011108 en Contact Centers Overview GloCCal
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Contact Centers Overview
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Table of Contents
WHAT IS A CONTACT CENTER? .................................................................................... 3
Short introduction ..................................................................................................... 3
Types of Contact Centers ............................................................................................. 4
Contact Center Activities ............................................................................................. 5
Contact Center Vertical Markets .................................................................................... 5
WHY IS EXCELLENCE IN CUSTOMER SERVICE SO IMPORTANT?.......................................... 6
Key features of Customer Service Excellence...................................................................... 6
Contact Center Resources Management............................................................................ 7
Recruitment............................................................................................................. 7
Training ................................................................................................................. 8
Incentives................................................................................................................ 8
Benefits and Bonuses .................................................................................................. 9
Turnovers ............................................................................................................... 9
Absenteeism .......................................................................................................... 10
How to Decrease Turnover in Contact Centers ................................................................. 10
CONTACT CENTER PERFORMANCE............................................................................. 11
Contact Center's Efficiency vs Effectiveness..................................................................... 11
Call metrics ........................................................................................................... 12
Technologies and methodologies to track and measure performance....................................... 12
Customer Relationship Management (CRM) .................................................................... 13
TECHNICAL SOLUTIONS TO RUN A CONTACT CENTER .................................................. 14
Applications for contact center software ......................................................................... 15
Benefits from IP contact centers ................................................................................... 15
Hosted or on-demand solutions - secure technical platform investment while growing ................ 16
Value added functionalities ........................................................................................ 17
New vs old technologies ............................................................................................ 17
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MARKET PLAYERS.................................................................................................... 18
WHAT IS A CONTACT CENTER?
Short introduction
A contact center is a central point in a company from where all type of customer contacts are
managed. In simple terms, a contact center is a technologically evolved call center that deals not
only phone calls, but also e-mails, web inquiries, VoIP, faxes, web chats and even post letters. It
is the front line of a business. One of the advantages of a contact center is the possibility it offers
to its customers to decide on the medium they want to use to communicate with the company.
A contact center must be designed to maximize investments lower operating costs and grow
with the business while ultimately achieving a competitive advantage. A good contact center is
focused on three mutually dependent business objectives: revenue generation , efficiency and
customer satisfaction. Improving service delivery and customer experience is the main
objective of most contact centers.
An effective contact center
quickly answers customers contacts
has a high first contact resolution rate
is a significant source of revenue for the company
continually improves processes, strategies and technology to constantly gain in service,
efficiency and revenue generation
has a positive thinking staff
performance data is collected and analyzed through a well established process.
The channels contact centers offer for communication are: telephone - agent assisted, e-mail, fax,
telephone - IVR self-service, physical correspondence, online self-service, sms/text messaging,
telephone - speech self-service, web chat, web call back and web co-browsing.
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Types of Contact Centers
Contact Centers can be described as:
Inbound (when it is the customer who initiates contact) Outbound (when it is the contact center that initiates contact)
Blended (both inbound and outbound contacts are handled)
In a modern inbound contact center a considerable portion of the load is shifted towards
automated response or speech-enabled systems usually referred to as self-service systems.
Inbound contact center activity:
general queries (available products and services)
account management (updates, password change, etc.)
sales orders
support issues
cancellations and returns
Outbound contact center activity:
sales calls to new customers
proactive customer service (e.g. informing of delays, delivery arrangements, etc. )
cross-selling or up-selling sales calls to existing customers
debt collection renewals (sales calls to existing customers)
customer satisfaction surveys
Blended operations can turn very cost-effective and time winning when implemented correctly.
