Global Offshore Call Center Outsourcing: Who will be the next India?: Industry Report

Global Offshore Call Center Outsourcing: Who will be the next India?

Product Type: Market Research Report
Published by: Datamonitor
Published: January 2004
Product Code: R313-6387

Description

Introduction
5% of APs globally will be offshore by 2007. That represents 241,100 APs up from 109,300 in 2003. In this growing market, outsource providers need to stop trying to sell the merits of their country and focus on addressing the concerns of their clients by partnering with solution providers whose brand is respected in the target area.

Scope
Market sizing & growth rate forecasts to 2007 for twenty-two potential offshore call center outsourcing locations.

Detailed risk and reward comparisons are provided for all 22 countries in four regions.

Discussion of drivers, decision factors and barriers for firms looking to offshore.

Action points for OSPs and vendors servicing offshore clients to assist strategic marketing initiatives.

Report Highlights
Increasing offshore activity - 5% of APs globally will be offshore by 2007. This represents 241,100 APs in the overall market, which will have grown to 4.78m seats. The threat that offshore call centers pose is rather more important to the onshore outsourced call centers and their agents than to the onshore captive call centers and their agents.

Multisourcing - using a mix of onshore, nearshore and offshore outsourcing locations concurrently is becoming more prominent, with new offshore markets being used to support niche customer requirements.

New players - offshore outsourcing is primarily about selling outsourcing and then selling offshore, rather than the other way around. Outsource providers need partners with well recognized brands in their target markets and must present a Western face to Western customers.

Reasons to Purchase
Select locations - 22 prospective offshore call center locations are profiled using risk & reward matrices and these markets are sized through 2007.

Understand - how offshore call center outsourcing demand is evolving: customer drivers, decision factors and barriers to outsourcing offshore.

Win business - adopt transparent pricing models and go to market with firms that have recognized brands in target markets.

Table of Contents

CHAPTER 1 EXECUTIVE SUMMARY 3

Introduction 3

Prospective offshore call center locations and issues affecting supply 4

Demand for offshore outsourcing and customer decision factors 5

Action points 7

CHAPTER 2 INTRODUCTION 16

What is this report about? 17

Who is the target reader? 17

Notes on the scope of the report 18

How to use this report 19

CHAPTER 3 PROSPECTIVE OFFSHORE CALL CENTER LOCATIONS AND ISSUES AFFECTING SUPPLY 20

Introduction 20

Key findings 20

Notes on the risk & reward matrices 21

Profile of the Americas region 22

Risk & reward selection matrix 22

Background to country selection 23

Offshore outsourcing in the Americas - market sizing & growth rates 23

Canada 24

Mexico 27

Chile 29

The others - a brief overview 31

Profile of the Central & Eastern Europe (CEE) region 40

Risk & reward selection matrix 40

Background to country selection 40

Offshore outsourcing in CEE - market sizing & growth rates 42

Hungary 42

Poland 44

The others - a brief overview 47

Profile of the Middle East & Africa (MEA) region 53

Risk & reward selection matrix 53

Background to country selection 54

Offshore outsourcing in MEA - market sizing & growth rates 54

Morocco & Tunisia (North Africa) 55

South Africa 58

Turkey 62

Profile of the Asia Pacific (APAC) region 64

Risk & reward selection matrix 65

Background to country selection 65

Offshore outsourcing in APAC - market sizing & growth rates 66

India 67

Philippines 70

Malaysia 72

The others - a brief overview 75

Supply market company profiles 78

Three important types of outsource providers 78

Specific company profiles 80

Issues affecting the supply side of call center outsourcing 84

International quality standards 84

The lack of middle-management skill sets 87

Staff retention 88

Observations on technology architecture strategies in global outsourcing 89

The supply model is evolving - providers with a global footprint 90

CHAPTER 4 DEMAND FOR OFFSHORE OUTSOURCING AND CUSTOMER DECISION FACTORS 92

Introduction 92

Key findings 92

Global demand for offshore call center outsourcing 93

Demand is growing and shifting eastward 93

Specific countries’ requirements 94

Demand for offshore call center outsourcing by vertical 99

The vertical splits explained 100

The evolution of offshore outsourcing 101

The key drivers for offshore outsourcing are expanding 101

Barriers to offshore outsourcing are becoming more complex 104

Applying due diligence to offshore outsourcing operations 108

The demand market in 3-5 years 111

Demystifying the threat from global offshore call center outsourcing 112

CHAPTER 5 ACTION POINTS 115

Introduction 115

Key findings 115

Principal opportunities for winning new business 115

Action point 1 - Refine sales approaches 116

Action point 2 - Carve a niche and partner for success 116

Action point 3 - Allay customers’ fears 117

Action point 4 - Adopt appropriate pricing models 117

Action point 5 - Exploit shared voice & data network new business opportunities 118

