Decision makers are increasingly turning to Software as a Service (SaaS) or on-demand, but the model, which has seen so much success with sales force automation (SFA), has some limitations with customer service.
"As IT begins to modernize, they look at the next generation of enterprise application suite and ask, 'Do I do something different?' and as they get to 'something different' they get to Software as a Service," Maoz said. "They have to weigh IT modernization requirements with business agility and business improvement. But today, the line of business is stepping in and saying good luck with IT modernization. I'm going my way. I'm not asking your permission -- I may ask your forgiveness."
While IT has adapted to that scenario with SFA, SaaS customer service applications have yet to demonstrate viability for large, complex contact centers, according to the report.
Oracle's on-demand application is still immature when it comes to customer service and support, RightNow Technologies does not have the clout to reach the wider audience, and Salesforce.com's service and support offering is primarily for smaller business-to-business operations, Maoz said.
Another area in need of improvement is support for multiple channels of communication and bringing communications into the CRM software.
"The contact center is not the call center," Maoz said. "The contact center is the way you make contact with the customer. It could be a formal call center, but it also means when they come into your website. Those supporting technologies that support multichannel interaction tend to be infrastructure players -- Genesys, Avaya. You don't have the business application as embedded in that communications application."
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