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Contact Center Activities
Most common activities contact centers are involved in are:
collect information general inquiries
technical support
sales
sales support
product and service information
customer service
customer retention
polls and surveys
Contact Center Vertical Market s
Contact Centers support businesses in most industry sectors:
finance (banking, insurance, credit cards, credit checking agencies, loans, debt collection)
services (non-physical service offerings to public and business)
outsourcing and telemarketing (telemarketing companies and large full-service
outsourcers)
transport and travel (public transport, airlines, information and booking, travel agents) food and drink (brewers, food suppliers)
telecommunication (mobile and fixed line operators, sales and support)
medical (health care and pharmaceuticals)
manufacturing (often product support and queries)
retail and distribution (tele- /e-shopping, parcel carriers, logistics, catalogs)
IT (technology sales and service, Internet providers)a
public services (government, local authorities, agencies, emergency services, education)
entertainment and leisure (hotels, ticket booking)
utilities (gas, fuel, electricity, water)
motoring (manufacturers, rental, assistance)
printing and publishing (newspaper and magazine ads, subscriptions, etc.)
construction (builders, building suppliers)
The fastest growing global vertical market is the public sector (where eGovernment initiatives
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continue to grow and the formalization of departmental customer handling leads to the growth
in contact centers) followed by health care, retail & distribution, entertainment and transport &
travel. These sectors continue to grow driven in part by the necessity to support online
interactions.
WHY IS EXCELLENCE IN CUSTOMER SERVICE SO IMPORTANT?
For any business customer retention is essential. The American Management Association
estimates that repeat customers generate 65% of an average company's business and it is wellknown that it costs several times more to attract a new customer than it does to retain an old
one. Big revenue companies have long ago shifted from "meet customer's expectations" to
"exceed customer's expectations". With the possibility the Internet offers, customers who were
badly serviced, easily share their experience with the whole community via blogging, forums
and even videos. This is creating bad image to the company and prospective customers will run
to the competition. It is no longer accepted that a customer cannot get through to an agent
quickly or not receive answers to his questions. Thus, all activities of a contact center MUST be
focused on providing excellent customer service.
Key features of Customer Service Excellence
better and faster service delivery
increase customer satisfaction
gain repeat business
increase credibility and loyalty with customers
better manage stressful situations
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Contact Center Resources Management
A recent report shows that globally, salary costs alone make up 69.0% of the contact center’s
overall costs, reaching a high of 74.9% in North America and bottoming out at 64.0% in Africaand the Middle East. The average percentage of budget spent on technology is just 8.6%, with a
high of 9.8% in the Asia-Pacific region and a low of 6.5% in North America. ('07 Global Contact
Center Benchmarking Report, Dimension Data group). Other costs relate to rent,
telecommunications costs, utilities, taxes and other.
Based on the fact that staff related costs make two thirds of the contact center's operating
budget, management at all levels is focused on staffing solutions.
Recruitment
Qualities that contact centers look for in prospective agents:
customer focus
empathy
responsibility
problem-solving
ability to understand and follow instructions
critical thinking
advanced PC skills or even hi-tech
Common agent recruiting methods within a contact center:
employee referrals
online recruiting via own corporate Web site (career section)
advertisements in a local or regional newspapers
online recruiting via job banks site
employment agencies
Usually, the recruitment process takes the candidates through telephone resumes, interviews,
face-to-face interviews and references from past employers.
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Training
When the ideal candidate is selected, the company invests in his training. Most new comers
never worked in a contact center before, they need to be trained not only on company's
products or services specifics but also on common concepts and technology the contact centeruses.
On average, induction training takes 3-4 weeks. Induction training consists of two parts:
customer care (listening and emphasizing, turning an angry customer into a happy one,
etc. )
skills specific to the job (system navigation and application usage, product/service
knowledge, etc.)
Ongoing training is manifested via team-leader coaching (on average 2 hours/week) and annual
two-week courses. Some big contact centers have a dedicated training department. It is also
possible to have external training.
Incentives
Incentive plans and recognition programs are a form of reward for employee's dedication to the
business. They help motivate staff, make them feel valuable and important and increase
productivity.
When building an incentives plan, following must be taken into consideration:
purpose (determine the specific goals to be achieved)
people (what employees must be focused on to achieve the desired results)
value (the outcome that will be created if objectives are achieved)
allocation (when the incentive will be paid to participants)
monitoring (plan progress, documentation and communication to participants and
superiors)
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Benefits and Bonuses
In most contact centers employees can enjoy benefits like:
paid leave (sick leave, vacation, bereavement, holidays, personal business, etc.) insurance (medical, dental, life, accidents, etc.)
retirement and savings plans
service recognition
education (university, masterclasses, seminars, etc. )
Bonuses can be awarded as money (most appreciated by employees), prizes, gift certificates,
vouchers and coupons.
