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Customer Experience Management Market By Component (Solution, Services [Professional, Managed]); By Deployment (On-premises, Cloud); By Enterprise Size (Large Enterprises, SMEs); By Touchpoint (Call Center, Website, Mobile Applications, Email, Social Media, Others [Virtual Assistants, Loyalty Programs, and Others]); By End-user (Banking, Financial Services, and Insurance [BFSI], Retail and Consumer Goods, IT and Telecom, Healthcare, Automotive, Media and Entertainment, Government, Others [Oil and Gas, Education, and Others]); By Geography – Growth, Share, Opportunities & Competitive Analysis, 2024 – 2032

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Published: | Report ID: 4355 | Report Format : PDF
REPORT ATTRIBUTE DETAILS
Historical Period  2019-2022
Base Year  2023
Forecast Period  2024-2032
Customer Experience Management Market Size 2024  USD 19,345 Million
Customer Experience Management Market, CAGR  17.4%
Customer Experience Management Market Size 2032  USD 69,809.3 Million

Market Overview

The Customer Experience Management Market is projected to grow from USD 19,345 million in 2024 to USD 69,809.3 million by 2032, at a compound annual growth rate (CAGR) of 17.4%.

The growth of the Customer Experience Management (CXM) market is driven by the increasing demand for personalized customer interactions, the rise in digital transformation initiatives, and advancements in AI and data analytics. Businesses are prioritizing enhanced customer engagement to improve brand loyalty and satisfaction. Additionally, the growing use of omnichannel platforms and real-time feedback systems is reshaping CXM strategies. The shift towards cloud-based solutions and the need for efficient customer support services further contribute to market growth, as organizations aim to streamline operations and offer seamless, consistent experiences across multiple touchpoints.

The Customer Experience Management (CEM) market is growing rapidly across various regions, driven by increasing demand for personalized customer interactions and seamless service. Key players in the market include major companies like Oracle Corporation, Adobe Inc., Salesforce.com, Inc., Microsoft Corporation, Zendesk Inc., and Genesys, who are innovating to offer comprehensive solutions. North America leads the market due to its advanced technological infrastructure, while Europe and Asia-Pacific are also witnessing significant growth, driven by digital transformation initiatives and the adoption of AI and cloud-based solutions. These regions continue to see strong competition and investment in CEM technologies.

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Market Drivers

Rising Customer Expectations

Customers today expect personalized experiences at every touchpoint, whether online or in-store. For instance, a survey by Salesforce found that 75% of business buyers expect companies to provide personalized experiences and anticipate their individual needs. Personalization is key to building lasting relationships and enhancing customer satisfaction. In addition, omnichannel consistency is essential, as customers seek seamless interactions across web, mobile, and physical stores. Businesses must also prioritize prompt resolution, ensuring timely and effective responses to inquiries and issues, which further strengthens customer loyalty and satisfaction.

Data-Driven Insights

Customer analytics have become vital for businesses aiming to understand consumer behavior, preferences, and pain points. Predictive analytics helps organizations anticipate customer needs, allowing them to address issues before they arise. For instance, companies like Netflix use predictive analytics to identify subscribers at risk of canceling their service and proactively offer personalized recommendations or promotions. Additionally, real-time feedback is essential for continuously improving customer experiences, ensuring that businesses stay aligned with customer expectations and can adapt quickly to evolving demands.

Digital Transformation

The growth of e-commerce has heightened the importance of digital customer experiences, pushing businesses to adopt more efficient online strategies. Social media plays a critical role in shaping customer expectations, with platforms amplifying voices and demanding faster responses. Advanced technologies like AI and automation are driving personalized interactions, allowing businesses to meet customer needs more efficiently. These technologies enable faster problem-solving, improving overall customer satisfaction.

Competitive Landscape & Regulatory Compliance

In a competitive market, Customer Experience Management (CEM) plays a significant role in differentiation, helping businesses stand out from competitors. Positive customer experiences drive loyalty and retention, ultimately leading to increased market share. At the same time, adhering to regulatory requirements such as data privacy regulations (GDPR, CCPA) and ensuring accessibility for all customers is crucial. With the rise of remote work, virtual interactions and self-service solutions are becoming essential strategies to maintain effective customer communication and service.

