Voice continues to dominate as the primary media for service interaction between companies and their customers as compared to other media they employ. Vendors are seeing a light at the end of the saturated touchtone market tunnel due to a combination of speech technology maturity and a shift in enterprise focus from cost savings to a customer-centric business model.
Frost & Sullivan finds that the U.S. IVR Systems Market earned revenues of $564.8 million in 2005 and estimates it to reach $1.49 billion in 2012.
If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the latest analysis of the U.S. IVR Systems Market, then send an e-mail to Mireya Castilla - Corporate Communications at mireya.castilla[.]frost.com with the following information: your full name, company name, title, telephone number, e-mail address, city, state and country. We will send you the information via email upon receipt of the above information.
“Ever since the introduction of IVR systems into the customer service arena almost a decade ago, market penetration of traditional touch-tone systems has steadily increased to around 90 percent within large enterprises,” notes Frost & Sullivan Research Analyst Krithi Rao. “Speech in IVR has provided the next wave of growth in this market. However, large scale adoption of speech in self-service has been restrained due maturity level and cost of speech technology.”
Maturity as a constraint is steadily going away as speech recognition vendors are expanding their grammars or lists of utterances that speech engines can recognize, to reduce the amount of tuning required. Cost as a restraint is being countered by re-usable components, hosted options and commoditization of speech technology.
However, IVR system vendors are likely to continue experiencing some difficulties over the next four to five years due to the factors described. The primary one is continued development of strong and quantifiable return on investment (ROI) models for speech-enabled self-service applications that justify the investment. Then, there lies a need to educate enterprises on the deployment of effective speech solutions to surpass historic negative perception and to avoid further failures. Finally, high cost of possessing in-house speech expertise and technology is leading to dependence on core speech technology vendors.
In order to overcome past experiences with failed deployments, vendors need to educate and assist customers in deploying optimal solutions. The primary reason for reluctance in deployment so far to deploy speech self-service solutions and for the lack of the growth of speech-enabled IVR market is its failure in the past.
Although the responsibility of the IVR vendor begins only once customers actually purchase the solution from them, the onus is still on vendors in general to make sure that any customer is deploying a solution optimal to their business. Since the speech market is still a relatively small pie to share, vendors should make combined efforts to grow the market overall rather than compete for a small piece of the small pie.
Also, with standards, packaged applications, tools, development environments, there are too many options for customers to evaluate and decide on a specific solution. Vendors need to keep in mind that not all customers have the best view of what deployment options and applications are available in the market.
U.S. IVR Systems Market is part of the Contact Center Service subscription, which also includes research in the following markets: ACD, CTI, workforce management, outbound dialing and hosted contact centers. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews are available to the press.
Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics.