Call Center Outsourcing Market by End-user, Type and Geography - Forecast and Analysis 2023-2027

Call Center Outsourcing Market Forecast 2023-2027

The call center outsourcing market size is estimated to grow at a CAGR of 4.8% between 2022 and 2027. The market size is forecast to increase by USD 27.64 billion. The growth of the market depends on several factors, including the rise of emerging countries as call center destinations, increasing use of RPA in call centers, and a focus on reducing operating costs. Call center outsourcing refers to the business process through which organizations provide call center services, such as customer relationship management, to enterprises. Moreover, these centers handle incoming and outgoing voice calls for various business processes, such as customer service and order management. This market research and growth report also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the size of the Call Center Outsourcing Market During the Forecast Period?

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The market is shaped by factors such as the growing emphasis on customer experience, driving businesses to seek specialized outsourcing providers. Amidst digital transformation initiatives, concerns surrounding privacy and data security underscore the importance of reliable outsourcing solutions. Offshore outsourcing, coupled with subscription-based models, facilitates cost-effective operations while addressing evolving customer needs. Additionally, advancements in machine learning, automation, and blockchain technology are revolutionizing call center operations across various sectors, including healthcare, BFSI, and voice and chat support segments.

Market Segmentation

This market report extensively covers market segmentation by end-user (IT and telecom, BFSI, healthcare, retail, and others), type (inbound and outbound), and geography (North America, Europe, APAC, South America, and Middle East and Africa). In the market, businesses leverage a range of advanced technologies and practices to meet evolving customer needs and regulatory requirements. Artificial intelligence (AI) and data analytics drive operational efficiency and customer satisfaction, enabling call centers to deliver personalized experiences. Omnichannel assistance, supported by multilingual support, ensures seamless communication across various platforms, including instant messaging platforms, chatbots, messaging apps, and social media. Compliance with data protection regulations such as the General Data Protection Regulation (GDPR) and California Consumer Privacy Act (CCPA) is paramount, requiring call centers to uphold strict observance and regulatory knowledge.

By End-User

The market share growth by the IT and telecom segment will be significant during the forecast period. Growing technological advances, considerable growth in data traffic, and rising demand from consumers for digital communication and content are the key factors for the growth of the IT and telecom segment. With the advent of the 5G spectrum, the telecom services industry is expected to witness rapid growth. Many telecom businesses are focused on developing and launching 5G-related products and services. There have been several investments in 5G across the globe.

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The IT and telecom segment showed a gradual increase in the market share of USD 35.42 billion in 2017 and continued to grow by 2021. Telecom and IT organizations outsource their customer relationship management functions to call center organizations to focus on core offerings. To reduce turnaround time and provide improved customer service, companies in the IT and telecom sectors are increasingly outsourcing customer inquiry management and other functions to call center organizations. With an inclination toward digital transformation and the increasing number of communication channels, the development of 5G is creating the demand and need for contact and call center outsourcing services, which will drive the growth of the IT and telecom segment during the forecast period.

Regional Overview

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North America is estimated to contribute 42% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Call center organizations in the region are moving their contact center outsourcing operations to lower-cost countries such as India and the Philippines. This has a positive impact on the revenue of the market in the region. Due to the increase in government regulations that encourage the development of new call centers in the region, the market in the region is expected to grow. Various organizations are focused on expanding their call center operations in the region by opening new call centers or hiring new employees to meet the changing regulations. Numerous sectors, including healthcare, banking, and telecommunication, will drive the outsourcing of customer support operations to call center organizations in this region during the forecast period.

Market Dynamics and Customer Landscape

The market is witnessing significant growth, driven by the integration of Artificial Intelligence (AI) and Data Analytics. Companies are adopting omnichannel assistance and multilingual support to enhance customer experiences. Compliance with regulations like GDPR and CCPA ensures data protection and privacy. Instant messaging platforms, chatbots, and social media are pivotal in delivering round-the-clock support. Skilled labor and technological progress enable flexibility and scalability. Providers offer specialized services for healthcare, BFSI, voice, and chat support segments. Subscription-based models and automation streamline operations, while blockchain technology ensures data security. Overall, outsourcing fosters digital transformation and boosts employee satisfaction.

Key Market Driver

The rise of emerging countries as call center destinations is the key factor driving the growth of the market. Outsourcing allows companies to better coordinate processes and improve operational efficiency. This helps to improve customer experience and reduce operational costs. Due to the low operating costs, call center organizations are starting their business in countries such as India and the Philippines. Contact and call center outsourcing organizations are expanding their business in Brazil, Colombia, Kenya, Egypt, and Malaysia, among other countries.  The main reason for investments from call center organizations in emerging regions is local government initiatives.

For instance, in 2008 the Kenyan government announced the Kenya Vision 2030. According to the plan, the government to create 7,500 direct jobs in the BPO industry. Establishing contact and call center outsourcing in new countries can help companies in various industries, including finance and healthcare, outsource their customer service activities to call center organizations, thereby driving the global expansion of the market during the forecast period.

Significant Market Trends

The rising adoption of cloud communication in call centers is the key trend in the market. Cloud computing is gaining worldwide acceptance due to the flexibility and cost advantages of cloud services. Cloud-based solutions help businesses save and reduce their overall investment. Cloud-based contact centers adapt quickly to changing business needs and are highly flexible as they can integrate with third-party applications through application programming interface (API) frameworks. 

