Customer engagement revenue continues to grow, driven by enhanced automation capabilities

Telecoms operator spending in the customer engagement (CE) market grew by 3.8% year on year in 2024, down from 6.1% in 2023. The slower growth can be attributed to the 1.6% decline in professional services revenue for CE, compared with 4.8% growth in the previous year. In contrast, product revenue rose sharply; it grew by 12.2% in 2024, compared to 8.2% in 2023. This change shifted the CE revenue mix. Professional services accounted for 61% of revenue, and products 39%, in 2023; the split was 58% to 42%, respectively, in 2024. This article highlights the key trends and shifts in vendor strategies that occurred throughout the year.