Latin American contact center systems market has dwindled from $266.0 million in 2014 to $248.5 million in 2015, says a new analysis from Frost & Sullivan.
The market, however, is expected to recover to reach $339.9 million by 2020.
The need to integrate contact channels such as mobile, chat and social media, and implement omni-channel customer experience strategies will drive companies to upgrade their contact center systems and capabilities.
Companies have already begun to invest in application functionalities and last-generation technologies that enable transparency, delivery of a high-quality, personalized experience and greater awareness about their customer base.
“Companies have begun to realize the importance of speech, voice and process analytics; workforce management and quality monitoring applications,” said Frost & Sullivan Digital Transformation industry analyst Maiara Paula Munhoz.
“The poor economic scenario in Brazil and other Latin American countries translates to higher demand for these applications among companies that wish to boost productivity and efficiency, optimize costs and retain customers,” Munhoz added.
Brazil, which accounts for almost half of the total revenues in the Latin American contact center systems market, is in the midst of an economic and political crisis.
With inflation in the country reaching 9.2 percent and uncertainty plaguing most markets in the region, contact center system vendors need to reinvent themselves for survival. They should also offer more innovative solutions to help their customers increase productivity.
Innovation is especially relevant at a time when companies are shifting their focus towards the cloud. Even though the Latin American market has been slow to adopt hosted and cloud-based contact center models due to the existing volume of legacy infrastructure and security concerns, the migration is inevitable.
“Firstly, organizations will gravitate to hosted and cloud-based contact center systems as their total cost of ownership is lower than that of premise-based solutions,” reasoned Munhoz. “Secondly, the shift from a capital expenditure model to an operational expenditure model will simplify cost management for companies.”
Along with the transition to the cloud, the devaluation of Latin American currencies against the United States (US) dollar is dampening investments in contact center systems as deals are struck in US dollars. Colombia, Mexico and Brazil will be particularly affected as their currencies are expected to be devaluated by 24 percent, 14 percent and 40 percent, respectively, the report said.
Despite these challenges, the Latin American contact center systems market will find opportunities for growth with improved customer awareness and innovations.
Source: Frost & Sullivan