Contact Center Outsourcing Market

Contact Center Outsourcing Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The Contact Center Outsourcing Market is registering a CAGR of 9% over the forecast period. Contact center outsourcing is a way that major companies look for cutting costs. Some industry leaders stand by outsourcing critical contact center needs, while some disagree with such an option with the notion that keeping contact centers close to their operations is worth the additional costs.

• Smart contact center outsourcing companies offer advantages in how to work with clients from scheduling the right number of agents for peak demand times, and the right course of channels. They are equipped or develop in-house their sophisticated CRM and VOIP software, and network platform for scaling up operations. According to Call Center Helper 2021, 95.7% of contact center professionals view customer satisfaction as the most critical call center metric. Furthermore, according to data from Zendesk, customer satisfaction ratings for live chat (85%) are second only to phone support (91%), exceeding help center articles (83%), Twitter support (81%), email support (82%), and Facebook support (74%).
• Whereas, on the customer front, an issue resolved in a single interaction is considered as the most critical aspect of excellent service experience. To further understand what consumers seek in redressal, for instance, genesis conducted a study in which Consumers of varying ages expect different levels of empathy, with older generations wanting more understanding from organizations.​
• The Genesys survey data also indicated that the degree to which consumers recognize personalized service varies on a regional/country level. Customers in Germany with 77% and the U.K. at 75% were regarded as most likely to observes some kind of personalized activity in customer service being happened in the past five years. Alternatively, one-third of those in Japan and New Zealand with 33% think service has become less personalized.​
• One of the most common market challenges for contact center outsourcing companies is the threat of a data breach. A cybersecurity team is necessary for a company to manage data and guard against breaches and data loss. Organizations of clients are quite concerned about having to disclose private and sensitive information with another organization.
• With the outbreak of COVID-19 and remote working has been becoming a preferred mode of carrying operations, vendors for the market studied have been active in promoting WFH and expanding their business. This remote working is a successful model for contact centers, giving employees more flexibility and businesses access to a wider talent pool when they are no longer constrained by a physical location.

• Being viewed as a strategic customer engagement tool, the multi-channel approach by contact centers enable more robust relationships with customers. The rise of data collection, analysis, and data science can be considered a prime driver for the same. The access to data, businesses are basing their decision on actionable insights, thus, leading to better solutions for both customers and companies. Therefore, tech-savvy organizations are observed to have been opting for a multi-channel approach where customers’ needs can be addressed across multiple platforms. ​
• With digital transformations and customers being available on multi-platforms, the creation of satisfied customers is dependent on a smooth, hassle-free experience. This is possible via catering to their preferred mode of communication for their customers as the communication technology adopted on the contact center level.​ Key considerations to opt for multi-channel customer engagement have been attributed to the need for personalized content and availability on all platforms.
• Many businesses opt for outsourcing email support services as they think it is an excellent way to create a robust customer experience and boost customer loyalty. For a company, remaining available across all the customer communication channels can be a challenge, especially replying to customer emails. Hence, outsourcing email support services is a viable option. It offers several benefits like easy accessibility, cost efficiency, speedy response without auto-generation, facilitating customer feedback surveys to measure customer satisfaction and behavior.
• According to Freshdesk Chat 2021, for rapid responses, 79% of users prefer live chat assistance. Customer satisfaction for live chat is 73% compared to 61% for email help and 44% for phone assistance. The average wait time for live chat has been calculated to be 46 seconds. On chat assistance, 69% of customers prefer interacting with a human agent over chatbots.
• Chat support is a customer care or support that uses a messaging app or an online chatbot to assist customers. Chat help, provided by live employees or artificial intelligence (AI), complements more traditional customer service channels.

• The region is having the highest market share in terms of providing contact center outsourcing services because it has two developed countries such as the USA and Canada. Most contact center employees are employed in the United States due to a robust economy and the acceptance of corporate reshoring and onshoring activities, the sector in the United States keeps expanding.
• Earlier contact center service was generally managed in-house and increased the operational challenges which further resulted in poor customer service experience, but with the increased demand for personalized service and real-time access to resources needed to solve their problems, there is a shift in business focus towards enhanced customer experience to increase the level of customer retention, the trend of on-shore outsourcing is experiencing an upward trend in the region.
• The region is technologically advanced and most clients are now digitally enabled. Additionally, businesses are considering data security as a priority. For the BFSI sector, under the Payment Card Industry Data Security Standards Act, contact centers must abide by severe compliance regulations in the USA Because of this, a USA-based contact center can reassure the companies' customers, which is driving the market in the region.
• Having an American contact center can improve business chances of connecting with the consumers if Americans are their target market. Agents from USA contact centers can help business close any cultural gaps that might have with the clients. Having a cultural link may seem unimportant, but it can be a benefit that allows an agent to engage customers in conversation and raise customer satisfaction, which is becoming a priority across all businesses and hence driving the contact center outsourcing market in the region.
• The region is also witnessing growth in the field of analytics, cloud, and network infrastructure. With the rapid technological growth, increasing multichannel trends, and high level of technology adoption, the cloud adoption in the contact center outsourcing market is expected to witness an upward trend shortly.

The Contact Center Outsourcing market is competitive with mild fragmentation and multiple vendors with region-specific operations. Many companies are increasing their market presence by investing in introducing new or improved solutions or by entering into strategic mergers and acquisitions.

• In December 2021 - To drive innovation in the Unified Communications and Contact Center market, Dialpad Inc, an AI-powered cloud communications platform, announced that SoftBank Corp joined a previous USD 100M Series-E funding round by OMERS Growth Equity, through a USD 10 million investment. Dialpad's patented voice intelligence technology enables AI-powered real-time business optimization via coaching, automated note-taking, sentiment, and transcription analytics. Dialpad enables businesses and contact centers to provide superior value to customers while allowing employees to communicate via voice, video, and messaging on a single platform.
• In May 2021 - 8x8 Inc, a cloud communications platform announced the launch of its 8x8 integrated unified communications and contact center offering, which is a cloud phone and customer engagement solution to serve global organizations operating in Mainland China. The 8x8 Worldwide Reach expansion in China provides global enterprises with comprehensive services, reliability, faster deployment, efficient management, and access to local numbers. 8x8 reduces the complexity and costs of establishing and maintaining Public Switched Telephone Network (PSTN), which is now available to third-party gateways to link local customers to China through the company's new China data center.
• In September 2022 - With contact centers spread out over the Caribbean and Latin America, KM2 Solutions, a nearshore outsourcing company, has announced a further expansion of its Caribbean operations. Due to the rising need for English language contact center solutions, KM2 would expand its presence in Barbados, Grenada, and St. Lucia.

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