VoiceXML tipped to become the dominant platform for IVR technology in 2008

VoiceXML, which is the open standard software-based approach in interactive voice response technology, is proliferating at a rapid rate as businesses demand greater flexibility, agility, affordability, scalability and innovation in interactive voice response solutions. Datamonitor research suggests that 2008 will be an inflection point for VoiceXML-based interactive voice response (IVR), with the number of shipped ports utilizing the technology expected to surpass traditional IVR ports for the first time.

The advent of web-based, open-standards like VoiceXML, and other next generation platforms, has opened up new possibilities for personalized phone self-service by simplifying the design, development and management aspects of IVR. Datamonitor predicts that global investment in IVR licenses will increase from $475 million in 2006 to $845 million by 2012 as the business climate becomes accustomed to VoiceXML platforms. By 2009 almost 69% of IVR shipments will be based on VoiceXML.

Mature markets like North America, Europe, the Middle East and Africa are seeing a lot of replacement and upgrade activity. According to Datamonitor, these markets will witness a compound annual growth rate (CAGR) of 6% and 9%, respectively, from 2007-2012. But it is the greenfield opportunities in the emerging markets of Asia Pacific, the Caribbean and Latin America that are growing at the fastest rate, with predicted CAGR of 18% and 14%, respectively, over the same period. [click heading for more]