Call Center Outsourcing Market size is set to grow by USD 25.9 billion from 2024-2028, Rise of emerging countries as call center destinations to boost the market growth, Technavio

NEW YORK, July 18, 2024 /PRNewswire/ -- The global call center outsourcing market  size is estimated to grow by USD 25.9 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 4.37%  during the forecast period.  Rise of emerging countries as call center destinations is driving market growth, with a trend towards increase in m and a and strategic alliances among vendors. However, increasing cost of call center outsourcing services  poses a challenge. Key market players include 247.ai Inc., Alorica Inc., Atento SA, Bertelsmann SE and Co. KGaA, Computer Generated Solutions Inc., Continuum Global Solutions LLC, Datacom Group Ltd., DiRAD Technologies Inc., Epicenter Technologies Pvt. Ltd., Five9 Inc., Helpware Inc., Hinduja Global Solutions Ltd., Infosys Ltd., Serco Group Plc, StarTek Inc., Sutherland Global Services Inc., Tata Consultancy Services Ltd., Teleperformance SE, Transcom Holding AB, and XACT Acquisition LLC.

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Key Market Trends Fueling Growth

The call center outsourcing market is witnessing intense competition among vendors, leading them to form strategic partnerships and acquisitions with various market players. These collaborations enable vendors to expand geographically and gain access to technological expertise. In May 2023, Atento opened its first call center in the Philippines at the Iloilo Business Park, marking its entry into the country. NobelBiz expanded its cloud contact center ecosystem with the introduction of OMNI+ Awaken Scripting, a user-friendly scripting tool that reduces costs and enhances operational efficiency. In June 2022, Majorel Group Luxembourg SA and Sitel merged to create a new global leader in the customer experience industry. Teleperformance acquired Health Advocate, Inc., a consumer health management services provider, to expand its offerings. The increasing number of strategic partnerships, acquisitions, and collaborations is anticipated to positively impact the growth of the global call center outsourcing market during the forecast period. 

The call center outsourcing market is experiencing significant trends that are shaping the industry. Skilled labor is in high demand for handling complex customer queries. Technological progress, including AI, ML, automation, and blockchain technology, is transforming call centers. Round-the-clock operations, flexibility, and scalability are essential for businesses to meet customer needs. Customer experience is a top priority, driving the adoption of digital channels like multichannel services, social media, messaging apps, and chatbots. Barriers to communication and absence of control are concerns, but cloud-based solutions and onshore/nearshore outsourcing offer potential solutions. Regulatory compliance difficulties persist, particularly in sectors like healthcare, government, and defense. Inbound, outbound, and multilingual support services are common offerings from telecom and IT companies. Subscription-based models and employee satisfaction are also key considerations. Overall, the market is driven by the need for high-quality service and the ongoing digital transformation. 

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Market Challenges

• Call center outsourcing is a business strategy that optimizes process efficiency and enhances customer relationships for companies. Outsourcing call center services helps reduce operating costs and increase efficiencies, as vendors employ skilled professionals to handle high volumes of customer calls. However, the industry faces challenges such as high attrition rates, averaging over 10%, due to the monotonous and stressful nature of call center jobs. Agents may handle abusive customers and long, irregular shifts, leading to health issues like stress, insomnia, and hypertension. To maintain smooth workflows, call centers must continually recruit and train new staff, adding to their costs. To mitigate these challenges, third-party service providers are adopting advanced technologies like voice bots and social media management tools, as well as process automation tools such as AI and RPA. Cloud computing investments are also on the rise. These technologies simplify business processes and enhance productivity. However, the ongoing investments required for technology, process improvement, and infrastructure increase the cost of Business Process Outsourcing (BPO), which may hinder market growth during the forecast period.
• The call center outsourcing market faces several challenges in today's business landscape. Skilled labor availability is a significant concern, as is keeping up with technological progress. Round-the-clock operations require flexibility and scalability, while maintaining high customer experience is crucial. Digital transformation brings opportunities with ML, automation, AI, data analytics, and omnichannel assistance, but also introduces barriers to communication. Service quality is key, but regulatory compliance difficulties can be challenging. Inbound, outbound, and multichannel services are common offerings, with telecom and IT sectors leading the way. Onshore, nearshore, and offshore outsourcing models each have their advantages and disadvantages. Subscription-based models, employee satisfaction, and fundamental skills are essential considerations. Barriers to entry include absence of control, IT services, and industries like government and defense, healthcare, and IT and telecom. Instant messaging platforms, chatbots, messaging apps, social media, cloud-based solutions, and cloud sourcing are transforming the industry.

