APAC contact center outsourcing market to boom

by CXOtoday News Desk    Jun 21, 2013

contact center

The contact center outsourcing market in Asia-Pacific is ripe and is further expected to gain a significant momentum in 2013 and beyond, according to a recent Frost & Sullivan. At the end of 2012, contact center outsourcing market in the region registered near double digit growth. The market is expected to generate nearly U$33.0 billion in revenue by 2018, registering a CAGR of a 9.9 percent during the period

Explaining the growth dynamics, Krishna Baidya, Research Manager for ICT, Frost & Sullivan Asia Pacific says, “Historically, offshore revenue has been the key driver of the Asia-Pacific contact centre market, and in 2012 contributed 39.6 percent of the total revenue. Cost savings, solid infrastructure, and language proficiency make many Asia Pacific locations preferred as offshore destinations for contact center outsourcing.”

The report notes that the region will continue to be the most attractive destination for contact centre outsourcing, as the need for customer services reaches newer level of maturity and as organizations focus on their core competencies. The growing multi-year contracts with experienced outsourcing companies that can deliver exceptional services at a lower cost will also be a growth driver in this region. Baidya observes the fact that companies today seek out workforce solutions that can expand and contract in relation to business objectives and client call volumes will drive the contact centre outsourcing industry.

Cost savings, solid infrastructure, and language proficiency make many Asia Pacific locations preferred as offshore destinations for contact center outsourcing.
-Krishna Baidya, Research Manager for ICT, Frost & Sullivan Asia Pacific

The Frost and Sullivan report noted while phone-live agent continues to be the primary customer contact channel for most verticals, analysts see robust growth rates for the social media channel, the SMS channel and the chat channel in the near to medium term. Besides, outsourcers will increasingly offer clients blended delivery models using a combination of onshore, near shore, offshore, home agents and automated customer contact capacity and technologies.

The report also notes that the nature of the relationship between customer and provider becomes even more important today because consumer across verticals are constantly expecting excellent service delivery and are constantly re-assessing contact centre priorities in order to stay in tune with the market and remain competitive. In such a scenario, he believes that third-party outsourcing relationships based on cost and labor arbitrage have become passé. “Providing customer service at a cheaper rate simply won’t win more wallet share or new logos anymore. It’s a value-add proposition that is going to keep the relationship alive,” he concluded.