Global Contact Centers Market Being Driven By Tech Innovations & Mergers - A Procurement Intelligence Report: Grand View Research, Inc.

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Nov 23, 2021, 06:35 ET

SAN FRANCISCO, Nov. 23, 2021 /PRNewswire/ -- The contact centers market dynamics pre- and post-COVID-19 scenario are drastically different. The pandemic has resulted in companies partnering and acquiring other firms, leading to a higher degree of market consolidation. In addition, contact centers are improving their technological offering to automate and streamline processes. The contact center market was valued at USD 365 billion in 2020 and is expected to grow at a CAGR of 4.2% from 2021 to 2025

One of the biggest acquisitions in 2021 is Avaya's acquisition of contact center developer CTIntegration. CTIntegration has been a technology provider to Avaya. It is the maker of CT Suite and its connectors and has been a part of Avaya's DevConnect bringing expertise into Avaya OneCloud platform to understand customer behavior and thereby streamline replies and requirements. The acquisition occurred in August 2021, and the financials involved has not been disclosed.

There have been other technological advancements in the market as well. Coca-Cola Europacific Partner, Indonesia has opted to work with Taps 8X8. The objective of this engagement is to provide a secure mobile experience to manage orders through Taps 8X8's SMS API. The Los Angeles Pacific University has decided to move their entire contact center operations including admission, enrollment, and alumni connect to Dialpad's cloud system. The system integrator for this project is Dialpad.

Contact Center Industry Procurement Intelligence report, by Grand View Research, deep dives into the following insights from the industry:

Migration into a cloud-based environment and technological advancements are the largest trends in the market – The COVID-19 pandemic has resulted in several market changes. While in-house contact centers still dominate the market, the transition to cloud-based contact centers is significantly growing due to the social distancing norms, which are keeping offices from operating at 100% capacity. Asia Pacific is the largest market for contact centers with the Philippines, India, China, Vietnam, and Singapore being the largest hubs for contact centers.
The market features a highly fragmented competitive landscape – The market for contact centers is highly fragmented with the top five suppliers occupying nearly 35% of the overall share. Market barriers are relatively low as the capital cost required to enter the market is low. However, the fragmented nature of the market along with competitive pricing might act as deterrents to new market entrants.
Suppliers prefer in-house service provider model to leverage their expertise – From a sourcing perspective, the majority of suppliers opt for an in-house service provider engagement model. Since the core competency is that of contact center services, it makes sense for an operation as well as cost perspective to operate on an in-house engagement model.
Labor costs are the largest cost heads for a contact center – The primary cost of a contact center is the cost of labor. Variable labor costs make up 60-65% of the overall cost incurred by a contact center. In addition, there are other labor costs like fixed labor and tech support labor costs. At present, technology occupies a nominal cost head in the overall cost structure.

Contact Centers Cost Intelligence – Key Components:

Variable Labor (60-65% of total cost)
Fixed Labor
Tech Support Labor
Technology Cost
Telecom and Networking Costs
Facilities
Miscellaneous Overheads
Profits

Contact Centers Supplier Intelligence – Capability based ranking & selection criteria with weightage:

Operational Capabilities –

Years in Service – 10%
Employee Strength – 25%
Revenue Generated – 20%
Key Industries Served – 25%
Key Clients – 20%

Functional Capabilities –

Type of deployment – 40%

On-premise
Cloud-based

Type – 40%

Voice-based
Text based
Social media-based

Use of technology – 20%

Chatbots, automated call director
Caller analytics tools
Process automation tools

List of Key Suppliers in the Contact Centers Industry:

[24]7.ai, Inc.
Alliance Data Systems, Inc.
Alorica, Inc.
Atento
BT Communications Ltd.
Concentrix
Convergys Corp.
Genpact
IBM Global Process Services Pvt. Ltd.
Tata Consultancy Services Ltd.
Wipro

Addon Services offered by Grand View Research:

Should Cost Analysis – In the contact centers industry procurement intelligence report, we have estimated and forecasted pricing for the key cost components while availing services from contact centers.
Rate Benchmarking – Software development is one of the most important aspects while analyzing the rate benchmarking of contact center services. In our report, we have analyzed the hourly rates of contact center software development per region by using the rate benchmarking method.
Salary Benchmarking – Our research indicates that Concentrix software engineers earn 40% lower salaries than software engineers of other key industry players like Avaya and Exotel. However, Concentrix gives 50% higher bonuses to its software engineers compare to its peers.
Supplier Newsletter – It is cumbersome for any organization to continuously track the latest developments in their supplier landscape. Our newsletter service helps them remain updated, to avoid any supply chain disruption which they may face, and keep a track of the latest innovations from the suppliers. Outsourcing such activities help clients focus on their core offerings.

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain which helps in efficient procurement decisions.

Our services include (not limited to):

Market Intelligence involving – market size and forecast, growth factors, and driving trends
Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions

Browse through Grand View Research's collection of procurement intelligence studies:

Sugar Processing Industry Procurement Intelligence Report –India has become one of the leading sugarcane producers after Brazil and Thailand. This is driving sugar processing suppliers to re-think and re-shape their procurement strategies.
Electric Vehicle Charging Connector Industry Procurement Intelligence Report – The advent and acceptance of electric vehicles in the market as a go-to alternative to counter the global inflation in fuel prices, in-turn, is expected to propel the growth for EV charging connectors market.

About Grand View Research

Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.

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