The Global Contact Center Outsourcing Market was valued at USD 88.62 Billion in 2018. Increasing competition is compelling companies to look for alternatives to increase profits and reduce costs. Outsourcing of services and process is one of the most favored cost saving/ reduction technique used by companies. Companies to save on the cost of hiring, salaries, office space, and other things hire an external end to end service provider. These service providers work as a part of the company and support the company as a third party. The hired party has the required skilled labor and technological infrastructure which helps the outsourcing company in gaining profit.
Moreover, companies consider outsourcing to increase an organization’s efficiency and effectiveness. Outsourcing enables improved customer service and greater adherence to SLAs. Outsourcing permits management concentrate on areas of organizational strength and facilitates the rapid transformation of different growing business models. Increased organizational flexibility and responsiveness could also be achieved on the back of CCO’s firm supremacy in areas of business process optimization, capability maturity levels, and infrastructure investment. CCO firms often have a better commercial mindset in the operations processing environment, which is expected to strengthen organizational effectiveness.
CCO vendor resources (responsible for operations processing) could also be used to generate sales leads. Superior quality capabilities and diligence of CCO vendors could be employed to achieve a product competitive advantage, customer delight and to retain customers. Outsourcing also has the potential to improve 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 could be achieved by outsourcing.
Contact Center Outsourcing Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2025||USD 60.62 Billion|
|Growth Rate||CAGR of 4.22 % during 2021-2028|
|Segment Covered||Service Type, Application, Industry, Regions|
|Regions Covered||North America, Europe, Asia Pacific, Middle East & Africa, Latin America|
|Key Players Profiled||IBM, HP, Teleperformance SA, Xerox Corporation, CGS Inc., HGS, Datamark, Inc., Infinit Contact, Five9 Inc, VADS, Alorica, Invensis, Transcosmos, Convergys, Arvato, Sykes Enterprises, and Atento.|
Key Segments of the Global Contact Center Outsourcing Market
Service Type Overview, 2015-2025 (USD Billion)
- Email Support
- Chat Support
- Website Support
Industry Overview, 2015-2025 (USD Billion)
- IT & Telecommunications
- Defense & Aerospace Intelligence
Application Overview, 2015-2025 (USD Billion)
- Customer Relationship Management (CRM)
- Order Processing
Regional Overview, 2015-2025 (USD Billion)
- North America
- United Kingdom
- Rest of Europe
- Rest of APAC
- Latin America
- Rest of Latin America
- Middle East and Africa
Reasons for the study
- The purpose of the study is to give an exhaustive outlook of the Global Contact Center Outsourcing Market.
- Be prepared for how outsourcing trends and the global contact center outsourcing market will be impacted by socio-political and economic factors over the next few years
- To understand the surging investments by key players in the global contact center outsourcing market.
What does the report include?
- The study on the global contact center outsourcing Market includes qualitative factors such as drivers, restraints, and opportunities
- Additionally, the market has been evaluated using the Porters 5 Forces and Value Chain Analysis.
- The study covers the qualitative and quantitative analysis of the market segmented on the Application, service type, industry, and region. Moreover, the study provides similar information for the key geographies.
- Actual market sizes and forecasts have been provided for all the above-mentioned segments.
- The study includes the profiles of key players in the market with a significant global and/or regional presence.
Who should buy this report?
This study is suitable for industry participants and stakeholders in the Global Contact Center Outsourcing Market. The report will benefit:
- Executives of contact center outsourcing companies that are engaged in contact center outsourcing.
- Managers within financial institutions looking to publish recent and forecasted statistics pertaining to the global contact center outsourcing Market.
- Government organizations, regulatory authorities, policymakers and financial organizations looking for innovative global contact center outsourcing solutions.
- Analysts, researchers, educators, strategy managers, and academic institutions looking for insights into the market to determine future strategies.
The global contact center outsourcing market stood at USD 88.62 billion in 2018 and is expected to reach USD 131.56 billion by 2025. The expected CAGR from 2018 to 2025 is 5.05%. Due to the growing competition, companies are looking for different alternatives to heighten profit and reduce costs. Service and process outsourcing is the most preferred cost saving or reduction technique used by most companies. To save the cost of office space, hiring, salaries, and other things, companies hire an external end-to-end service provider. These service providers work as a part of the company and support the company as a third party. The hired party has the required skilled labor and technological infrastructure which helps the outsourcing company in gaining profit.