Market Trends

AI, Automation, and Data-Driven Insights

AI and automation are reshaping customer experience management (CEM) with increasingly sophisticated tools. AI-powered chatbots and virtual assistants now handle complex inquiries, offering personalized support and freeing human agents to focus on strategic tasks. For instance, according to a report by Salesforce, a significant number of service decision-makers emphasize the growing importance of AI in customer service. Predictive analytics also plays a key role by analyzing customer data to anticipate needs, proactively addressing potential issues before they arise. Additionally, real-time analytics enable businesses to gain immediate insights into customer behavior and sentiment, facilitating a more agile response. Data-driven strategies, such as customer journey mapping, help businesses identify pain points and opportunities, allowing them to optimize the entire customer experience. These technological advancements empower businesses to deliver more efficient, personalized, and proactive service, ultimately enhancing customer satisfaction and loyalty.

Omnichannel Experience, Personalization, and Emerging Technologies

Customers now expect seamless transitions between various channels, whether on the web, mobile, in-store, or through social media. An omnichannel approach ensures that businesses meet this expectation, delivering consistent experiences no matter how or where customers interact with the brand. For instance, a study by Worldmetrics indicates that a majority of customers prefer brands that offer omnichannel experiences. Personalized interactions based on individual preferences and past behavior are also becoming more crucial in driving customer satisfaction. Alongside this, the rise of hyper-personalization tailors experiences dynamically, adjusting content and offers in real-time based on customer context. Additionally, emerging technologies like voice-activated interactions and visual search are enhancing the customer journey by offering innovative ways to interact with businesses. With the increasing use of IoT devices, businesses are able to gather valuable data to improve the customer experience, while predictive maintenance helps prevent potential issues before they impact the customer. Moreover, blockchain is gaining traction for its ability to provide secure and transparent data sharing, boosting customer trust. Ethical considerations, such as responsible data usage and sustainable practices like eco-friendly packaging and carbon-neutral shipping, are becoming integral parts of the customer experience, reflecting broader consumer preferences for socially responsible brands. As CEM continues to evolve, these trends are central to crafting experiences that are not only personalized and seamless but also secure, ethical, and aligned with customer expectations.

Market Challenges Analysis

Technological, Employee, and Resource Challenges

The integration of various systems and technologies to support customer experience management is a major obstacle for many businesses. The complexity and time-consuming nature of merging different technologies, coupled with data privacy and security concerns, add layers of difficulty. Ensuring customer data is securely handled and compliant with regulations is a constant priority but can strain resources and hinder progress. For instance, integrating CRM systems with other business applications is often cited as a significant challenge. Furthermore, empowering employees to deliver exceptional customer experiences is essential, yet many businesses face skill gaps and challenges in fostering a customer-centric culture. The shift towards this culture is particularly difficult for traditional organizations that have not been accustomed to prioritizing customer experience. Another major challenge is the financial aspect of CEM. Budgetary limitations often restrict the ability to implement comprehensive strategies, while allocating sufficient resources—both in terms of finances and personnel can be difficult. Finally, companies operating in global markets must navigate cross-cultural understanding, addressing language barriers and delivering consistent experiences across different cultural contexts. This requires businesses to adapt their strategies to local preferences and regional expectations, adding further complexity to customer experience management.

Evolving Customer Expectations and Organizational Silos

One of the significant challenges businesses face today is keeping pace with rapidly changing customer preferences. As customer expectations evolve continuously, staying ahead of the curve becomes increasingly difficult, especially for companies catering to diverse customer bases. Personalizing experiences at scale is another challenge. Businesses must balance the demand for tailored interactions with the complexities of large, varied audiences, making it difficult to deliver individualized experiences consistently. Additionally, organizational silos within companies often hinder customer experience management. With different departments working in isolation, inconsistent customer experiences can arise, undermining efforts to provide a seamless journey across touchpoints. Moreover, fragmented data across various departments prevents organizations from gaining a comprehensive view of the customer journey, which impedes the development of cohesive strategies for improving overall customer satisfaction.

