Cost Savings is Not the Primary Driver in Contact Center Outsourcing

Bookmark and Share

Clients of global Contact Center Outsourcing (CCO) engagements increasingly are looking beyond cost savings to more growth-oriented value, according to a new report issued by Everest Group, an advisory and research firm on global services.

Instead, buyers want a partnership with their service providers to unlock new forms of value including customer retention and growth while unlocking new business opportunity from customer data and engaging customers via non-voice channels, especially social media, according to Everest.

Everest research showed that the market for CCO globally grew at 7 to 8 percent in 2012, reaching $65 to70 billion, a steady rise from the lows seen in 2009. Global contact center spending stands at $300 to $350 billion, of which third-party outsourcing accounts for 20 percent.

“As the global economy has shifted towards growth, the customer care function is once again viewed as a strategic operational area,” said Katrina Menzigan, vice president, Everest Group, in a statement. “A maturing CCO value proposition has moved beyond cost savings and labor arbitrage to include support of business growth. As a consequence, we’re seeing forward-thinking service providers and savvy clients build new contracting relationships where service providers identify and deliver new sources of value. It’s an important trend that’s driving the high single-digit growth we’re now seeing and expect to continue for the next sev