Analysis of the Latin American Contact Center Outsourcing Services Market

• Publication date: May 2012
• Report size: 61 pages

This study examines the trends in the contact center outsourcing services markets in Latin American and forecasts the market demand. It provides an extensive coverage of the services delivered for the overall Latin American market and for the services provided to offshore markets. Data is examined for outsourcing offshore services alone, thereby excluding in-house offshore operations. Further analyzed are the market’s drivers and restraints, gi...

This study examines the trends in the contact center outsourcing services markets in Latin American and forecasts the market demand. It provides an extensive coverage of the services delivered for the overall Latin American market and for the services provided to offshore markets. Data is examined for outsourcing offshore services alone, thereby excluding in-house offshore operations. Further analyzed are the market’s drivers and restraints, giving insight into the market-revenue forecast for 2011–2017. The market’s trends and opportunities and its key leading verticals are discussed as well as competitor information regarding the market’s key players.

Call Center Industry in the United States

Executive Summary
Market Overview
Total Contact Center Outsourcing Services Market
•External Challenges: Drivers and Restraints—Total Contact Center Outsourcing Services Market
•Forecasts and Trends—Total Contact Center Outsourcing Services Market
•Market Share and Competitive Analysis
Outsourcing Services
The Last Word
Appendix

Executive Summary

•An overall positive investment atmosphere is present surrounding the Latin American contact center outsourcing services market. This is reflected by the high rate of growth expected for revenue and workstations throughout the forecast period, ending in 2017.
•For the purpose of this study, revenue is expressed in U.S. dollars (USD). Industry income is expected to more than double during the examined period, reaching an estimated total of $xx.xx billion in 2017.
•The regional compound annual growth rate (CAGR) during the next seven years is likely to be xx.x percent.
•The domestic market is still the key revenue source for most of the Latin American providers. In 2010, xx.x percent of the total market income came from local services, while only xx.x percent came from services to offshore markets.
•This trend is expected to continue. Therefore, while offshore participation will continue to decrease, domestic revenue will gain increased relevance, slowly moving to a total market penetration of approximately xx.x percent in 2017.
•For offshore activity, the United States is the country to which most services are provided and will continue to be the market´s motor in upcoming years. With a CAGR of x.x percent during the forecast period, total revenue from this destination will reach $x.xx billion in 2017.
•For revenue, the domestic market is expected to grow at a sound CAGR of xx.x percent during the next seven years, more than doubling its base-year (2010) amount to reach a total of $xx.xx billion. On the other hand, offshore revenue will grow at a lower average rate with a CAGR of x.x percent, but nonetheless, it will nearly double by 2017.
•The leading vertical in Latin America for 2010 was still the telecom industry. After increasing its market share by x.x percent, this segment represents a little less than half of the market’s total revenue, at xx.x percent.
•Voice interaction continues to be the most important method of contact in the Latin American outsourcing services market, capturing xx.x percent of total activity.
•The most demanded outsourced service in Latin America during 2010 was once again customer care, which suffered a minimal market share loss because companies took aggressive initiatives to reach clients and increase business.
•The break between inbound, outbound, and back-office activities for 2010 remained similar to its numbers from the previous year.
•Back-office activities are showing a growth trend from now until 2017 and should reach a total of $x.xx billion by year-end 2017, which is represented at an estimated, impressive CAGR of xx.x percent.

Market Overview—Definitions

Outsourced Customer Service
•Outsourced customer service is a subset within the much broader business process outsourcing (BPO) industry and is usually defined as a business arrangement wherein a company contracts an outside supplier to perform a service rather than accomplishing it in house.
•Services can range from simple call handling to handling complex business processes, such as technical support and customer self-service through 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 as well as help desk, technical support, collections, and telemarketing/telesales for business clients.
•Outsourced customer-service clients hire, in most cases, 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 these services are used to manage the entire customer lifecycle.
•Agents in these centers use advanced customer relationship management (CRM) technologies, and they are trained to become specialists in the products of the client account to which they are assigned. In many cases, such services consist of handling detailed inquiries, including billing, accounting, financial transactions, and technical support as well as integrated business process.

Hypotheses

Is the market growing; how long will it continue to grow and at what rate?
Which is the status of the industry within the region? Is it structured correctly to reach further growth?
What are the key drivers and restraints for growth within Latin America?
How will the structure of the market change, and which key competitors should be watched?
Are the products/services offered today meeting customer needs or is additional development needed? Will the current products/services become commoditized, and will new products/services arise?
How will offshore services evolve in the short and medium term