CHAPTER 6 APPENDIX 119

Definitions 119

General 119

Vertical markets 122

Research methodology 123

Bibliography 125

Future readings 125

Relevant links 126

Datamonitor Strategic Planning Programs (SPPs) 126

SPP writing team 127

Report author 127

Report manager 127

Sales enquiries 127

How to contact experts covering particular industries 127

LIST OF TABLES

Table 1: Offshore outsourced APs globally, 2002-2007 4

Table 2: Offshore outsourced APs in the Americas, 2002-2007 24

Table 3: Offshore outsourced APs and growth rates - Canada, 2002-2007 26

Table 4: Offshore outsourced APs and growth rates - Mexico, 2002-2007 29

Table 5: Offshore outsourced APs and growth rates - Chile, 2002-2007 31

Table 6: Offshore outsourced APs and growth rates - Argentina, 2002-2007 33

Table 7: Offshore outsourced APs and growth rates - Brazil, 2002-2007 35

Table 8: Offshore outsourced APs and growth rates - the Caribbean, 2003-2007 37

Table 9: Offshore outsourced APs and growth rates - Colombia, 2002-2007 39

Table 10: Offshore outsourced APs in Central and Eastern Europe, 2002-2007 42

Table 11: Offshore outsourced APs and growth rates - Hungary, 2002-2007 44

Table 12: Offshore outsourced APs and growth rates - Poland, 2002-2007 47

Table 13: Offshore outsourced APs and growth rates - Baltic States, 2002-2007 50

Table 14: Offshore outsourced APs and growth rates - Czech Republic, 2002-2007 52

Table 15: Offshore outsourced APs in Middle East and Africa, 2002-2007 55

Table 16: Offshore outsourced APs and growth rates - North Africa, 2002-2007 58

Table 17: Offshore outsourced APs and growth rates - South Africa, 2002-2007 62

Table 18: Offshore outsourced APs and growth rates - Turkey, 2002-2007 64

Table 19: Offshore outsourced APs in Asia Pacific, 2002-2007 66

Table 20: Offshore outsourced APs and growth rates - India, 2002-2007 69

Table 21: Offshore outsourced APs and growth rates - Philippines, 2002-2007 72

Table 22: Offshore outsourced APs and growth rates - Malaysia, 2002-2007 75

Table 23: Main offshore and nearshore outsourcing locations for the major outsourcing customer markets 94

Table 24: Vertical offshore outsourced APs available, 2003 100

LIST OF FIGURES

Figure 1: Offshore outsourced APs are a threat to onshore outsourced APs 3

Figure 2: Risk & reward matrix - example 5

Figure 3: Barriers to offshore outsourcing 6

Figure 4: Risk & reward matrix - the Americas region 22

Figure 5: Offshore outsourced APs and growth rates - Canada, 2002-2007 26

Figure 6: Offshore outsourced APs and growth rates - Mexico, 2002-2007 29

Figure 7: Offshore outsourced APs and growth rates - Chile, 2002-2007 31

Figure 8: Offshore outsourced APs and growth rates - Argentina, 2002-2007 33

Figure 9: Offshore outsourced APs and growth rates - Brazil, 2002-2007 35

Figure 10: Offshore outsourced APs and growth rates - the Caribbean, 2003-2007 37

Figure 11: Offshore outsourced APs and growth rates - Colombia, 2002-2007 39

Figure 12: Risk & reward matrix - Central & Eastern Europe 40

Figure 13: Offshore outsourced APs and growth rates - Hungary, 2002-2007 44

Figure 14: Offshore outsourced APs and growth rates - Poland, 2002-2007 47

Figure 15: Offshore outsourced APs and growth rates - Baltic States, 2002-2007 50

Figure 16: Offshore outsourced APs and growth rates - Czech Republic, 2002-2007 52

Figure 17: Risk & reward matrix - Middle East & Africa 53

Figure 18: Offshore outsourced APs and growth rates - North Africa, 2002-2007 57

Figure 19: Offshore outsourced APs and growth rates - South Africa, 2002-2007 61

Figure 20: Offshore outsourced APs and growth rates - Turkey, 2002-2007 64

Figure 21: Risk & reward matrix - Asia Pacific 65

Figure 22: Offshore outsourced APs and growth rates - India, 2002-2007 69

Figure 23: Offshore outsourced APs and growth rates - Philippines, 2002-2007 72

Figure 24: Offshore outsourced APs and growth rates - Malaysia, 2002-2007 74

Figure 25: Offshore provider competitive landscape 78

Figure 26: Fulfilling call center middle-management requirements 88

Figure 27: Global zones of operational presence 91

Figure 28: Vertical offshore outsourced APs available, 2003 99

Figure 29: Drivers for offshore outsourcing 101

Figure 30: Barriers to offshore outsourcing 104

Figure 31: Offshore outsourced APs are a threat to onshore outsourced APs 113

Figure 32: Offshore outsourced APs as a percentage of total global APs and growth rates, 2002-2007 114

Figure 33: Report generation process 124

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