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Gartner says Cloud Office Systems Total 8 Percent of the Overall Office Market and Will Rise to 33 Percent by 2017

Claims that most organizations have moved, or are moving, to cloud email or cloud office systems are not consistent with research by Gartner, Inc. Gartner estimates that there are currently about 50 million enterprise users of cloud office systems, which represent only 8 percent of overall office system users (excluding China and India). Gartner, however, predicts that a major shift toward cloud office systems will begin by the first half of 2015 and reach 33 percent penetration by 2017.

Although email remains the world's primary collaboration tool, others, such as team sites and communities are growing in importance. Nonetheless, email is typically pivotal in decisions to move -- or not move -- to cloud office systems. Gartner estimates that by the end of 2014 at least 10 percent of enterprise email seats will be based on a cloud or software-as-a-service model. This figure will rise to at least one-third by the end of 2017.

In addition, there has been a substantial expansion in the number of devices people use to access cloud office systems in recent years. In 2007, when the cloud office system market first appeared, typical individual users would employ just one device to access their enterprise's office systems. In 2013, that number has soared. Gartner estimates the typical knowledge worker now employs up to four devices -- for example, mobile phone, media tablet, personal PC and enterprise PC -- to access their organization's office system capabilities in a single week. This explosion in the number of devices per user could drive some organizations to cloud office systems as they can reduce the IT burden of software installation, maintenance and upgrades of locally installed office software.

Device counts are an important consideration. While organizations may need to buy licenses, for each and every device that a user uses to access non-cloud office systems and applications, cloud office systems are typically provisioned to each user, not to each device. As a result, two alternative cases emerge: for knowledge workers who are increasingly using multiple devices, moving to a per-user (not per-device) payment scheme can lead to significant savings if the customer would otherwise have to license (or buy subscriptions for) each device under older, per-device licensing approaches. Alternatively, organizations with many devices shared between workers -- as in the banking and healthcare industries -- may be better off licensing or subscribing by device.

Current levels of adoption vary significantly by industry. Organizations in industries at the leading edge, such as higher education, discrete manufacturing, retail and hospitality, are significantly more likely to adopt cloud-based office systems at present. Those in the intelligence and defense sectors, and in heavily regulated parts of the financial services and healthcare industries, are among the least likely to be early adopters.
[Full Article]   Jun-16-2013

 

Employment Growth Accelerates; Up More Than 5% in a Year

With strong growth in May and significant upward revisions of April's number, IT employment crossed another milestone posting more than 5% growth year-over-year.

The number of IT jobs grew 0.27 percent sequentially last month to 4,449,200, according to TechServe Alliance, a collaboration of IT & Engineering Staffing and Solutions firms, clients, consultants and suppliers. With the upward revision in April's numbers from 0.24 to 0.53 percent, IT employment has grown by 5.43% since May 2012 adding almost 230,000 IT workers.
[Full Article]   Jun-16-2013

 

43% of US Contact Centers Now Offer a Web Chat Option to Customers

New research published by ContactBabel, contact center industry analysts, reveals that web chat (or instant messaging) is one of the fastest-growing technologies used by US contact centers. 43% of this year’s survey respondents offer web chat as a customer service channel, compared to only 15% five years ago, with volumes of web chat increasing by 125% over the same timescale.

Furthermore, 18% of respondents state that they intend to implement web chat over the next 12 months, the highest of any of the 13 contact center technologies surveyed in the report.

The report's author, Steve Morrell, commented:

"While web chat has been around for many years, we are seeing a definite increase in the use of this channel, which has huge potential. The real-time nature of web chat means it is akin to a voice conversation in immediacy, giving it an advantage over email. Multiple concurrent web chat sessions can be run, cutting cost per interaction, which means there are sound commercial reasons for businesses to support this channel.

“Survey respondents indicate that the cost of a web chat is roughly equivalent to that of an email – around $3.50 – which is less than half the cost of a typical phone call.

“Web chat is ideally suited to provide assisted service, in case where a customer has tried to use a website but cannot find the information that they are looking for. Customers do not have to break from the website in order to call a business, but can quickly and seamlessly move from self-service to assisted service, improving customer satisfaction, cutting call queues and closing more sales. Furthermore, the rise in smartphone usage means that customers will access websites through mobile devices more often, and will require an assisted service option in case the less feature-rich mobile website does not have what they require.”

