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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 call center outsourcing 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). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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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 call center outsourcing 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 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.
The inbound call segment is growing due to the increasing trend of providing top-notch customer service to businesses. Additionally, inbound call centers allow companies to create a good and positive /image for their brand. The inbound calling segment of the contact center outsourcing market offers businesses a variety of benefits, including strengthening customer loyalty, improving customer service, rising efficiency, and supporting a cost-effective business. Hence, these factors will boost the growth of the inbound segment of the global call center outsourcing market during the forecast period.
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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 call center outsourcing 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.
In 2020, due to the outbreak of COVID-19, the contact center outsourcing market in North America witnessed operational challenges. However, in 2021, the initiation of large-scale vaccination drives?lifted the lockdown and raised the demand for call center outsourcing services. The call center outsourcing market in the region is seeing a surge in the adoption of advanced technologies such as cloud-based call center solutions, voice recognition software, chatbots, and AI. Therefore, various companies are beginning to implement call center analytics such as multichannel customer interaction analytics, voice analytics, and call center performance analytics applications. Thus, such factors are expected to support the growth of the regional call center outsourcing market during the forecast period.
The Call Center Outsourcing 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.
Global 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.
Alorica Inc.: The company offers call center outsourcing services which provides operations of a specific business process.
Atento SA: The company offers call center outsourcing services which helps in generating a better and increasingly optimized brand experience, maximizing retention, resolution, sales conversion, and a comprehensive view of a 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
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 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.
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Call Center Outsourcing Market Scope |
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Report Coverage |
Details |
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Page number |
172 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 4.8% |
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Market growth 2023-2027 |
USD 27.64 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
3.78 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 42% |
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Key countries |
US, Australia, India, UK, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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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. |
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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. |
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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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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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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