Introduction

The global CCO market grew at ~5% in 2014 to reach US$70-75 billion, with deal activity on a steady growth path in the last four to five years. 2014 witnessed lower renewal rates as buyers looked beyond service performance and expected the service providers to successfully manage changing business needs. Buyers are cautious and tend to start with a smaller scope at the beginning of an engagement that grows over time as depicted by bigger sizes of the renewed contracts. The changing landscape of the buyer requirements has had an impact on the solution characteristics that exist in the CCO market currently – higher onshore delivery, multi-channel solution, value-added services, technology, and pricing model.

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, Concentrix, Dell, Firstsource, Genpact, HCL, HGS, HP, Infosys, Minacs, Serco, Sitel, Sutherland, Sykes, TCS, Tech Mahindra, Teleperformance, Teletech, Webhelp Group, Wipro, and WNS

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 2015-2016. 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 20-25%
• Growth in markets such as United States and United Kingdom flattened out and new demand is being driven by Continental Europe, Middle East & Africa and Asia Pacific
• While telecom and BFSI are the leading adopters of CCO, industries such as retail and travel & hospitality are exhibiting high growth
• Depth and breadth of inclusion of value-added services has continued to increase, with renewals witnessing higher inclusion
• Share of non-voice channel continues to increase, driven by adoption of value-added services
• North America and Continental Europe, Middle East & Africa witnessed the highest adoption of multi-channel contracts across all geographies

The CCO specialists dominate the market, but have recorded moderate growth. BPO pure-plays have witnessed higher growth based on their focus on innovation, analytics, and multi-channel services.