Frost & Sullivan: Domestic Business Remains the Key Revenue Source for Argentinian and Chilean Contact Center Outsourcing Service Providers Social media is the fastest growing channel of interaction in both markets
BUENOS AIRES, Argentina, April 29, 2014 /PRNewswire/ -- Contact center outsourcing service providers in Argentina and Chile are generating revenues primarily from domestic business. Revenues from offshoring are limited – less than 5 and 10 percent of total revenues in Argentina and Chile respectively – due to the high cost of operations and prices charged compared to other locations in Latin America such as Colombia, Mexico and Peru.
New analysis from Frost & Sullivan, Argentine and Chilean Contact Center Outsourcing Services Markets, finds that the Argentinian market earned $867.8 million in 2013 and estimates this to reach $1,018.2 million in 2020. On the other hand, the Chilean market earned revenues of $367.8 million in 2013 and this is expected to go up to $529.4 million by 2020.
"Although the majority of interactions in contact centers across Argentina and Chile are still performed through voice channels, social media is the fastest growing medium of contact in both these markets," noted Frost & Sullivan Information & Communication Technologies Industry Analyst Sebastian Menutti. "This growing trend is opening up lucrative opportunities for contact center outsourcing service providers who have already developed or acquired solutions to manage social media interactions."
However, the intense competition in the Argentinian and Chilean contact center outsourcing services markets is reducing the profitability margins of the industry. Potential regulations that aim to closely regulate the market, by restricting contact center outsourcing service providers from allocating night shifts to an agent for several weeks in a row and specifying other working conditions, will increase costs for industry players and further impact profit margins.
Other challenges peculiar to each market are also a cause of concern for contact center outsourcing service providers. This includes the political and economic uncertainty in Argentina as well as the highly-saturated labor pool in Santiago de Chile, which is making it difficult to hire the right personnel and elevating the attrition rate. To circumvent the situation, some Chilean service providers are setting up contact centers in other cities – such as Valparaíso and Concepción – that are characterized by considerably lower attrition rates.
"In a bid to remain competitive, some players are employing aggressive pricing strategies while others are basing their business models on the quality of their services," observed Menutti. "Most are also concentrating on developing high-value, complex services to pave the way for increased profitability in the Argentinian and Chilean contact center outsourcing services markets."
If you are interested in more information on this study, please send an email to Francesca Valente, Corporate Communications, at email@example.com.
Argentine and Chilean Contact Center Outsourcing Services Markets is part of the Contact Centers & CRM (http://www.contactcenter.frost.com) Growth Partnership Service program. Frost & Sullivan's related studies include: Mexico and Central America and the Caribbean Contact Center Outsourcing Services Markets, Latin American Contact Center Systems Market 2013, and Brazil's Contact Center Outsourcing Services Market 2013. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
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Argentine and Chilean Contact Center Outsourcing Services Markets
SOURCE Frost & Sullivan