Contact Center Outsourcing Market

Global Contact Center Outsourcing Market Size & Share Analysis (2021–2026)

The global contact center outsourcing market is likely to reach USD XX billion during 2022 - 2027, growing at a CAGR of XX%.

Contact center outsourcing (CCO) is the business practice of contracting out call centre services. Call centers handle all types of customer problems, from your credit cards to warranties. Companies outsource either in-house, through a separate division, or to an out of doors specialist. Organizations and businesses found it absolutely 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, when a corporation expands to foreign markets, it must have phone call centers. 

Improving focus towards simplifying customer engagement, increasing the main target of the organization 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 the businesses operating within the contact center outsourcing market to get an influential customer base.

Recent Developments:

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

Impact of COVID-19 on Contact Center Outsourcing Market

Major economies of every region are affected because of pandemic and resulted in work from norm in almost every sector. The coronavirus pandemic has helped the contact center outsourcing market because of less manpower in companies and work from home environment. The market is expected to grow at a higher rate due to outbreak. 

Market growth and trends:

Growing concentrate on reducing operating costs is crucial for organizations to keep up 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 centre services and operations to enhance and ensure revenue growth. If a corporation manages a call centre facility in-house, it must invest in infrastructure, manage the workforce, and offer training to new employees, all of 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 centre outsourcing market over the outlook period.

Increasing competition is compelling companies to seem for alternatives to extend profits and reduce costs. Outsourcing of services and process is one of the foremost favored cost saving/ reduction techniques utilized by companies. Companies to save lots of on the price of hiring, salaries, office space, and other things hire an external end to finish service provider. These service providers work as a component of the corporate and support the corporate as a 3rd party. The hired party has the desired skilled labor and technological infrastructure which helps the outsourcing company in gaining profit. Moreover, companies consider outsourcing to extend an organization’s efficiency and effectiveness. CCO firms often have a stronger 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 to 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.

Market Drivers and Restraints:

The global Contact Center Outsourcing market is driven by the rising trend of automation in different indstries. For example, Chatbots are tiny programs that help simulate interactions with customers automatically supported a collection of predefined conditions, triggers, and/or events. There are several advantages to using chatbots and they'll be proactive or reactive. Their responses are consistent on every occasion.

Natural language Processing (NLP) and AI (AI) have made the chatbots way more advance then earlier and are solving business problems by providing better customer services by being available 24*7, also by giving quick solutions to the shoppers. Moreover, the companies are adopting quickly to reinforce customer experience and interact an outsized number of consumers cost-effectively. Additionally, 25%-30% customer service costs are often reduced by organizations by implementing conversational solutions like virtual agents and chatbots.

GLOBAL CONTACT CENTER OUTSOURCING MARKET REPORT COVERAGE:

Market segmentation:

Global Contact Center Outsourcing Market - By Service Type:

the global Contact Center Outsourcing market is segmented into

• Chat Support
• Email Support
• Voice Support
• Others

In 2018, Voice support segment accounted for the bulk revenue within the market. However, chat support segment is predicted to witness exponential growth over the outlook period. The segment is further expected to extend as a result of omnichannel strategies that provide holistic support and AI, enhancing and simplifying the customer engagement. Additionally, the combination of contact centers with social media platforms helps in better understanding customers and their preferences that may cause customer satisfaction.

Global Contact Center Outsourcing Market - By End-User Industry:

the global Contact Center Outsourcing market is divided into

• IT and Telecom
• BFSI
• Healthcare
• Retail
• Government
• Others

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

Regional Analysis:

By geography, the global Contact Center Outsourcing market is segmented into

• North America
• Asia-Pacific (APAC)
• Europe
• Latin America
• Middle East and Africa (MEA).

In 2018, Europe region is dominating the contact center outsourcing market with the very best number of call centers, followed by APAC, North America, and other regions. APAC is having a majority share in outsourcing centre services, as a result of the provision of low-cost employees compared to other regions. Besides, the countries in 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, the greater number of mid and small-sized enterprises are growing that are investing in chatbots because it will enable the businesses to have interaction sizable number of consumers. Also, there's a large investment made for the event of chatbots in APAC. For example, Rulai launches ‘low-code’ chatbot development tool and raises $6.5 million. The development team at Rulai, with offices in Beijing and Campbell, California.

Key market players:

Key players are adopting strategies like investing in R&D, new product launches, expansion in distribution channels to face out as strong competitors within the market. The foremost players 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.