Analytics and Compliance Increase Call Recording Investments

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Global sales of contact center interaction recording systems are poised to grow from $813 million in 2011 to $1.2 billion in 2018, according to a new report from Pelorus Associates.

Dick Bucci, author of the report and principal analyst at Pelorus, defines recording systems as those that include speech analytics, e-learning, data analytics, quality management, and other products associated with the core recording system.

Some of the growth in the recording systems market can be tied to companies that have old infrastructures and are interested in adding new capabilities, such as speech and data analytics. Another driver for growth is the issue of compliance, Bucci says.

"There are a lot of very specific exposure requirements associated with compliance," he maintains. "As a result, we're seeing some substantial penalties assessed against credit card issuers, and that's enough to get people's attention. The industry is much more cognizant of the need to record calls and, more importantly, the need to analyze what was actually said."

DMG Consulting defines voice recording systems a bit differently. According to Donna Fluss, founder and president of DMG Consulting, recording is only one aspect of much larger workforce optimization suites. The other modules are quality assurance, coaching, e-learning, performance management, surveying, speech analytics, workforce management, desktop analytics, and text analytics.

"Projections for recording are actually pretty small, if we're looking at just recording," says Fluss, who estimates growth at 3 percent in 2012, 3 percent in 2013, 4 percent in 2014, and 2 percent in 2015.

"The only reason that it's as high as it is right now is because vendors keep coming up with new ways to improve [things]," she says. "We have a lot of virtualization coming up in the marketplace. When some of the operating systems get retired, you have to replace them."

Fluss also points out that recording systems for both contact centers and non-contact centers are not just being sold by the workforce optimization (WFO) vendors, but almost every single cloud-based contact center infrastructure vendor. There are also standalone recording vendors, WFO vendors, and now hosted vendors that are selling recording as part of their core capabilities.

NICE Systems and Verint Systems are major players in this arena, and according to Fluss, account for 65 percent to 90 percent of all the different slices in the WFO market. Based on the numbers Fluss has seen for the end of fiscal year 2012, it appears that Avaya is now going to be the third largest WFO vendor in the market.

That spot was vacated, Fluss says, when Autonomy acquired eTalk, and subsequently, Hewlett-Packard purchased Autonomy. Once Autonomy bought eTalk, then the number three WFO vendor, there was no clear third-place leader.

While the market for recording systems doesn't appear to have major growth, it will remain an essential component of WFO suites, Fluss states.

"Vendors are increasingly putting their energy into the applications that use recordings to do other things like speech analytics," she says.

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