March 2008 Archives

I know I’m late to the party on this but the recent news about Microsoft’s strategic partnership with Aspect Software to bring unified communications to the contact center is definitely one of the most significant business deals in the contact center space for 2008. You might say this deal represents Microsoft’s grand entry into the contact center space – or at least a very large step in that direction -- however, I wouldn’t lose sight of the fact that many of the other major contact center software makers have already rolled out UC offerings -- and have had customers using them for months.

As per the five year strategic alliance, the financial terms of which have not been disclosed, Aspect will design its Aspect Unified IP contact center solution to interoperate with Microsoft’s OCS platform for software-powered voice and unified communications, and will offer it as the leading option to new and existing customers (of course, existing customers can easily upgrade to the UC system). In addition, Microsoft is making an equity investment in Aspect to "accelerate the development and adoption of the new solutions and services."

Aspect is one of the largest and best-known providers of contact center solutions for the enterprise: Its solutions are deployed in call and contact centers all around the world. This deal is huge because it gives Microsoft a very large footprint in the contact center space almost instantly. Not to mention the opportunity to significantly accelerate adoption of OCS 2007, which, as you probably already know, can be used to roll out UC across the entire enterprise, and is fully interoperable with most other MS products, making it a very attractive value prop. (Consider this: 174 of the Fortune 500 companies have already licensed OCS)

Microsoft claims strong adoption of OCS 2007, coupled with the new tie-up with Aspect, puts the company on track to be “the top three enterprise voice provider in a few short years."

I think bringing Unified Communications to the contact center makes perfect sense, as it facilitates the next stage in the evolution of the “informal contact center,” where the barriers that separate the center from the rest of the organization are removed, and other knowledge workers within the organization can become “pseudo-customer-service reps,“ thus improving the customer experience. It is next step (a new layer) in the “virtualization” of the contact center -- afforded through the power of IP. I see Unified Communications as the next stage in delivering fully flexible communications – choose your mode of contact: IM, voice, email, video – from whatever device you want: desk phone, smart phone, laptop, home phone – use features like presence to determine availability – ad hoc conferencing and click-to-call. This new, robust (love that word), full-featured communication technology is ideally suited to the contact center: Now, customers, agents, managers, supervisors and other knowledge workers across the organizations can “connect with a click” and get the information they need -- thus achieving the much-coveted First Call (Contact) Resolution.

For more information and analysis about this big news I highly recommend you check out the following links:
http://blog.tmcnet.com/blog/rich-tehrani/call-center/microsofts-call-center-push.html
http://blog.tmcnet.com/blog/tom-keating/unified-communications/microsoft-aspect-software-partner-on-unified-communications.asp
http://www.tmcnet.com/unified-communications/articles/23167-microsoft-aspect-announce-strategic-alliance.htm
http://hdvoice.tmcnet.com/topics/unified-communications/articles/23445-microsoft-aspect-partner-uc-contact-center-solutions.htm
http://callcenterinfo.tmcnet.com/Analysis/articles/23669-microsoft-pushes-into-call-center-market-with-aspect.htm

Aspect Rolls Out UC Strategy

March 11, 2008 11:06 AM | 1 Comment
Aspect Software yesterday announced its new strategy to bring unified communications capabilities to its contact center solutions. Specifically, the company announced that it will soon be introducing enhanced versions of Aspect Unified IP and PerformanceEdge which are fully interoperable with existing unified communications solutions.

This, of course, could have been expected – I mean, after all Aspect is one of the largest providers of contact center solutions, and the adoption of unified communications is starting to pick up steam. Considering that so many enterprises already use their contact center telephony systems for communications across most, if not all of the organization (linking together different divisions, departments, remote offices, etc., that are geographically dispersed), it makes perfect sense for contact center platform makers such as Aspect to endow their products with UC capabilities (and many have already done so – for example, TouchStar just recently introduced its new “Unify” product, a browser-based product that facilitates true seamless UC across the enterprise). With these advanced, all-IP solutions and their amazing call routing capabilities, an enterprise can make its contact center system the “communications center” for the entire organization.
 
