Tom Smith Sr. Manager IVR/Speech Product Marketing Verizon Business

1. IP in the Contact Center Tom Smith Sr. Manager IVR/Speech Product Marketing Verizon Business March 8, 2005

2. Agenda • Contact Centers vs. Call Centers • Matching Technology to Business Needs • Industry Trends: The Migration to IP • How Can You Get There? • What Does IP Mean for Speech?

3. What do today’s Contact Centers look like? • Multi-site • Proximity to skilled, low-cost workforce • Follow-the-sun • Home-based agents • On-demand workforce to meet volume needs • Multimedia • Live and self-service phone calls • Web collaboration • Email, instant messaging, fax • CTI, intelligent routing, universal queuing

4. Challenges Facing Today’s Contact Centers • Supporting geographically dispersed contact centers – including home-based agents • Integrating disparate legacy systems • Providing uniform QOS across locations • Streamlining contact center management • Efficiently handling fluctuating volumes • Converging multichannel communications (universal queuing, integrated reporting) • Integrating voice applications and data • Managing costs

5. Traditional technologies do not effectively address the challenges… • Multiple switching layers

6. Traditional technologies do not effectively address the challenges… • Increased network complexity Voice network complexity • Multiple switching layers

7. Traditional technologies do not effectively address the challenges… • Increased network complexity • Increased premise equipment • Multiple switching layers

8. Traditional technologies do not effectively address the challenges… • Increased network Complexity • Silo solutions • Increased premise equipment • Multiple switching layers

9. IP Carriers,Internet TDM Carriers Cellular Shared IP/MPLS Network IP architecture promises a simpler, more flexible solution Integrated Applications Environment PBX/ACD, IVR, CTI, WFM, QM TDM IP Application Servers APPLICATIONS SS7 Application Infrastructure Media GatewayController SessionController TrunkGateway Verizon Managed IP/MPLS Network (ILEC & GNS) NETWORKS LineGateway Broadband IP Copper ACCESS CPE POTS • The transformed network

10. The move to IP contact centers is underway • 16% of contact centers surveyed are deploying IP • Another 30% plan to deploy in two years or less • 38% are considering IP • Only 15% expressed no intention to deploy IP

11. Contact center investment in IP is increasing globally • Global IP inbound routing spending will increase at a CAGR of 39.4% • Growth will occur in all regions • North America represents the highest spending, followed by EMEA • North America and EMEA combined will account for over 70% of the spending through 2009 Source: Datamonitor, IP Contact Centers to 2009, 2005

12. U.S. Contact Centers are Shifting from TDM to IP • Agent positions supported by TDM will decrease at a CAGR of (7.2%) • Agent positions supported by IP will increase at a CAGR of 36.1% • IP will support 32.2% of U.S. agent positions by 2009 Source: Datamonitor, Contact Centers in USA (Databook), 2006

13. Business Benefits • Demonstrable cost savings • Capital reductions via CPE avoidance • Lower operating expenses (deployment, management, MACD’s) • Additional functionality • Transfers, calls and conferencing initiated via the desktop • Presence and unified messaging to provide greater productivity • Multimedia applications that can be streamlined across one network • Support for geographically dispersed environment • Satellite and/or offshore centers • Agent base easily adaptable to the needs of the business and vice versa IP will facilitate the convergence of telephony and computing in the contact center

14. Operational Benefits • Business Continuity • Disaster Recovery • Cost effective availability • Support • Data Center Applications • Merge Support for Voice & Data • Quick start up time • New Locations • New Business Units

15. Customer Needs Driving IP Adoption • Primary driver is need to effectively manage multiple sites and remote agents

16. ContactCenter IVR CTI Consolidate all internal resources as one central asset to manage customers’ interactions and deliver premium customer service QM PBX ACD WFM HomeOffices BackOffice BranchOffices The vision is appealing… …but how do you get there?

17. Keys to Successful IP Migration • Appropriate solution must leverage existing infrastructure • Customer may continue to grow legacy environment, but should avoid hefty capital outlays in traditional equipment • Test applications in a lab and/or pilot environment prior to full scale deployment • Focus initial migration efforts on vendors thatsupport interoperability standards • Expect it to take 1-2 years to fully realize benefits of IP migration

18. Phased Migration: Leveraging Legacy TDM Infrastructure While Moving to IP

19. VoIP’s Impact on Speech Recognition • Flexible distributed VoIP architecture allows robust data to be passed to and from the Speech application • VoIP facilitates load balancing, improving efficiency of Speech resources • Media Resource Control Protocol (MRCP) lets developers manage speech resources separately from applications – meaning faster, cheaper deployments and upgrades