"The US Contact Center Decision-Makers' Guide (6th edition - 2013)", is a major study of over 200 US contact center operations, looking at all areas of performance, investment, technology, HR and strategy. The study can be downloaded at www.contactbabel.com.
[Full Article]   Jun-09-2013

 

CIOs Reveal Third-Quarter Hiring Plans

Twelve percent of U.S. chief information officers (CIOs) interviewed recently expect to expand their IT teams in the third quarter of 2013, according to the just-released Robert Half Technology IT Hiring Forecast and Local Trend Report. This compares to 14 percent in the previous quarter. In addition, 56 percent plan to hire for open IT roles, 26 percent expect to put hiring plans on hold, and 6 percent plan to reduce their IT staff in the third quarter.

In the same survey, 85 percent of CIOs said they were somewhat or very confident about their companies' prospects for growth in the third quarter, and 63 percent felt somewhat or very confident in their firms' third-quarter investment in IT projects.

  • U.S. IT Hiring Forecast*


  • CIOs planning to add more staff to IT departments:
    Q2 - 14%, Q3 - 12%

    CIOs planning to hire only for open IT roles
    Q2 - 61%, Q3 - 56%

    CIOs planning to put IT hiring plans on hold
    Q2 - 22%, Q3 - 26%

    CIOs planning to reduce their IT staff
    Q2 - 2%, Q3 - 6%

    Don't know future hiring plans
    Q2 - 1%, Q3 - 1%

    *Numbers do not total 100 percent due to rounding.

    The IT Hiring Forecast and Local Trend Report survey was developed by Robert Half Technology, a leading provider of information technology professionals on a project and full-time basis, and conducted by an independent research firm. The survey is based on more than 2,300 telephone interviews with CIOs from a random sample of U.S. companies in 23 major metro areas with 100 or more employees. Robert Half Technology is a leading provider of IT professionals on a project and full-time basis and has been tracking IT hiring activity in the United States since 1995.

  • Recruiting Challenges


  • In terms of recruiting, 69 percent of CIOs said it's somewhat or very challenging to find skilled IT professionals today. It is most difficult to find skilled talent in the functional areas of networking (18 percent), data/database management (14 percent) and help desk/technical support (13 percent).

  • Confidence in Business Growth and IT Investments


  • The survey results suggest that CIOs are optimistic about their companies' growth and IT investments: Eighty-five percent reported being somewhat or very confident in their companies' prospects for growth in the third quarter of 2013.

    Sixty-three percent of CIOs also said they were somewhat or very confident that their firms would invest in IT projects in the third quarter of 2013.

  • Skills in Demand


  • Among the technology executives surveyed, 55 percent said that network administration and database management were the skill sets in greatest demand within their IT department. Desktop support followed closely, with 54 percent of the response.
    [Full Article]   Jun-09-2013

     

    Worldwide Software Market Forecast to Continue on Modest Growth Trajectory Through 2017, According to IDC

    International Data Corporation (IDC) released the latest forecast from the Worldwide Semiannual Software Tracker. For 2012, the worldwide software market grew 3.6% year over year, less than half the growth rate experienced in 2010 and 2011. IDC believes these results mark the beginning of a more conservative period of growth. The forecast growth rate for 2013 is 5.7% while the compound annual growth rate (CAGR) for the 2012-2017 forecast period is 6.3%.

    The collaborative applications software category is forecast to have the highest growth in the short term (2013). This category includes social software, which is growing from a lower revenue base. The collaborative applications category is also experiencing more cloud deployments than other categories and this represents new software investments. The structured data management software category is expected to show the strongest growth over the five-year forecast period with a 9.3% CAGR from 2012-2017, fueled by faster growth in the last 2-3 years of the forecast. Data management is at the core of the information-driven economy and will play a critical role in the implementation of Big Data and analytics.

    On a regional basis, the emerging economies will experience stronger growth than in mature economies. The average 2012-2017 CAGR for Asia/Pacific (excluding Japan), Latin America, and Central Eastern, Middle East, and Africa (CEMA) is 8.8% while the average CAGR for the mature regions – North America, Western Europe, and Japan – is 5.0%. The emerging regions have been gaining almost 0.7% of market share every year since 2008 and they are expected to represent almost 19% of global software revenues in 2017.
    [Full Article]   Jun-02-2013

     

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