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News : Brazilian BPO and Contact Center Outsourcers Shift Focus
Sao Paulo, June 2, 2014 -- The Brazilian business process outsourcing (BPO) and contact center outsourcing services market saw a decline in revenue by 5.1 percent from 2012 to 2013. This was caused largely by the exit of Tellus and Vidax as well as the reduced performance of some important companies. However, with the market set to recover, participants are shifting their focus from cost reduction to the provision of high-quality specialized services.
New analysis from Frost & Sullivan, Brazilian BPO and Contact Center Outsourcing Services Market 2014, finds that the market earned revenues of $5.19 billion in 2013 and estimates this to reach $7.34 billion in 2018. Over the next five years, the revenue share of inbound services is expected to decline, making room for BPO and back-office services, areas which companies are increasingly looking to outsource so as to improve customer service and experience.
"Outsourcing companies have marginally widened their portfolio to meet the unique needs of verticals such as utilities and energy, retail and consumer goods, and insurance, which have witnessed an increase in revenue share," said Frost & Sullivan Information & Communication Technologies Industry Analyst Maiara Paula Munhoz. "This trend, along with the commencement of operations by new companies such as Konecta and Acticall, demonstrates that the Brazilian BPO and contact center outsourcing services market has space for more competition."
However, the limited workforce availability and high competitiveness among outsourcing companies are pervasive problems in the Brazilian BPO and contact center outsourcing services market. These problems are exacerbated by the poor public transportation system and intense traffic that agents encounter every day – it takes one to two hours for agents to get to work. Agents, thus, migrate between companies in search of the best opportunity in terms of salary and working conditions. This significantly increases costs incurred by the contractor –costs associated with the agent's resignation as well as the costs borne to hire and train new agents.
"Outsourcing companies should invest in their agents in terms of salary, training, career development, and other benefits to not only improve the employee experience and lower turnover rates but also increase productivity and enhance the customer experience," advised Munhoz. "They must also open headquarters in the northeastern and southern parts of Brazil owing to the availability of a low-cost workforce, less competition, and reduced churn rates."
Posted by Veronica Silva Cusi, news correspondent
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Published: Wednesday, June 4, 2014