Human resource optimization helps to improve agent performance, resulting in more efficient
and more effective service.
Some of the solutions are:
e-learning (provide online training at an agent's desktop)
quality monitoring and logging (monitor agents' qualitative performance)
messaging systems (keep agents informed of contact center status)
hiring and recruiting tools (help managers hire the right people)
agent scorecards/ key performance dashboards (provide performance targets and results
to agents and supervisors)
Turnovers
Average agent attrition is 24%. ('07 Global Contact Center Benchmarking Report, Dimension
Data)
The most common reasons for agent turnovers include:
better opportunities outside the organization
low pay
repetitive work
inconvenient work hours
abusive calls
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lack of career and development opportunities
pressure and monitoring by management
lack of support
poor working environment
Agent turnover impacts:
service quality
lost productivity
higher training selection and hiring costs
employee morale
higher stress
The lowest turnover rates exist when the agents have minimal customer interaction or whenthey possess full control over the interaction.
Absenteeism
High stress, management pressure and poor working environment lead to abusive absenteeism
and sick leave. Extended staff absence can cause major problems with contact center
performance and the customer experience. The remaining staff end up over-worked and
stressed, with low morale that will lead to more absence.
How to Decrease Turnover in Contact Centers
Since turnover rate is alarming, managers' main concern is how to motivate and retain staff.
Below are listed some of the most common practices that management falls back on.
make flexible work arrangements (part-time, temporary, homeworking)
open communication and heart
create partnerships
emancipate actions
keep high morale
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provide good training and necessary tools to perform the job
fitness facilities on site and recovery areas
work space animation (live green walls, pets)
CONTACT CENTER PERFORMANCE
Performance is maintained with a perfect balance between cost control, revenue generation,
customer satisfaction, and employee satisfaction.
Contact Center's Efficiency vs Effectiveness
The top three items of defined strategies in most contact centers are:
customer satisfaction
quality/process improvements
technology strategy
Efficiency is associated with quantity, while effectiveness with quality. Efficiency can be
increased if the right technology is used (like speech-enabled systems, IVR and self-service
technologies). Effectiveness is the ability to evaluate performance from the perspective of the
customer, but is problematic because the metrics are difficult to capture.
Efficiency is measured by set metrics like:
call handling time
speed to answer
call abandonment rates
Effectiveness can be assured by following methods:
scripting
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call monitoring
call recording
customer surveys
Customer satisfaction survey methods:
IVR
written
outbound
external agencies
Call metrics
While understanding what is happening within the contact center is key to performance,
knowing why it is happening is key to improvement. The performance of contact centers has
traditionally been measured by observation of key metrics, usually related to cost and
efficiency.
Most common contact center metrics:
average speed to answer calls
percentage of calls answered within a certain time
average call length percentage of dropped calls
agent activity (call time, wrap-up, administration, idle mode)
conversion rates (contacts converted to sales)
call volume (number of calls answered compared to available time, number of orders
logged and confirmed)
customer satisfaction based on after-call customer input
percentage of first-call resolution
Technologies and methodologies to track and measure performance
Real-time monitoring (management dashboards, automated alerts, wallboards) is commonly
used to make sure that everything runs smoothly within a contact center.
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Metrics most often used to assess performance:
overall staff costs
customer satisfaction rating
staff attrition rates
calls per hour or other call volume-related metric
customer attrition / churn rates
first-time call resolution
overall revenues
customer lifetime value / average deal value
Some of the technologies used to retrieve and analyze data to measure performance are:
Session Initiated Protocol (SIP) Computer Telephony Integration (CTI)
Voice Response Unit (VRU)
Automated Call Distributor (ACD)
Customer Relationship Management (CRM)
The CRM is a continuously evolving process focused on maximizing profit from customers, as
a result of understanding them, treating them with care and fulfilling their needs. CRM is an
application overlay on top of a database intended to maintain historical event data and allow a
company to manage customer interactions in an organized way.
