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The call center outsourcing market size is estimated to grow by USD 25.9 billion at a CAGR of 4.37% between 2023 and 2028. Call center outsourcing is a critical business process that enables organizations to delegate their call center services, including customer relationship management and order management, to specialized enterprises. This market's expansion is influenced by several factors, such as the emergence of emerging countries as call center destinations due to their cost advantages, the increasing adoption of Robotic Process Automation (RPA) to enhance efficiency and reduce operating costs, and the growing emphasis on delivering superior customer experiences. Call centers handle both incoming and outgoing voice communications, making them an essential component of business operations for various industries.
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The market is rapidly evolving with advancements in artificial intelligence (AI) and machine learning (ML), enhancing data analytics capabilities and customer experience through omnichannel assistance and multilingual support across instant messaging platforms, chatbots, and messaging apps. Companies leverage technological progress for round-the-clock operations, ensuring flexibility and scalability while adhering to privacy and data security concerns with blockchain technology. Specialized providers offer digital transformation solutions and support offshore outsourcing strategies under subscription-based models, optimizing employee satisfaction and fundamental skills in skilled labor markets. Compliance with regulatory knowledge and observance is critical, fostering a seamless transition to a digital-first approach in the outsourcing industry. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
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.
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.
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.
The market forecasting 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 market growth analysis strategies.
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.
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 market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key 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 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 35.90 billion in 2018. 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.
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North America is estimated to contribute 44% 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 market forecast period.
The market report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
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The market continues to evolve with the integration of social media platforms and cloud sourcing, particularly in sectors like government and defense where skilled labor and regulatory knowledge are crucial. Specialized providers ensure service quality across inbound, outbound, and multichannel services, addressing barriers to communication and regulatory compliance difficulties. Challenges such as quick shifts in technology and the risk of unfavorable customer views underscore the importance of strategic onshore and nearshore outsourcing solutions. While these models offer advantages in observance and control, they also mitigate the absence of control risks, ensuring operational efficiency and compliance with evolving regulations in the global outsourcing landscape.
Market Scope |
|
Report Coverage |
Details |
Page number |
182 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.37% |
Market growth 2024-2028 |
USD 25.9 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.14 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 44% |
Key countries |
US, UK, Australia, Germany, and India |
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., Five9 Inc., 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, and XACT Acquisition LLC |
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, Market condition analysis for 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. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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