Doubling Down on Quality Management

Despite what analysts have called the maturity of the quality management/liability recording (QM/LR) sector and the increasing commoditization within the market, the space realized a year-over-year surge of 106.1 percent from 2005 to 2006, swelling from $1.025 billion to about $2.113 billion, according to a new DMG Consulting analysis. The report also notes that the contact center slice of the market jumped 44.7 percent, from $569.2 million to $823.5 million. The 110-page "2007 Quality Management/Liability Recording Market Share Report"--based on financial data from public and private companies--details several components of the market including revenue; market-share data; analysis by vendor, application, sales model, and geography; and four-year market-revenue trend comparisons and compounded annual growth rates. DMG believes the QM/LR market comprises workforce optimization, including pure recording along with complementary modules such as workforce management, performance management, e-learning, coaching, surveying, and speech analytics. Donna Fluss, president of DMG Consulting and author of the report, notes that there are four factors accounting for the market's growth: the entrance of newer vendors like CallCopy and KnoahSoft; the penetration of contact center infrastructure vendors like Aspect Software, OnviSource, and Interactive Intelligence into the space; expanding sales of performance management, speech analytics, surveying, and coaching; and the increased adoption of IP recording. The report assesses vendors' contact center market share both with and without workforce management (WFM). With WFM included, NICE Systems secured the top spot with 31.3 percent, trailed by Witness Systems (26.9 percent) and Verint Systems (15.4 percent). Without WFM in the mix, NICE, Witness, and Verint maintain their positions, but their market shares change slightly, to 34.2 percent, 26.2 percent, and 18.8 percent respectively. (Witness and Verint are evaluated separately in the report, reflecting results that predate Verint's February 2007 acquisition of Witness. However, the report does include pro forma analysis on the deal. The Verint/Witness combined entity would have led both lists in terms of market share.) The space's remaining market share (including workforce management) is spread across several vendors, with just one additional vendor claiming a double-digit percentage of the market. The companies rounding out the top 20 and their market share percentages are:

Aspect: 10.2 percent

Autonomy/etalk: 6.4 percent

Envision Telephony: 2.4 percent

Magnetic North: 1.2 percent

Mercom (acquired by Verint in July 2006): 1 percent

VPI: 0.9 percent

TantaComm: 0.8 percent

HigherGround: 0.6 percent

Telerex: 0.5 percent

Calabrio (acquired by Spanlink Communications in August 2006): 0.5 percent

OnviSource: 0.4 percent

Wygant: 0.4 percent

ASC: 0.4 percent

Interactive Intelligence: 0.3 percent

VirtualLogger: 0.2 percent

CallCopy: 0.1 percent

KnoahSoft: 0.1 percent Fluss says she expects the market's growth to continue for the next couple of years, spearheaded by product innovation, emerging vendors, and acquisitions. "This is a mature market, [one] where a couple of the segments, in particular [Time Division Multiplexing]-based recording and traditional QM components are commoditized, so there really is very substantial growth going on within this market segment," she says. Related articles: QM Saunters to Continued Uptake The quality management and liability recording market is projected to exceed expectations. QM: The Upswing Continues The billion-dollar market is expected to continue its growth streak. QM and Liability Recording Move Ahead The market is on track to surpass previous forecasts due to enhanced innovation, better ROI, and less-costly software-based recording. CCPM Market Is Poised For Progress The benefits of contact center performance management applications are expected to help spur growth. Verint: Can I Get a Witness? Verint's purchase of Witness Systems marks major consolidation in the market, while propelling Verint to the head of the contact center solutions game.

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