Enjoy complimentary customisation on priority with our Enterprise License!
The customer relationship management (CRM) outsourcing market size is forecast to increase by USD 27.7 billion, at a CAGR of 5.82% between 2023 and 2028. The market is experiencing significant growth due to several key factors. Firstly, the increasing need for large-scale client management has led businesses to outsource CRM functions to specialized service providers. The advent of big data and analytics services has made it essential for organizations to leverage data-driven insights to enhance customer engagement and retention. BFSI and telecom sectors are particularly notable for their reliance on CRM outsourcing to handle complex client interactions and data management. However, the shortage of domain expertise within organizations drives the trend towards outsourcing, as service providers offer a pool of skilled professionals with expertise in CRM technologies and strategies. Additionally, the flexibility and cost savings offered by CRM outsourcing are making it an attractive option for businesses looking to optimize their customer engagement efforts.
The market research 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.
Get a glance at the market share of various regions Download the PDF Sample
The large enterprise segment was the largest and was valued at USD 57.10 billion in 2018. Major industries, including banking and financial services, have adopted CRM outsourcing to streamline operations and improve customer experiences. Big data specialists and automation solutions, such as pocess automate, are increasingly being integrated into CRM outsourcing services to provide more efficient and effective solutions. However, resistance to change and compliance challenges can pose challenges to the CRM outsourcing industry. Contracts with industry leaders offer synergies and opportunities for business development, and monitoring and accountability are essential to ensure successful restructuring. The market continues to grow, with managed services, staff, and financial details being key areas of focus.
For more insights on the market share of various regions Download PDF Sample now!
North America is estimated to contribute 36% 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. CRM outsourcing has emerged as a significant trend in the business world, with full-time processors handling customer interactions and advanced analytical tools enhancing industry expansion. Small businesses and large enterprises alike are leveraging CRM outsourcing software to improve customer experiences, gain a competitive edge, and ensure customer satisfaction. Marketing automation is a key feature of these solutions, enabling businesses to engage with their clients effectively through Single User Licenses. The healthcare sector is also embracing CRM outsourcing, with Udyam registration platform facilitating seamless implementation. Healthcare facilities are utilizing CRM outsourcing to streamline operations and adhere to standards set by organizations like Joint Commission International. Advanced analytical tools and APIs integrated into CRM outsourcing software enable businesses to gain valuable insights from customer data. Social media platforms are also being integrated into these systems, allowing businesses to engage with their customers in real-time.
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.
Rising need for large-scale client management is notably driving market growth. Organizations increasingly recognize the importance of effective Customer Relationship Management (CRM) in achieving business success. CRM enables companies to manage their customer interactions efficiently, maintain detailed databases, and deliver consistent customer experiences. However, managing complex CRM databases in-house can be resource-intensive and challenging, particularly as data volumes grow. Consequently, many businesses are turning to specialized service providers for CRM outsourcing. Business Process Outsourcing (BPO) offers innovative strategies and planning approaches for managing CRM functions. Outsourcing allows organizations to leverage the core competencies of these providers, enabling them to focus on their business strategy. Technological investments in managed services, IT engineering, and data security are essential for ensuring data privacy and protection of sensitive customer information.
CRM outsourcing offers synergies such as cost savings, reduced downtime, and access to big data specialists. Industry leaders in the CRM Outsourcing industry provide tailored solutions to meet evolving client requirements. However, resistance to change and compliance challenges, including data protection measures and regulatory landscapes, can pose challenges to CRM outsourcing. Contracts between organizations and service providers must address these issues to ensure a successful restructuring. Banks and financial services are significant adopters of CRM outsourcing, with managed services providing significant benefits in managing large volumes of data and ensuring regulatory compliance. Thus, such factors are driving the growth of the market during the forecast period.
