February 2004

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 IN THIS ISSUE...

     
 

TOP STORIES

 
 

CosmoCom Offers Utility Pricing to Service Providers

 
  Siebel Announcement Confirms CosmoCom Key Messages  
 

KEY DEVELOPMENTS

 
  CosmoCom Global Meetings Jump Start 2004  
  State of the Company -  Message from Ari Sonesh  
  European Catalogue Retailer Implements CosmoCom-Based CCOD  
 

OTHER DEPARTMENTS

 
  New Members of the CosmoCom Family  
  The CosmoCom Customer Experience  
  Just How Big is the Contact Center Workforce?  
  Tradeshow News: Coming Attractions  
 
 

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SUPPORTNET UPDATES

 

CosmoCom continues to improve CosmoCall Universe. The latest support updates are now available on SupportNet. Highlights include:

 
»  VCS improvements (8872)
» Licensing enhancements for Ready and Hourly Agent logins (8863)
» RTR Reporting enhancements (8620)
» Improved Dialing and Routing functionality (8755, 8749, 8041, 6113)
» CosmoDesigner and XML Interpreter enhancement (8931)
» Agent enhancements (8899, 8834, 8815, 8749)
  

In addition, new Microsoft updates have passed QA for CosmoCall Universe deployment.

SupportNet is CosmoCom's online support extranet for customers and partners. If you have not yet obtained your secure login information, please contact your CosmoCom representative or send an email to supportnet@cosmocom.com.

 

Click to go to SupportNet

  
===TOP STORIES===

 

COSMOCOM OFFERS UTILITY PRICING TO SERVICE PROVIDERS

New Plan Boosts ROI of Contact Center On-Demand Service

MELVILLE, NY - February 2, 2004 - CosmoCom today introduced an innovative utility pricing plan for service providers that acquire and operate CosmoCom's platform for hosted contact center on-demand (CCOD) services. With utility pricing, service providers will pay CosmoCom for actual usage after that usage has occurred, with minimum initial investment in the service-enabling technology. The new pricing will help service providers to profitably offer utility pricing to their customers.

CosmoCom, which specializes in providing CCOD platforms to service providers, has long argued that the ability to pay for actual usage as it occurs rather than paying for peak usage in advance is a major part of the end customer financial case for CCOD services. Datamonitor CRM Analyst Peter Ryan agrees, calling CCOD "the fastest growth area in the contact center market in the next five years," and explaining that "the primary driver for this will be the ability to move from capital to operational expenditure." Ryan predicts that "organizations will demand more 'pay per use' pricing," and utility pricing from CosmoCom will help service providers respond to this demand and demonstrate a compelling ROI for CCOD without risk to their own financial well being. The program is designed so that service providers can set end customer prices that make a very attractive alternative to investing in a premise-based system.

"This announcement demonstrates CosmoCom's strong commitment to On-Demand services in the contact center arena," commented Ari Sonesh, CosmoCom's Chairman and CEO. "CosmoCom is dedicated to making On-Demand hosted services a viable alternative to premise-based contact centers. This commitment includes both our technology and our pricing policies. We are introducing On-Demand pricing because we believe it will contribute to the growth and success of CCOD in general and of our service provider customers in particular."

To read the full release and for more information on CosmoCom's Utility Pricing, click here.  

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SIEBEL ANNOUNCEMENT CONFIRMS COSMOCOM KEY MESSAGES

Usually the CosmoChronicle focuses on CosmoCom announcements. This month we're also spotlighting an announcement from another company, Siebel, and there's a good reason for it.

Most of our readers are familiar with two key concepts that have featured prominently in our messages for several years -- CCOD (Contact Center On-Demand) and CIRM (Customer Interaction and Relationship Management). CosmoCom is the global leader in multi-tenant hosted contact center technology and has published the authoritative business case for CCOD. And our open API's have made our technology the platform of choice for the world's most serious and most successful OEM project to package a true CIRM system - BT Contact Central.

This month Siebel announced it was acquiring the independent, privately held CCOD service provider Ineto. More important, in that announcement they categorically stated their intention to enter the CCOD market, and to make their CCOD offering one that is closely integrated with their Siebel OnDemand service -- in other words, CIRM OnDemand.

In a January press release, CosmoCom CEO Ari Sonesh predicted that 2004 would be the year of CCOD. While he strongly believed in that statement when he made it, he didn't realize how quickly outside events would begin to confirm this prediction. CosmoCom welcomes Siebel's announcement as a ringing endorsement of the two concepts at the heart of our strategy: CCOD and CIRM.

