October 4, 2024

Call and Contact Center Outsourcing Market Size,Growth Report By 2033

The global call and contact center outsourcing market size surpassedUSD 94.02 billion in 2023 and is anticipated to rake around USD 225.04 billion by 2033, expanding at a CAGR of 9.12% from 2024 to 2033.

Key Points

  • North America has generated more than 32% of market share in 2023.
  • Asia-Pacific is estimated to expand the fastest CAGR between 2024 and 2033.
  • By type, the voice segment has captured the highest market share of 31% in 2023.
  • By outsourcing type, the onshore segment generated over 59% of market share in 2023.
  • By outsourcing type, the offshore segment is expected to expand at the fastest CAGR over the projected period.
  • By service, the inbound services segment generated over 61% of market share in 2023.
  • By service, the outbound services segment is expected to expand at the fastest CAGR over the projected period.

Call and Contact Center Outsourcing Market Size 2024 to 2033

The Call and Contact Center Outsourcing Market has witnessed significant growth in recent years, driven by the increasing demand from businesses to enhance customer service while reducing operational costs. This market encompasses a wide range of services, including inbound and outbound call handling, customer support, technical assistance, sales, and telemarketing, outsourced to third-party service providers. The outsourcing of call and contact center operations allows companies to leverage the expertise and infrastructure of specialized providers, enabling them to focus on core business activities and achieve greater efficiency in customer service delivery.

Call and Contact Center Outsourcing Market Data and Statistics

  • According to Freshdesk Chat’s 2021 findings, 79% of users prefer receiving live chat assistance for swift responses. Customer satisfaction rates are notably higher for live chat assistance, standing at 73%, compared to 61% for email help and 44% for phone assistance. The average wait time for live chat assistance is reported to be just 46 seconds. Additionally, 69% of customers express a preference for interacting with human agents rather than chatbots during chat assistance.
  • In May 2023, the Iloilo Business Park, spanning 72 hectares in the Mandurriao District of Iloilo province and city, welcomed Atento, a business process outsourcing (BPO) company, as it launched its first call center in the Philippines at the location.
  • In April 2023, NobelBiz, a telecom and software provider catering to contact centers, expanded its cloud contact center omnichannel ecosystem, introducing OMNI+ Awaken Scripting—a user-friendly and adaptable scripting tool—as part of this expansion.

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Growth Factors:

Several factors contribute to the growth of the call and contact center outsourcing market. One key factor is the rising adoption of digital technologies, such as artificial intelligence (AI), chatbots, and cloud-based platforms, which enable outsourced service providers to deliver more efficient and personalized customer interactions. Additionally, globalization and the expansion of multinational companies have fueled the demand for outsourced call and contact center services to support customers across different regions and time zones. Furthermore, the increasing focus on cost optimization and operational efficiency among businesses drives them to outsource non-core functions, including customer service, to specialized service providers.

Region Insights:

The call and contact center outsourcing market exhibits significant regional variations, with Asia Pacific emerging as a prominent outsourcing destination due to its large pool of skilled labor, lower operating costs, and improving infrastructure. Countries such as India, the Philippines, and Malaysia are among the leading destinations for call center outsourcing, attracting businesses from North America and Europe. However, other regions, including Latin America and Eastern Europe, also offer competitive advantages, such as language proficiency and cultural affinity, making them attractive outsourcing destinations for specific markets.

Call and Contact Center Outsourcing Market Scope

Report CoverageDetails
Growth Rate from 2024 to 2033CAGR of 9.12%
Global Market Size in 2023USD 94.02 Billion
Global Market Size by 2033USD 225.04 Billion
U.S. Market Size in 2023USD 21.06 Billion
U.S. Market Size by 2033USD 50.41 Billion
Base Year2023
Forecast Period2024 to 2033
Segments CoveredBy Type, By Outsourcing Type, and By Services
Regions CoveredNorth America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

Call and Contact Center Outsourcing Market Dynamics

Drivers:

Several drivers propel the growth of the call and contact center outsourcing market. One of the primary drivers is the increasing customer demand for seamless omnichannel support, which requires businesses to invest in advanced technology and expertise beyond their core capabilities. Outsourcing call and contact center operations to specialized providers enables companies to access a wider range of communication channels and provide consistent customer experiences across channels. Additionally, outsourcing offers scalability and flexibility, allowing businesses to quickly adapt to fluctuating call volumes and seasonal demands without significant investments in infrastructure and resources.

Opportunities:

The call and contact center outsourcing market presents various opportunities for service providers to capitalize on emerging trends and technologies. With the proliferation of digital channels and the growing importance of data analytics in customer service, providers can offer value-added services such as social media monitoring, sentiment analysis, and customer insights. Moreover, there is a growing demand for specialized services, such as technical support, healthcare customer service, and multilingual support, presenting niche opportunities for providers with expertise in these areas. Furthermore, strategic partnerships and alliances with technology vendors and industry players can enable service providers to enhance their service offerings and expand their market presence.

Challenges:

Despite the growth prospects, the call and contact center outsourcing market faces several challenges that providers must address to remain competitive. One significant challenge is data security and privacy concerns, particularly with the increasing volume of sensitive customer information handled by outsourcing vendors. Ensuring compliance with data protection regulations such as GDPR and CCPA is essential to maintain trust and credibility with clients and customers. Additionally, the rapid pace of technological advancements requires constant investment in training and upskilling of workforce to keep pace with evolving customer expectations and preferences. Moreover, geopolitical risks, such as trade tensions and regulatory changes, can impact the outsourcing landscape and require providers to adapt their strategies accordingly.

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Recent Developments

  • In April 2023, Decipher Health Records Inc., an Indian firm, announced plans to establish a new healthcare call center in Guyana, aiming to generate around 300 job opportunities upon full operation. The Guyana Office for Investment and the government’s investment arm signed a memorandum of understanding (MoU) to facilitate this initiative, with Decipher Health Records actively pursuing potential sites for the call center’s setup.
  • During the same month, Teckinfo Solutions Pvt. Ltd., a renowned software company specializing in call/contact center solutions, launched its latest product, ID Cloud – Premium Contact Centre Software. This cloud-based platform caters to organizations of all sizes, offering seamless client engagement across different business scales while freeing up valuable IT resources.
  • In May 2023, Atento, a prominent business process outsourcing (BPO) company, inaugurated its inaugural call center in the Philippines at the Iloilo Business Park in the Mandurriao District of Iloilo province and city, marking its entry into the Philippine market.

Call and Contact Center Outsourcing Market Companies

  • Teleperformance
  • Convergys (now part of Concentrix)
  • Sitel Group
  • Sykes Enterprises, Incorporated
  • Alorica Inc.
  • Concentrix Corporation
  • TTEC Holdings, Inc.
  • Hinduja Global Solutions (HGS)
  • VXI Global Solutions
  • Arvato
  • TeleTech Holdings, Inc. (now TTEC)
  • Genpact
  • Wipro Limited
  • Infosys BPM Limited
  • HCL Technologies Limited

Segments Covered in the Report

By Type

  • Email Support
  • Chat Support
  • Voice
  • Other

By Outsourcing Type

  • Offshore
  • Onshore

By Services

  • Inbound Services
  • Outbound Services

By Geography

  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • Middle East and Africa

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