Strategic Imperative and Growth Environment

Strategic Imperative

• As innovation in the customer experience (CX) platforms space accelerates, customer satisfaction is paradoxically declining. According to the Institute of Customer Service, many AI implementations have prioritized cost-cutting over enhancing the CX. This approach is understandable: given that 80 to 90% of customer service costs are tied to labor, AI-driven automation and self-service offer massive savings. In Latin America, some organizations have already reduced agent headcount by 10 to 20%.
• This efficiency-first mindset, however, often leaves customers frustrated, revealing an important opportunity: to shift the focus from cost reduction to experience enhancement.
• The gap between brand perception and customer reality remains stark. Nearly two decades ago, Bain & Company highlighted the “delivery gap,” where 80% of companies believed they offered superior CX, but only 8% of customers agreed. More recent data from Acquia shows the gap persists: while 82% of marketers think they meet customer expectations, just 10% of consumers strongly agree.
• Compounding the challenge, today’s economic uncertainty has tightened budgets, forcing organizations to be more cautious with investments—slowing innovation and transformation.
• Yet, the demand for AI solutions that are purpose-built for CX is growing. Businesses are now seeking domain-specific, secure, and scalable AI tools that go beyond automation. Generative AI and large language models are redefining what’s possible by empowering agents with intelligent tools that automate routine tasks and free them to focus on complex, high-value interactions.
• The future of CX lies in AI that enhances—not replaces—the human touch.
• Lines are blurring among contact center solutions, customer relationship management (CRM), messaging platforms, and other solutions for the contact center (i.e., workforce engagement management [WEM], training, coaching, analytics). While all these converge, competition among providers expands and intensifies simultaneously. It is becoming harder to find competitive differentiation.
• The fight for the agent desktop has intensified, as all competitors want customers to use theirs and to integrate third-party solutions into it.
• A full-fledged portfolio and the infusion of generative AI in most processes in the contact center are sine qua non to stay competitive in the CX platform space. Suites today go far beyond managing inbound and outbound voice and digital customer interactions, and many include:
  • Omnichannel CX orchestration
  • Self-service and autopilot for text and voice
  • Agent assist and co-pilot
  • Knowledge management
  • Workforce management and engagement
  • Automated quality monitoring
  • Auto transcription and summarization
  • Open APIs and pre-set, tight integrations with third-party or proprietary solutions for several tools (i.e., CRM, WEM, enterprise resource planning [ERP], workforce optimization [WFO], analytics, coaching, training, private branch exchange [PBX], and unified communications [UC]).
  • The ability to tailor the deployment architecture (on-premises, on-cloud, hybrid, multi-cloud) and establish migration paths.

Growth Environment

• CX platform providers must help CX transformation, push automation and AI, and reduce costs among their clientele: in some cases, this leads to fewer contact center seats and a smaller deal size, especially in organizations that are heavily voice-focused; in most cases, the provider gains share of wallet and augments its ticket with the customer. As a result, forward-looking providers increase their average ticket while cementing deeper and more profound partnerships around CX transformation.
• As CX becomes a key differentiator in the competitive landscape, organizations across Latin America are stepping up by delivering seamless, personalized, and memorable customer journeys. The demand for superior CX is fueling sustained market expansion and unlocking new growth opportunities.
• WFO, WEM, and advanced analytics solutions are gaining traction—particularly among large enterprises in the banking, financial services, and insurance (BFSI) and retail sectors—as companies prioritize employee experience for both on-site and remote agents, while crafting hyper-personalized customer interactions.
• Cloud-based CCaaS adoption varies across the region, but countries with historically lower penetration are rapidly catching up. Mexico, Peru, Ecuador, and Paraguay are leading the growth, while Chile, Colombia, Brazil, and parts of Central America and the Caribbean exhibit slower growth because their adoption rates were already higher. Overall, the Latin American CCaaS market is projected to grow at a robust 16.9% compound annual growth rate from $396 million in 2024 to $864.6 million in 2029.
• While some global CX platform vendors, such as Odigo, 8x8, RingCentral, Content Guru, Thrio, GoContact (Broadvoice), and Zoom, have yet to make a significant impact in the region, local players, such as Tecnvoz and Smartspace by Digivox, are quickly gaining ground. Frost & Sullivan anticipates that future editions of the Frost Radar™: Customer Experience Platforms in Latin America, 2025 on this topic will reflect a more dynamic and populated competitive landscape.
• While most industries adopt contact center solutions, the key verticals in this market are BFSI (22.8%), healthcare (16.3%), retail (13.9%), and telecommunications (8.2%). Some verticals (e.g., business process outsourcing [BPO], government, and telecom) are more inclined toward premises-based solutions, although many of these organizations are progressively transitioning to cloud environments.
• Frost & Sullivan studies related to this independent analysis:
  • Global Cloud Contact Center Solutions Growth Opportunities
  • Frost Radar™: Cloud Contact Centers in Latin America, 2024

Best Practices & Growth Opportunities

Frost Radar™ Competitive Environment

• The competitive landscape in Latin America’s CX platforms market is rapidly evolving and increasingly fragmented. Generative AI is accelerating innovation, enabling new digital- and self-service-focused entrants to emerge—often at lower price points. While many of these newcomers don’t yet support voice routing and are not included in this Frost Radar™, they are reshaping the digital CX space.
• Established leaders Genesys, NICE, Five9, and Amazon Web Services (AWS) expanded their market share in 2024, while fast-growing challengers Talkdesk, Bright Pattern, GoContact, Inconcert, and net2phone made significant strides. Regional players including Wise CX, 2CX, Callix, Olos, and wolkvox are gaining momentum, and traditional vendors Avaya, Cisco, Mitel, are accelerating their shift toward hybrid solutions.
• Telcos, value-added resellers, and system integrators (e.g., América Móvil, Telefónica, Sixbell, and Nuveto) continue to play a role, though their focus is shifting from hosting to delivering high-value professional services.
• Many vendors adopted hybrid strategies—keeping voice on premises while delivering digital and value-added services via the cloud. Meanwhile, cloud-native providers concentrated on acquiring new customers and displacing legacy competitors.
• The market showed strong momentum, with most vendors achieving double-digit revenue growth in 2024 and expecting similar performance in 2025. At least 90% of customers were retained, and most vendors served more than 50 clients. Revenue concentration was low, with the top three customers typically contributing less than 20% (and as little as 5% for larger players). Investment in innovation remains strong, with R&D spending in the range of 15 to 20% of revenue—even higher among emerging vendors.