Contact Center Outsourcing Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 109.34 Billion |
| Market Size (2029) | USD 156.79 Billion |
| CAGR (2024 - 2029) | 7.48 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Contact Center Outsourcing Market Analysis
The Contact Center Outsourcing Market size is estimated at USD 109.34 billion in 2024, and is expected to reach USD 156.79 billion by 2029, growing at a CAGR of 7.48% during the forecast period (2024-2029).
- The contact center outsourcing services help decrease operating costs and improve the efficiency of organizations that outsource these services. Also, the seller uses professionals to work quickly. In addition, third-party service providers have to keep up with the times by utilizing new technologies such as voice bots. Advanced technologies like social media management tools, process automation tools like artificial intelligence and RPA, and considerable investments in the cloud will facilitate and streamline business processes.
- A cloud contact center is an online service that delivers outbound and inbound telephone connectivity to agents through the Internet. Agents generally operate a cloud contact center to accept incoming and place outgoing calls from their desktops. Unlike business VoIP, cloud-based contact centers streamline client communication across multiple channels, including text, phone, email, and social media.
- Due to the growth of communication channels, customers anticipate frictionless interactions across several touchpoints. To provide omnichannel assistance, contact center outsourcing businesses are enhancing their capacity and combining channels, including voice, email, chat, social media, and self-service alternatives. This enables companies to provide reliable and practical client service, increasing customer satisfaction.
- Contact center outsourcing companies invest in cutting-edge technologies and qualified personnel to deliver effective and efficient customer service. The expertise of the outsourcing partner's team in areas like multilingual support, technical debugging, and knowledge of a particular industry can be useful to businesses. As a result, companies can increase operational effectiveness while concentrating on their core capabilities.
- Airbnb, the online marketplace for lodging and experiences, partners with contact center outsourcing firms to offer multilingual customer support. As Airbnb caters to a global user base, outsourcing its customer service operations helps assist in multiple languages, ensuring a seamless experience for hosts and guests worldwide.
- The contact center outsourcing market faces several challenges related to data security, customization, and migration restraints. Contact centers often handle sensitive customer data, which makes compliance with data protection regulations (such as GDPR, HIPPA, and CCPA) crucial.
- Due to the pandemic, call volumes for businesses in the healthcare, travel, and e-commerce sectors increased. Regarding COVID-19, customers made more requests, inquiries, and complaints, which raised the need for contact center help. During the pandemic, contact center outsourcing firms were forced to make immediate adjustments to accommodate the increased call volumes and address the changing demands of their clients, including disseminating advice on safety precautions, handling cancellations, and giving assistance for remote work arrangements.
Contact Center Outsourcing Market Trends
The Email Support Segment is Expected to Hold Significant Market Share
- Email support can be described as an asynchronous communication channel through which customers and teammates are not required to be simultaneously involved in a conversation to resolve and manage customer queries, challenges, and concerns connecting to a product or the offered service.
- Critical tasks for the email support role comprise developing good relationships with customers, solving their issues, endorsing products and services, maintaining their knowledge of the job, reporting to supervisors, and forwarding unresolved questions to experts. Email support is one of the most commonly used methods and a mission-critical service offering. According to Cisco Talos Intelligence Group, as of April 2023, the United States had the highest number of emails sent daily, with approximately ten billion. Overall, the United Kingdom, Belgium, the Netherlands, Japan, India, and Germany each had 8.3 billion emails sent per day.
- Numerous people consider it more suitable than phone support, although the timing could be improved. One of the main benefits of email support is the constant thread of ongoing or past communication, so the same person is not needed to answer multiple communications that happened over email. This offers optimal agency effectiveness.
- The trust factor in an email is far superior to other available support channels. When a complaint is written and documented over email, the customer seems to be at ease, keeping in mind that their concerns are being taken seriously. Also, with the augmented penetration and adoption of smartphones, most users nowadays always have quick access to their emails, even though they are not at home or office or have access to a PC. With emails being available on these smart devices, consumers can now get ready support at their convenience.
