More than ever, European companies and governments understand the benefits of partnering with business process outsourcing (BPO) providers for their customer contact needs, and today there is an array of pan-European and regional providers to choose from, according to the latest research from Frost & Sullivan. However, the firm warns decision-makers to assess BPO providers carefully to make optimal investments that best address their specific needs.
The research, presented in Frost & Sullivan's 2015 Europe Contact Centre Outsourcing Buyer's Guide, found that the market earned revenues of $14.85 billion in 2014 and estimates this to reach $17.5 billion in 2019.
Even though Europe's contact center outsourcing market experienced challenges during the past few years, the technology-based services segment will see relatively vigorous growth, at a compounded annual growth rate (CAGR) of more than 12 percent, Frost & Sullivan reported. At the same time, it predicts the traditional, agent-based services market experience a CAGR of slightly more than 2 percent.
"The proliferation of automated and non-voice channels is proof of the importance of technology-based customer engagement," said Frost & Sullivan ;Digital Transformation Program Director Stephen Loynd in a statement. "Over the next five years, contact center providers that differentiate and compete on multichannel capabilities and value-added technology solutions will have an edge over providers that insist on competing simply on cost and labor arbitrage."
The firm does note that a lack of demand in some cases can present challenges to BPO providers in Europe. There also have been a host of mergers, acquisitions, and reorganisations across the region.
"Staying up-to-date on the changing nature of the BPO market is easier said than done," Loynd said. "Consider the dizzying number of recent mergers, acquisitions and reorganisations, involving players as diverse as Acticall, Sitel, Comdata, Atento, Arvato, Webhelp, SNT Deutschland, Walter Services, Serco, SYKES, TeleTech, and Teleperformance."
Frost & Sullivan also suugests that BPO providers might want to look to expand into new markets, perhaps leveraging existing client relationships to do so. And in today's world, in some cases, it might also be wise for BPOs to push for organizational change whenever necessary to promote increased focus and accountability, the firm said.