Market Segmentation Analysis:

By Component:

The Customer Experience Management (CEM) market is broadly divided into two segments: Solutions and Services. The Solution segment leads the market, driven by advanced technologies such as AI-powered chatbots, predictive analytics, and automation platforms, which help businesses deliver personalized and efficient customer experiences. Solutions provide end-to-end capabilities for businesses to streamline customer interactions, from acquisition to post-sales support. The Services segment, however, is growing rapidly as businesses seek external expertise for professional and managed services. Professional services, which include consulting and integration, help companies implement CEM solutions effectively. Managed services provide ongoing support and maintenance, ensuring optimal performance and continuous improvement of CEM systems. As businesses increasingly recognize the value of a tailored approach to customer experience, the demand for both solutions and services continues to rise.

By Deployment:

Customer Experience Management is also segmented by deployment type: on-premises and cloud-based solutions. The on-premises deployment segment is favored by organizations with strict data security and regulatory compliance requirements, offering them greater control over their systems and infrastructure. However, cloud-based deployment is gaining significant traction due to its scalability, flexibility, and cost-effectiveness. Cloud CEM solutions allow businesses to rapidly scale their operations, integrate advanced AI tools, and provide a more dynamic approach to managing customer interactions across multiple touchpoints. Cloud-based platforms also offer seamless updates and the ability to integrate with other business systems, providing a comprehensive solution to improve customer experiences. As more companies migrate to the cloud, this deployment model is expected to dominate the market, making cloud solutions a critical driver of growth in the CEM industry.

Segments:

Based on Component

  • Solution
  • Services
    • Professional
    • Managed

Based on Deployment

  • On-premises
  • Cloud

Based on Enterprise Size

  • Large Enterprises
  • SMEs

Based on Touchpoint

  • Call Center
  • Website
  • Mobile Applications
  • Email
  • Social Media
  • Others (Virtual Assistants, Loyalty Programs, and Others)

Based on End-user

  • Banking, Financial Services, and Insurance (BFSI)
  • Retail and Consumer Goods
  • IT and Telecom
  • Healthcare
  • Automotive
  • Media and Entertainment
  • Government
  • Others (Oil and Gas, Education, and Others)

Based on the Geography:

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • Germany
    • France
    • U.K.
    • Italy
    • Spain
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • South-east Asia
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Argentina
    • Rest of Latin America
  • Middle East & Africa
    • GCC Countries
    • South Africa
    • Rest of the Middle East and Africa

Regional Analysis

North America

North America holds a dominant position in the Customer Experience Management (CEM) market, accounting for a significant share of the global market. The region is projected to maintain its leadership with a market share of approximately 40%. This dominance is driven by the high adoption rate of advanced technologies, such as AI, machine learning, and cloud-based solutions, which are integral to enhancing customer experience. Companies across various sectors, including retail, BFSI (banking, financial services, and insurance), and healthcare, are increasingly investing in CEM solutions to stay competitive in a fast-evolving market. Additionally, the presence of leading technology providers such as Salesforce, Oracle, and Adobe in North America accelerates innovation and the deployment of cutting-edge CEM tools. The region’s focus on digital transformation, customer-centric strategies, and the growing emphasis on personalization further bolster its strong position in the global CEM landscape. As businesses continue to prioritize customer experience as a differentiating factor, North America’s market share is expected to remain robust in the coming years.

Asia-Pacific

Asia Pacific is experiencing rapid growth in the Customer Experience Management market, driven by increasing digitization, the rise of e-commerce, and a growing focus on improving customer interactions across industries. The region is expected to capture approximately 25% of the global market share, making it one of the fastest-growing regions in CEM adoption. In particular, countries like China, India, and Japan are witnessing significant demand for CEM solutions as businesses strive to provide personalized and seamless customer experiences across various digital touchpoints. With a young, tech-savvy consumer base and a burgeoning middle class, there is an increasing expectation for businesses to enhance their customer service. The rapid growth of social media and mobile applications in the region is also pushing companies to adopt CEM tools that enable real-time customer feedback, predictive analytics, and proactive engagement. As organizations in Asia Pacific focus on digital transformation and customer retention, the region’s CEM market share is set to continue expanding, driven by advancements in cloud computing, AI, and automation technologies.

