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The technical support outsourcing market size is estimated to grow at a CAGR of 7.13% between 2022 and 2027. The market size is forecast to increase by USD 14.19 billion. The growth of the market depends on several factors, including the increasing need for cost-effective solutions to improve efficiency, the need for enterprises to focus on core competencies, and vendors' expertise in providing technical support. In technical support outsourcing, the services are offered by an enterprise to its users. The services offered are related to technology products, such as PCs, software products, mobile phones, and electronic goods. Technical support is offered via telephone, email, or specialized tools.
This global technical support outsourcing market report extensively covers market segmentation by type (help desk and call center), business segment (large enterprises and SMEs), and geography (APAC, South America, Europe, North America, and the 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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Companies' expertise in providing technical support is one of the key drivers for the growth of the market. Market players that provide technical support have sufficient expertise, knowledge, and experience to provide the right solution for their customers. These providers work with different customers in different industries, each with unique challenges. Companies can gain experience and learn many facets by working with a large number of diverse customers.
Moreover, intense competition motivates players to constantly upgrade and improve their businesses. Some companies do not have the experience or expertise to provide technical support. By outsourcing technical support services, companies can save operating costs and resolve problems more quickly and efficiently. Hence, these factors will drive the growth of the market during the forecast period.
The use of analytics is one of the leading trends in the global technical support outsourcing market. Analytics is used by enterprises to improve operations and increase customer satisfaction. The most common complaints of companies that outsource technical support are slow response times, long lines, unsatisfactory resolutions, and having to repeatedly explain the problem to multiple agents. These issues can be resolved with the help of analytics. For example, if a company looks at its hourly data volume and compares it to the number of employees, it can estimate the number of staff needed to reduce customer hold time. This is a simple example of how analytics can be used to find technical support outsourcing issues and make informed business decisions.
Moreover, by analyzing customer data available to technical support outsourcing companies, they can identify process flaws and take appropriate action to improve their operations. This helps them to provide customers with satisfactory solutions. The analytics help technical support outsourcing companies maintain peak performance and support the increasing adoption of technical support outsourcing worldwide. Hence, the use of analytics will boost the growth of the market during the forecast period.
Threat to data security and privacy affects the growth of the global technical support outsourcing market. Security is a top concern for companies that outsource their technical support duties to third parties, as it can lead to exposure of sensitive data in some cases. A technical support outsourcing company has permission to access sensitive customer data.
Moreover, the organization has no control over the technical support provider's internal processes, policies, or systems and is unaware of the security protocols used by the service provider. Therefore, businesses should carefully consider their technical support outsourcing provider to ensure that their data is secure and their contract includes a penalty clause in the event of an incident occurs. Thus, this threat will impede the growth of the market during the forecast period.
The market share growth by the help desk segment will be significant during the forecast period. A helpdesk is a general resource that provides product help to end users. This is commonly used to troubleshoot end-user technical issues. Helpdesk staff are usually very knowledgeable and have information on a wide range of topics. A helpdesk also provides advice on choosing the right technology for a particular application. A helpdesk provides end-user support regardless of whether the company's physical location is open or closed.
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The help desk segment showed a gradual increase in the market share of USD 13.77 billion in 2017 and continued to grow by 2021. By outsourcing technical support helpdesk, companies can free up resources and reduce operating costs by focusing on core competencies. In addition, it helps companies to improve employee productivity and reduce turnaround time. Tasks outsourced to helpdesk providers are handled by experts who use the latest technology to provide efficient and effective support solutions. Helpdesk service providers typically have teams of support specialists across different time zones. Helpdesk outsourcing is expected to contribute to the increase in market revenue during the forecast period.
The large enterprise segment was the dominant segment in the global technical support outsourcing market in 2022, and it is expected to remain the dominant segment during the forecast period. A major factor driving the growth of the large enterprise segment is the increasing demand for technological resources in various industries such as manufacturing, logistics, banking, and finance. Another factor driving the market is the need for digitization. The demand for digitizing operations is primarily driven by the need for operational efficiency, cost savings, and compliance standards
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APAC is estimated to contribute 58% 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. Many businesses in the region are turning to outsourcing technical support to improve customer service. Many Americas and EMEA companies outsource their technical support services to APAC because it saves them infrastructure and other costs. They also make use of local talent, which is available at low cost. This allows companies to reduce costs and focus on their core competencies. The rising need for cost reduction is one of the major drivers of the market.
Moreover, India and the Philippines are attractive destinations for technical support outsourcing due to the large number of new graduates each year. Companies in countries such as the US and UK outsource their technical support to India as it saves more than half of their operating costs without compromising service quality. This is expected to drive the growth of the market in APAC during the forecast period.
In 2020, the market witnessed certain challenges due to the outbreak of the COVID-19 pandemic. However, in 2021, the initiation of large-scale vaccination drives?lifted the lockdown and economic conditions across the region. Various measures and most businesses and industries resumed their operations. Such factors are expected to drive the market during the forecast period.
The global technical support 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 Technical Support 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.
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 global technical support 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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Global Technical Support Outsourcing Market Scope |
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Report Coverage |
Details |
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Page number |
162 |
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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 7.13% |
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Market growth 2023-2027 |
USD 14.19 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
6.93 |
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Regional analysis |
APAC, South America, Europe, North America, and Middle East and Africa |
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Performing market contribution |
APAC at 58% |
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Key countries |
China, India, Germany, Brazil, and Argentina |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Aress Software and Education Technologies P Ltd., Computer Generated Solutions Inc., CSS Corp., Essentiel Outsourcing S.L., Flatworld Solutions Pvt. Ltd., Genpact Ltd., Global response Corp., HCL Technologies Ltd., IBN Technologies Ltd., Infosys Ltd., International Business Machines Corp., Invensis Technologies Pvt Ltd., ISPL Support Services, Qcom Outsourcing Ltd., StarTek Inc., Suma Soft Pvt. Ltd., Tata Consultancy Services Ltd., Telegenisys Inc., Wipro Ltd., and Worldwide Call Centers 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, 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 Type
7 Market Segmentation by Business Segment
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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