vertical segments, and Aspect and Cisco are making
1%
some inroads into the market now.
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan

P4C3-76 31
 China Market (Contd)

Contact Center Applications Market: Vertical

Opportunity (China), H1 2010
Govt & Travel & Retail &
Edu Hospitality Utilities
12% 7% 6%
Contact Center Applications Market: Market Share
Telco BPO/ITeS (China), H1 2010
30% 9%
Others
Verint Huawei
9% NICE
BFSI 8% 5%
27% Aspect 3%
Note: Healthcare, Media, Real Estate, Agricultural, Food & Beverage, 10% Others
Energy etc. 27%
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan
Genesys
Contact Center Applications Market: Horizontal Labs
Opportunity (China), H1 2010 15%
Cisco Avaya
More than 3% 29%
200 seats
51 - 200 27% Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan
seats
50%
Less Than
50 seats
23%
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan

P4C3-76 32
 Hong Kong Market

Key Trends Contact Center Applications Market: Market

Engineering Measurement (Hong Kong), H1 2010
Trends
Measurement Name Measurement Trend
The Hong Kong Contact Center Industry is fairly
mature and its organic growth is being countered by Market age Mature -
near-shoring of seats to neighboring Guangzhou Revenues (H1 2010) $8.4 million Increasing
1 region in China. In 2009, the number of contact Potential revenues (2016) $21.6 million Increasing
center seats in the Hong Kong market are expected Market Growth Rate (H1 10/09) (4.5) % Increasing
to be 12,300.
CAGR (2009-2016) (0.3) % Decreasing

The Hong Kong contact center market has a high Saturation (current/potential) 102.0 % Increasing
contribution of Quality monitoring solutions and Price sensitivity Medium Increasing
2 that continues to be a growth driver, as Analytics Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan
solutions are gaining interest. Contact Center Applications Market: Revenues by
Application (Hong Kong), H1 2010
The use of mobile and social media is gaining
Outbound
popularity as channels for customer service, and 5%
CM/QM
3 hence discussions around these areas are met with IVR 23%
high interest. 15%

CTI WFM
Avaya is a clear leader in the market, and Aspect is 16% 2%
4 also gaining strong traction in the market. Speech
ACD 2%
34%
Multimedia
3%
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan

P4C3-76 33
 Hong Kong Market (Contd)

Contact Center Applications Market: Vertical

Opportunity (Hong Kong), H1 2010
Telco Govt &
Travel &
29% Edu
Hospitality
6%
6% Retail &
Utilities Contact Center Applications Market: Market Share
2% (Hong Kong), H1 2010
BPO/ITeS
5% NICE
Aspect
Others 6%
BFSI 20% Verint
8%
44% 16%
Note: Healthcare, Media, Real Estate, Agricultural, Food & Beverage,
Energy etc. Genesys Nuance
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan Labs 1%
Contact Center Applications Market: Horizontal 6% Others
Opportunity (Hong Kong), H1 2010 Cisco 9%
2%
Avaya
51 - 200 40%
seats
41% Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan
More than
200 seats
16%
Less Than 50
seats
43%
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan

P4C3-76 34
 India Market

Key Trends Contact Center Applications Market: Market

Engineering Measurement (India), H1 2010
Trends
Measurement Name Measurement Trend
The Indian Contact Center market was flat in H1 2010 Market age Growth -
compared to H1 2009. The slow offshore outsourcing
Revenues (H1 2010) $53.0 million Increasing
1 market was countered by the strong growth in the
domestic market. The contact center applications market is Potential revenues (2016) $240.9 million Increasing
expected to grow at a CAGR of 12.3% from 2009 to 2016. Market Growth Rate (H1 10/09) ( 0.2) % Increasing
CAGR (2009-2016) 12.3 % Decreasing
The price points in the Offshore market and the Domestic Saturation (current/potential) 44.2 % Increasing
market are very different, hence the growth of the Price sensitivity High Increasing
domestic market has not been able to fully counter the
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan
2 decline in the offshore market. Also, heavy discounting by
vendors in order to get the large volume deals from Indian Contact Center Applications Market: Revenues by
Banks and Telcos is further impacting the top-line market Application (India), H1 2010
revenues.
Outbound CM/QM
Apart from Telecom & Banking sectors which will continue 23%
23%
3 to expand, new contact centers from the Government,
Retail and Hospitality sector will drive the growth. WFM
3%
IVR
Avaya divested its stake in Avaya Global Connect and Speech
12%
signed up with Redington as a Distributor for India. ACD 3%
4 CTI
Genesys continues to have a strong presence in the 25% Multimedia
9%
Telecom sector. 2%
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan

