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Profiting From Established Offshore Contact Center Locations: India, Philippines, Canada, Mexico (Review Report)

Product Type: Market Research Report
Published by: Datamonitor
Published: October 2006
Product Code: R313-18076
Description
Introduction

A comprehensive review of established outsourcing markets including Canada, India, Mexico and the Philippines.

Scope
  • Analysis of Canada's outsourcing market
  • A discussion of Mexico's emergence as a US nearshore location
  • A review of India and the Philippines, the most mature of all offshore contact center markets
  • Numerical and graphical descriptions of these four maturing markets
Highlights

Total market sizes for the four maturing contact center outsourcing markets contained in this report

Annual rates of growth for each individual market analyzed in this report

Strategic recommendations describing how investors can profit from each of these markets

Reasons to Purchase
  • Understand how the maturing contact center outsourcing markets are likely to evolve through 2010
  • Learn about what investors need to do so as to use the markets for quality and cost effective customer care
  • Identify any emerging opportunities for domestic customer service in each of these locations
Table of Contents
DATAMONITOR VIEW
CATALYST
SUMMARY
METHODOLOGY


EXECUTIVE SUMMARY
Introduction
Mexico: A solution for the US Hispanic market? (Market Focus)
Selling Canada as a Nearshore Option (Market Focus)
Philippines: Balancing risk through diversification (Market Focus)
India: Still the king of offshore (Market Focus)
Contact Center Outsourcing Trends in Canada, India, Mexico and the Philippines (Databook)


MEXICO: A SOLUTION FOR THE US HISPANIC MARKET? (MARKET FOCUS)
Summary
Contact center outsourcing in Mexico is projected to grow through 2010
Why Mexico is a logical destination of choice for US customer service
Growth of the US Hispanic market
US Hispanic economic advancement
US Hispanic country of origin is predominantly Mexico
Lower business costs than in the US
Labor arbitrage favors Mexican agents
Property costs in Mexico fall below those of the US
Minimal exchange rate risk strengthens Mexico's competitive positioning
Mexico's proximity is an advantage relative to other Latin American countries
Mexico's long-term growth is limited due to emerging competition
Growth in regional competition
Mexico's comparatively higher costs
Labor
Real Estate
Mexico is becoming a saturated market for contact center outsourcing
Step one: migrate to high-end US Hispanic customer care over the long term
Step two: examine the possibility of providing domestic outsourcing services in Mexico
Step three: work to keep costs down in Mexican operations


SELLING CANADA AS A NEARSHORE OPTION (MARKET FOCUS)
Summary
Contact center outsourcing in Canada is slowing
Total outsourced Canadian APs
Canada's domestic outsourced industry
Canada's offshore outsourced industry
Canada is becoming a costlier prospect for US outsourcers
Appreciation of the CAD versus the USD
Canadian domestic inflation
Canadian outsourced contact center agent costs
Canadian property costs
Canada lacks sufficient Spanish-speakers to meet projected US demand
US Hispanic population explosion
Canada's Spanish challenge
Contact center saturation is becoming an issue in key Canadian locations
Step one: target value-add US customer care
Step two: attack secondary urban centers
Step three: attack the Canadian domestic market


PHILIPPINES: BALANCING RISK THROUGH DIVERSIFICATION (MARKET FOCUS)
Summary
The Philippines presents a strong outsourcing opportunity in its domestic market
Expanding total outsourcing market but slowing overall growth
Limited offshore prospects offset by growing domestic outsourced segment
Vertical outsourcing opportunity - financial services, telcos, technology and retail
Solid sophistication in the Philippines means good customer interactions
US cultural affinity means opportunity in Canada and Australia
The Philippines is cost effective and shows little sign of escalating overheads


INDIA: STILL THE KING OF OFFSHORE? (MARKET FOCUS)
Summary
India's offshore outsourcing market is still a viable offshore location for English speaking services
India's domestic market presents real revenue opportunities in this expanding market
Why India still offers investors a very low-cost business environment in the medium term
India has a lower cost-per-agent than western locations.
India also compares favorably on price with many offshore locations
India has a sizeable pool of labor from which outsourcing investors can draw
Investors can profit from low property and facilities costs in India
India's ongoing stability is a major advantage for investors
India's continued economic reform means investor confidence
Ongoing political stability means limited risk for investors
Beware of potential erosion of India's value proposition over long term
India is susceptible to rising contact center agent costs
Incentives are slowly disappearing in India
Global offshore competition is likely to hurt India's value proposition
Inter-industry competition for labor means increased wage escalation
Infrastructure concerns abound in many of India's commercial centers

MATURING CONTACT CENTER OUTSOURCING LOCATIONS (DATABOOK)
Introduction
Definitions
Canada
India
Mexico
Philippines


