Verint Extends Mid-market Reach with the Acquisition of Mercom Systems

Published: 17 Aug 2006

By Seema Lall, Industry Analyst, Frost & Sullivan

Acquisition Summary

On July 14, Verint announced the acquisition of Mercom Systems, a privately held provider of interaction recording and performance evaluation solutions for small-to-midsize contacts centers. This acquisition is widely expected to strengthen Verint’s reach into the lucrative mid-market, and provide a global base for its expanded portfolio of quality monitoring and analytical solutions.

State of the Market

Quality Monitoring systems help drive improvements in agent performance, and have been delivering value to customers for several years. The slowdown in the rate of new contact center additions to the North American market has presented several growth challenges for vendors in this space. In addition the market is maturing, especially within the upper end of the market i.e. large contact centers. Competitive displacements, upgrades to existing systems and upgrades to take advantage of newer technologies such as speech analytics, form the core of majority of growth strategies for this marketplace.

The potential for VoIP recording solutions is also immense, as contact centers continue to upgrade infrastructures to embrace IP based technology. The continued success in outsourcing of customer care operations to more cost-effective geographies such as Asia, Africa and Latin America has resulted in a significantly higher growth rate for these regions. A large number of quality monitoring vendors have successfully targeted the lucrative regions of Asia Pacific, EMEA, and Latin America as part of their global expansion strategy.

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