Procurement Market Intelligence Report
Interactive Voice Response Software
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Interactive Voice Response Software Global Overview
Definition
Summary
IVR software allows callers to navigate a computer system using a telephone keypad or voice commands. IVR software can be used to transfer phone calls as well as deliver and collect information from callers. Banks and financial institutions use IVR systems to allow their clients and customers to check balances and transactions. Travel agencies and airlines use IVR systems to let travelers check their flight information and itineraries. Although IVR software is typically used to handle incoming phone calls, it can also be used to perform outbound phone calls.
This Report Includes:
- Voice Response Software
- Interactive Options
Not in this Report:
- Call Center Software
- Phone Hardware
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Global Interactive Voice Response Software Procurement Trends
Discover the top international trends affecting procurement in the global Interactive Voice Response Software market.
Warning Trends
The European Union’s Artificial Intelligence (AI) Act enters into force
- In August 2024, the European Union (EU) began enforcing its new regulation on artificial intelligence. Although EU legislation, the act will have a major effect on global technological companies operating in the AI space, similar to the General Data Protection regulation.
- The legislation aims to apply a risk-based framework to AI regulation, meaning different AI applications will be treated differently. The law applies a general ban for “unacceptable” uses, such as social scoring and predictive policing.
- For general-purpose AI models, companies will be required to comply with EU copyright law and intellectual property provisions, carry out regular testing, issue transparency disclosures, and implement adequate cybersecurity protections. For “high-risk” AI applications, such as autonomous vehicles, medical devices, financial services, and biometric identification systems, companies must meet stricter requirements in terms of risk-mitigation systems, documentation, human oversight, and cybersecurity.
- Companies that breach the AI Act may face fines ranging from 7.5 million euros or 1.5% of global annual revenues to 35.0 million euros or 7.0% of global annual revenues, whichever amount is higher.
- While the blanket ban on unacceptable systems entered into force in February 2025, most of the obligations do not take effect for a full year. In August 2025, requirements for general-purpose AI will come into effect, and in August 2026, obligations for high-risk AI systems will be enforced.
Russian invasion of Ukraine is putting additional strain on US chip supply
- Until recently, the United States sourced nearly all of its neon gas (an essential material in the laser imprinting process to produce semiconductors) from Ukrainian and Russian producers. Previous conflicts between the two nations, specifically related to the Crimea conflict in 2014, resulted in a nearly 600.0% increase in the price of neon.
- The Russian Ministry of Industry and Trade announced in early June that it would be limiting neon gas exports as part of its sanctions against countries it views as unfriendly. This move will add to lead times and prices for neon.
- Downstream semiconductor manufacturers keep stockpiles of neon gas that have allowed them to continue manufacturing chips, though it is unknown how long these stockpiles will last. Semiconductor manufacturers will likely pay higher prices for neon gas outside Ukraine as global supplies dwindle.
Positive Trends
The DOJ proposes Google breakup in latest tech antitrust action
- In August, Google was found guilty of operating as a monopoly and engaging in anti-competitive practices through the operation of its search engine business.
- In response to this ruling the Department of Justice (DOJ) has stated it will seek a breakup of Google’s business segments, among other similarly harsh penalties. While the actual penalty Google receives must be approved by the judge, the DOJ’s proposed penalties signal a zero-tolerance policy toward tech monopolies.
- During the last few years, the Federal government has significantly increased its enforcement actions against major technology companies in an effort to contest the high level of market share concentration in this sector.
- These actions include high-profile anti-trust lawsuits against Amazon, Apple, and Meta, in addition to the case against Google. Consequently, the results of these lawsuits could significantly affect the structure of a wide range of tech markets.
Global Interactive Voice Response Software Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1 Europe | 255 |
| #2 United States | 200 |
| #3 South America | 130 |
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Geography Drilldown - US
Average Cost of Interactive Voice Response Software
United States
2026 Market Pricing$8.00 to $XX.XX
per port per monthAverage Price
Prices in the Interactive Voice Response Software market range from $8.00 to $XX.XX, depending on Number of Ports, Interface, Features and Accuracy of Speech Recognition. For example, lower prices are associated with More ports ($20.00 to $100 per port per month), whereas higher prices are associated with Fewer ports ($5.00 to $15.00 per port per month).
