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Analysis of the Contact Center Outsourcing
Services Market in Latin America
New Technologies and Increasing Customers´ Expectations Provide a
New Window for Differentiation
K1B3-76
September 2017
K1B3-76 2
Study Description & Research Methodology
K1B3-76 3
Scope & Definitions
• This study examines the trends in the contact center outsourcing services
market in Latin America and forecasts the market size. It also provides
extensive coverage of the services delivered in each local market and those
provided from the Latin American countries to others overseas. In this sense,
offshore services are defined as services provided to serve foreign customers
outside the country, where each contact center is located. The study shows
data for outsourcing services alone, excluding operations performed in-house
and Shared Services Centers. This study segments and differentiates the
contact center outsourcing services market in a number of ways. Among these
segments are the following categories: – Domestic and Offshore Services.
– Offshore Markets.
– Service Function.
– Industry Verticals.
– Tier of Competition.
– Market Share.
– Channel of Contacts.
Study Description
K1B3-76 4
Scope & Definitions
• Contact Center Outsourcing is a subset of the much broader business process outsourcing
(BPO) industry. It is usually defined as a business arrangement in which a company contracts
an outside supplier to perform a service rather than accomplishing it in-house. Services can
range from simple call-handling to handling complex business processes such as technical
support and customer self-service through interactive voice response (IVR) applications or the
Web. Suppliers specialize in handling high volumes of inbound and outbound calls for
customer care, retention, and acquisition; help desk; technical support; collections; and
telemarketing/telesales for business clients. These clients contract in most cases, the use of
both the required technology and employee services (including managers, agents, and
process experts).
• This study does not include in-house contact center operations and captive contact center
providers (including shared services centers). Frost & Sullivan considers a contact center
service provider (CCSP) as captive if 80% or more of its revenue is generated by a single
client. Many service providers that serve its parent company are included in this study, as long
as less than 90% of its revenue its generated by that partnership, e.g., Emtelco (Colombia)
and Entel (Chile).
• In this study, contact center outsourcing revenues are segmented by customer service,
technical support and help desk, sales, debt collections, back office, and other BPO activities,
as long as the core activity of the service provider is the customer relationship management
(CRM). Therefore, non-CRM/BPO service providers are excluded as well as debt collection
agencies, translation service providers and law firms.
Study Description
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Research Methodology
• Over 80 interviews carried out utilizing extensive questionnaire.
• In all cases, decision makers (executives, managers, etc.) targeted.
Study based principally on primary research
Other Steps in Research Process:
• Regional and local secondary sources (company reports, industry associations,
statistical agencies, etc.) used for key economic & market measurements used
for analysis.
• Extensive forecast and market share models created through research sources,
expected current and future trends.
K1B3-76 6
Executive Summary
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Executive Summary – Latin America
• The contact center outsourcing services market in LATAM attained $9.52 billion in
revenue in 2016, which represents a 5.4% decrease compared to 2015. The
devaluation of LATAM currencies against the US dollar (especially against the
Argentinian (60.2%), Mexican (17.8%), Chilean (17.4%) and Colombian (12.4%) pesos)
had a profound and negative impact in the market measured in US Dollars.
• Despite the currency fluctuations the market grew in outsourced contact center agents
by 2.0% in 2016 year over year (YOY) and reached 789,952, whereas the number of
WKs attained 594,324, a 4.4% YOY increase.
• In 2016, the domestic business in LATAM reached $6.55 billion in revenue and
accounted for 68.8% of the total market, a 3.5% reduction against 2015 (72.3%). This
segment was negatively affected by poor performances in Brazil and Argentina.
• The offshoring business in LATAM grew at a YOY rate of 6.7% in 2016, reaching $2.62
billion in revenue, driven by the US market (nearshoring) and the Canada. This
segment is forecasted to represent 29.5% of the total market in 2022, while it only
accounted for 24.4% in 2015.
K1B3-76 8
Market Drivers (Latin America)
Contact Center Outsourcing Services Market: Key Market Drivers, Latin America, 2017–2022
Impact: H High M Medium L Low Note: Drivers & restraints are ranked in order of impact. Source: Frost & Sullivan analysis.
Mark
et
Dri
vers
1–2 years 3–4 years 5–6 years
U.S. Demand is Expected to Provide Sustained
Growth for CCSPs with Latin American Facilities H H M
New Technologies and Increasing Customers´
Expectations Provide a New Window for
Differentiation for the CCSPs
M H H
New Regulatory Environment in Brazil Likely to push
Further Outsourcing in the Customer Care field L M M
Expected Economic Recovery in Latin America Will
Increase Local Demand for Contact Center Services L L M
K1B3-76 9
Market Restrains (Latin America)
Contact Center Outsourcing Services Market: Key Market Restraints, Latin America 2017–2022
Impact: H High M Medium L Low Note: Drivers & restraints are ranked in order of impact. Source: Frost & Sullivan analysis.
