Pegasystems Positioned as a Leader in Leading Analyst Firm’s 2010 Magic Quadrant for CRM Customer Service Contact Centers

CAMBRIDGE, Mass. – April 14, 2010Pegasystems Inc. (NASDAQ: PEGA) today announced that it has been positioned as a leader in  the  “Magic Quadrant for CRM Customer Service Contact Centers,” issued by Gartner, a leading independent technology research firm.  Pegasystems was identified among the leaders in an evaluation of 15 vendors included in the report.

Gartner’s Magic Quadrant notes that, “We are seeing a much greater need for strong mash-up capabilities that allow organizations to embed existing applications within the service representative’s desktop. We also see strong demand for a development environment within which the user organization can design its own business objects, workflows, and business processes without resorting to vendor support. We expect this demand for composite applications through in-house development, and application extension to the Internet/Web site to accelerate. We continue to see a great need for advanced decision support and complex knowledge solution capabilities, business rule engines, and customer feedback management.”1

According to Gartner, “As was the case in 2009, budget realities will have an impact on the ambitious goal of creating an integrated and consistent customer experience across channels. Corporations, governments, universities and not-for-profit agencies have made promises to their constituents (customers, citizens, students and donors/supporters, respectively), and they are now discovering that a failure to provide fast, personalized, accurate and consistent service is leading to customer defection.”1 Gartner continues, “Vendors in this space must have convincing business cases and metrics to demonstrate that their products will have a measurable impact on one or more key performance metrics in the customer experience.”1

Gartner also states, “The argument for increased investments in the customer service contact center is bolstered by two facts: Many organizations are facing upgrades of infrastructure, such as older client/server applications, from long-defunct companies, and there are new demands to support the Web-based customer.” 1

Pegasystems’ revolutionary Build for Change® technology helps organizations to positively transform customer experience across all channels and customer touch points. Pegasystems empowers companies to attain an entirely new level of service excellence. Its next-generation CRM solutions are built on Pegasystems’ SmartBPM® Suite, including Customer Process Manager for multichannel customer service, and a variety of customer service frameworks for healthcare, insurance, and financial services. 

In this report, leaders were identified as demonstrating “market-defining vision and the ability to execute against that vision through products, services, demonstrable sales figures, and solid new references for multiple geographies and vertical industries. Clients report that the vendors deliver a high level of value and return on their commitment. The development team has a clear vision of the implications of business rules, and the impact of social networking on customer service requirements. A characteristic of a leader is that clients look to the vendor for clues as to how to innovate in customer service. The vendor does not necessarily drive a customer toward vendor lock-in, but rather provides openness to an ecosystem. When asked, their clients reply that this product has affected the organization's competitive position in their markets and helped lower costs. Leaders can demonstrate $50 million in sales to new customers during the past year.”1

“We have made significant investments in our customer experience technology over the years, and we believe this report confirms that we have made a dramatic impact in the area of CRM and customer service contact centers,” said Alan Trefler, Founder and CEO of Pegasystems.  “Because our Customer Process Manager solution is built on Pegasystems’ patented Build for Change® technology, the solution can dynamically adapt customer processes based on customer intent, the situation, criteria and persona, or business goals. This ensures that customers get the most appropriate and effective level of service, while customer service representatives attain higher productivity, providing rapid return on investment to our clients.”

1 Gartner, Inc., “Magic Quadrant for Customer Relationship Management, 2010,” Michael Maoz, Apr. 9, 2010

* About the Magic Quadrant

The Magic Quadrant is copyrighted 2010 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

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About Pegasystems

Pegasystems (NASDAQ: PEGA) develops strategic applications for marketing, sales, service, and operations. Pega’s applications streamline critical business operations, connect enterprises to their customers seamlessly in real-time across channels, and adapt to meet rapidly changing requirements. Pega’s Global 3000 customers include many of the world’s most sophisticated and successful enterprises. Pega’s applications, available in the cloud or on-premises, are built on its unified Pega 7 platform, which uses visual tools to easily extend and change applications to meet clients’ strategic business needs. Pega’s clients report that Pega gives them the fastest time to value, extremely rapid deployment, efficient re-use, and global scale. For more information, please visit us at www.pega.com.

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