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The Europe - call center outsourcing market size is estimated to grow at a CAGR of 4.21% between 2023 and 2028. The market size is forecast to increase by USD 5.47 billion. The growth of the market depends on several factors, including the increase in call center outsourcing by IT and telecom service providers, the rising use of automated technologies in call centers, and the focus on reducing operating costs of businesses. Call center outsourcing refers to the business process through which organizations provide call center services, such as customer relationship management, to enterprises. Enterprises outsource their in-house customer support functionalities to call center organizations to gain cost benefits and focus on their core business. Call centers handle incoming and outgoing voice calls for various business processes, such as customer service and order management.
The report includes a comprehensive outlook on the Europe Call Center Outsourcing Market, offering forecasts for the industry segmented by Type, which comprises .inbound and outbound Additionally, it categorizes End-user into IT and telecom, BFSI, healthcare, retail, and others. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
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An increase in call center outsourcing by IT and telecom service providers is the key factor driving market growth. Telecom players focus on core technical objectives such as tackling security issues, innovating new offerings for the latest devices and technology patterns, and catering to the growing demand for connectivity and, consequently, benefit from outsourcing their customer services to BPO companies. Call center outsourcing allows telecom companies to manage cost pressures, optimize investments, and get specialized resources while establishing a flexible strategy to retain their existing customers and acquire new customers.
Furthermore, emerging technologies have enhanced the productivity of business processes. For example, RPA helps telecom companies manage various tasks, such as managing complicated and unstructured datasets. AI enables the analysis and prioritization of customer queries, which leads to faster resolutions. The RPA technology improves customer services for telecom companies. Thus, such technologies will boost the performance of telecom operators and drive market growth during the forecast period.
The emergence of voice bots in call center outsourcing services is the primary trend shaping the market growth. The development of voice bots or voice-enabled chatbots, which make use of conversational AI to provide a better customer experience, is anticipated to simplify call center processes. Their higher availability and lower cost have been significant factors in driving their adoption in the Europe - call center outsourcing market. Some companies have developed voice bot applications that can easily converse with customers in different languages.
Furthermore, the primary reason for the deployment of voice bots is they help agents attend to critical issues, while moderate and common issues can be resolved quickly and effectively by voice bots. So, the adoption of voice bots is expected to help the call center outsourcer in reducing the overall cost, thereby offering high growth opportunities to the vendors in the call center outsourcing market in Europe during the forecast period.
The increasing cost of call center outsourcing services is a challenge that affects market growth. Call center outsourcing services help in reducing operating costs and increasing efficiencies for the company that has outsourced these services. Moreover, market players use skilled professionals to get their work done quickly. However, call center jobs are considered monotonous and stressful, as call center agents must handle high volumes of customer calls while adhering to rigid scripts. Furthermore, third-party service providers are expected to use the latest technologies to finish jobs on time.
Moreover, emerging technologies such as social media management tools, process automation tools, such as AI and RPA, and growing investments in cloud computing will simplify business processes and enhance productivity. Nevertheless, ongoing investments in technology, process improvement, and infrastructure will increase the cost of BPO. The rising costs of BPO while also maintaining the profitability of the business will somewhat hinder the growth of the market during the forecast period.
The market share growth by the inbound segment will be significant during the forecast period. There is a growing adoption of the inbound call segment owing to the growing trend to provide top-of-the-competition customer service among companies. Moreover, inbound call centers enable organizations to create a good and positive image for their brand. Inbound call centers focus on resolving customers' concerns, answering their questions, and dealing with complaints from customers.
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The inbound segments showed a gradual increase in the market share of USD 13.37 billion in 2018. The inbound call segment offers various advantages to enterprises, such as boosting customer loyalty, improving customer service, increasing efficiency, and giving cost-effective support to businesses. Thus, such factors will drive the growth of the inbound segment of the Europe - call center outsourcing market during the forecast period.
IT and telecom organizations outsource their customer-relationship management functions to service providers to focus on their key offerings, reduce turnaround times, and improve customer services. Also, maintaining in-house call centers requires considerable investments and human resources. Thus, to decrease the turnaround time and offer enhanced customer services, organizations in the IT and telecom sectors are increasingly outsourcing customer query management and other operations to call center service providers. Furthermore, several telecom organizations have been focusing on developing and launching 5G-related products and services and are bidding on airwaves to support their 5G devices. Thus, such factors are expected to drive market growth during the forecast period.
The Europe Call Center Outsourcing Market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Europe Call Center Outsourcing Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The call center outsourcing market in Europe report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018-2028
Europe Call Center Outsourcing Market Scope |
|
Report Coverage |
Details |
Page number |
157 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.21% |
Market Growth 2024-2028 |
USD 5.47 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.52 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alorica Inc., Atento SA, Bertelsmann SE and Co. KGaA, CIENCE Technologies, Computer Generated Solutions Inc., Concentrix Corp., Conduent Inc., Foundever Group, Helpware Inc., Hinduja Global Solutions Ltd., LLC Simply Contact International, MCI LC, StarTek Inc., Stroer SE and Co. KGaA, Sutherland Global Services Inc., TDS Global Solutions, Teleperformance SE, TELUS Corp., Transcom Holding AB, and TTEC Holdings Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data you are looking for, you can reach out to our analysts and get customized segments. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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