April 30, 2024
ICT

Call and Contact Center Outsourcing Market Size, Share, Report 2033

The global call and contact center outsourcing market size was estimated at USD 94.02 billion in 2023 and is anticipated to attain around USD 225.04 billion by 2033, expanding at a CAGR of 9.12% from 2024 to 2033.

Key Points

  • North America has generated more than 32% of market share in 2023.
  • Asia-Pacific is estimated to expand the fastest CAGR between 2024 and 2033.
  • By type, the voice segment has captured the highest market share of 31% in 2023.
  • By outsourcing type, the onshore segment generated over 59% of market share in 2023.
  • By outsourcing type, the offshore segment is expected to expand at the fastest CAGR over the projected period.
  • By service, the inbound services segment generated over 61% of market share in 2023.
  • By service, the outbound services segment is expected to expand at the fastest CAGR over the projected period.

Call and Contact Center Outsourcing Market Size 2024 to 2033

The Call and Contact Center Outsourcing Market has witnessed substantial growth in recent years, driven by the increasing demand for cost-effective and efficient customer service solutions. This market encompasses the outsourcing of call center services, including inbound and outbound customer support, telemarketing, technical support, and help desk services, among others. Businesses across various industries, including telecommunications, healthcare, retail, finance, and IT, are increasingly leveraging outsourcing to enhance their customer service operations while focusing on core business activities.

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Call and Contact Center Outsourcing Market Data and Statistics

  • According to Freshdesk Chat’s 2021 findings, 79% of users prefer receiving live chat assistance for swift responses. Customer satisfaction rates are notably higher for live chat assistance, standing at 73%, compared to 61% for email help and 44% for phone assistance. The average wait time for live chat assistance is reported to be just 46 seconds. Additionally, 69% of customers express a preference for interacting with human agents rather than chatbots during chat assistance.
  • In May 2023, the Iloilo Business Park, spanning 72 hectares in the Mandurriao District of Iloilo province and city, welcomed Atento, a business process outsourcing (BPO) company, as it launched its first call center in the Philippines at the location.
  • In April 2023, NobelBiz, a telecom and software provider catering to contact centers, expanded its cloud contact center omnichannel ecosystem, introducing OMNI+ Awaken Scripting—a user-friendly and adaptable scripting tool—as part of this expansion.

 

Growth Factors:

Several factors contribute to the growth of the Call and Contact Center Outsourcing Market. One key factor is the rising emphasis on enhancing customer experience and satisfaction. Outsourcing call center services allows companies to access specialized expertise and technologies, leading to improved service quality and customer engagement. Additionally, the globalization of businesses and the increasing adoption of digital channels have expanded the need for multilingual and omnichannel support, driving demand for outsourcing services.

Furthermore, cost reduction remains a significant growth factor for businesses outsourcing their call center operations. Outsourcing enables companies to benefit from economies of scale, access to skilled labor at lower costs in offshore locations, and reduced capital expenditure on infrastructure and technology. This cost-effective approach allows businesses to allocate resources more efficiently and focus on strategic initiatives, thereby driving profitability and competitiveness.

Region Insights:

The Call and Contact Center Outsourcing Market exhibits regional variations in terms of demand, outsourcing destinations, and service offerings. Asia Pacific, particularly countries such as India, the Philippines, and Malaysia, dominates the market due to its abundant pool of skilled, English-speaking workforce, cost advantages, and advanced infrastructure. These countries have emerged as preferred destinations for offshore outsourcing, attracting businesses from North America and Europe seeking to leverage their outsourcing capabilities.

North America remains a significant market for call and contact center outsourcing, driven by the presence of large enterprises seeking to optimize their operational costs and enhance customer service quality. Europe also presents opportunities for outsourcing providers, especially in countries like Poland, Ireland, and Romania, which offer a skilled workforce and proximity to key markets.

Call and Contact Center Outsourcing Market Scope

Report Coverage Details
Growth Rate from 2024 to 2033 CAGR of 9.12%
Global Market Size in 2023 USD 94.02 Billion
Global Market Size by 2033 USD 225.04 Billion
U.S. Market Size in 2023 USD 21.06 Billion
U.S. Market Size by 2033 USD 50.41 Billion
Base Year 2023
Forecast Period 2024 to 2033
Segments Covered By Type, By Outsourcing Type, and By Services
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

Call and Contact Center Outsourcing Market Dynamics

Drivers:

Several drivers fuel the growth of the Call and Contact Center Outsourcing Market. One primary driver is the increasing complexity of customer interactions across multiple channels, including phone, email, chat, and social media. Outsourcing providers equipped with advanced technologies and expertise can help businesses manage these interactions efficiently, ensuring seamless customer experiences.

