Introduction

The third-party contact center spend has grown at 7-8% in 2012 to reach US$65-70 billion. After hitting a low in 2009, contract activity (both new and renewals) has shown a steady uptick over the last two to three years. While growth in markets such as United States and United Kingdom flattened out, new demand is being driven by EMEA and APAC indicating that CCO has now become more global.

With the CCO industry maturing, buyers are looking for value beyond just labor arbitrage. The conversations are now increasingly targeted at business outcomes. Service providers are focusing on non-voice channel, especially social media and enabler technologies to drive better customer experience.

Scope of analysis

• Proprietary database of 400+ CCO contracts; it does not include shared services or Global In-House centers (GICs)
• Coverage across 20+ CCO service providers including Aditya Birla Minacs, Aegis, Alorica, FirstSource, Genpact, HP, Mahindra Satyam, NCO-APAC, Serco, Sitel, Sutherland, Sykes, TCS, Teleperformance, Teletech, Transcom Worldwide, Webhelp, WNS, and Xerox

Content

This report will assist key stakeholders (buyers, service providers, and technology providers) understand the changing dynamics of the CCO market and help them identify the trends and outlook for 2013. In this backdrop, this report provides comprehensive coverage of the global CCO market including detailed analysis of market size and growth, buyer adoption trends, CCO value proposition & solution characteristics, and service provider landscape. Some of the findings in this report are:

• The global contact center spend stands at US$300-350 billion of which third-party outsourcing accounts for 20%
• Greater adoption of CCO in continental Europe is driven by the need for cost containment. On the other hand, with greater exposure to outsourcing, Asia Pacific and other developing regions have grown at a fair pace. They are expected to continue to show robust growth over the next two to three years
• While English is still the predominant language for CCO delivery, service providers have built significant capability in non-English languages as well. Spanish leads adoption amongst the European languages
• Services providers moved to a balanced delivery model with focus on ensuring scale and skills availability to match buyer needs
• While FTE-based pricing continues to be the dominant pricing model in CCO, pricing structures have evolved over time and there are increased instances of hybrid pricing structure
• CCO market is extremely fragmented with the top 25 players accounting for just 38% of the overall market. The leading service providers in terms of market share differ significantly across geographies and industries
• CCO specialists dominate the market with Teleperformance, Atento, and Convergys forming the top three service providers in the CCO space