Outbound Call Center Featured Article

Outsourcing, Off-Shoring, Call Center Revenue to Increase

By Carolyn J Dawson
TMCnet Contributor

According to the research, ‘Call Centers: A Global Strategic Business Report,’ conducted by Global Industry Analysts (GIA), global call center service revenue is bound to reach $189.3 billion by 2015. The comprehensive report provides insights into market trends, issues, drivers, company profiles, mergers, acquisitions and other strategic industry activities.

Call center revenue in developing nations reached a low-point because of reduced demand of products and services in major markets along with cancellation of key sales contracts in 2009. Other factors governing the fall included bleeding corporate balance sheets, tight liquidity and customer budgets, fall in service tariffs, skepticism over infrastructure investment and many others. The most discouraging was the recession induced contract renegotiations, as a result of large contracts bifurcated into smaller contracts at lower values, as well as shorter turnaround time. Consequently, several small call center agencies in developing Asian countries were shut down.

Another reason for the downfall was the U.S. government's protectionist stand on outsourcing that resulted in stringent business environment for offshore, overseas players. However, economic viability and business imperatives being the most governing factor in the call center industry, outsourcing call center services will continue to grow despite the U.S. government's attempts at incentivizing MNCs to employ within the domestic shores.

Given the cost advantages and efficiency benefits offered by outsourcing, recession is unlikely to exert a medium to long-term impact on outsourcing. As a strategy move to attain stability during deepening economic woes, companies have temporarily cutback on customer service; however, prolonged cuts may result in poor customer retention since customer may chose to migrate towards other competitive services.

With the possibility of economic recovery on the tables, call center industry is bound to experience optimistic escalation. As per the research report, U.S. and Europe are following a ‘U’ Shaped recovery pattern while developing countries like Brazil, Russia, India and China are following a faster ‘V’ shaped recovery pattern. Post recession, companies are planning to re-focus their attention towards improved customer retention along with customer acquisition to ensure faster recovery and growth. The post recession period will bring out the importance of customer service and contact centers as the last means to retain customers and consequently outsourcing, off shoring, and in-house call center revenues are forecast to increase.