Table of Contents
Domestic Business Drives Growth in a Highly Concentrated Market
•The Latin American contact center outsourcing services market attained revenue of $xx billion in 2013 as a result of a solid performance mostly driven by domestic business.
•It is expected that the market will exhibit growth during 2014, with total sales exceeding $xx billion.
•Although domestic business will continue to be the main source of sales, offshoring activities will exhibit higher growth rates in 2013 and 2014, slightly increasing their share of total revenues to xx% in 2014.
•The Central American and Caribbean (CACAR) region is the only Latin American market that mostly focuses on offshoring activities, while other countries’ main source of revenue is their domestic business.
•The United States accounted forxx% of Latin American offshoring revenue in 2013 and will exhibit a higher growth rate than the total market, thus slightly increasing its share. Offshoring revenue from within Latin America remains second, while Spain’s share will decrease as a result of its national economic crisis.
•In terms of service types, inbound activities will remain the key revenue source, accounting for xx% of sales in 2014. Back office/others will exhibit higher growth rates in 2014 as outsourcers seek to diversify their portfolios to increase profitability.
•The total number of workstations will reach xx by the end of 2014, which indicates a xx% year-on-year growth. This rate is lower than the revenue growth rate, due to the increase in average revenue per position.
•Figures for some categories (e.g., market share, vertical breakdown) for 2013 were under review at the time of publication; 2012 figures have been provided.
•The telecom vertical accounted for xx% of total revenues in 2012, while the banking, financial services, and insurance (BFSI) vertical was in second place with xx% of sales. Commerce and retail and government are other relevant verticals, both with more than xx% of revenues.
•Among services, customer care, retention, and acquisition still had the leading revenue share at xx% in 2012, an increase of almost xx% from 2011. Sales accounted for xx% of revenues in 2012.
•The top 3 outsourcers in Latin America accounted for xx% of total revenues in 2012, indicating that this is a highly concentrated market compared with other regions such as North America (xx% in 2012), Europe (xx% in 2010) and Asia-Pacific (xx% in 2011), the latest years that figures were available.
•Voice remains the main contact medium employed in Latin America, accounting for xx% of total activities—stable in the year-on-year comparison. Email is still the key non-voice medium, with xx% of transactions, while social media represents a marginal portion of the market.
Research Scope and Definitions
This Market Insight examines the trends in the contact center outsourcing services markets in Latin America, and provides extensive coverage of the services delivered for domestic markets in Argentina, Brazil, CACAR, Chile, Colombia, Mexico, and Peru, and those provided from these countries to overseas markets. In this sense, offshore services are defined as services provided to customers outside the country where a contact center is located. This study shows data for outsourced offshore services excluding offshore operations performed in-house. In this study, revenue is defined as payment received by outsourcing companies for the provision of customer-agent interaction services. Revenue figures include any payment received for agent activities beyond these pricing structures that are contained in outsourcer contracts. However, they do not include toll-free service revenue. This study segments and differentiates the contact center outsourcing services market in a number of ways, including:
•Contact center outsourcer categories
•Inbound and outbound services
•Domestic and offshore services
Outsourced customer service is a subset of the much broader business process outsourcing (BPO) industry. It is usually defined as a business arrangement in which a company contracts an outside supplier to perform a service rather than accomplishing it in-house. Services can range from simple call handling to complex business processes such as technical support and customer self-service via interactive voice response (IVR) applications or the Web. Suppliers specialize in handling high volumes of inbound and outbound calls for customer care, retention, and acquisition; help desk; technical support; collections; and telemarketing/telesales for business clients.
These clients in most cases contract the use of both required technology and employee services (including managers, agents, and process experts). Outsourced services are purchased on an hourly, per-call, per-minute, per-position, or per-result basis. Higher-end customer care services typically involve handling a wide range of complex queries, and can manage the entire customer lifecycle. Agents in these centers use advanced customer relationship management (CRM) technologies, and they are trained to become specialists in client products. In many cases, such services consist of handling detailed inquiries, including billing, accounting, financial transactions, and technical support, as well as integrated business process.
Outsourcers in Latin America have started to offer other BPO services apart from the wide array of inbound and outbound customer-related services already mentioned. They usually begin by offering back-office services (providing administrative and support assistance). Revenue generated by these services are taken into account only when considering the total revenue of each provider.
This study counts workstations that are active or ready to be used, regardless of whether they are occupied. However, built stations that are not active are not counted.
Key Questions This Study Will Answer
Is the market growing, and at what rate?
What is the status of contact center outsourcing services in Latin America? Is the region structured correctly to attain further growth?
What are the key growth drivers and restraints?
How will the market structure change over time? What key competitors must be watched?
Are the services offered today meeting customer needs, or is additional development needed? Will the current services be commoditized? Will new services arise?
How will offshore services evolve in the short term?
Get Industry Insights. Simply.
Talk to Ahmad
+1 718 618 4302
This 2017 module has 138 pages and 67 tables and figures Worldwide hyperscale data center markets implement cloud computing with shared resource and the aim, more or less achieved of providing foolproof ...
C-Level Enterprise Data Center Assessment: WinterGreen Research announces a study to address the move from Ethernet wiring for the data center with Cat5e to fiber. The ability to get optics going in the ...
Actionable Strategies to Remain Relevant Amidst the Cloudy Landscape New analysis from Frost & Sullivan’s Digital Transformation program titled Growth Opportunities in the Global Contact Center Systems ...