Research firm Technavio expects the global contact center outsourcing market to grow by $25.9 billion through 2028, amounting to a 4.37 percent compound annual growth rate. The company credits the rise in several emerging countries around the world for this market growth.
Contact center outsourcing is a business strategy that optimizes process efficiency, enhances customer relationships for companies, and helps reduce operating costs as vendors employ skilled professionals to handle a high volume of customer calls, according to Technavio.
Conversely, maintaining in-house call centers involves substantial investments and human resources, as well as infrastructure complexities, it concluded.
At the same time, skilled labor is in high demand for handling complex customer queries, but the industry faces challenges such as high attrition rates, averaging more than 10 percent due to the monotonous and stressful nature of call center jobs, Technavio said, noting that to maintain smooth workflows, call centers must continually recruit and train new staff, adding to their costs. To mitigate these challenges, third-party service providers are adopting advanced technologies like voice bots and social media management tools, as well as process automation tools such as artificial intelligence and robotic process automation.
Technavio also maintained that cloud computing investments in this sector are also on the rise, though the ongoing investments required for technology, process improvement, and infrastructure increase outsourcing costs, which might hinder market growth during the forecast period.
The IT and telecom segment holds a significant market share in the global call center outsourcing industry, which Technavio said can be attributed to the increasing technological advances, substantial growth in data traffic, and rising consumer demand for digital communication and content.
Key market players identified in Technavio's report include 247.ai, Alorica, Atento, Bertelsmann, Computer Generated Solutions, Continuum Global Solutions, Datacom Group, DiRAD Technologies, Epicenter Technologies, Five9, Helpware, Hinduja Global Solutions, Infosys, Serco Group, StarTek, Sutherland Global Services, Tata Consultancy Services, Teleperformance, Transcom Holdings, and XACT Acquisition.
The market, the firm said further, is witnessing intense competition among vendors, leading them to form strategic partnerships and acquisitions with various market players to expand geographically and gain access to technological expertise.