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Segment Overview 

This call center outsourcing market report extensively covers market segmentation by

1. End-user 
• 1.1 IT and telecom
• 1.2 BFSI
• 1.3 Healthcare
• 1.4 Retail
• 1.5 Others
2. Type 
• 2.1 Inbound
• 2.2 Outbound
3. Geography 
• 3.1 North America
• 3.2 Europe
• 3.3 APAC
• 3.4 South America
• 3.5 Middle East and Africa

1.1 IT and telecom-  The IT and telecom segment holds a significant market share in the global call center outsourcing industry. This growth can be attributed to the increasing technological advances, substantial growth in data traffic, and rising consumer demand for digital communication and content. The telecom services sector is projected to experience continuous growth with the emergence of 5G technology. Telecom organizations are investing heavily in 5G, with estimates suggesting 3.6 billion 5G connections by 2025, increasing to 4.4 billion by 2027. To concentrate on core offerings and reduce turnaround time, IT and telecom companies outsource their customer relationship management functions to call center providers. Maintaining in-house call centers involves substantial investments and human resources, as well as infrastructure complexities. As a result, organizations in the IT and telecom sectors are increasingly outsourcing customer query management and other operations to call center companies. For instance, AT&T Inc., a leading US-based telecom service provider, outsources its customer support functions to three call center vendors: Teleperformance, Alorica, and Convergys. The shift towards digital transformation and the rise in communication channels necessitated by 5G development are fueling the demand for call center services, driving the growth of the IT and telecom segment during the forecast period.

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Learn and explore more about Technavio's in-depth research reports

The global healthcare BPO market is experiencing significant growth due to increasing healthcare costs, regulatory changes, and the need for efficient patient care. Outsourcing services like billing, claims processing, and data entry to specialized providers helps healthcare organizations reduce operational costs and improve focus on core activities. Key players include Accenture, Cognizant, and TCS. The global CCaaS market is booming, driven by the rise in remote work and the need for scalable customer support solutions. CCaaS platforms offer flexibility, advanced analytics, and seamless integration with CRM systems, enhancing customer experience. Leading providers include NICE inContact, Five9, and Genesys.

Research Analysis

The Call Center Outsourcing Market is experiencing significant growth due to the increasing demand for efficient and cost-effective customer support solutions. Artificial intelligence (AI) and Data analytics are transforming call centers, enabling personalized customer interactions and predictive analytics. Omnichannel assistance, multilingual support, and instant messaging platforms are becoming essential, as customers prefer seamless and convenient support across various channels. Chatbots and messaging apps are also gaining popularity for their ability to provide instant responses and reduce wait times. Technological progress, such as Machine Learning (ML) and Automation, are enhancing call center operations, providing round-the-clock services, and ensuring flexibility and scalability. Customer experience is a top priority, driving the adoption of digital transformation and offshore outsourcing. Subscription-based models offer affordability and predictable costs, while employee satisfaction remains a crucial factor in ensuring high-quality services. Blockchain technology is also being explored for its potential to enhance security and data integrity.

Market Research Overview

The Call Center Outsourcing Market is experiencing significant growth due to the increasing demand for efficient and cost-effective customer support solutions. Artificial intelligence (AI) and data analytics are transforming call centers, enabling personalized customer experiences and improved service quality. Omnichannel assistance, multilingual support, and instant messaging platforms are becoming essential for meeting customer preferences and expectations. Cloud-based solutions and cloud sourcing are driving flexibility and scalability, while IT services find new opportunities in sectors like government and defense, healthcare, IT and telecom. Fundamental skills and skilled labor are crucial for delivering high-quality services, but technological progress poses challenges such as barriers to communication and regulatory compliance difficulties. Inbound, outbound, and multichannel services are common offerings, with telecom and IT companies leading the way. Onshore, nearshore, and offshore outsourcing models offer different advantages, while subscription-based models provide flexibility. Employee satisfaction, machine learning (ML), automation, and blockchain technology are shaping the future of call center outsourcing.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• End-user
• IT And Telecom
• BFSI
• Healthcare
• Retail
• Others
• Type
• Inbound
• Outbound
• Geography
• North America
• Europe
• APAC
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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SOURCE Technavio