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Between our Europe and Canada collections, we provide price data for 350 markets so you can instantly compare prices across borders. Or, use our custom research services for intel on prices in any region across the globe.
Interactive Voice Response Software Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Interactive Voice Response Software market, prices in the US have grown 1.9% from 2022 to 2025. Subscribers can access price trend forecasts, price driver projections and forward-looking cost structure data. Learn more
United States (2022-2025)
United States (2025-2028)
Compound Annual Growth Rate
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Cost Analysis - Total Cost of Ownership for Interactive Voice Response Software
Total cost of ownership is Low in the Interactive Voice Response Software market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Cancellations may raise the total cost of ownership unexpectedly.
Negotiated Before
Customization
Billed During
Upgrades
Unforeseen
Cancellations
Buyer Power in Procurement Negotiations
In 2026, buyer power amounts to -1.6 in the United States. Buyer power is most positively impacted by Forecast Price Trend. It is most negatively impacted by Availability of Substitutes. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
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Supply Chain Risk
The average level of supply chain risk is assessed as Low, which has a positive impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Computer Manufacturers
- IT Consulting Firms
- IT Consulting Firms
2nd
Tier Suppliers
- Semiconductor Manufacturers
- Office Stationery Manufacturers
- Computer & Software Wholesalers
- Office Stationery Manufacturers
- Computer & Software Wholesalers
Biggest Interactive Voice Response Software Suppliers in the US by Revenue
The largest Interactive Voice Response Software vendors by revenue in the US are Five9 Inc., Zendesk Inc. and Avaya Holdings Corp. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| Five9 Inc. | Global | SAN RAMON, CA | 1,001-10,000 | 10-15 | ||||
| Cisco Systems, Inc. | Global | SAN JOSE, CA | >10,000 | 25+ | ||||
| Aspect Software, Inc. | Global | Westford, MA | 1,001-10,000 | 25+ | ||||
| Td Synnex Corporation | Global | FREMONT, CA | >10,000 | < 5 | ||||
| Avaya Holdings Corp. | Global | DURHAM, NC | 1,001-10,000 | < 5 | ||||
| Zendesk Inc. | International | SAN FRANCISCO, CA | 1,001-10,000 | < 5 | ||||
| 8x8, Inc. | Global | CAMPBELL, CA | 1,001-10,000 | < 5 | ||||
| Genesys Telecommunications Laboratories Inc. | Global | Menlo Park, CA | 1,001-10,000 | < 5 | ||||
| Enghouse Systems Ltd | Global | Markham, CA | 1,001-10,000 | < 5 | ||||
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Profit Analysis
The average profit margin across vendors in the Interactive Voice Response Software market is 24.1% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Wages. The cost trend for this component is falling, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
Vendor risk in the market is low due to the large size and diversified offerings of each vendor. Furthermore, the financial stability of the largest vendors ensures that purchasing from these vendors has a low risk of a discontinuity of service.
Market share concentration in the market is high due to the high percentage of revenue that is controlled by the top suppliers in the market. As a result, buyers have less ability to leverage competitors' offerings during the negotiation process.
Supply chain risk is currently low due to the labor-based nature of the software market. Also, the market does not heavily rely on a regular flow of physical inputs, thus low supply chain risk reduces the risk of a disruption of services.
The United States is a net importer of computers, meaning it imports more computers than it exports. While lower manufacturing costs abroad drive down prices for imported computers, relying on imports can lead to potential shortages or price increases if there are supply chain disruptions due to geopolitical tensions, trade disputes, or global crises.
Supplier Information
Five9 Inc.
Five9 Inc. is a provider of intelligent cloud software for contact centers. It offers the Virtual Contact Center (VCC) cloud platform, which delivers a comprehensive suite of easy-to-use applications enabling contact center-related customer service, sales, and marketing functions. Its end-to-end capabilities... Subscribe to learn more
Aspect Software, Inc.