The advantage of bringing UC to the contact center is that it ushers in the next iteration of the “informal contact center,” where the walls, or barriers if you will, that separate the contact center from the rest of the organization are dissolved, and other “knowledge workers” within the organization can be used as resources for handling customer complaints and a wide range of other issues. To deliver superior customer service, agents need the ability to quickly and effortlessly “escalate” calls and put the customer in contact with someone else in the organization who has the exact skills or expertise to help that customer quickly. With UC in the contact center, agents have multiple means for reaching out to these knowledge workers – via IM, via email, via Web chat -- even video chat. Furthermore, with UC in the contact center, managers, supervisors and executives have the ability to reach personnel in the center (and view their “presence”) and get the information they need – quickly, effortlessly, and in the mode they prefer. With UC, not only can processes be seamlessly extended beyond the traditional boundaries of the contact center, with the ability to reach knowledge workers or “subject matter experts” in the organization, all collaboration across the organization is streamlined and enhanced.
 
“It is important for organizations to include the contact center as part of their broader unified communications strategy because customers can be a key beneficiary of the value that unified communications brings,” explained Bern Elliot, research vice president at Gartner, in yesterday’s news release from Aspect. “To succeed, enterprises should leverage contact center technology broadly into their enterprise, and similarly contact centers should understand how to leverage enterprise UC technology into their operations.”
 
For now Aspect is basing its unified communications for the contact center strategy on its current versions of Aspect Unified IP, a comprehensive session initiation protocol (SIP)-based VoIP unified contact center solution, and PerformanceEdge, its workforce optimization suite. The company reportedly plans to release new versions of these products which will be interoperable with other unified communications software.
 
The company claims that future releases of Aspect Unified IP “will enable organizations to route interactions to enterprise experts based on presence and willingness, generate enterprise-level reports of these interactions, and utilize workforce management to forecast expert demand.”
 
For more information about Aspect’s new UC strategy, check out Tracey Schelmetic’s article and Rich Tehrani’s blog entry from yesterday.
Government officials in the various provinces of Canada which are highly reliant on the call center industry to keep the economy afloat are no doubt scrambling to try to come up with additional incentives and new strategies to keep U.S. companies from pulling their centers out.

A recent report from Datamonitor shows that many U.S. firms are now starting to pack up and relocate their Canada-based call center operations due to the increasing value of the U.S. dollar and the increasingly unfavorable exchange rate. Even call center outsourcing behemoth Convergys recently announced that it will be closing some of its facilities in Canada in the coming months. This is bad news for New Brunswick, which relies heavily on the call center industry for jobs and economic growth and is in the process of trying to become independent.

In an article written today by TMCnet’s Susan Campbell, independent economic consultant David Campbell “argues that the area should put more emphasis on attracting financial services and hedge fund centers, which tend to pay higher salaries.” So one approach the this problem will be to continue to emphasize the fact that New Brunswick offers a well educated and highly skilled workforce and therefore is better suited to providing high value, high touch call center services. As Susan explains, “New Brunswick has a goal of becoming self-sufficient by 2026. Campbell warns that this goal will never be realized if the region continues to offer incentives to call centers that pay employees no more than $10 to $12 per hour.”

“Those jobs filled a need, but now that we have low unemployment, we need to look for jobs that will contribute taxes that will pay for government services,” Campbell said in a statement. “Essentially, we were attracting jobs that did not generate enough taxes to pay for the government services covering the worker.”

“Much like other locations, New Brunswick has found that more sophisticated contact centers tend to remain, especially those in IT and financial services. Call centers that live from contract to contract and whose basic operations include calling out to sell everything from phone services to car insurance, have proven to be transient.”

My take? Canada is going to be greatly challenged to keep its call center industry from shrinking unless it starts offering additional economic incentives to U.S. companies. Some regions are going to have a hard time attracting new center based on their “highly skilled workforce” alone, especially considering that workers with good IT skills are now finding opportunities in other industries outside of the call center realm all across Canada. It could be that as some U.S. firms begin to pull their operations out, the percentage of workers with good IT and customer service skills will begin to increase, thus creating new opportunities for Canada to attract new, “premium” centers which handle more complex, higher value transactions.

Now is the time for Canada officials to start planning carefully -- not panic, but calmly plan. With the right mix of economic incentives and skilled workers, it just could end up attracting the kind of centers it needs to make it through the rough times ahead ….

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