Advent of big data and analytics services is the key trend in the market. The market is witnessing significant growth due to innovative strategies and specialized service providers offering tailored solutions for businesses. With the globalization of businesses and evolving client requirements, more companies are turning to business process outsourcing for managing their CRM functions. Technological investments in managed services, IT engineering, and data security have become essential for delivering consistent customer experiences. Analytics is a key trend in the CRM outsourcing industry, enabling firms to transform unstructured data into meaningful insights using advanced analytical tools. As enterprises increasingly focus on analyzing and utilizing data in a timely manner, CRM outsourcing has become a popular choice for cost and time efficiency. However, challenges such as resistance to change, regulatory landscapes, compliance challenges, and data protection measures must be addressed to ensure successful restructuring. Ensuring synergies between the outsourcing partner and the client, as well as contracts that cater to evolving business needs, are crucial for a successful CRM outsourcing relationship.
In the public sector, CRM outsourcing can lead to improved monitoring and service delivery, while managing sensitive customer information requires data security measures and adherence to privacy regulations. In conclusion, CRM outsourcing offers numerous benefits, including cost savings, improved customer service, and operational efficiency. However, it also comes with challenges related to staff management, data security, regulatory compliance, and resistance to change. By partnering with experienced service providers and implementing effective planning approaches, businesses can overcome these challenges and reap the rewards of a successful CRM outsourcing strategy. Thus, such trends will shape the growth of the market during the forecast period.
Shortage of domain expertise is the major challenge that affects the growth of the market. Customer Relationship Management (CRM) outsourcing involves specialized service providers offering innovative strategies and tailored solutions to businesses seeking to manage their customer interactions effectively. With the increasing globalization of businesses and evolving client requirements, outsourcing CRM functions has become a popular business strategy for successful restructuring and cost savings. However, providing these services requires significant planning approaches and technological investments to ensure consistent customer experiences. CRM outsourcing companies face challenges in acquiring and retaining high-quality talent, especially in developed economies. The need for relevant expertise and local knowledge becomes increasingly important as businesses expand their global footprint.
To address these challenges, CRM outsourcing industry leaders focus on managed services, staff augmentation, and synergies with IT engineering and automation solutions. Data security, privacy, and sensitive customer information are critical concerns, necessitating data protection measures and compliance with regulatory landscapes. Resistance to change and complex contracts add to the challenges, requiring CRM outsourcing providers to be agile and adaptable. Financial services, banking operations, and public sector organizations are significant clients for CRM outsourcing. Monitoring and adherence to regulatory requirements, such as those related to data protection and privacy, are essential for maintaining client trust and long-term relationships. Hence, the above factors will impede the growth of the market 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.
Accenture Plc - The company offers CRM outsourcing services such as Accenture Dynamics customer relationship management service.
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 has witnessed significant growth in recent years due to evolving business needs and globalization of businesses. Specialized service providers offer innovative strategies and tailored CRM solutions to help companies enhance their customer experience and improve business processes. Businesses are increasingly turning to business process outsourcing for successful restructuring and technological investments. The integration of artificial intelligence (AI) and machine learning further enhances CRM capabilities, providing advanced analytics and automation features. Financial details, data security, privacy, and sensitive customer information are top priorities for both businesses and CRM outsourcing providers.
Resistance to change and regulatory landscapes present challenges for the CRM outsourcing industry, requiring compliance measures and data protection. Industry leaders leverage synergies and evolving client requirements to offer managed services, including automation, to the banking and financial services sectors. Accounts payable departments and big data specialists are essential for effective CRM outsourcing. Monitoring and contracts are key components of CRM outsourcing, ensuring that businesses maintain control over their operations while outsourcing non-core competencies. Banks and financial services have been early adopters of CRM outsourcing for banking operations, leveraging the expertise of IT engineering firms to stay competitive.
Market Scope |
|
Report Coverage |
Details |
Page number |
190 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.82% |
Market Growth 2024-2028 |
USD 27.7 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.42 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 36% |
Key countries |
US, UK, Australia, Germany, and Canada |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accenture Plc, Alorica Inc., Atos SE, Capgemini Service SAS, Cognizant Technology Solutions Corp., Concentrix Corp., Dell Technologies Inc., Digital Customer Care Co. BV, ExlService Holdings Inc., Firstsource Solutions Ltd., Genpact Ltd., HCL Technologies Ltd., Hinduja Global Solutions Ltd., Infosys Ltd., International Business Machines Corp., StarTek Inc., Tata Sons Pvt. Ltd., Teleperformance SE, 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, Market condition analysis for the market forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
Get the report (PDF) sent to your email within minutes.
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.