Introduction

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The third-party contact center spend has grown at ~7% in 2013 to reach US$70-75 billion. Since 2009, CCO has witnessed steady growth with increasing contract activity. Along with higher number of new deals, 2013 also witnessed high number of terminations, highlighting buyers’ intentions to consolidate their portfolio and also drive more value from their current engagements.

With buyers maturing, CCO value proposition has changed over time to move beyond labor arbitrage. This has brought about a shift in CCO solution characteristics including adoption of multi-channel contact center solution, industry-specific solution, and value-added services to drive process improvement and business outcomes.

Scope of analysis

• Database of 1000+ CCO contracts; it does not include shared services or Global In-House centers (GICs)
• Coverage across 20+ CCO service providers including, Aegis, Alorica, CGI, Cognizant, EGS, EXL, FirstSource, Genpact, HCL, HGS, HP, Infosys, Minacs, Serco, Sitel, Sutherland, TCS, Tech Mahindra, Teleperformance, Transcom Worldwide, Wipro, Webhelp UK, 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 2014. The 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 nearly 20%
• While developed geographies (North America and Europe) remained sluggish in 2013, emerging geographies (Asia Pacific and Latin America) witnessed strong growth
• Although English is still the predominant language for CCO delivery and grew at the same rate as CCO, growth in the APAC region has led to higher demand for Asian languages
• Technology landscape within CCO has changed with enabler technology driving majority of technology investments in the last three years
• Adoption of scenario-based learning technique has led to improvement in agent skill levels as well as the quality of services delivered
• While FTE-based pricing continues to be the dominant pricing model in CCO (in 49% of the contracts signed in 2013), pricing structures have evolved over time with increasing adoption of the hybrid pricing structure
• CCO market is heavily fragmented with top 20 players accounting for less than 40% of the market share, but the market has seen consolidation over the last 18 to 24 months
• CCO specialists dominate the market with Teleperformance, Convergys + Stream (after their recent merger announcement), and Atento forming the top three service providers in the CCO space