APPENDIX
Ask the analyst


List of Tables
Table 1: Mexican outsourced APs, 2005 -2010
Table 2: Travel time from New York City to various Latin American cities
Table 3: Canadian outsourced APs - domestic versus offshore, 2005 2010
Table 4: Demand for Canadian outsourced offshore APs, 2005 - 2010
Table 5: Outsourced Philippine APs, 2005 - 2010
Table 6: Philippine outsourced APs - domestic versus offshore, 2005 - 2010
Table 7: Indian outsourced APs, 2005 - 2010
Table 8: Key Indian economic indicators, 2003 - 2005
Table 9: Contact Center definitions
Table 10: Total Canadian outsourced agent positions (000s) 2005 - 2010
Table 11: Vertical distribution of offshore outsourced APs in Canada (000s) 2005 - 2010
Table 12: Vertical distribution of domestic outsourced APs (000s) in Canada 2005 - 2010
Table 13: Outsourced offshore APs (000s) in Canada by contact center sizeband 2005 - 2010
Table 14: Outsourced domestic APs (000s) in Canada by contact center sizeband 2005 - 2010
Table 15: Geographic markets served by Canadian outsourced APs 2005 - 2010
Table 16: Total Indian outsourced agent positions (000s) 2005 - 2010
Table 17: Vertical distribution of offshore outsourced APs (000s) in India 2005 - 2010
Table 18: Vertical distribution of domestic outsourced APs (000s) in India 2005 - 2010
Table 19: Outsourced offshore APs (000s) in India by contact center sizeband 2005 - 2010
Table 20: Outsourced domestic APs (000s) in India by contact center sizeband 2005 - 2010
Table 21: Geographic markets served by Indian outsourced APs 2005 - 2010
Table 22: Total Mexican outsourced agent positions (000s) 2005 - 2010
Table 23: Vertical distribution of offshore outsourced APs (000s) in Mexico 2005 - 2010
Table 24: Vertical distribution of domestic outsourced APs (000s) in Mexico 2005 - 2010
Table 25: Outsourced offshore APs (000s) in Mexico by contact center sizeband 2005 - 2010
Table 26: Outsourced domestic APs (000s) in Mexico by contact center sizeband 2005 - 2010
Table 27: Geographic markets served by Mexican outsourced APs 2005 - 2010
Table 28: Total Philippine outsourced agent positions (000s) 2005 - 2010
Table 29: Vertical distribution of offshore outsourced APs (000s) in Philippines 2005 - 2010
Table 30: Vertical distribution of domestic outsourced APs (000s) in Philippines 2005 - 2010
Table 31: Outsourced offshore APs (000s) in Philippines by contact center sizeband 2005 - 2010
Table 32: Outsourced domestic APs (000s) in Philippines by contact center sizeband 2005 - 2010
Table 33: Geographic markets served by Philippine outsourced APs 2005 - 2010


List of Figures
Figure 1: Mexican outsourced APs, 2005 - 2010
Figure 2: US Hispanic population relative to total population, 2000 & 2004
Figure 3: US Hispanic household income, 1992 - 2004
Figure 4: US Hispanic ancestry
Figure 5: Outsourced agent pricing, 2005
Figure 6: Commercial real estate rents - Selected North American cities, 2005
Figure 7: Mexican peso versus USD, 2004 - 2006
Figure 8: Latin American comparative urban commercial real estate
Figure 9: Total Canadian outsourced APs, 2005 - 2010
Figure 10: CAD versus USD, 2001 - 2006
Figure 11: Canadian domestic inflation growth, 2004 - 2006
Figure 12: Outsourced contact center agent price per agent per hour, 2005
Figure 13: Commercial gross real estate rents in selected cities, 2005
Figure 14: US Hispanic population relative to total population, 2000 & 2004
Figure 15: Outsourced Philippine APs, 2005 - 2010
Figure 16: Philippine outsourced APs - domestic versus offshore, 2005 - 2010
Figure 17: Selected Philippine economic indicators, 2005 - 2007
Figure 18: Philippine contact center outsourcing - vertical analysis, 2005 & 2010
Figure 19: Philippine outsourced contact center demand by country, 2005 - 2010
Figure 20: Offshore contact center location price / agent / hour, 2005
Figure 21: Indian outsourced APs, 2005 - 2010
Figure 22: Indian outsourced offshore APs, 2005 - 2010
Figure 23: Indian offshore outsourced demand, 2005 - 2010
Figure 24: Indian domestic outsourced APs, 2005 - 2010
Figure 25: Global agent pricing survey, 2005
Figure 26: Labor force and unemployment levels - selected offshore locations, 2005
Figure 27: Gross office rents - selected cities, 2005
Figure 28: Total Canadian outsourced agent positions 2005 - 2010
Figure 29: Vertical distribution of offshore outsourced APs in Canada 2005 - 2010
Figure 30: Vertical distribution of domestic outsourced APs in Canada 2005 - 2010
Figure 31: Outsourced offshore APs in Canada by contact center sizeband 2005 - 2010
Figure 32: Outsourced domestic APs in Canada by contact center sizeband 2005 - 2010
Figure 33: Geographic markets served by Canadian outsourced APs 2005 - 2010
Figure 34: Total Indian outsourced agent positions 2005 - 2010
Figure 35: Vertical distribution of offshore outsourced APs in India 2005 - 2010
Figure 36: Vertical distribution of domestic outsourced APs in India 2005 - 2010
Figure 37: Outsourced offshore APs in India by contact center sizeband 2005 - 2010
Figure 38: Outsourced domestic APs in India by contact center sizeband 2005 - 2010
Figure 39: Geographic markets served by Indian outsourced APs 2005 - 2010
Figure 40: Total Mexican outsourced agent positions 2005 - 2010
Figure 41: Vertical distribution of offshore outsourced APs in Mexico 2005 - 2010
Figure 42: Vertical distribution of domestic outsourced APs in Mexico 2005 - 2010
Figure 43: Outsourced offshore APs in Mexico by contact center sizeband 2005 - 2010
Figure 44: Outsourced domestic APs in Mexico by contact center sizeband 2005 - 2010
Figure 45: Geographic markets served by Mexican outsourced APs 2005 - 2010
Figure 46: Total Philippine outsourced agent positions 2005 - 2010
Figure 47: Vertical distribution of offshore outsourced APs in Philippines 2005 - 2010
Figure 48: Vertical distribution of domestic outsourced APs in Philippines 2005 - 2010
Figure 49: Outsourced offshore APs in Philippines by contact center sizeband 2005 - 2010
Figure 50: Outsourced domestic APs in Philippines by contact center sizeband 2005 - 2010
Figure 51: Geographic markets served by Philippine outsourced APs 2005 - 2010
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