Key Player Analysis

  • Oracle Corporation (U.S.)
  • Adobe Inc. (U.S.)
  • com, Inc. (U.S.)
  • Microsoft Corporation (U.S.)
  • Zendesk Inc. (U.S.)
  • Medallia Inc. (U.S.)
  • Freshworks Inc. (U.S.)
  • Genesys (U.S.)
  • OpenText Corporation (Canada)
  • SAP SE (Germany)

Competitive Analysis

The competitive landscape of the Customer Experience Management (CEM) market is marked by intense innovation and strategic initiatives by leading players such as Oracle Corporation, Adobe Inc., Salesforce.com, Inc., Microsoft Corporation, Zendesk Inc., Genesys, Medallia Inc., Freshworks Inc., SAP SE, and OpenText Corporation. These companies focus on enhancing their offerings through advanced technologies like AI, machine learning, and real-time analytics to deliver personalized and seamless customer interactions. Key strategies include mergers and acquisitions, product launches, and expanding cloud-based services to meet the dynamic needs of diverse industries. Additionally, players are investing heavily in R&D to stay ahead in this highly competitive space while catering to the increasing demand for omnichannel and data-driven solutions. Their ability to adapt to evolving customer expectations and technological advancements significantly drives their leadership in the market.

Recent Developments

  • In November 2023, Zendesk launched CRM and customer service no-code tools for customer service agents. The tools include object triggers for Zendesk’s custom object to automate the task.
  • In June 2023, Adobe introduced Adobe Product Analytics for its enterprise customers to provide a personalized experience across various touchpoints and maximize operational efficiency.
  • In March 2023, General Motors adopted Adobe Experience Cloud enterprise application to deliver highly personalized marketing services and real-time customer engagement journeys.
  • In March 2023, Q-nomy, a company specializing in customer journey management solutions, launched Cubu. Cubu combines customer flow management, appointment scheduling, and customer interaction management in one integrated solution.
  • In October, 2022, ResultsCX, a Customer Experience Management service provider, expanded its geographic presence in the U.K. and Europe. The company completed this expansion by acquiring a Bulgarian CXM provider and establishing its European headquarters in London.

Market Concentration & Characteristics

The Customer Experience Management (CEM) market is moderately concentrated, with a mix of global leaders and niche players shaping its dynamics. Key players such as Adobe Inc., Salesforce.com, Inc., Oracle Corporation, and Zendesk Inc. dominate the market with robust portfolios that leverage advanced technologies like artificial intelligence, predictive analytics, and automation. These companies exhibit strong capabilities in delivering personalized, omnichannel experiences across diverse industries. The market is characterized by rapid technological innovation, growing adoption of cloud-based solutions, and an increasing emphasis on real-time customer insights. Barriers to entry include high initial investments and the complexity of integrating diverse customer touchpoints, which favor established players. However, niche firms are gaining traction by offering tailored solutions for specific industries or regions. Overall, the CEM market reflects a dynamic blend of competition and collaboration, driven by the constant evolution of customer expectations and digital transformation initiatives.

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Report Coverage

The research report offers an in-depth analysis based on Component, Deployment, Enterprise Size, Touchpoint, End-user and Geography. It details leading market players, providing an overview of their business, product offerings, investments, revenue streams, and key applications. Additionally, the report includes insights into the competitive environment, SWOT analysis, current market trends, as well as the primary drivers and constraints. Furthermore, it discusses various factors that have driven market expansion in recent years. The report also explores market dynamics, regulatory scenarios, and technological advancements that are shaping the industry. It assesses the impact of external factors and global economic changes on market growth. Lastly, it provides strategic recommendations for new entrants and established companies to navigate the complexities of the market.

Future Outlook

  1. The adoption of artificial intelligence and machine learning will continue to enhance personalization and predictive analytics in customer experience management.
  2. Cloud-based solutions will dominate the market, providing scalability and flexibility for businesses of all sizes.
  3. The integration of advanced analytics tools will help organizations gain deeper insights into customer behavior and preferences.
  4. Omnichannel experiences will become increasingly important as customers demand seamless interactions across platforms.
  5. The growing influence of social media will drive companies to focus on real-time engagement and reputation management.
  6. Automation of routine customer service tasks will free up resources for more complex problem-solving.
  7. Enhanced data privacy and compliance measures will become a priority to build customer trust and meet regulatory requirements.
  8. Emerging technologies like IoT and blockchain will further transform customer interactions and operational transparency.
  9. Small and medium enterprises will increasingly adopt CEM solutions to compete with larger businesses.
  10. Sustainability and ethical business practices will play a significant role in shaping customer experiences and brand loyalty.

