Contact Center Outsourcing to See Minimal Growth

Research firm Technavio expects the worldwide contact center outsourcing market to grow by $21.7 billion through 2027, at a compound annual growth rate (CAGR) of just 3.96 percent.

The report notes that while several countries, notably India and the Philippines, have emerged as key contact center outsourcing locations due to low operating costs, companies that use them are facing challenges, such as poor quality, high attrition rates, inflation in wage rates, and remote management complexity.

In general, the increasing cost of contact center outsourcing is challenging the growth of the market, particularly as companies require investments in technology, process improvement, and infrastructure, it said.

The report also found that the contact center outsourcing market is fragmented. Competition among verdors is limited, and established industry participants are acquiring other providers or entering into partnerships with other players to expand their product portfolios, enter emerging markets, and boost their market share.

Among the companies competing in this space, the report identified [24], Alorica, Atento, Bertelsman, Computer Generated Solutions, Continuum Global Solutions, Datacom Group, Epicenter, Hinduja Global Solutions, Infosys, Serco Group, Sitel Group, StarTek, Sutherland Global Services, Tata Consultancy Services, TD SYNNEX, Teleperformance, and Transcom Holdings.