T3i Group Predicts 1H09 Global Contact Center Shipment Decreases

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T3i Group's latest research on CPE-based contact center agent shipments proves its prediction of “deeper declines for 2009 than would result from the current recession alone” came true in during the first six months of this year.

T3i Group's latest research on CPE-based contact center agent shipments proves its prediction of “deeper declines for 2009 than would result from the current recession alone” came true in 1H09. Globally, the market for CPE-based agent positions fell more than 30% compared with 1H08, with steep declines in every region.

According to T3i Group's "InfoTrack for Converged Applications First Half 2009 Global Contact Center Report," the APAC region showed the greatest decline – more than 40% – after strong growth of 33% in 2008. APAC’s decline was due in part to two factors: the slowing of local economies and a deceleration of outsourcing from other regions. The T3i Group’s 2008 report had indicated the 2008 Canadian growth rate would not be maintained in 2009, and Canada experienced the next largest decline of 34%, following its 17% growth in 2008 (which was partially due to Cisco's one-time success in selling solutions to Canadian service providers). The EMEA region experienced an approximate 30% downturn, while the United States and the CALA region reported smaller shipment declines in the mid-20% range.

All major reasons cited by manufacturers stemmed from the economy: budget spends at the end of 2008 were accelerated, thus diminishing the need for spend in 2009; 1H09 planned purchase decisions were delayed; the economics of hosted contact center solutions gained traction; increasing percentages of budgets were spent on self-service capabilities; and such country level issues as credit availability became more significant. Although Avaya’s shipments were down from 1H08, it increased its lead in every global region because its decline was significantly less than the industry average. Cisco and Nortel followed Avaya, respectively, in global market share. Not surprisingly, Nortel experienced the largest decrease among the market leaders.

"As we stated in our previous comments associated with our 2008 report, 2009 will be even worse and will show who has real marketing and sales power. In fact, 2009 has turned out to be a competition to see who could lose the least,” commented Ken Dolsky, Senior Program Director for the InfoTrack for Converged Applications (ICA) program at T3i Group. “While not a single manufacturer had positive growth globally, a few strong companies like Alcatel-Lucent and Siemens had some regional growth, especially in EMEA. Interactive Intelligence had the smallest global decline but Avaya was the clear ‘winner,’ with increases in market share around the globe.”

He continued, “Going forward, it’s hard to see the CPE-based industry recovering to 1H08 shipment levels in the near future. Trends such as hosted and self-service have gained momentum and will continue to be viable even after global economies recover. In addition, a portion of 1H09 shipments were still driven by consolidation and flattening which, while generating revenue for manufacturers, does not grow the overall market and will decline over time.”

Conversely, T3i Group research found Internet Protocol (IP) agents grew from 70% of shipments in 1H08 to more than 79% in 1H09, demonstrating the ongoing penetration of this technology in spite of the downturn in overall shipments.

"InfoTrack for Converged Applications First Half 2009 Global Contact Center Report” is the latest of several contact center analyses recently published by T3i Group, including “Global IVR (CPE-based) Shipments and Market Shares for 2008 and 1H09.” For more information about these reports and other contact center-related research, go to http://www.telecomweb.com/marketresearch/convergedapps/ or contact Bonnie Fairbrother (bfairbrother(at)t3igroup.com, 973/602-0181) or Craig Born (cborn(at)t3igroup.com, 973-602-0133).

About the InfoTrack for Converged Applications (ICA) Program:
InfoTrack for Converged Applications is an ongoing market and competitive intelligence program focused on telephony-related applications which are quickly evolving based on IP (converged) technologies. These applications are recognized by manufacturers, resellers and end-customers as important tools to improve employee productivity and increase external customer satisfaction, thus adding value to an IP-based telecommunications infrastructure. ICA databases and models are used to track, analyze and forecast application endpoint and system shipments, installed base, market shares, manufacturer revenues and industry trends. For more information about the ICA program, please visit http://www.telecomweb.com/marketresearch/convergedapps/.

About T3i Group LLC
T3i Group LLC provides market research, data, analysis, and consulting and advisory services to the telecommunications industry. It has clients in 46 countries and conducts its business through four operating units: InfoTech, which publishes reports that analyze shipment, revenue, market share and other pertinent data of importance to telecommunications equipment manufacturers; TelecomTactics, which maintains a database of the features and functionality of major telephony systems; Tarifica, which maintains a database of pricing-related information covering 400 telecommunications carriers operating in 130 countries; and TelecomWeb (http://www.t3igroup.com), which serves as T3i Group's primary delivery mechanism for distributing its reports, analyses and data to subscribers.

T3i Group LLC is headquartered in Parsippany, N.J.; with additional offices in New York City; London; and Cherry Hill, N.J.

Press Contact: Debra Baker, 301/905-7703

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