This encouraging economic climate has had a significant impact on the contact center outsourcing services market, which grew by 25.58 percent in 2007.
New analysis from Frost & Sullivan (contactcentres.frost.com), Latin America Contact Center Outsourcing Services Markets, finds that the market earned revenues of $4.70 billion in 2007 and estimates this to reach $9.73 billion in 2013.
If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the Latin American contact center outsourcing services markets, then send an email to José María Jantus, Corporate Communications, at jjantus_pr[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country. Upon receipt of the above information, an overview will be sent to you by email.
Business in the domestic market accounted for 78.22 percent of the total market revenue, while the remaining 21.78 percent ($1.02 billion) came from offshore contact center services. Offshore services revenues in 2007 grew by 28.5 percent over 2006 and are expected to continue growing at over 20 percent at least for the next two years.
"The Latin American contact center outsourcing market witnessed a remarkable performance in 2007, mainly driven by the growing market demand and increasing prices," says Juan Manuel González, Research Analyst at Frost & Sullivan. "The current positive economic climate and future prospects, coupled with greater acceptance of outsourcing across several industries, is likely to drive double-digit growth - but at a decreasing growth rate - for the next five years."
Despite falling growth rates, the market is far from saturated. It is at different development stages in various countries. While most countries are reaching maturity or have already done so in terms of quality of service (QoS) and infrastructure, the entrants (Peru, Nicaragua, and Guatemala) are at the early development stage.
Demand has been especially dynamic in Colombia and CACar in 2007, resulting in several technological advances, product developments, and expansion of client base to include airlines and hospitality.
The Latin American market is populated as well as fragmented, with eight global participants sharing 41 percent of the total market. Sixteen large regional and local outsourcing companies accounted for 38 percent of the market, while the other regional and local mid-sized and smaller companies represented the remaining 21 percent in 2007.
The intense competition among various businesses has made it vital to acquire and retain customers. Contact centers can greatly help enterprises in their efforts to achieve higher customer retention, improve customer satisfaction, and obtain new customers. They also help marketing teams streamline campaigns, product development teams understand market needs, and business development teams start new revenue streams.
Considering its huge advantages, verticals are increasingly considering the option of outsourcing these functions, especially since they are not the core strength of the company. This increasing outsourcing of contact center services has highlighted the severe shortage of bilingual human resources, especially in countries in Central America, where English is not the primary language of communication.
In many places, private companies and the government have been implementing programs to improve the standard of spoken English since 2006. However, these efforts are usually inadequate and provide only long-term results, compelling companies to provide specific language and technical skills training to future employees.
"Anyway, in some countries, many agents have multilingual capabilities and speak Spanish, English, and in some cases, Portuguese," notes González. "These agents allow companies to support the full range of their customers from a single location, driving up the revenues from that country".
Latin America Contact Center Outsourcing Services Markets is part of the Contact centers Growth Partnership Service program, which also includes research in the following markets: Latin America contact center solutions markets, Latin America conferencing services, and Latin America enterprise telephony solutions markets. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.
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Latin America Contact Center Outsourcing Services Markets / N0F2