Alvaria, Inc. is a private company operating globally in the manufacturing and information sectors. The company's offerings include interactive voice response software and help desk & call center software. Founded in 1973, the company is currently headquartered in Atlanta, Georgia, United States of America... Subscribe to learn more
Cisco Systems, Inc.
Cisco Systems, Inc. is a public company operating globally in the manufacturing, information and professional, scientific and technical services sectors. The company's offerings include rail signaling systems, office phones, print servers, computer servers, database management systems. Founded in 1984, the... Subscribe to learn more
8x8, Inc.
8x8, Inc./DE/ is a global provider of integrated customer experience and business communications solutions to enterprises. It delivers a cloud-native 8x8 Platform for Customer Experience (CX), which integrates voice, video, messaging, and team collaboration channels into a single architecture. It serves mid-market,... Subscribe to learn more
Avaya Holdings Corp.
Avaya Holdings Corp. is a public company operating globally in the manufacturing and information sectors. The company's offerings include office phones, interactive voice response software, pbx phone systems and phone & video conference equipment. Founded in 2000, the company is currently headquartered in... Subscribe to learn more
Enghouse Systems Ltd
Enghouse Systems Ltd is a public company operating globally in the manufacturing and information sectors. The company's offerings include interactive voice response software, help desk & call center software, videoconferencing software and phone & video conference equipment. Founded in 1984, the company is... Subscribe to learn more
Genesys Telecommunications Laboratories Inc.
Genesys Telecommunications Laboratories Inc. is a private company operating globally in the information sector. The company's offerings include interactive voice response software and help desk & call center software. Founded in 1990, the company is currently headquartered in Menlo Park, California, United... Subscribe to learn more
Td Synnex Corporation
TD SYNNEX Corp. is a global distributor and solutions aggregator for the information technology (IT) ecosystem. It aggregates and distributes IT hardware, software, and systems, including personal computing devices and peripherals, mobile phones and accessories, printers, server and data center infrastructure,... Subscribe to learn more
Zendesk Inc.
Zendesk Inc. is a private company operating internationally in the information sector. The company's offerings include interactive voice response software and help desk & call center software. Founded in 2009, the company is currently headquartered in SAN FRANCISCO, California, United States of America with... Subscribe to learn more
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Procurement Management KPIs for the Interactive Voice Response Software Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Average Resolution Time and Employee Engagement. Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Platform Availability and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Average Resolution Time |
|
Average time to resolve a minor issue Average time to resolve a major issue |
The supplier’s ability to resolve technical problems quickly and effectively is key for maximizing the usefulness of IVR software. Vendors should be able to resolve minor issues within 4 hours and major issues within two business days. |
| Employee Engagement |
|
Number of meetings Average number of participants per meeting |
To ensure that IVR software is providing value to the buyer’s organization, buyers should assess how many employees are making use of the software. The average number of participants using the software and how often they are using it can be a useful gauge of employee engagement. |
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Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Integration
What endpoint devices, operating systems and browsers can be used with your IVR software?
Do you sell IVR software by itself, or is it only sold with the purchase of contact center software?
Deployment Method
How does hosted software compare with in-house software?
What cost savings do cloud-based IVR software provide compared to solutions installed on my computers?
Installation
What software tools do you provide to create scripts and menus?
How does IVR software connect customers and clients with live agents?
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Interactive Voice Response Software RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should provide a general overview of their business, including the number of employees and region(s) in which they operate.
Buyers should state the features of IVR software they desire.
Statement Of Need
Buyers should specify the features that are needed in the software and the options for voice responses.
Buyers should describe their existing IT infrastructure and state how the IVR software will work with their hardware.
Project Budget
Buyers should specify the total budget for their software purchase.
Buyers should include details about spending expectations and limitations.
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- Supply chain and vendors
- Global supplier breakdown
- Market share concentration
- Regulation and business requirements
- Vendor management and KPIs
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