The CRM enhances customer experience through strategies such as segmentation,
personalization, telephone number strategies and single views of the customer.
CRM solutions:
value-added routing (skill-based routing reduces call-handling times, allows customersto talk first-time to an agent who can solve their issues)
an optimized agent desktop (saves navigation and wrap-up time)
cross-selling (offering a customer additional items in related or unrelated categories) and
up-selling (offering a customer who just placed an order, either a bigger/ better deal on a
more expensive item than the one just bought)
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TECHNICAL SOLUTIONS TO RUN A CONTACT CENTER
Is it possible for a contact center to achieve high customer satisfaction at low operational cost?The biggest challenge in contact centers is determining the number of agents to be assigned
(capacity planning) such that the right level of customer satisfaction is achieved at the right
operational cost, given the fore-casted future arrivals, service times, time a customer is willing
to wait, as well as the routing policy at the Automatic Сall Distributor (ACD). Thus, proper
technology is indispensable for good running of contact centers.
How to choose a contact center platform?
Managing customer relationships across multiple channels requires an integrated
communication system platform that is capable of handling all types of customer interactionsefficiently. So, when it comes to choosing the software to be implemented in a contact center,
there are some criteria that should be taken into consideration. Is it going to be a totally new
contact center or are you thinking of upgrading an old one? What is the total number of users
that will need access to this software? Is it going to be inbound, outbound or blended contact
center? What functions would you like this contact center software to perform? The choice is
big, however there are "must-have" standard applications to be considered and many software
packages include most of them:
ACD - intelligently route inbound calls
CTI - display caller information on agents' screens automatically
Predictive Dialer - dials batches of phone numbers for connection to agents
Auto Dialer - dials batches of phone numbers to automatically deliver messages
Call Recording - record and archive calls
Reporting and Tracking - track contact center statistics
Workforce Management - manage call volume to agents
IVR - provide touch-tone or voice interaction for callers
Call Blending - handle inbound and outbound calls simultaneously
Choose a vendor that offers more than just a feature set. Training and support, as well as a
commitment to making the solution perform the way it needs to perform, are essential.Software alone will not bring optimization.
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Applications for contact center software
Contact center software can be used for many different applications. Some of those include:
general customer management help desk
monitoring/recording/reporting
business continuity/disaster recovery
virtual call centers using homeworking agents
Customer management of central contact center functions is available in a Web-based interface,
meaning it doesn’t require extensive training.
The contact center help desk assists customers through a variety of communications channel—
including phone, e-mail, and chat. Managing the multi-media aspect of modern help desks is an
important application for contact center software.
Skill-based routing ensures that customers are connected with the right agent who can best
answer their questions. Help desk agents are provided with information and tools to respond
efficiently (FAQ knowledgebases and case management systems).
Supervisors can have access to staff performance and customer experiences using real-time
monitoring and reporting, historical reporting, and voice recording functions.
The disaster recovery plan ensures that if disaster strikes, operations can go on as usual or are atleast minimally affected. The specific software can include built-in redundancies by duplicating
the contact center’s IVR, call flow and call processing operations.
Virtual contact center software enables agents to work anywhere there is an Internet connection
and phone. This enables the company to use agents located in different time zones, ensuring
24/7 coverage without having to maintain multiple physical locations.
Benefits from IP contact centers
Companies that successfully implemented IP technology remarked that they only gained from
this. The benefits of an IP contact center are:
Reduces network management fees and carrier costs.
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Simplifies the management of multiple ACDs
Eliminates the need for multiple copies of the same application.
Provides contact center technology cost-effectively to branch offices, satellite offices,
retail locations and remote or at-home agents.
Optimizes agent usage.
Routes each transaction to the most appropriate agent.
Provides a single, unified view of contact center operations
Facilitates the standardization of service quality.
Hosted or on-demand solutions - secure technical platform investment
while growing
In-house contact center infrastructure typically requires the following elements: PBX, ACD,
IVR, e-mail router, agent-facing tool, self-service tool, database, reporting tool, fax server, co-
browsing tool, voice logging and recording for quality monitoring, and voicemail system.