Moreover, the rapid advancements in artificial intelligence (AI), chatbots, and automation technologies are driving the adoption of outsourcing services. These technologies enable call centers to automate routine tasks, personalize interactions, and provide proactive support, thereby improving efficiency and reducing response times. Businesses are increasingly partnering with outsourcing providers to integrate AI-driven solutions into their customer service operations, enhancing productivity and scalability.

Opportunities:

The Call and Contact Center Outsourcing Market presents several opportunities for outsourcing providers to expand their service offerings and cater to evolving customer needs. With the growing demand for omnichannel support, there is an opportunity to provide integrated solutions that seamlessly connect voice, email, chat, and social media channels. Additionally, there is a rising demand for industry-specific outsourcing services tailored to sectors such as healthcare, e-commerce, and fintech, offering specialized expertise and compliance adherence.

Furthermore, the emergence of niche outsourcing services such as analytics-driven customer insights, social media monitoring, and sales optimization presents lucrative opportunities for providers to differentiate themselves in the market. By leveraging data analytics and predictive modeling, outsourcing companies can help businesses gain valuable insights into customer behavior, preferences, and trends, enabling targeted marketing strategies and revenue growth.

Challenges:

Despite the growth prospects, the Call and Contact Center Outsourcing Market faces several challenges that could impede its expansion. One major challenge is data security and privacy concerns, particularly with the increasing volume of sensitive customer information handled by outsourcing providers. Ensuring compliance with data protection regulations such as GDPR and HIPAA requires robust security measures, stringent protocols, and continuous monitoring to mitigate risks of data breaches and cyber threats.

Additionally, maintaining quality standards and consistent service delivery across geographically dispersed call centers poses a challenge for outsourcing providers. Variations in cultural norms, language proficiency, and service levels among offshore teams can impact customer satisfaction and brand reputation. Addressing these challenges requires investment in training programs, quality assurance mechanisms, and performance monitoring tools to uphold service excellence and meet client expectations.

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Recent Developments

  • In April 2023, Decipher Health Records Inc., an Indian firm, announced plans to establish a new healthcare call center in Guyana, aiming to generate around 300 job opportunities upon full operation. The Guyana Office for Investment and the government’s investment arm signed a memorandum of understanding (MoU) to facilitate this initiative, with Decipher Health Records actively pursuing potential sites for the call center’s setup.
  • During the same month, Teckinfo Solutions Pvt. Ltd., a renowned software company specializing in call/contact center solutions, launched its latest product, ID Cloud – Premium Contact Centre Software. This cloud-based platform caters to organizations of all sizes, offering seamless client engagement across different business scales while freeing up valuable IT resources.
  • In May 2023, Atento, a prominent business process outsourcing (BPO) company, inaugurated its inaugural call center in the Philippines at the Iloilo Business Park in the Mandurriao District of Iloilo province and city, marking its entry into the Philippine market.

Call and Contact Center Outsourcing Market Companies

  • Teleperformance
  • Convergys (now part of Concentrix)
  • Sitel Group
  • Sykes Enterprises, Incorporated
  • Alorica Inc.
  • Concentrix Corporation
  • TTEC Holdings, Inc.
  • Hinduja Global Solutions (HGS)
  • VXI Global Solutions
  • Arvato
  • TeleTech Holdings, Inc. (now TTEC)
  • Genpact
  • Wipro Limited
  • Infosys BPM Limited
  • HCL Technologies Limited

Segments Covered in the Report

By Type

  • Email Support
  • Chat Support
  • Voice
  • Other

By Outsourcing Type

  • Offshore
  • Onshore

By Services

  • Inbound Services
  • Outbound Services

By Geography

  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • Middle East and Africa

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Prathamesh

I have completed my education in Bachelors in Computer Application. A focused learner having a keen interest in the field of digital marketing, SEO, SMM, and Google Analytics enthusiastic to learn new things along with building leadership skills.

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