T3i Group Reports 1H09 IVR Market Downturn Almost as Severe as Contact Center Decline

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The “InfoTrack for Converged Applications First Half 2009 IVR Market Report” found global IVR port shipments from the Top 10 vendors only reached 230,000 in 1H09 versus more than 630,000 for all of 2008.

According to T3i Group’s latest research, the global interactive voice response (IVR) market, which includes speech recognition, declined by 27% in 1H09 compared with 1H08. T3i Group’s previous report on 1H09 contact center agent shipments measured a decline of 30% for the same period.

The new “InfoTrack for Converged Applications First Half 2009 IVR Market Report” found global IVR port shipments from the Top 10 vendors only reached 230,000 in 1H09 versus more than 630,000 for all of 2008. The top three vendors based on ports shipped were Genesys, Nortel and Convergys; and the revenue leaders were Avaya, Nortel and Genesys. North America’s market share declined by three percentage points but continued to lead all regions, followed very closely by the Europe Middle East Africa (EMEA) region.

T3i Group segmented the port shipments in this report by technology, application and vertical industry. Among the key findings:

  • Almost 79% of all IVR ports shipped in 1H09 support VoiceXML (VXML) versus a proprietary standard. T3i Group expects that by 2013, 95% of IVR ports shipped will support VXML. VXML enables Web sites to offer the same text-based applications, such as order entry, with speech recognition.
  • More than half of all IVR ports support incoming call handling for contact centers. Inbound self-service transactions and outbound calling, such as appointment confirmations, collections reminders and repair notifications, are the next two most widely used applications.
  • As vendors and enterprises integrate IVR into more comprehensive customer-care solutions, IVR ports shipped specifically for inbound calls to contact centers will decrease while self-service and outbound applications are expected to increase at compound annual growth rates of more than 12% and 8%, respectively, through 2013.
  • DTMF “analog voice” port shipments are declining, while shipments of speech ports, which recognize speech or convert text to speech, will hold an almost 2:1 advantage by 2013.
  • IP/SIP port shipments will grow at a compound annual growth rate of almost 16% through 2013, at which time only 10% of all IVR ports shipped will be TDM, compared with 37% today.

“The conventional wisdom is that, during economic downturns, contact centers turn to IVR to reduce costs and maintain customer service levels while decreasing usage and growth of live agents,” noted Ken Dolsky, Program Director for T3i Group’s “InfoTrack for Converged Applications” program. “The results of our global studies show this trend has not been as strong as expected. When the economy imploded so did customer purchases of both types of solutions.”

He concluded, “Given the emphasis by vendors on improving IVR’s traditional image and applying it in total contact solutions based on end user preferences, we are still very bullish on the long term opportunities for IVR. However, it will likely take another five years to grow the shipments to the point where they exceed those of 2008.”

For more information about the “InfoTrack for Converged Applications First Half 2009 IVR Market Report," including a table of contents, go to http://www.telecomweb.com/marketresearch/convergedapps/ or contact Bonnie Fairbrother (bfairbrother(at)t3igroup(dot)com, 973/602-0181) or Craig Born (cborn(at)t3igroup(dot)com, 973-602-0133).

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: InfoTrack publishes reports that analyze shipment, revenue, market share and other pertinent data of importance to telecommunications equipment manufacturers; TelecomTactics maintains a database of the features and functionality of major telephony systems; Tarifica maintains a database of pricing-related information covering 400 telecommunications carriers operating in 130 countries; and TelecomWeb (http://www.t3igroup.com) 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, England; and Cherry Hill, N.J.

Press Contact: Debra Baker, 301/905-7703


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