Siebel is just one of major players that will throw their hats into the CCOD ring during 2004. This is good news for CosmoCom, which is the leading supplier of technology that enables service providers to be CCOD players.
   

===OTHER DEVELOPMENTS===


COSMOCOM GLOBAL MEETINGS JUMP START 2004

For a week in mid-January, CosmoCom employees from around the globe once again gathered for our Global Sales Meeting (GSM) and Global Technology Conference (GTC). The side-by-side events were designed to bring our distributed organization together to exchange ideas and information on our products, our customers and the continuous improvement of our technology.

The GTC was a hands-on event where developers, engineers and quality assurance professionals rolled up their sleeves and really got under the hood of CosmoCall Universe. The intensive sessions were designed to cover every technical facet of the product. Detailed presentations and workshops updated everyone on what’s new in our evolving product line. Engineers met face-to-face to share best practices for implementation, integration, and support, and the relationships between development and implementation professionals within CosmoCom were strengthened.

In a nearby auditorium, the Sales and Marketing staff were also sharing experiences from the front lines in energetic exchanges focused on customer needs and the growing market for Contact Center On-Demand. A significant part of one day was devoted to a workshop led by Erik Laurence, VP of Business Development and Product Management, about the business case for CCOD, and about how we are helping customers succeed through the CosmoVantage™ market success program. Another valuable session explained the benefits of CosmoCom's utility pricing model for our service provider customers (see press release).

"These were our best global meetings yet," said CEO Ari Sonesh. "We began 2004 by sharing valuable knowledge and raising the level of global teamwork among all of our people. I know it’s going to be a very good year for CosmoCom.”

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STATE OF THE COMPANY

Message from CosmoCom's President and CEO, Ari Sonesh

Each year in January, I present an annual report on the “State of the Company,” first to our Board of Directors, then to the company as a whole. I would like to share the highlights of this report with the readers of this newsletter.

Looking back at 2003 in the overall telecom space, I would say that it was the Year of VoIP as well as the Year of On-Demand (Utility) Computing. Both of these concepts entered the mainstream in a big way during 2003, and both strongly support the strategic direction of CosmoCom.

For CosmoCom, 2003 was a year of significant growth, including market share, revenue, and organization. We increased our share of the Contact Center On-Demand (CCOD) market, growing from 5 to 11 major telco customers. 2003 revenue was up about 40% over 2002. And we expanded the size of our organization, both by acquisition by organic growth. Growing acceptance of the CCOD concept by telcos and industry analysts, and the beginning of serious customer uptake, confirms that we are on the right track.

In addition to our CCOD progress, the second prong of our strategy, the OEM initiative, is going extremely well with BT Contact Central, and there are now several candidates for significant OEMs in other parts of the world.

Looking ahead toward 2004, I expect a very good year for CosmoCom. In our first press release of this year, I predicted that 2004 would be the Year of CCOD. In other words, this will be the year when the recognition of CCOD as a logical and significant application of the whole On-Demand concept achieves widespread acceptance. We already see this starting to happen, and this is good news.

Our key strategic objectives for 2004 are to:

  • maintain and expand our global market share in CCOD
  • maintain our CCOD technology leadership
  • actively help our CCOD service providers to succeed
  • support and expand our OEM and channel presence
  • prepare the organization for exponential growth in 2005

All of the detailed plans we have made to guide the company in 2004 are oriented to these objectives. Be sure to keep an eye on our press releases and on the CosmoChronicle to see how these plans unfold.

I am wishing all of you a 2004 as excellent and prosperous as the one I am expecting for CosmoCom.

Ari Sonesh
President and CEO

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MAJOR EUROPEAN CATALOGUE RETAILER IMPLEMENTS
COSMOCOM-BASED ON-DEMAND CONTACT CENTER SOLUTION

e-Commerce Operations are Streamlined and Migration to an Enterprise-Wide,
1200-Seat Distributed Contact Center Environment is Begun

Based in France, with both catalogue and retail operations throughout Europe, this company recently launched a Web store whose rapid success mandated more effective integration with contact center operations than their existing product could deliver. Specifically, that product could not interleave email requests from customers with regular inbound phone calls to agents; as a result, it took up to three days for agents to respond. But in their drive to optimize customer service, the company wanted agents to completely research and respond to email requests in less than one hour. To further improve service levels, the company also wanted an upgraded solution that enabled customers to request and schedule telephone or Web chat call-backs at their convenience.

The company met these goals with an on-demand solution offered by a nationwide service provider that is based on CosmoCall Universe. Already successfully being used by 50 agents, this solution has empowered the retailer to meet its performance and customer enhancement objectives with no capital investments, no implementation costs, and no maintenance overhead.