Mark
et
Restr
ain
s
1–2 years 3–4 years 5–6 years
Increasing Adoption of Automated Solutions Will
Decrease the Volume of Interactions Headed to Contact
Centers Agents
M H H
Major Clients are Improving Operational Efficiency and
Reducing Call Volumes to the Contact Centers M H H
Scarcity of English-Speaking Talent Restrains Major
Expansion of Large Nearshore Deals M M M
Lack of Service Diversification is Forcing Most
Providers to Engage in a War Price M M L
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Executive Summary Central America and the Caribbean (CaCar)
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Executive Summary – CaCar
• The CaCar contact center outsourcing services market reached US$ 2.06 billion in
revenue in 2016, a 10.9% increase against 2015.
• Total number of Workstations reached 115,800 in 2016, a 6.7% increase against 2015.
• The number of Agents attained 121.200, a 7.6% increase compared to 2015.
• The domestic market accounted for 10.7% of the total revenue in 2016 and generated
US$ 220.6 million. Meanwhile the offshore segment attained US$ 1.84 billion.
• The United States was the major offshore market, followed by Latin America, Spain and
Europe
• Telecom & Media and High Tech represented slightly less than 60% of the total market
in 2016, while other verticals such as Banks, Retail, Healthcare, Government, Industry,
Utilities, Travel & Hospitality accounted for the remaining.
K1B3-76 12
Contact Center Outsourcing Services Market—CaCar
Revenue Evolution
Note: All figures are rounded. The base year is 2016. Source: Frost & Sullivan analysis.
$ 1,860.7
$ 2,063.6
0
700
1,400
2,100
2015 2016
Rev
en
ue
(U
S$ M
illio
ns)
Contact Center Outsourcing Services Market: Revenue CaCar, 2015-2016
K1B3-76 13
Note: All figures are rounded. The base year is 2016. Source: Frost & Sullivan analysis.
Domestic Market 10.7%
Offshore Revenues
89.3%
Total Contact Center Outsourcing Services Market: Revenue by Domestic vs Offshore Market, CaCar, 2016
Contact Center Outsourcing Services Market—Revenue
by Domestic vs Offshore Market, CaCar, 2016
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Executive Summary Growth Opportunities and
Strategic Imperative
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Growth Opportunities
Ignite the Digital Transformation
Automation via Artificial Intelligence
Customer Lifetime Value
Virtual Agent / Advisor
Industry Focus: Retail
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Strategic Imperative
• The arisen of new technologies for customer care – such as cloud computing, analytics,
speech recognition, omnichannel capabilities, digital services, intelligent IVRs, virtual
agents and, more recently, artificial intelligence – is requiring stronger investments to offer
full-fledge services, as well as new skills and larger expertise in managing them. And at
the same time, consumers are increasingly demanding high quality and seamless
experiences from their providers.
• This scenario represents a unique opportunity for contact center service providers
(CCSPs), since they specialize in customer experience management, are experts in the
matter and can usually provide better quality of services than internal contact centers.
Moreover, as the CCSPs often manage larger volumes than internal contact centers, they
are able to more effectively amortize the investments in new technologies.
• Consequently, the most relevant competitive advantage of the CCSPs against the internal
contact centers is evolving from a cost-saving standpoint, to being able to deliver a more
robust customer experience services and attained higher customer satisfaction marks
through best of breed technologies and enhanced processes.
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Legal Disclaimer
Frost & Sullivan takes no responsibility for any incorrect information supplied to us by
manufacturers or users. Quantitative market information is based primarily on interviews
and therefore is subject to fluctuation. Frost & Sullivan research services are limited
publications containing valuable market information provided to a select group of customers.
Our customers acknowledge, when ordering or downloading, that Frost & Sullivan research
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For information regarding permission, write to:
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© 2017 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan.
No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.
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Appendix
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Partial List of Companies Interviewed
• ACC Group
• Aegis
• Algar Tecnologia
• Allied Global
• Almaviva
• Alorica
• Apex America
• Arvato
• Atento
• Avanza
• Axtel
• Call Contact Center
• CGS
• Clienting
• Comdata Group
• Conduent
• Contax
• CSU Contact Center
• Deelo Source: Frost & Sullivan research.
• Digitex
• Emergia
• Emtelco
• Entel
• Flex Contact Center
• Grupo Konecta
• GSS
• HDC
• Hinduja Global Services
• Influent
• KM2 Solutions
• HP Enterprise Services
• IBEX Global
• Interactivo
• iQor
• ITEL BPO
• NeoBPO
• Unisono
• Transcom Worldwide
• Qualfon
• OneLink BPO
• Outsourcing
• Radius Global Solutions
• Sitel
• Sykes
• Sutherland Global
Services
• Teletech
• Teleperformance
• Telus International
• Telvista
• Task Solutions
• UpCom
• Ventas y Servicios
• V/N Global BPO
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Interested in Full Access? Connect With Us
Francesca Valente Marketing & Corporate Communications - Latin America
(54) 11 4777 5300
francesca.valente@frost.com
Research Authors
Sebastian
Menutti
Senior Industry
Analyst
@smenutti
Juan Gonzalez
Research Director
@juanmgon
Maiara Munhoz
Senior Industry
Analyst @maiara_munhoz
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