1. Introduction
1.1. Report Description
1.2. Purpose of the Report
1.3. USP & Key Offerings
1.4. Key Benefits for Stakeholders
1.5. Target Audience
1.6. Report Scope
1.7. Regional Scope
2. Scope and Methodology
2.1. Objectives of the Study
2.2. Stakeholders
2.3. Data Sources
2.3.1. Primary Sources
2.3.2. Secondary Sources
2.4. Market Estimation
2.4.1. Bottom-Up Approach
2.4.2. Top-Down Approach
2.5. Forecasting Methodology
3. Executive Summary
4. Introduction
4.1. Overview
4.2. Key Industry Trends
5. Global Customer Experience Management Market
5.1. Market Overview
5.2. Market Performance
5.3. Impact of COVID-19
5.4. Market Forecast
6. Market Breakup by Component
6.1. Solution
6.1.1. Market Trends
6.1.2. Market Forecast
6.1.3. Revenue Share
6.1.4. Revenue Growth Opportunity
6.2. Services
6.2.1. Professional
6.2.1.1. Market Trends
6.2.1.2. Market Forecast
6.2.1.3. Revenue Share
6.2.1.4. Revenue Growth Opportunity
6.2.2. Managed
6.2.2.1. Market Trends
6.2.2.2. Market Forecast
6.2.2.3. Revenue Share
6.2.2.4. Revenue Growth Opportunity
7. Market Breakup by Deployment
7.1. On-premises
7.1.1. Market Trends
7.1.2. Market Forecast
7.1.3. Revenue Share
7.1.4. Revenue Growth Opportunity
7.2. Cloud
7.2.1. Market Trends
7.2.2. Market Forecast
7.2.3. Revenue Share
7.2.4. Revenue Growth Opportunity
8. Market Breakup by Enterprise Size
8.1. Large Enterprises
8.1.1. Market Trends
8.1.2. Market Forecast
8.1.3. Revenue Share
8.1.4. Revenue Growth Opportunity
8.2. SMEs
8.2.1. Market Trends
8.2.2. Market Forecast
8.2.3. Revenue Share
8.2.4. Revenue Growth Opportunity
9. Market Breakup by Touchpoint
9.1. Call Center
9.1.1. Market Trends
9.1.2. Market Forecast
9.1.3. Revenue Share
9.1.4. Revenue Growth Opportunity
9.2. Website
9.2.1. Market Trends
9.2.2. Market Forecast
9.2.3. Revenue Share
9.2.4. Revenue Growth Opportunity
9.3. Mobile Applications
9.3.1. Market Trends
9.3.2. Market Forecast
9.3.3. Revenue Share
9.3.4. Revenue Growth Opportunity
9.4. Email
9.4.1. Market Trends
9.4.2. Market Forecast
9.4.3. Revenue Share
9.4.4. Revenue Growth Opportunity
9.5. Social Media
9.5.1. Market Trends
9.5.2. Market Forecast
9.5.3. Revenue Share
9.5.4. Revenue Growth Opportunity
9.6. Others (Virtual Assistants, Loyalty Programs, and Others)
9.6.1. Market Trends
9.6.2. Market Forecast
9.6.3. Revenue Share
9.6.4. Revenue Growth Opportunity
10. Market Breakup by End-User
10.1. Banking, Financial Services, and Insurance (BFSI)
10.1.1. Market Trends
10.1.2. Market Forecast
10.1.3. Revenue Share
10.1.4. Revenue Growth Opportunity
10.2. Retail and Consumer Goods
10.2.1. Market Trends
10.2.2. Market Forecast
10.2.3. Revenue Share
10.2.4. Revenue Growth Opportunity
10.3. IT and Telecom
10.3.1. Market Trends
10.3.2. Market Forecast
10.3.3. Revenue Share
10.3.4. Revenue Growth Opportunity
10.4. Healthcare
10.4.1. Market Trends
10.4.2. Market Forecast
10.4.3. Revenue Share
10.4.4. Revenue Growth Opportunity
10.5. Automotive
10.5.1. Market Trends
10.5.2. Market Forecast
10.5.3. Revenue Share
10.5.4. Revenue Growth Opportunity
10.6. Media and Entertainment
10.6.1. Market Trends
10.6.2. Market Forecast
10.6.3. Revenue Share
10.6.4. Revenue Growth Opportunity
10.7. Government
10.7.1. Market Trends
10.7.2. Market Forecast