P4C3-76 35
 India Market (Contd)

Contact Center Applications Market: Vertical

Opportunity (India), H1 2010
Retail &
Utilities BPO/ITeS
1% 58%

Travel & Contact Center Applications Market: Market Share

Hospitality (India), H1 2010
3%
Govt & Edu BFSI Others NICE
1% 16% 3% 11% Verint
Telco
18% Aspect 13%
19% Nuance
Note: Healthcare, Media, Real Estate, Agricultural, Food & Beverage,
Energy etc. 2%
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan
Genesys Others
Contact Center Applications Market: Horizontal Labs 12%
Opportunity (India), H1 2010 5%

Cisco Avaya
More than 31%
200 seats 7%
51% Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan

51 - 200
seats Less Than 50
35% seats
14%
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan

P4C3-76 36
 Indonesia Market

Key Trends Contact Center Applications Market: Market

Engineering Measurement (Indonesia), H1 2010
Trends
Measurement Name Measurement Trend
The Indonesia contact center market is expected to
Market age Infancy -
see a strong growth of 17.2% from 2009 to 2016. The
1 current market saturation of 32.8% represents the Revenues (H1 2010) $4.6 million Increasing
strong growth opportunity in the domestic market. Potential revenues (2016) $27.9 million Increasing
Market Growth Rate (H1 10/09) (3.3) % Increasing
The Indonesia contact center market is currently
CAGR (2009-2016) 17.2 % Decreasing
driven by the Telecom and Banking sectors. However,
2 growth in domestic outsourcing is expected to pick Saturation (current/potential) 32.8 % Increasing
up in the next 2-3 years. Price sensitivity High Increasing
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan
Indonesia is one of the largest users of Facebook and
Twitter in Asia Pacific, and hence the discussion to Contact Center Applications Market: Revenues by
3 include social media as one of the customer service Application (Indonesia), H1 2010
channels is expected to see good traction in 2011
Outbound
and 2012. CM/QM
20%
18%
The Industry is expected to develop outside the IVR
9% WFM
Jakarta region in the next 3-4 years with focus on
1%
4 other hubs such as Medan, Bandung and Surabaya. Speech
Hence, growth in the less than 200 seat contact CTI
25% ACD 0%
center segment is expected in the next 2-3 years. 23% Multimedia
4%
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan

P4C3-76 37
 Indonesia Market (Contd)

Contact Center Applications Market: Vertical

Opportunity (Indonesia), H1 2010
Telco Govt & Edu Travel &
39% 0% Hospitality
3%
Retail &
Utilities Contact Center Applications Market: Market Share
4% (Indonesia), H1 2010
BPO/ITeS
Others 5% Aspect
Genesys 13% NICE
6%
BFSI Labs 9%
Verint
43% 7% 9%
Note: Healthcare, Media, Real Estate, Agricultural, Food & Beverage, Nuance
Energy etc. Cisco
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan 3% 0%
Others
Contact Center Applications Market: Horizontal 11%
Opportunity (Indonesia), H1 2010
Avaya
More than
48%
200 seats
51 - 200 37%
seats Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan
48%

Less Than 50
seats
15%
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan

P4C3-76 38
 Japan Market

Key Trends Contact Center Applications Market: Market

Engineering Measurement (Japan), H1 2010
Trends
Measurement Name Measurement Trend
The Japanese contact center market is an increasingly
Market age Mature -
mature market. The shift towards IP is still driving
upgrades in the larger contact center segment. The Revenues (H1 2010) $87.7 million Increasing
1 market was close to $88 million in H1 2010, and is Potential revenues (2016) $222.9 million Increasing
expected to grow at a steady CAGR of 5.4% from 2009 to Market Growth Rate (H1 10/09) 6.9 % Increasing
2016. CAGR (2009-2016) 5.4 % Decreasing
Saturation (current/potential) 69.2 % Increasing
The Japanese contact center industry is increasingly
investing in Workforce Optimization applications as well Price sensitivity Medium Increasing
2 as driving self-service. Movement of contact centers Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan

outside the Tokyo region is expected to drive some Contact Center Applications Market: Revenues by
upgrades & expansions. Application (Japan), H1 2010
Given the proliferation of high speed mobile networks IVR
Outbound
and increasing popularity of social media, innovative 5%
5%
3 CM/QM
ways of delivering customer services are being
18%
evaluated in the Japanese market. CTI
47% WFM
Local Players such as NEC, Oki, Fujitsu and Toshiba are 3% Speech
active in the market. The market has been tough for ACD
4 1%
Avaya, Genesys Labs and Aspect to penetrate when 20% Multimedia
compared to other markets in the region. 1%
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan

P4C3-76 39
 Japan Market (Contd)

Contact Center Applications Market: Vertical

Opportunity (Japan), H1 2010

Travel & Retail &

Hospitality Utilities
5% 4%
Govt & Edu BPO/ITeS
3% 10% Contact Center Applications Market: Market Share
(Japan), H1 2010
Others
Telco
19%
28% BFSI Verint NEC
31% NICE 9% 9%
9%
Aspect
Note: Healthcare, Media, Real Estate, Agricultural, Food & Beverage, 6%
Energy etc. Others
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan
Genesys 19%
Contact Center Applications Market: Horizontal Labs
Opportunity (Japan), H1 2010 22%
Avaya
Oki 14%
More than
200 seats 12%

51 - 200 44% Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan
seats
41%
Less Than 50
seats
15%
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan

P4C3-76 40
 Malaysia Market

Key Trends Contact Center Applications Market: Market

Engineering Measurement (Malaysia), H1 2010
Trends
Measurement Name Measurement Trend
The Malaysian contact center market is a growth Market age Growth -
market with increasing sophistication of the
Revenues (H1 2010) $7.2 million Increasing
1 domestic market and potential for a strong growth in
the offshore outsourcing business from the Asia Potential revenues (2016) $39.2 million Increasing
Pacific region as well as Australia, US and Europe. Market Growth Rate (H1 10/09) 17.9 % Increasing
CAGR (2009-2016) 15.3 % Decreasing
The focus of the Malaysian industry is on driving
Saturation (current/potential) 36.8 % Increasing
quality of service. Hence, adoption of solutions that
help in skills-based routing, expert assistance, and Price sensitivity Medium Increasing
2 quality monitoring tools are seeing good adoption in Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan
the market. Increasing adoption of Voice portals and Contact Center Applications Market: Revenues by
other multimedia channels in H1 2010. Application (Malaysia), H1 2010

The Banking & Telecom sectors will continue to be Outbound CM/QM

11%
the main pillars of the industry, however, Hi-Tech and 18%
3 Outsourcing are expected to be the growth drivers in IVR
10%
the next 2-3 years. WFM
CTI 7%
Opportunity in small contact centers with less than 21% Speech
4 50 seats in the next 2-3 years as the domestic market ACD 0%
picks up. 29% Multimedia
4%
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan

P4C3-76 41
 Malaysia Market (Contd)

Contact Center Applications Market: Vertical

Opportunity (Malaysia), H1 2010
Travel & Retail &
Hospitality Utilities
3% 4%
Govt &
BPO/ITeS
Edu
3%
14% Contact Center Applications Market: Market Share
Others
(Malaysia), H1 2010
Telco
14%
29%
NICE
Verint Nuance
BFSI 9%
Aspect 10%
33% 0%
Genesys 12%
Note: Healthcare, Media, Real Estate, Agricultural, Food & Beverage,
Labs
Energy etc. Others
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan 9%
20%
Contact Center Applications Market: Horizontal
Opportunity (Malaysia), H1 2010
Cisco
1% Avaya
More than 39%
200 seats
48% Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan
51 - 200
seats
39% Less Than 50
seats
13%
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan

P4C3-76 42
 New Zealand Market

Key Trends Contact Center Applications Market: Market

Engineering Measurement (New Zealand), H1 2010
Trends
Measurement Name Measurement Trend
The New Zealand Contact Center Market is expected Market age Mature -
to see steady growth of 6.2% in the market from
Revenues (H1 2010) $6.1 million Increasing
1 2009 to 2016. The market returned to positive
growth in H1 2010 with a growth of 7.1% over the Potential revenues (2016) $23.6 million Increasing
same period in 2009. Market Growth Rate (H1 10/09) 7.1 % Increasing
CAGR (2009-2016) 6.2 % Decreasing
The New Zealand market is predominantly a market
Saturation (current/potential) 65.6 % Increasing
with most contact centers in the less than 200 seat
contact center segment. The opportunity for unified Price sensitivity Medium Increasing
2 contact center solutions or contact center solutions Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan

that are integrated with the rest of the enterprise Contact Center Applications Market: Revenues by
communications suite is high. Application (New Zealand), H1 2010

Like Australia, one of the key focus on the industry is Outbound CM/QM
Quality Monitoring and Analytics tools. Deployment 4% 20%
3 of speech applications is also picking up in the IVR
market. 13% WFM
5%
Discussion on the use of social media and hosted ACD
Speech
contact center solutions is also high on the agenda in 5%
4 CTI 11%
the New Zealand market. 40% Multimedia
2%
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan

P4C3-76 43
 New Zealand Market (Contd)

Contact Center Applications Market: Vertical

Opportunity (New Zealand), H1 2010

Govt & Edu Travel &

Hospitality Retail &
11% Utilities
2%
Telco 3%
30% BPO/ITeS Contact Center Applications Market: Market Share
6% (New Zealand), H1 2010
Others
Nuance
12%
Verint 5%
BFSI 10%
36% NICE
Others
11%
29%
Note: Healthcare, Media, Real Estate, Agricultural, Food & Beverage,
Energy etc. Aspect
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan 2%
Genesys
Contact Center Applications Market: Horizontal Labs Avaya
Opportunity (New Zealand), H1 2010 28% 12%

More than Cisco

51 - 200
200 seats 3%
seats
42% 24% Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan

Less Than 50
seats
34%

Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan

P4C3-76 44
 Philippines Market

Key Trends Contact Center Applications Market: Market

Engineering Measurement (Philippines), H1 2010
Trends
Measurement Name Measurement Trend
The Philippines Contact Center market has been a
Market age Growth -
growth story for the last 5 years on the back of the
offshoring outsourcing business from the US. Revenues (H1 2010) $12.9 million Increasing
1 Although the growth rates have slowed down, the Potential revenues (2016) $57.9 million Increasing
market is still expected to grow at a CAGR of 13.2% Market Growth Rate (H1 10/09) 2.6 % Increasing
from 2009 to 2016 to reach $57.9 million by 2016
CAGR (2009-2016) 13.2 % Decreasing
Saturation (current/potential) 41.9 % Increasing
The BPO market continued to see expansions and
Price sensitivity Medium to High Increasing
new sites in H1 2010, and the movement of Indian
2 contact centers to the Philippines continued to fuel Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan

the growth of the market. Contact Center Applications Market: Revenues by

Application (Philippines), H1 2010
Investments in Workforce Optimization applications
CM/QM
as well as better routing and Analytics applications Outbound 32%
3 would be expected in the next 2-3 years. 13%
IVR WFM
4% 5%
Avaya continues to be a dominant player in the Speech
market, however, Aspect and Cisco are making CTI ACD 0%
4 Multimedia
inroads. 18% 25% 3%

Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan

P4C3-76 45
 Philippines Market (Contd)

Contact Center Applications Market: Vertical

Opportunity (Philippines), H1 2010

Retail & BPO/ITeS

Travel & Utilities 47%
Hospitality 1%
Contact Center Applications Market: Market Share
2%
Others (Philippines), H1 2010
Govt & Edu 4%
0% Verint
Telco BFSI NICE 19%
26% 20% 16% Nuance
Note: Healthcare, Media, Real Estate, Agricultural, Food & Beverage, 0%
Energy etc.
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan Aspect
16% Others
Contact Center Applications Market: Horizontal 12%
Opportunity (Philippines), H1 2010 Genesys
Labs
More than 2% Cisco Avaya
200 seats 1% 34%
62%
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan
Less Than 50
51 - 200 seats
seats 4%
34%

Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan

P4C3-76 46
 Singapore Market

Key Trends Contact Center Applications Market: Market

Engineering Measurement (Singapore), H1 2010
Trends
Measurement Name Measurement Trend
The Singapore Contact Center market is a mature
Market age Mature -
contact center market with over 12,000 seats in 2009.
The market is growing on the back of organic growth, Revenues (H1 2010) $7.4 million Increasing
expansions and upgrades from Banks, Telcos and Potential revenues (2016) $22.9 million Increasing
1
Government sector. The market was worth $7.4 million Market Growth Rate (H1 10/09) (23.1) % Increasing
in H1 2010. While this was a decline over H1 2009, the
CAGR (2009-2016) 5.0 % Decreasing
market is seeing better adoption in H2 2010, and is
expected to be flat in 2010 over 2009. Saturation (current/potential) 70.8 % Increasing
Price sensitivity Medium Increasing
The top priority for contact centers in Singapore is
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan
maintaining service levels, and hence focus on quality
2 monitoring tools is high. Usage of self-service tools to Contact Center Applications Market: Revenues by
resolve queries effectively is also one of the top drivers Application (Singapore), H1 2010
in the industry. Outbound CM/QM
9% 21%
As Singapore becomes a data center hub, multi-
IVR
national companies might choose Singapore as the hub WFM
3 10%
for contact center infrastructure even as the agents are 2%
based in other countries. CTI
Speech
3%
The market is also looking to experiment with social 18%
ACD
4 media as a customer service channels and is in early Multimedia
32%
5%
stages of using free tools to listen to social media feeds.
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan

P4C3-76 47
 Singapore Market (Contd)

Contact Center Applications Market: Vertical

Opportunity (Singapore), H1 2010

Travel &
Govt & Edu
Hospitality Retail &
13%
4% Utilities
Telco 3% Contact Center Applications Market: Market Share
29% (Singapore), H1 2010
BPO/ITeS
7% Aspect
Others NICE
9% Verint
BFSI Genesys 8%
7% 14%
37% Labs
2% Nuance
Note: Healthcare, Media, Real Estate, Agricultural, Food & Beverage,
Energy etc. 2%
Cisco
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan
7%
Contact Center Applications Market: Horizontal Others
Opportunity (Singapore), H1 2010 7%
Avaya
51%
51 - 200 More than
seats 200 seats Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan
65% 15%
Less Than 50
seats
20%

Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan

P4C3-76 48
 South Korea Market

Key Trends Contact Center Applications Market: Market

Engineering Measurement (South Korea), H1 2010
Trends
Measurement Name Measurement Trend
The South Korean contact center market is a fairly
Market age Mature -
mature market with a saturation of close to 64% in
1 Revenues (H1 2010) $32.6 million Increasing
2009. In H1 2010, the market was worth $32.6
million. Potential revenues (2016) $94.7 million Increasing
Market Growth Rate (H1 10/09) (10.3) % Increasing
The key growth drivers of the South Korean contact
center applications market are the migration to IP as CAGR (2009-2016) 6.6 % Decreasing
2 many contact centers are still on TDM, adoption of Saturation (current/potential) 63.9 % Increasing
workforce optimization applications and upgrades on Price sensitivity Medium Increasing
the IVR systems.
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan
Investments in Smart Cities by the Korean
Government will also drive the adoption of citizen- Contact Center Applications Market: Revenues by
3 centric services leading to increased spending on
Application (South Korea), H1 2010
contact center applications by the Government CM/QM
Outbound
sector. 14%
21%

The market for the less than 200 seat segment has WFM
6%
4 better growth opportunities in the next 2-3 years. IVR
15% Speech
1%
Enterprises are looking at ways they can leverage the ACD
5 strong mobile networks to deliver richer customer CTI 17% Multimedia
experience and use more video. 21% 5%
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan

P4C3-76 49
 South Korea Market (Contd)

Contact Center Applications Market: Vertical

Opportunity (South Korea), H1 2010
Travel &
Hospitality Retail &
Govt & Edu
3% Utilities
8%
4%
Telco Contact Center Applications Market: Market Share
26% BPO/ITeS (South Korea), H1 2010
7%
Others Samsung Others
13% Verint
BFSI 3.6% 48.2%
8.8%
39%
Note: Healthcare, Media, Real Estate, Agricultural, Food & Beverage, NICE
Energy etc. 4.5%
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan
Aspect Avaya
Contact Center Applications Market: Horizontal 4.9% 15.9%
Opportunity (South Korea), H1 2010 Genesys
Labs Cisco
More than 11.2% 2.9%
200 seats
32% Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan

51 - 200 Less Than 50

seats seats
50% 18%

Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan

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 Taiwan Market

Key Trends Contact Center Applications Market: Market

Engineering Measurement (Taiwan), H1 2010
Trends
Measurement Name Measurement Trend
The Taiwan contact center market has been facing a
Market age Mature -
challenge as contact centers move across the straits
into China. Taiwan is a already fairly mature market Revenues (H1 2010) $6.9 million Increasing
1
with a saturation of close to 80% in 2009. In H1 2010, Potential revenues (2016) $16.7 million Increasing
the market was worth $6.9 million. Market Growth Rate (H1 10/09) (3.0) % Increasing

The market has large contact centers for Banking, CAGR (2009-2016) 3.2 % Decreasing
Telecom and Hi-Tech Manufacturing companies. Saturation (current/potential) 80.0 % Increasing
2
However, there are strong opportunities in the less Price sensitivity Medium Increasing
than 200 seat contact center segment. Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan

Interest in Hosted Contact Center solutions is rising Contact Center Applications Market: Revenues by
in Taiwan, however, the total number of hosted seats Application (Taiwan), H1 2010
3
are still less than 5% of the total seats in the market.
Outbound CM/QM
5% 24%
Increasing contribution of Call Monitoring
applications as contact centers focus on quality and IVR WFM
4
10% 3%
effectiveness of the contact center.
Speech
Genesys Labs has enjoyed a strong position in the 1%
CTI ACD
5 market with its partner eSOON. Avaya continues to 34% Multimedia
17%
make inroads the market. 6%
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan

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 Taiwan Market (Contd)

Contact Center Applications Market: Vertical

Opportunity (Taiwan), H1 2010

Travel &
Hospitality Retail &
Govt & Edu Utilities
9%
8% 4%
BPO/ITeS Contact Center Applications Market: Market Share
Telco 6% (Taiwan), H1 2010
26%
NICE
Others Aspect 13%
BFSI 11% 3% Verint
36% 8%
Genesys Nuance
Note: Healthcare, Media, Real Estate, Agricultural, Food & Beverage, Labs
Energy etc. 0%
32%
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan Others
14%
Contact Center Applications Market: Horizontal
Opportunity (Taiwan), H1 2010
Cisco Avaya
1% 29%
51 - 200
seats More than Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan
58% 200 seats
13%
Less Than 50
seats
29%
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan

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 Thailand Market

Key Trends Contact Center Applications Market: Market

Engineering Measurement (Thailand), H1 2010
Trends
Measurement Name Measurement Trend
The Thailand Contact Center Industry is facing a
Market age Growth -
tough challenge as the political uncertainty in the
country has made enterprises refrain from spending Revenues (H1 2010) $7.9 million Increasing
on some contact center projects. As the situation Potential revenues (2016) $45.6 million Increasing
1
improves, the growth prospects of the market are Market Growth Rate (H1 10/09) (4.3) % Increasing
strong with a CAGR of 13.5 % from 2009 to 2016. CAGR (2009-2016) 13.5 % Decreasing
Saturation (current/potential) 41.1 % Increasing
Price sensitivity Medium Increasing
The market is seeing upgrades and expansions from
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan
Banks and Telecom companies. Increasing interest in
domestic outsourcing is also aiding the growth of the Contact Center Applications Market: Revenues by
2 market. Government sector is also expected to Application (Thailand), H1 2010
increase its investment on citizen centric services.
Outbound
23%
CM/QM
The demand of the contact centers in Thailand are IVR 15%
getting increasingly sophisticated. Looking beyond 16%
WFM
3 basic routing solutions to better self-service 2%
platforms and quality monitoring tools as well. ACD Speech
CTI 1%
21% 21% Multimedia
1%
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan

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 Thailand Market (Contd)

Contact Center Applications Market: Vertical

Opportunity (Thailand), H1 2010

Govt & Edu Travel &

Telco 7% Hospitality
42% 2% Retail &
Utilities Contact Center Applications Market: Market Share
1% (Thailand), H1 2010
BPO/ITeS
Verint
4% NICE Nuance
BFSI Others 5%
12% 1%
37% 7%
Others
Note: Healthcare, Media, Real Estate, Agricultural, Food & Beverage, Aspect 25%
Energy etc. 19%
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan

Contact Center Applications Market: Horizontal

Avaya
Opportunity (Thailand), H1 2010 Genesys 14%
Labs
23% Cisco
51 - 200 More than
1%
seats 200 seats
52% 28% Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan

Less Than 50
seats
20%

Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan

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 Vietnam Market

Key Trends Contact Center Applications Market: Market

Engineering Measurement (Vietnam), H1 2010
Trends
Measurement Name Measurement Trend
The Vietnam Contact Center Industry is in its infancy
Market age Infancy -
stages. The market is seeing the setup of new
contact centers by Banks and Telcos in the country. Revenues (H1 2010) $2.1 million Increasing

1 Many contact centers are leapfrogging into the IP Potential revenues (2016) $24.7 million Increasing
world. In H1 2010, the market was only $2.1 million, Market Growth Rate (H1 10/09) 2.5 % Increasing
however, by end of 2016 the market is expected to
CAGR (2009-2016) 31.4 % Decreasing
be around $24.7 million
Saturation (current/potential) 14.7 % Increasing
While most of the current investment is on basic Price sensitivity Medium to High Increasing
contact center infrastructure, many contact centers Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan
2 are already beginning to invest in call monitoring Contact Center Applications Market: Revenues by
tools and workforce management software. Application (Vietnam), H1 2010
Banks and Telcos are the leading verticals in the Outbound
IVR
Vietnam. Travel & Hospitality and Government are 17%
15%
3 also expected to see a strong growth in the next 2-3 CM/QM
years. CTI 15%
17% WFM
2%
Cisco has seen very good success in the Vietnam
Speech
4 market and have a strong presence in both the 0%
Telecom and Banking sectors. ACD Multimedia
33% 1%

Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan

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 Vietnam Market (Contd)

Contact Center Applications Market: Vertical

Opportunity (Vietnam), H1 2010

Telco
57%
Contact Center Applications Market: Market Share
(Vietnam), H1 2010
Others
BFSI 2%
Aspect NICE
41% 17% 6%
Genesys Verint
Labs 8%
Note: Healthcare, Media, Real Estate, Agricultural, Food & Beverage,
Energy etc. 3% Nuance
Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan 0%
Contact Center Applications Market: Horizontal Cisco Others
Opportunity (Vietnam), H1 2010 33% 11%

Avaya
More than 22%
200 seats
59% Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan
Less Than
51 - 200 50 seats
seats 2%
39%

Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan

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About Frost & Sullivan

57
 Who is Frost & Sullivan

The Growth Consulting Company

Founded in 1961, Frost & Sullivan has over 45 years of assisting clients with their decision-making and growth
issues

Over 1,700 Growth Consultants and Industry Analysts across 32 global locations

Over 10,000 clients worldwide - emerging companies, the global 1000 and the investment community

Developers of the Growth Excellence Matrix industry leading growth positioning tool for corporate
executives
o
Developers of T.E.A.M. Methodology, proprietary process to ensure that clients receive a 360 perspective of
technology, markets and growth opportunities

Three core services: Growth Partnership Services, Growth Consulting and Career Best Practices

P4C3-76 58
 What Makes Us Unique
Exclusively Focused on Growth
Global thought leader exclusively focused on
addressing client growth strategies and plans
Team actively engaged in researching and
developing of growth models that enable clients to
achieve aggressive growth objectives.
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Cover the broad spectrum of industries and
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coverage/perspective based on regional expertise.
P4C3-76
360o Perspective
TM
Proprietary T.E.A.M. Methodology integrates
all 6 critical research methodologies to
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making and lower the risk of implementing
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Growth Monitoring
Continuously monitor changing technology,
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Trusted Partner
Working closely with client Growth Teams
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accelerate their growth.
59
 T.E.A.M. Methodology

Frost & Sullivans proprietary T.E.A.M. methodology, ensures that clients have complete 360 Degree
Perspective from which to drive decision-making. Technical, Econometric, Application, and Market information
ensures that clients have a comprehensive view of industries, markets and technology.

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P4C3-76 60
 Global Perspective

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