Moreover, reliable cloud-based solutions can handle outbound, inbound, and mixed interactions, simplifying the process of delivering cost-effective personalized service to customers. Cloud call centers enable agents to work efficiently from anywhere and anytime. A cloud-based solution offers many advantages, including personalized service, effectively routing inquiries, and solving issues. Hence, these benefits will grow the adoption of cloud-based call center services during the forecast period.

Major Market Restrain

Security threat in call center outsourcing services affects the growth of the market. By outsourcing customer service to call centers, businesses can increase efficiency and reduce operating costs. Although, there are security concerns when outsourcing customer support services to call centers. Additionally, call center organizations cannot provide fraud detection services to financial institutions. Customers provide call center agents with personal information such as name, email ID, contact number, and age. Such personal information may be misused or disclosed to customers and competitors. 

Furthermore, remote work has increased cybersecurity and privacy risks for organizations. Hackers try to exploit weaknesses in organizations. Multiple attempts to exploit vulnerabilities within the organization. Therefore, organizations around the world are reluctant to contact call center outsourcing operations as data theft and cyberattacks against call centers are on the rise. Hence, such factors will impede the adoption of call center outsourcing services across organizations during the forecast period.

Customer Landscape

The market industry 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 also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Market Customer Landscape

Who are the Major Market Companies?

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.

Alorica Inc.: The company offers call center outsourcing services that provide operations of a specific business process.

Atento SA: The company offers call center outsourcing services that help in generating a better and increasingly optimized brand experience, maximizing retention, resolution, sales conversion, and a comprehensive view of brand users.

Bertelsmann SE and Co. KGaA: The company offers call center outsourcing services that include SCM solutions, financial services and IT services, which are developed with a focus on innovations in automation and data analytics.

The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including

• 247.ai Inc.
• Computer Generated Solutions Inc.
• Continuum Global Solutions LLC
• Datacom Group Ltd.
• DiRAD Technologies Inc.
• Epicenter Technologies Pvt. Ltd.
• Helpware Inc.
• Hinduja Global Solutions Ltd.
• Infosys Ltd.
• Serco Group Plc
• StarTek Inc.
• Sutherland Global Services Inc.
• Tata Consultancy Services Ltd.
• Teleperformance SE
• Transcom Holding AB
• XACT Acquisition LLC
• Five9 Inc.

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.

Market Analyst Overview

The market is experiencing remarkable growth, driven by the integration of Artificial Intelligence (AI) and the demand for omnichannel assistance with multilingual support. Compliance with regulations like the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) is imperative, especially in instant messaging platforms and chatbots deployed across messaging apps and social media. Security standards such as the Payment Card Industry Data Security Standard (PCI DSS) are crucial in cloud sourcing environments. Government and defense sectors are increasingly leveraging call center outsourcing for round-the-clock operations, relying on skilled labor with fundamental skills and technological progress. Specialized providers offer flexibility, scalability, and observance of regulatory knowledge, ensuring efficient and reliable outsourcing services.

In the market, Skilled Labour, flexibility, and scalability are paramount for meeting diverse client needs. Providers with observance and regulatory knowledge ensure compliance, addressing privacy and data security concerns prevalent in offshore outsourcing arrangements. Subscription-based models cater to the evolving demands of clients, promoting employee satisfaction and enabling efficient operations. Advancements in technology, such as Machine Learning (ML) and Blockchain technology, enhance service delivery, particularly in the healthcare segment and BFSI segments. Voice segment and chat support segments witness significant growth, reflecting the increasing preference for personalized customer interactions. Specialized providers offer tailored solutions, reinforcing the importance of expertise in meeting industry-specific requirements and ensuring the success of call center outsourcing initiatives.

In the market, Specialised Providers for Outsourcing play pivotal roles in ensuring service quality. However, barriers to communication and regulatory compliance difficulties remain challenges for outsourcing endeavors. Quick shifts in technology demand adaptation to prevent the hazard of unfavorable customer views. Inbound services, outbound services, and multichannel services offer comprehensive solutions to meet diverse client needs. While onshore outsourcing provides proximity and cultural alignment, nearshore outsourcing offers cost-effective alternatives without compromising quality. Despite the benefits, the absence of control poses risks, emphasizing the importance of strategic partnerships and effective management in navigating the complexities of the outsourcing landscape.

Segment Overview

The market analysis and report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• End-user Outlook 
  • IT and telecom
  • BFSI
  • Healthcare
  • Retail
  • Others

• Type Outlook 
  • Inbound
  • Outbound

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile 
    • Brazil
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Call Center Outsourcing Market Scope
Report Coverage	Details
Page number	172
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 4.8%
Market growth 2023-2027	USD 27.64 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	3.78
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 42%
Key countries	US, Australia, India, UK, and Germany
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	247.ai Inc., Alorica Inc., Atento SA, Bertelsmann SE and Co. KGaA, Computer Generated Solutions Inc., Continuum Global Solutions LLC, Datacom Group Ltd., DiRAD Technologies Inc., Epicenter Technologies Pvt. Ltd., Helpware Inc., Hinduja Global Solutions Ltd., Infosys Ltd., Serco Group Plc, StarTek Inc., Sutherland Global Services Inc., Tata Consultancy Services Ltd., Teleperformance SE, Transcom Holding AB, XACT Acquisition LLC, and Five9 Inc.
Market dynamics	Market trends and analysis, Market growth and trends and 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 that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2023 and 2027
• Precise estimation of the market  size and its contribution to the market focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Market growth analysis across North America, Europe, APAC, South America, and Middle East and Africa
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Market forecasting of factors that will challenge the growth of market companies

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