- A company’s email support system can be integrated into voice or chat support channels. It does not cost the company much of a fortune but delivers concrete results, continuously increasing its ROI. Additionally, emails allow customers to attach bills, tickets, and interesting graphics, which helps keep them engaged and allows better control over the process. Customers and operators alike can attach documents and showcase them with email support. Customer support via email also offers the customer base an option to attach damaged deliverables for which they may be asking for support. With the help of ticket numbers or user IDs, support conducted through emails can be traced back by the team carrying out support procedures and the user. This permits both parties to keep a check on whether an issue was solved in time.
- With AI and chatbots now present in every aspect of support processes, email support also integrates such technology to keep up with the industry's pace. In 2023, many companies, such as Google, launched several AI applications for email support. Such advances are projected to fuel the overall segment’s growth in the market during the forecast period.
North America is Expected to Hold Significant Market Share
- In North America, numerous contact center outsourcing businesses switched from old-fashioned on-premises arrangements to cloud-based contact center solutions. These solutions have provided the contact centers with greater scalability, flexibility, and cost-efficiency, allowing these companies to establish and manage their contact center operations speedily. The demand for remote work competencies, a better-quality client experience, and augmented operational effectiveness were the trends that fueled this development.
- Customers in North America are becoming more familiar with the expectation of dependable, smooth experiences through several channels. Outsourcing companies of contact centers have been incorporating channels such as voice, email, social media, chat, and self-service alternatives to offer omnichannel customer support. This offers simplicity and raises customer satisfaction by allowing firms to cooperate with customers on their favored channels.
- With the increasing importance of customer data and its confidentiality, contact center outsourcing providers in North America were consolidating their data security measures and ensuring compliance with industry regulations. In addition to privacy concerns, data protection boosted the implementation of vigorous security frameworks, protected data storage, and adherence to standards such as the Payment Card Industry Data Security Standard (PCI DSS) and the General Data Protection Regulation (GDPR).
- In July 2023, the US embassy in India announced to its visa applicants that its customer service center is shifting to a fresh platform. Customer calls, in addition to appointment booking, are anticipated to shift. Such developments are projected to fuel the region’s development as the US government controls the contact center, although it is in India.
- The region is largely known for its outsourcing of contact center operations, especially to the countries in Asia-Pacific, including countries such as India, Vietnam, Taiwan, and Malaysia. However, the demand for Customer contact services is anticipated to grow in the future considering the high adoption of technology, significant penetration on the internet, and increasing dependability on the technology of the regular population for everyday chores; such factors are projected to fuel the development of the market in North America during the forecast period.
Contact Center Outsourcing Industry Overview
The contact center outsourcing market is semi-consolidated due to the presence of both global players and small and medium-sized enterprises. Some of the major players in the market are Atento SA, Sykes Enterprises, Incorporated, DATAMARK Inc., Scicom Berhad, and Teleperformance SA. Players in the market are adopting strategies such as partnerships and acquisitions to enhance their product offerings and gain sustainable competitive advantage.
In March 2024, ArenaCX announced that Atento joined the marketplace of BPO providers. For ArenaCX, this new addition to the BPO marketplace means more choice within the arena marketplace for customers looking to outsource key business functions.
In June 2023, Microsoft, the leading artificial intelligence (AI) tech provider, signed a USD 185 million deal with France’s Teleperformance to help the outsourcing company launch its proprietary TP AI GenAI tec. Through the collaboration, Teleperformance is also leveraging Microsoft Azure artificial intelligence (AI) to launch TP GenAI, a new suite of AI solutions that enable faster, more efficient, and enhanced business processes that deliver improved customer experience.
Contact Center Outsourcing Market Leaders
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Atento S.A
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Sykes Enterprises, Incorporated
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DATAMARK Inc.
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Scicom Berhad
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Teleperformance, SA
*Disclaimer: Major Players sorted in no particular order
Contact Center Outsourcing Market News
- September 2023: Bandwidth Inc., a global enterprise cloud communications firm, announced its collaboration with Google and Cognigy to launch AIBridge. This tool enables companies to quickly deploy voice-based artificial intelligence tools in front of their contact centers, resolving calls rapidly and more efficiently in the communications cloud. AIBridge is the newest in a sequence of pre-built integrations obtainable with Bandwidth Maestro, a next-generation enterprise cloud communications platform that is now available.