The new trend of the service industry is offering best-in-class customer experience which could be achieved with the help of digitalization. But to upgrade older software or adopt digitalization, higher investment is required. Instead of adopting newer technologies, these companies shift their processes to outsourcers for premium quality. These companies not only get expert services but reduced costs. When external call center agents are hired, they are paid for their productive time only and they are usually productive for 85% of each hour. So, a house agent which usually costs $ 25 per hour to a company, needs to be paid just $ 21.25 per hour when an agent is outsourced, which saves 15% on employee wages.
Offshore providers are continuously updating their knowledge and technology base to keep up and stay ahead. It reduces cost and surges efficiency for firms as they know they are retrieving the highest quality omnichannel contact centers available. The Philippines built its BPO industry on contact centers. Lately, high demand for omnichannel contact centers is observed, and the Philippines are able to meet this demand and set themselves world leader for BPO. The Philippines are able to fulfill the demand of customers and offer quality and efficient experience for the company and customer with the help of huge trained and eager workforce. Many firms in the Philippines have commenced offering omnichannel contact centers. PITON-Global has held strong foothold within the new field of omnichannel contact center outsourcing.
Technologies such as artificial intelligence, cloud solutions, and social media usage in contact centers for solving customer queries and attending customers are expected to take contact center industry to the next level. The move from on-premise solutions to cloud solutions allows for more custom-made solutions through custom application program interface connections and reduces the trouble of managing software, hardware, and ongoing updates. It is predicted that Cloud-based models can help companies harvest on an average of 27% annual savings and 15% savings in IT staffing costs. Usage of AI is also increasing in the contact center industry. AI-based chatbots are replacing humans for the preliminary interaction phase of customer handling. For instance, a British retail company named Marks & Spencer introduced an AI-based contact center that monitors one million plus inbound telephone calls per month
On the basis of types, global contact center outsourcing market segmented into BFSI, Retail, Government, IT & Telecommunications, Defense & Aerospace Intelligence, Manufacturing, and Others. IT & Telecommunications segment attained a value of 46.44 in 2018 and is likely to maintain the graph in the forecast period. Over the years the telecoms industry has expanded and expanded enormously. With millions of mobile phone service users, quality service in order to meet customers ' needs has become essential for companies.
Service Type Segment
Based on the service type, the market includes categories: Email Support, Chat Support, Voice, Website Support and Others. Voice segment leaded service type segment by obtaining a value of USD 61.30 Billion in 2018 at 4.22 % CAGR during the forecast period. After voice, email support is likely to acquire the service type segment owing to the growing rate of internet usage across the world which, in turn, has led to a rise in user email accounts.
Based on applications, the global contact center outsourcing market is divided into customer relationship management (CRM), order processing, telemarketing, and others. Customer relationship management segment is likely to dominate the market in 2025 owing to the growing demand for interaction via non-voice mediums. Importance of customer relationship management is realized as to offer business support. Personalized and customized communications for improved experience has encouraged the firms to outsource these tasks in order to shift the management focus on the core competencies of the organization. Post sales and pre-sales services are outsourced by the firms to lessen consumer relationship handling responsibilities.
The major players of Global Contact Center Outsourcing Market include IBM, HP, Teleperformance SA, Xerox Corporation, CGS Inc, HGS, Datamark, Inc, Infinit Contact, Five9 Inc, VADS, Alorica, Invensis, Transcosmos, Convergys, Arvato, Sykes Enterprises, and Atento. Most of the market players are participating in mergers and acquisitions to be on the competitive advantage of the market. Recently, another large BPO merger occurred, when Silicon Valley-based technology vendor Synnex acquired global BPO behemoth Convergys for USD 2.40 billion. Concentrix has already acquired Synnex in 2006. Both companies will soon merge to create one massive hybrid BPO, covering a global footprint of 40 countries servicing clients in 70 different languages.
The global contact center outsourcing market was dominated by North America and Europe in 2018. The market share occupied by North America and Europe in 2018 was 37.46% and 25.05% respectively. With increasing cost of the labor at global level major companies are selecting onshore CCO solutions over offshore solutions in Europe and North America. The global labor rates are driven by geopolitical and socio economic dynamics. Thus many North American and European outsources who were outsourcing their CCO operations to emerging countries such as India, Philippines and others locations are rethinking their outsourcing strategy.
Latin America and Asia Pacific is expected to have the fastest growth rate growing at a CAGR of 6.29% and 6.26% respectively for the CCO market with presence to emerging markets such as India, Philippines, Brazil, Mexico and other countries. India is projected to lead the Asian market for CCO followed by Philippines, Japan and China respectively. Growing telecom industry, along with rising population and presence of talented educated young population to support the CCO companies operations are driving the Asian CCO market.