10.7.3. Revenue Share
10.7.4. Revenue Growth Opportunity
10.8. Others (Oil and Gas, Education, and Others)
10.8.1. Market Trends
10.8.2. Market Forecast
10.8.3. Revenue Share
10.8.4. Revenue Growth Opportunity
11. Market Breakup by Region
11.1. North America
11.1.1. United States
11.1.1.1. Market Trends
11.1.1.2. Market Forecast
11.1.2. Canada
11.1.2.1. Market Trends
11.1.2.2. Market Forecast
11.2. Asia-Pacific
11.2.1. China
11.2.2. Japan
11.2.3. India
11.2.4. South Korea
11.2.5. Australia
11.2.6. Indonesia
11.2.7. Others
11.3. Europe
11.3.1. Germany
11.3.2. France
11.3.3. United Kingdom
11.3.4. Italy
11.3.5. Spain
11.3.6. Russia
11.3.7. Others
11.4. Latin America
11.4.1. Brazil
11.4.2. Mexico
11.4.3. Others
11.5. Middle East and Africa
11.5.1. Market Trends
11.5.2. Market Breakup by Country
11.5.3. Market Forecast
12. SWOT Analysis
12.1. Overview
12.2. Strengths
12.3. Weaknesses
12.4. Opportunities
12.5. Threats
13. Value Chain Analysis
14. Porters Five Forces Analysis
14.1. Overview
14.2. Bargaining Power of Buyers
14.3. Bargaining Power of Suppliers
14.4. Degree of Competition
14.5. Threat of New Entrants
14.6. Threat of Substitutes
15. Price Analysis
16. Competitive Landscape
16.1. Market Structure
16.2. Key Players
16.3. Profiles of Key Players
16.3.1. Oracle Corporation (U.S.)
16.3.1.1. Company Overview
16.3.1.2. Product Portfolio
16.3.1.3. Financials
16.3.1.4. SWOT Analysis
16.3.2. Adobe Inc. (U.S.)
16.3.3. Salesforce.com, Inc. (U.S.)
16.3.4. Microsoft Corporation (U.S.)
16.3.5. Zendesk Inc. (U.S.)
16.3.6. Medallia Inc. (U.S.)
16.3.7. Freshworks Inc. (U.S.)
16.3.8. Genesys (U.S.)
16.3.9. OpenText Corporation (Canada)
16.3.10. SAP SE (Germany)
17. Research Methodology

 Frequently Asked Question:

What is the current size of the Customer Experience Management Market?

The Customer Experience Management (CXM) market is valued at USD 19,345 million in 2024 and is expected to grow to USD 69,809.3 million by 2032, with a CAGR of 17.4%.

What factors are driving the growth of the Customer Experience Management Market?

Key drivers include increasing demand for personalized customer interactions, digital transformation initiatives, advancements in AI and data analytics, the rise of omnichannel platforms, and the adoption of cloud-based solutions.

What are the key segments within the Customer Experience Management Market?

The market is segmented by component (solutions, services), deployment (on-premises, cloud), enterprise size (large enterprises, SMEs), touchpoints (call centers, websites, mobile apps, social media), and end-user industries (BFSI, retail, healthcare, IT, and telecom).

What are some challenges faced by the Customer Experience Management Market?

Challenges include integration complexities, data security concerns, evolving customer expectations, organizational silos, and budget constraints that hinder the implementation of comprehensive strategies.

Who are the major players in the Customer Experience Management Market?

Major players include Oracle Corporation, Adobe Inc., Salesforce.com, Microsoft Corporation, Zendesk Inc., Medallia Inc., Genesys, Freshworks Inc., SAP SE, and OpenText Corporation.

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