Global Contact Center Outsourcing Market Size by Service Type ( Email Support, Chat Support, Voice (Off-shore and On-shore), Website Support and Others), by Industry (BFSI, Retail, Government, IT & Telecommunications, Defense & Aerospace Intelligence, Manufacturing and Others), by Application (Customer Relationship Management, Order Processing, Telemarketing and Others) and Geography Forecast 2021 to 2031

The global contact center outsourcing market stood at USD 88.62 billion in 2018 and is expected to reach USD 131.56 billion by 2025. The expected CAGR from 2018 to 2025 is 5.05%. Due to the growing competition, companies are looking for different alternatives to heighten profit and reduce costs. Service and process outsourcing is the most preferred cost saving or reduction technique used by most companies. To save the cost of office space, hiring, salaries, and other things, companies hire an external end-to-end service provider. These service providers work as a part of the company and support the company as a third party. The hired party has the required skilled labor and technological infrastructure which helps the outsourcing company in gaining profit.

The new trend of the service industry is offering best-in-class customer experience which could be achieved with the help of digitalization. But to upgrade older software or adopt digitalization, higher investment is required. Instead of adopting newer technologies, these companies shift their processes to outsourcers for premium quality. These companies not only get expert services but reduced costs. When external call center agents are hired, they are paid for their productive time only and they are usually productive for 85% of each hour. So, a house agent which usually costs $ 25 per hour to a company, needs to be paid just $ 21.25 per hour when an agent is outsourced, which saves 15% on employee wages.

Offshore providers are continuously updating their knowledge and technology base to keep up and stay ahead. It reduces cost and surges efficiency for firms as they know they are retrieving the highest quality omnichannel contact centers available. The Philippines built its BPO industry on contact centers. Lately, high demand for omnichannel contact centers is observed, and the Philippines are able to meet this demand and set themselves world leader for BPO. The Philippines are able to fulfill the demand of customers and offer quality and efficient experience for the company and customer with the help of huge trained and eager workforce. Many firms in the Philippines have commenced offering omnichannel contact centers. PITON-Global has held strong foothold within the new field of omnichannel contact center outsourcing.

Technologies such as artificial intelligence, cloud solutions, and social media usage in contact centers for solving customer queries and attending customers are expected to take contact center industry to the next level. The move from on-premise solutions to cloud solutions allows for more custom-made solutions through custom application program interface connections and reduces the trouble of managing software, hardware, and ongoing updates. It is predicted that Cloud-based models can help companies harvest on an average of 27% annual savings and 15% savings in IT staffing costs. Usage of AI is also increasing in the contact center industry. AI-based chatbots are replacing humans for the preliminary interaction phase of customer handling. For instance, a British retail company named Marks & Spencer introduced an AI-based contact center that monitors one million plus inbound telephone calls per month

Industry Segment

On the basis of types, global contact center outsourcing market segmented into BFSI, Retail, Government, IT & Telecommunications, Defense & Aerospace Intelligence, Manufacturing, and Others. IT & Telecommunications segment attained a value of 46.44 in 2018 and is likely to maintain the graph in the forecast period.  Over the years the telecoms industry has expanded and expanded enormously. With millions of mobile phone service users, quality service in order to meet customers ' needs has become essential for companies.

Service Type Segment

Based on the service type, the market includes categories: Email Support, Chat Support, Voice, Website Support and Others. Voice segment leaded service type segment by obtaining a value of USD 61.30 Billion in 2018 at 4.22 % CAGR during the forecast period. After voice, email support is likely to acquire the service type segment owing to the growing rate of internet usage across the world which, in turn, has led to a rise in user email accounts.

Application Segment

Based on applications, the global contact center outsourcing market is divided into customer relationship management (CRM), order processing, telemarketing, and others. Customer relationship management segment is likely to dominate the market in 2025 owing to the growing demand for interaction via non-voice mediums. Importance of customer relationship management is realized as to offer business support. Personalized and customized communications for improved experience has encouraged the firms to outsource these tasks in order to shift the management focus on the core competencies of the organization. Post sales and pre-sales services are outsourced by the firms to lessen consumer relationship handling responsibilities.

The major players of Global Contact Center Outsourcing Market include IBM, HP, Teleperformance SA, Xerox Corporation, CGS Inc, HGS, Datamark, Inc, Infinit Contact, Five9 Inc, VADS, Alorica, Invensis, Transcosmos, Convergys, Arvato, Sykes Enterprises, and Atento. Most of the market players are participating in mergers and acquisitions to be on the competitive advantage of the market. Recently, another large BPO merger occurred, when Silicon Valley-based technology vendor Synnex acquired global BPO behemoth Convergys for USD 2.40 billion. Concentrix has already acquired Synnex in 2006. Both companies will soon merge to create one massive hybrid BPO, covering a global footprint of 40 countries servicing clients in 70 different languages.

The global contact center outsourcing market was dominated by North America and Europe in 2018. The market share occupied by North America and Europe in 2018 was 37.46% and 25.05% respectively. With increasing cost of the labor at global level major companies are selecting onshore CCO solutions over offshore solutions in Europe and North America. The global labor rates are driven by geopolitical and socio economic dynamics. Thus many North American and European outsources who were outsourcing their CCO operations to emerging countries such as India, Philippines and others locations are rethinking their outsourcing strategy.

Latin America and Asia Pacific is expected to have the fastest growth rate growing at a CAGR of 6.29% and 6.26% respectively for the CCO market with presence to emerging markets such as India, Philippines, Brazil, Mexico and other countries. India is projected to lead the Asian market for CCO followed by Philippines, Japan and China respectively. Growing telecom industry, along with rising population and presence of talented educated young population to support the CCO companies operations are driving the Asian CCO market.