Description
Summary: Industry Insights Companies have traditionally been relying on Customer Relationship Management (CRM) for dealing with customers. Improving overall customer experience involves offering customized and personalized interaction, which is a continuous process. The use of voice as the preferred communication channel has been decreasing; however, transitioning to self-service or digital channels remains a challenge. Additionally, the focus on effective mobile customer care is steadily rising, with buyers looking for mobility services across different platforms. Surging demand for interaction through non-voice channels is expected to be a key driving force for the global market. Transition towards host-based customer care delivery is expected to open up opportunities, in order to enter emerging markets such as BRIC nations. In order to capitalize on this trend, companies operating in the industry have been focusing on enhancing security in order to avoid undesirable events such as outages or security breaches. Growing cloud and host-based services, along with trends such as big data and social media are expected to intensify market competition over the next few years. The global outsourced customer care services market was valued at USD 56.75 billion in 2012, and is expected to grow at a CAGR of 5.2% from 2014 to 2020. Service Activity Insights Key service activities analyzed and reported in the study include customer interaction, fulfillment/logistics and CRM technology hosting. Customer interaction services accounted for 83% of the market in 2012, and are expected to dominate the overall industry over the next six years. Customer interaction services include customer service, sales, marketing and technical support or help desk. Outsourced customer care service providers help create strong customer relationships and cater to their requirements in a personalized manner. Customer service interaction is of crucial importance in order for organizations to drive revenue and ensure customer retention. With growing competition, customer-centric services and customer satisfaction are among the key success factors for an organization. Focus on providing effective pre-sales and post-sales services has resulted in demand for higher-value services in order to improve customer interaction. Services such as managed routing and charging, self service and contact center are expected to boost sales and ensure customer loyalty. Technical support/helpdesk services augment customer experience quality, and play an integral role in user retention. Companies provide multi-tiered and multi-channel support, as well as advanced services including network troubleshooting, hardware and software support, etc. CRM technology hosting accounted for considerably smaller market share in 2012; however, it is expected to be the fastest growing segment, at an estimated CAGR of 11.7% from 2014 to 2020. It allows organizations to better manage their core business areas, as well as improve return on investment (ROI). CRM technology hosting particularly helps small and medium businesses (SMB) boost enterprise profitability. Regional Insights Key regional segments analyzed and estimated in the report include North America, EMEA, Asia Pacific and South America. North America accounted for 55.5% of the global market in 2012, and is expected to remain the largest regional market over the forecast period. Presence of numerous customer care outsources in the region has culminated in intense competition. In light of changing consumer trends and reducing inbound call volumes, service providers have looked at expanding their technology platforms and meeting the communication needs of clients. Changing interaction channels and surge in mobility are among the key factors influencing the market in North America. The wireless subscriber base in the U.S. is expected to continue expanding, driving regional growth. However, assuring customers of data security is of critical importance, since they are concerned with how companies may track their data in order to safeguard privacy. In case of these events, customers may reduce cloud-based service adoption, instead fueling uptake of traditional delivery services. Asia Pacific is expected to be the fastest growing market over the next six years, at an estimated CAGR of 7.4% from 2014 to 2020. Customer care delivery has been undergoing a paradigm shift and growth in mobility services as well as growing demand for wireless devices are expected to propel penetration in these markets. Competitive Insights Companies operating in the market include Teleperformance SA, Stream Global Services, Convergys Corporation, Sykes Enterprises and West Corporation among others. Key players have been aiming to provide high quality customer care, as well as cover overall operating expenses in a profitable manner. Major industry participants serve industries including telecom, retail, financial services and internet service providers among others. Providers focus on offering newer forms of service delivery, which ranges from using host-based delivery such as with home agents, to host-based call center services as observed in the telecommunications sector. Service providers need to change their brand image from being a Business Process Outsourcing (BPO) vendor to one that can effectively help buyers transform their business and customer experience. Continued investment in retaining customers is also expected to help ensure sustainability amidst increasing competition.