BUENOS AIRES, Argentina, Oct. 24, 2016 /PRNewswire/ -- Major contact center service providers (CCSP) in Latin America have realized that cost-based competition, reflecting a cost-reduction value proposition, represents an unsustainable business model with decreasing profit margins. As such, many providers are moving toward strategic high value-added services offerings through diversifying their service portfolios and providing several back-end services, such as technology-based solutions, finance & accounting, software & development, and strategic consultancy for clients.
Frost & Sullivan's Digital Transformation analyst, Sebastian Menutti, adds, "Companies are also establishing long-term relationships with their clients in order to lower churn rates, as clients who outsource high-value services tend to switch providers less often than the market's average."
According to the Latin America Contact Center Outsourcing Market, a new analysis from Frost & Sullivan's Digital Transformation team, the contact center outsourcing services market in LATAM attained $10.05 billion in revenue in 2015, and is expected to reach $13.33 billion in revenue in 2021. The market was heavily impacted in 2015 by the revaluation of the US dollar against LATAM currencies, especially against the Brazilian real, the Colombian peso and Mexican peso.
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In terms of growth opportunities, CCSPs have experienced high growth in the offshore segment, particularly in the United States, while struggling to overcome the negative impacts on the domestic business caused by the regional economic crisis. Offshore markets, such as the US and Spain, will continue to represent the greatest opportunities for growth, but service providers must embrace business innovation and drive higher value to clients if they want to stay relevant.
"As fewer new deals with telecommunications companies appear, contact center service providers must build stronger vertical-specific strategies to sustain their growth in the medium and long term," says Menutti, "particularly in verticals such as healthcare, financial services, high-tech companies, travel and hospitality, and the manufacturing industry."
It is also important to understand that Latin American customers are demanding digital channels of contact, such as chat, social media, and email, forcing service providers to implement multi-channel and omni-channel strategies to stay competitive in the marketplace.
About Frost & Sullivan's Digital Transformation Team:
Latin America Contact Center Outsourcing Market is part of the Digital Transformation team's Growth Partnership Services subscription. Related studies include: Automation and Self Service Market Trends in Latin America, The Latin American Path to the New Way to Work, Roadblocks to Making Omnichannel a Reality in Brazil, and Analysis of the Hosted and Cloud Contact Center Market in Latin America, among many others. All studies in the subscription provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
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Latin America Contact Center Outsourcing Market
Corporate Communications Executive – Latin America
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SOURCE Frost & Sullivan