Another benefit of the solution is the ease with which IVR scripts can be implemented and modified to adapt to changing conditions and needs. A simple, browser-based, drag and drop tool allows these changes to be made instantly with no advanced training or programming requirements.

In addition, the solution has opened the way for a longer-range migration to a distributed contact center infrastructure with centralized management control. Where the company now has three large centers, they would prefer a number of geographically smaller sites in order to take advantage of local and offshore labor pools. Since their on-demand solution powered by CosmoCom’s platform is IP-based, any authorized individual with access to a Web-enabled PC can function as an agent—regardless of their location.

Read more CosmoCom success stories...
    

===OTHER DEPARTMENTS===

   
NEW MEMBERS OF THE COSMOCOM FAMILY

Headquarters
Dan Parlitsis, Manager of IT

United Kingdom
Nick Heath, System Engineer

Germany
Dirk Szymanski, System Engineer

Israel
Eli Goldstein, Senior Developer

Hong Kong
Patrick Yip, Sales Engineer

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VIDEO: THE COSMOCOM CUSTOMER EXPERIENCE

Hear What Customers Are Saying!

With nearly a dozen leading Network Service Provider customers, CosmoCom is the leading provider of Contact Center On-Demand (CCOD) platforms to telcos worldwide. Hear what CosmoCom's NSP customers and their end users have to say about CosmoCall Universe and the hosted contact center model…. CosmoCom also provides technology for OEMs and integrators to build the world’s best premise-based contact center packages. Hear from the BT Contact Central CEO how CosmoCom helped them launch their successful business... And learn how CosmoCom's teleservices outsourcer customers benefit from the latest in customer interaction management solutions. Hear all this and more, first-hand, in the CosmoCom Customer Experience video, now available online.

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JUST HOW BIG IS THE CONTACT CENTER WORKFORCE?

CosmoCom Takes a Look at the Size of the Contact Center Workforce and
the Market for Contact Center On-Demand Service Providers

No one would dispute the statement that there are a lot of contact center agents. But what is the actual number? One often-quoted statistic is that in the United States, at least 3% of the workforce is employed in a contact center. For example, one authority that has touted this figure is Linda Lauritzen, formerly the Director of Global Contact Centers at Manpower. Ms. Lauritzen worked with call centers around the world to provide staffing, and Manpower claims responsibility for more than 50,000 contact center agents globally. At the end of 2001, Lauritzen said that 3% to 5% of the US labor force was working in call centers.

One way to find out if this number stands up is to consult statistics from the US Department of Labor. Here we learn that the total US labor force is about 140 million people, and we can see their breakdown by job category. Unfortunately, they do not identify call center agents as a single job category. We have extracted the job categories most likely to be found in contact centers and estimated the contact center percent of these categories. Here's our take:

 

Employees 

CC % 

CC Employees 

 Customer Service Reps

1,854,750 

100%

 1,854,750

 Telemarketers

419,740 

100% 

419,740 

 Computer Support Specialists

478,560 

60% 

287,136

 Order Clerks

327,120 

50% 

163,560 

 Switchboard Operators, incl. Answering Service

226,890 

40% 

90,756 

 Telephone Operators

464,420 

100% 

464,420 

 Reservation & Transportation Ticket Agents

174,170 

60% 

104,502 

 Receptionists & Information Clerks

1,063,020

20% 

212,604 

 Total

5,008,670

 

3,597,468

If these 7 categories alone reasonably account for 3.6 million agents, the total could well be 3% of 140 million, or 4.2 million agents.

Contact Center On-Demand
Contact Center On-Demand (CCOD) is one facet of the On-Demand mega trend, also known as "Utility Computing." Ten years from now, CosmoCom expects that at least one third of these 4.2 million agents will be working in On-Demand environments instead of premise-based environments. At average revenue to the service provider of $300 per agent per month, this is an annual opportunity of more than $5 billion for US service providers alone.  By another rule of thumb, the total global market is double the US market -- $10 billion. That's a market that can make CosmoCom, the only real specialist in providing CCOD platforms to major service providers worldwide, a very significant company indeed.

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TRADESHOW NEWS: COMING ATTRACTIONS

Centrex 2004
National Centrex Users Group Conference and Exhibit

March 21-23, 2004
JW Marriott
Houston, TX

 

 

CosmoCom, Inc.
121 Broad Hollow Rd.
Melville, NY 11747
+1 631 940-4200
http://www.cosmocom.com

     
Editor-in-Chief: Laura Fader
Graphics & Design: Kevin Simms

 
 

Copyright © 2004 CosmoCom, Inc. All Rights Reserved.