Pegasystems Selected as a Visionary by Leading Industry Analyst Firm in 2009 Magic Quadrant for CRM Customer Service Contact Centers

Pegasystems (NASDAQ: PEGA) announced today that it has been positioned as a visionary in a key analyst report on global providers of CRM solutions for contact centers.

On April 3, 2009, Gartner, Inc., the world’s largest technology analyst firm, revealed its Magic Quadrant for CRM Customer Service Contact Centers, 2009, authored by Michael Maoz, VP Distinguished Analyst. Pegasystems is included as one of 15 companies evaluated by Gartner in the report.

According to Gartner, "The current economic slowdown is focusing business leaders on the central role of Customer Service to simultaneously lower costs and build customer loyalty. …The negative shift in the economic picture has elevated this focus because customer retention now requires greater scrutiny. The loss of a profitable customer, or potentially profitable customer, is expensive and preventable. The contact center, which integrates and synchronizes post-sale customer interactions, is the most-critical flashpoint for the customer relationship.”¹

"There is a long legacy of customer service and contact center technologies. However, those technologies cannot keep up with the rapid rate of business change,” said Alan Trefler, founder and CEO of Pegasystems. "Based on Gartner’s research, the value that process automation brings to business organizations looking to compete on customer service in a difficult economy is becoming more apparent every day. We feel that this new approach to CRM is going to be a game changing factor that can enable organizations to better serve their customers.”

In the report, Maoz observes, "The current generation of CRM application providers in the customer service contact center space continue to lag user needs. The major enterprise application providers excel at commodity tasks, such as product selection, order management, payment, account setup and basic support.”¹ The research also notes that the most-pressing need for new capabilities revolves around areas such as native business process management for the customer service function; customer data integration; integration of knowledge solutions onto the agent desktop and real time decisioning support to understand customer intentions and customize services and interactions.

According to Gartner, a visionary in the Magic Quadrant is defined by the following criteria: "Visionaries are ahead of potential competitors in delivering innovative products and delivery models. They anticipate emerging/changing customer service needs and move into the new market space. They have a strong potential to influence the direction of the Customer Service and Support (CSS) market, but they are limited in execution or demonstrated track record. Typically, their products and market presence are not yet complete or established enough to challenge the leading vendors.”¹

For more information on Pegasystems or for a copy of this report, compliments of Pegasystems, go to http://www.pega.com/content/summary.asp?ci=424.

About the Magic Quadrant

The Magic Quadrant is copyrighted 2009 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.

About Pegasystems

Pegasystems, the leader in Business Process Management, provides software to drive revenue growth, productivity and agility for the world's most sophisticated organizations. Customers use our award-winning SmartBPM suite to improve customer service, reach new markets and boost operational effectiveness.

Our patented SmartBPM technology makes enterprise applications easy to build and change by directly capturing business objectives and eliminating manual programming. SmartBPM unifies business rules and processes into composite applications that leverage existing systems -- empowering businesspeople and IT staff to Build for Change, deliver value quickly and outperform their competitors.

Pegasystems’ suite is complemented by best-practice frameworks designed for leaders in financial services, insurance, healthcare, government, life sciences, communications, manufacturing and other industries.

Headquartered in Cambridge, MA, Pegasystems has offices in North America, Europe and Asia. Visit us at www.pega.com.

¹ Gartner, Inc., "Magic Quadrant for CRM Customer Service Contact Centers,” Michael Maoz April 3, 2009.