Global Contact Center Outsourcing Market Size, Share, Trends, COVID-19 Impact & Growth Forecast Report – Segmented by Service Type (Chat Support, Email Support, Voice Support, and Others), End User (IT and Telecom, BFSI, Healthcare, Retail, Government, and Others), and Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) - Industry Analysis (2024 to 2029)

Updated On: January, 2024
ID: 10489
Pages: 150

Global Contact Center Outsourcing Market Size (2024 to 2029)

The global contact center outsourcing market is predicted to reach USD 109.23 billion in 2024 and USD 156.68 billion by 2029, growing at a CAGR of 7.48% during the forecast period.

Current Scenario of the Global Contact Center Outsourcing Market

Contact center outsourcing (CCO) is the business practice of contracting out call center services. Call centers handle customer problems, from credit cards to warranties. Companies outsource in-house, through a separate division, or to an out of doors specialist. Organizations and businesses found it more cost-effective to locate their call centers in areas with a lower cost of living. That way, they will pay their workers less. It helps if the world has few natural disasters to interrupt service. They also need a robust telecommunications network. Additionally, a corporation must have phone call centers when expanding to foreign markets. Improving focus towards simplifying customer engagement, increasing the organization's main target towards better customer engagement, and cost-cutting are the numerous factors that are presumed to propel the expansion of this market. The mixture of recent technologies for customer engagement, like computer science and speech recognition, are catering opportunities for businesses operating within the contact center outsourcing market to build an influential customer base.

MARKET DRIVERS

The global Contact Center Outsourcing market is driven by the rising trend of automation in different industries. For example, Chatbots are tiny programs that help simulate customer interactions automatically supported by predefined conditions, triggers, and events. There are several advantages to using chatbots, which can be proactive or reactive. Their responses are consistent on every occasion.

Natural language Processing (NLP) and AI (AI) have made chatbots much more advanced. They are solving business problems by providing better customer services by being available 24*7 and giving quick solutions to the shoppers. Moreover, companies are adopting quickly to reinforce customer experience and interact with an outsized number of consumers cost-effectively. Additionally, organizations often reduce 25%-30% of customer service costs by implementing conversational solutions like virtual agents and chatbots. Growing and concentrating on reducing operating costs is crucial for organizations to maintain a decent relationship with their customers and offer better customer support services to remain competitive and ensure revenue growth. Vendors within the market have started outsourcing center services and operations to enhance and ensure revenue growth. If a corporation manages a call center facility in-house, it must invest in infrastructure, manage the workforce, and offer training to new employees, which may result in 50%-70% additional costs. With outsourced services, organizations needn't invest in resources or fret about managing limited available resources. This focus on reducing operating costs will promote the global contact center outsourcing market over the outlook period.

Increasing competition is compelling companies to look for alternatives to extend profits and reduce costs. Outsourcing services and processes is one of companies' foremost favored cost-saving/ reduction techniques. Companies save a lot on the price of hiring, salaries, office space, and other things by hiring an external end-to-end service provider. These service providers work as a component of the corporation and support the corporation as a 3rd party. The hired party has the desired skilled labor and technological infrastructure, which helps the outsourcing company gain profit. Moreover, companies consider outsourcing to extend an organization’s efficiency and effectiveness. CCO firms often have a more robust commercial mindset within the operations processing environment, which is predicted to strengthen organizational effectiveness. CCO vendor resources could even be used to generate sales leads. Superior quality capabilities and diligence of CCO vendors might be employed to attain a product competitive advantage, customer delight, and retain customers. Outsourcing also has the potential to enhance the operating efficiency of the organization. Improvements in productivity and turn-around times, generation of reports and controls, better quality, higher flexibility, and agility in accommodating business changes can be achieved by outsourcing.

Impact of COVID-19 on the Global Contact Center Outsourcing Market

The pandemic affects major economies of every region, resulting in work from the norm in almost every sector. The coronavirus pandemic has helped the contact center outsourcing market because of the workforce in companies and the work-from-home environment. The market is expected to grow more due to the outbreak. 