Understanding and selecting the right set of products is quite time consuming. By contrast, on-
demand software is simple to use because it uses a familiar graphical user interface and all the
tools are pre-integrated.
Hosted or on-demand solutions can mean anything from network-based routing, to the
complete outsourcing of a contact center’s operations. An on-demand contact center software
solution leaves the complexities of setting up multi-channel support technologies to the
provider.
Benefits of hosted contact center software:
Achieve rapid time to value by deploying your contact center agents with only a
browser, an Internet connection and a phone.
Integrate remote, central and home offices, and outsourcers.
Reduce costs eliminating the need for proprietary contact center software and hardware
installed locally at your site.
Easy to configure.
Advanced security and uptime guarantee. Improve contact center productivity by routing each interaction to the right agent, right
away.
Reduce average call time thanks to screen-pop, integration with CRM.
Identify staff training opportunities with quality control functionalities.
Supervisors can quickly and easily obtain reports about performance across all
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communications channels.
Value added functionalities
Value added software is able to extend functionality of the contact center: it supplements
companies’ standard offer and stimulates incremental demand for their core services.
Value added solutions:
Significantly enhance your call handling capabilities and processes.
Create more intelligent, personalized interactions with your customers.
Link your staff together for faster communications.
Offer possibility to enjoy more agile, secure, and reliable operations.
Focus your resources on your core business.
Examples of value added contact center solutions are: distributed IP; homeworking, reporting,
quality monitoring, and workforce management; proactive contact management; self-service.
New vs old technologies
Contact centers operate either on traditional or IP technology. Traditional call centers use time
division multiplexing (TDM)-based technologies. IP contact centers differ from traditionalcircuit-switched operations in that voice traffic is converted into packets of data and carried
around the contact center (or between contact centers) on a data network, rather than a voice
network. The IP contact centers are running on two types of architecture: IP-only and hybrid,
where both IP and traditional TDM infrastructures are used.
There are many reasons to consider changing from a traditional to an IP contact center,
including:
IP enables virtual contact centers, homeworking and the remote office model
IP promotes the successful take-up and management of multimedia customerinteractions
More affordable functionality is made available to smaller contact centers
IP reduces the cost of maintaining two networks
There is more flexibility to add and change agents in an IP environment
There is a reduction in call charges between sites via IP trunking
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IP supports to reduce staff attrition through allowing flexible working
The boundaries between contact center and the wider business are breaking down, and
IP is a common theme across all parts of the enterprise
IP infrastructure may be cheaper to upgrade than a circuit-switched platform
Video contact centers are growing popularity both in self-service applications (one-way video
contact) and in interactive contact (customer-agent video call). Key features of such interactions
are:
the self-service experience is faster and more interesting
personalization - visual agent interaction may enhance trust
improved communication - a picture is worth a thousand words - reducing call costs
higher customer perception of the level of service
new revenue streams from advertisers
'voice to video' switch enables agents to demonstrate a solution to a person visually
The virtual contact center consists of many operations which are linked together so as to be
viewed and managed as a single contact center. Virtual contact centers offer:
larger pool of skills available
more balanced work across contact center locations
easier and more flexible scheduling
global coverage
offer 24/7 availability
dynamic choice of outsources
MARKET PLAYERS
The contact center market has been consolidating for a number of years as vendors have
broadened their product portfolios. This has enabled vendors to increase some sort of control in
client accounts. At the same time, it has helped customers reduce the effort of managing
multiple vendors in their environments, as well as reducing the costs associated with expensive
computer telephony integration (CTI) middleware and customization to get disparate systems
to work together.
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Different contact center infrastructure vendors offer differing abilities to manage the migration
from traditional circuit-switched technology to newer IP-based systems. The leaders of the
contact center infrastructure market are:
Cisco
Avaya
Genesys
Nortel
Aspect Software
Interactive Intelligence
Oracle
CosmoCom
Intervoice
Siemens Communications
They have a broad geographic coverage, a clear vision for how contact center needs will evolve
and a proven track record for delivering contact center products.