Workforce Optimization Technology Markets to 2007

Yesterday's market

Formerly, vendors of technologies aimed at improving agent performance, sold point applications rather than suite solutions. Applications would address specific pain points in agent performance, often neglecting the larger picture of the total agent efficiency cycle (pictured below). However, the desire to increase wallet share, and in some cases to drive revenue in slow growth markets, has predicated the need for vendors to change this aspect of their business model and purvey suite solutions to the contact center market.

Therefore, QM, WFM, eLearning and agent analytics systems have advanced from being stand-alone products to become part of an integrated contact center solution set. This trend has resulted in the emergence of the workforce optimization market. Datamonitor defines workforce optimization as a business process designed to maximize the efficiency and functionality of call center agents.

The following diagram depicts the segmentation of workforce optimization technology revenues in 2001, by application. Datamonitor estimates that for 2001 the global workforce optimization market was worth $550 million.

While workforce optimization solutions are vertical-market agnostic there have been a number of industries that have been more adept to deploy these technologies. They are financial services, communications, technology and outsourcing. Market maturation will change the representation of these vertical markets over the next five years. Nevertheless, financial services, communications, technology and outsourcing will remain among the most important verticals for workforce optimization vendors in both the short and long-term.