- June 2023: iQor, a global provider of business process outsourcing (BPO) solutions, announced a strategic partnership with AmplifAI, an AI-driven performance enablement platform dedicated to leveraging data to create personalized environments for employee success. The two organizations aim to harness the power of interaction analytics and artificial intelligence (AI) to transform call center performance and revolutionize quality assurance (QA) functions. AmplifAI's mission is to use data-driven insights to create personalized environments that empower every employee to thrive.
Contact Center Outsourcing Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHT
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Multi-Channel Customer Engagement Trends (Chatbots | Social Media)
4.4 Other Emerging Trends Like Growth Of Advanced Analytics in the Contact Center
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Incorporation of Cloud Communication in Contact Centers
5.1.2 Latest Technologies Strengthen Capabilities of Contact Center Model
5.2 Market Restraints
5.2.1 Data Security, Customization, and Data Migration
6. MARKET SEGMENTATION
6.1 By Service Type
6.1.1 Email Support
6.1.2 Chat Support
6.1.3 Voice (Offshore and Onshore)
6.1.4 Other Service Types
6.2 By End-user Industry
6.2.1 BFSI
6.2.2 Government and Defense
6.2.3 Healthcare
6.2.4 IT and Telecom
6.2.5 Retail
6.2.6 Manufacturing
6.2.7 Other End-user Industries
6.3 By Geography***
6.3.1 North America
6.3.2 Europe
6.3.3 Asia
6.3.4 Australia and New Zealand
6.3.5 Latin America
6.3.6 Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles*
7.1.1 Atento SA
7.1.2 Sykes Enterprises Incorporated
7.1.3 DATAMARK Inc.
7.1.4 Scicom Berhad
7.1.5 Teleperformance SA
7.1.6 Firstsource Solutions Limited
7.1.7 TTEC Holdings Inc.
7.1.8 Startek
7.1.9 Hgs
8. INVESTMENT ANALYSIS
9. FUTURE OPPORTUNITIES
Contact Center Outsourcing Industry Segmentation
Call center outsourcing involves hiring an external team to handle customer support tasks. The team handles calls, surveys, and other customer service operations on the company's behalf. The study monitors the revenue generated from service offerings by vendors in the market.
The contact center outsourcing market is segmented by service type (email support, chat support, voice (offshore and onshore), and other service types), end-user industry (BFSI, government and defense, healthcare, IT and telecom, retail, manufacturing, and other end-user industries), and geography (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Service Type | |
| Email Support | |
| Chat Support | |
| Voice (Offshore and Onshore) | |
| Other Service Types |
| By End-user Industry | |
| BFSI | |
| Government and Defense | |
| Healthcare | |
| IT and Telecom | |
| Retail | |
| Manufacturing | |
| Other End-user Industries |
| By Geography*** | |
| North America | |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Latin America | |
| Middle East and Africa |
Contact Center Outsourcing Market Research FAQs
How big is the Contact Center Outsourcing Market?
The Contact Center Outsourcing Market size is expected to reach USD 109.34 billion in 2024 and grow at a CAGR of 7.48% to reach USD 156.79 billion by 2029.
What is the current Contact Center Outsourcing Market size?
In 2024, the Contact Center Outsourcing Market size is expected to reach USD 109.34 billion.
Who are the key players in Contact Center Outsourcing Market?
Atento S.A, Sykes Enterprises, Incorporated, DATAMARK Inc., Scicom Berhad and Teleperformance, SA are the major companies operating in the Contact Center Outsourcing Market.
Which is the fastest growing region in Contact Center Outsourcing Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Contact Center Outsourcing Market?
In 2024, the North America accounts for the largest market share in Contact Center Outsourcing Market.
What years does this Contact Center Outsourcing Market cover, and what was the market size in 2023?
In 2023, the Contact Center Outsourcing Market size was estimated at USD 101.16 billion. The report covers the Contact Center Outsourcing Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Contact Center Outsourcing Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Contact Center Outsourcing Industry Report
Statistics for the 2024 Contact Center Outsourcing market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Contact Center Outsourcing analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
