Industry Research : Domestic Market's Growth Augurs Well for the Asia Pacific Contact Center Market
The rise in domestic demand for third-party services has firmly entrenched the Asia Pacific in the global contact center outsourcing market. In 2011, 60.9 percent of the total revenue was from domestic markets, largely because of the upswing in the telecommunications and banking and financial services (BFS) sectors.
The telecommunications boom in India adds more than a million customers annually, making a robust case for outsourcing contact center operations. Similarly, in China, the mushrooming of banks and multinational companies has popularized the outsourcing of customer relationship management (CRM) services.
New analysis from Frost & Sullivan, Asia-Pacific Contact Center Outsourcing - Domestic and Offshore Markets, finds that the market earned revenues of US$17.18 billion in 2011 and estimates this to reach US$29.72 billion in 2017.
Domestic growth, along with solid infrastructure, geographical and cultural proximity to western countries, and the presence of well-qualified, college-educated, and low-cost labor that can serve clients in multiple languages has made Asia Pacific the destination of choice for outsourcing.
This substantial market potential does not preclude concerns regarding quality of services and security features, due to which, many companies prefer to maintain contact center services in-house. Outsourcers are also hampered by issues of high churn, market saturation in various countries, increasing costs, anti-offshoring stance by many western countries, and a growing requirement for self-servicing in CRM.
"While certain companies do not wish to outsource, some are willing to outsource, provided the operations are on-shore or near-shore to locations with similar language, diction, and culture," said Frost & Sullivan Senior Research Analyst Sathya Subramanian. "This bias can be attributed to apprehensions regarding a drop in both service quality and data security."
Outsourcers are looking to win back customers' confidence by implementing several new technologies and strategies that will help them improve the quality of services and offer better data security features. With the right kind of innovation and strategies, supported by the various governments in the region, outsourcers can maintain a healthy compound annual growth rate (CAGR) of 9.6 percent from 2011 to 2017.
"Entities throughout the Asia Pacific region are exploring various hosted contact centers and Internet protocol-based technologies to provide superior services in the most cost-effective manner," noted Subramanian. "Service providers are also slowly expanding their portfolio to other non-voice, back-office operations such as knowledge process outsourcing, financial and accounting outsourcing, and human resources outsourcing to provide end-to-end support."
Asia-Pacific Contact Center Outsourcing - Domestic and Offshore Markets is part of the Contact Centers Growth Partnership Services program, which also includes research in the following markets: APAC Outsourcing Outlook, APAC Hosted Contact Center Market, APAC Contact Center Applications Market, and Assessment of APAC Contact Center Market. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
Posted by Veronica Silva Cusi, news correspondent
Today's Tip of the Day - The Name Game
More Editorial From Frost & Sullivan
Published: Tuesday, June 26, 2012