Enjoy complimentary customisation on priority with our Enterprise License!
The Customer Relationship Management (CRM) Outsourcing Market size is estimated to grow at a CAGR of 5.63% between 2022 and 2027. The market size is forecast to increase by USD 25.4 billion. The growth of the market depends on several factors, including the rising need for large-scale client management, the increased use of neo-sourcing, and the rising need for scalability. CRM outsourcing is a type of professional service provided by outsourcing providers in the form of external services. Services include communications management, omnichannel customer engagement, and analytics solutions. It helps clients to increase their operational efficiency, concentrate on core competencies, reduce product time-to-market, access talent, implement the latest technologies, and enhance the long-term economic cost structure of their organization.
This CRM outsourcing market report extensively covers market segmentation by end-user (BFSI, telecom and IT, retail, healthcare, and discrete manufacturing and others), application (large enterprise and SMEs), 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.
To learn more about this report, View Report Sample
The rising need for large-scale client management is driving growth in the Customer Relationship Management Outsourcing Market. For organizations worldwide, demand for the maintenance of an efficient CRM process is increasingly becoming a vital element in planning strategy. CRM helps in maintaining a detailed database about the company's customer base and brings in repeat business.
However, supporting a proficient CRM database is challenging as the volume of data increases. Hence, in order to be able to access location data, many large organizations are adopting automation for the management of records and cloud computing. Other purposes of CRM outsourcing are cost savings and database downtime reduction. The rising need for large-scale client management will boost the growth of the market in focus during the forecast period.
The advent of big data and analytics services is a key trend in the Customer Relationship Management (CRM) Outsourcing Market. Analytics is one of the most significant trends in the CRM outsourcing services industry. Firms are adopting analytics services to transform unstructured data gathered from various online channels into structured data to get meaningful insights.
Moreover, with the adoption of technology and outsourcing services, most enterprises are witnessing an abundance of data. Moreover, with advanced reporting and analysis tools, the providers of CRM outsourcing are able to provide clients with valuable information on their behavior, preferences, and trends. These insights inform strategic decision-making. Thus, the advent of big data and analytics services will impel the growth of the global CRM outsourcing market during the forecast period.
The shortage of domain expertise is a major challenge faced by the Customer Relationship Management Outsourcing Market. The knowledge and expertise needed to manage customer interactions are required for the provision of CRM services. This requires personnel who are skilled in the core company's processes. With the shrinking of the available talent pool in developed economies, acquiring and retaining high-quality talent has become critical to a service provider's success.
However, the outbreak of the COVID-19 pandemic has further added to this challenge. One of the most pressing issues for CRM service providers during pandemics is to select experts in a given field. The continuation of the work-from-home business model will further act as a challenge for service providers to acquire skilled labor for their operations. Thus, a shortage of skill sets and domain expertise will impede the growth of the market in focus during the forecast period.
The market share growth by the BFSI segment will be significant during the forecast period. The BFSI segment includes banking, insurance, accounting, and all other financial institutions. The rise in the digitization of core processes and the generation of a considerable amount of data across the sector are the main factors that drive the growth of this segment. In the BFSI sector, with the growing number of users in developing economies around the globe, there has been a substantial increase in the volume of electronic transactions.
Get a glance at the market contribution of various segments View Free PDF Sample
The BFSI segment showed a gradual increase in the market share of USD 17.50 billion in 2017 and continued to grow by 2021. Banking projects in the BFSI sector, such as core banking, trading systems, and credit monitoring systems, are challenging and difficult to manage, and hence, core business banks are outsourcing their non-critical services. Financial institution's performance in the timeframe and at a low cost will be enhanced by an increasing adoption of CRM outsourcing solutions within this sector. Thus, a few factors will drive the growth of the BFSI segment, which will boost the growth of the market in focus during the forecast period.
Outsourcing CRM can lead to cost savings by reducing the need for extensive in-house staffing, infrastructure, and technology investments. Third-party providers often offer cost-effective solutions and can scale services as needed, which can result in lower operational expenses. CRM outsourcing providers specialize in the management of customer relationships, which means that they bring a large pool of expertise and experience. CRM outsourcing allows large enterprises to quickly adapt to changing market conditions, customer needs, and industry trends. This flexibility is crucial for remaining competitive in dynamic markets. Thus, factors such as cost savings, flexibility, and adaptability will contribute to the growth of the large enterprises segment, which will enhance the growth of the market in focus during the forecast period.
For more insights on the market share of various regions Download PDF Sample now!
North America is estimated to contribute 35% 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. North America has always been a lucrative market for CRM outsourcing vendors as the region is an early adopter of advanced technologies. This region has witnessed market growth due to the strong presence of large vendors and their penetration. The rate of data generation and consumption is among the highest in the region. Additionally, the integration of cloud-based services and social media into the CRM process is leading to the development of a new intelligent CRM outsourcing business model in the region.
Moreover, North American CRM outsourcing providers have been early adopters of advanced technologies such as artificial intelligence (AI), machine learning, chatbots, and analytics. The efficiency of customer services and data management is enhanced by these technologies. Moreover, North America is home to a vast and diverse range of industries, including technology, finance, healthcare, retail, and more. As a result, the Customer Relationship Management (CRM) Outsourcing Market can cater to a wide array of industry-specific needs.
In 2020, the outbreak of the COVID-19 pandemic inhibited the growth of the Customer Relationship Management Outsourcing Market in the region. However, in 2021, with the lifting of the COVID-19-induced lockdowns, the markets reopened and recovered due to large-scale vaccination drives, following all the safety measures to control the spread of the disease. The COVID-19 pandemic increased the demand for remote customer support services and highlighted the importance of business continuity planning. Many North American companies have benefited from the help of CRM outsourcing providers in adjusting to these challenges. The regional Customer Relationship Management (CRM) Outsourcing Market is expected to grow significantly during the forecast period.
The CRM 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 also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global CRM 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.
Accenture Plc - The company offers CRM outsourcing services such as Accenture Dynamics customer relationship management service.
Alorica Inc. - The company offers CRM outsourcing services such as Alorica customer experience service.
Atos SE - The company offers CRM outsourcing services such as Atos CX customer relationship management service.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 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 CRM 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.
CRM Outsourcing Market Scope |
|
Report Coverage |
Details |
Page number |
175 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.63% |
Market growth 2023-2027 |
USD 25.4 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.19 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 35% |
Key countries |
US, Canada, Australia, the UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
3i Infotech Ltd., 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, 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. |
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 End-user
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
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.