REPORT COVERAGE

REPORT METRIC

DETAILS

Market Size Available

2023 to 2029

Base Year

2023

Forecast Period

2024 to 2029

CAGR

7.48%

Segments Covered

By Service Type, End User Industry, and Region

 

Various Analyses Covered

Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities

Regions Covered

North America, Europe, APAC, Latin America, Middle East & Africa

 

  Market Leaders Profiled

Conduent Inc., IBM, HP, Teleperformance SA, CGS Inc., HGS, Datamark, Inc., Infinit Contact, Five9 Inc, VADS, Alorica, Invensis, Transcosmos, Convergys, Arvato, Sykes Enterprises, Atento, and Others.

 

SEGMENTAL ANALYSIS

Global Contact Center Outsourcing Market Analysis By Service Type

In 2018, the Voice support segment accounted for the bulk revenue within the market. However, the chat support segment is predicted to grow exponentially over the outlook period. The segment is further expected to extend due to omnichannel strategies that provide holistic support and AI, improving and simplifying customer engagement. Additionally, combining contact centers with social media platforms helps better understand customers and their preferences, which may cause customer satisfaction.

Global Contact Center Outsourcing Market Analysis By End-User Industry

In 2018, the BFSI sector accounted for the bulk share of the market. This can be mainly because of the capitalization of market prospects over different geographies and the necessity for cross-selling and up-selling the products. The BFSI sector is gaining an advantage by outsourcing the service. It helps reduce disbursal and maximize customer service so that the businesses in this sector can target their core business.

REGIONAL ANALYSIS

North America dominated the contact center outsourcing market with the best number of call centers, followed by APAC, Europe, and other regions. APAC has a majority share in outsourcing center services due to providing low-cost employees compared to other regions. Besides, the countries in the APAC region have an oversized majority of individuals speaking multiple languages, which is a new benefit for call centers in this area. With the rising economies, many mid and small-sized enterprises are investing in chatbots because they will enable businesses to interact with a sizable number of consumers. Also, a significant investment was made in the chatbot event in APAC. For example, Rulai launched a ‘low-code’ chatbot development tool and raised USD 6.5 million. The development team at Rulai has offices in Beijing and Campbell, California.

KEY MARKET PARTICIPANTS IN THE GLOBAL CONTACT CENTER OUTSOURCING MARKET

The major companies operating in the global contact center outsourcing market include Conduent Inc., IBM, HP, Teleperformance SA, CGS Inc., HGS, Datamark, Inc., Infinit Contact, Five9 Inc., VADS, Alorica, Invensis, Transcosmos, Convergys, Arvato, Sykes Enterprises, Atento, and others.

RECENT HAPPENINGS IN THE GLOBAL CONTACT CENTER OUTSOURCING MARKET

  • In August 2020, DATAMARK, a leading outsourcing firm, released a report on “How COVID-19 is Redefining the Customer Experience.” The piece provides a deep dive into customer care data and trends and is on the market to read on DATAMARK.net.

DETAILED SEGMENTATION OF THE GLOBAL CONTACT CENTER OUTSOURCING MARKET INCLUDED IN THIS REPORT

This research report on the global contact center outsourcing market has been segmented and sub-segmented based on the service type, end-user industry, and region.

By Service Type

  • Chat Support

  • Email Support

  • Voice Support

  • Others

By End-User Industry

  • IT and Telecom

  • BFSI

  • Healthcare

  • Retail

  • Government

  • Others

By Region

  • North America

  • Asia-Pacific (APAC)

  • Europe

  • Latin America

  • Middle East and Africa (MEA).

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Frequently Asked Questions

How is technology impacting the contact center outsourcing market globally?

Automation and AI technologies are transforming the industry by enhancing efficiency and customer experiences. The integration of chatbots, virtual assistants, and analytics tools is becoming more prevalent.

What verticals are witnessing significant growth in contact center outsourcing services globally?

Industries such as healthcare, e-commerce, and technology are experiencing substantial growth in contact center outsourcing services due to increased customer demands and the need for specialized support.

What are the emerging trends in workforce management within the contact center outsourcing industry on a global scale?

Flexible work arrangements, upskilling programs, and employee engagement initiatives are emerging trends, reflecting a shift toward a more agile and skilled workforce in the contact center outsourcing sector.

How are sustainability and corporate social responsibility impacting the decision-making process for contact center outsourcing globally?

Companies are increasingly considering sustainability and CSR factors in their outsourcing decisions, leading to the adoption of eco-friendly practices and socially responsible initiatives within the contact center outsourcing market.

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