Asia Pacific Contact Center Outsourcing - Domestic and Offshore Markets

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Asia Pacific Contact Center Outsourcing Domestic and Offshore Markets © 2012 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. Outlook for Domestic and Offshore Markets - Growth Opportunities for BPOs Sathya Subramanian, Senior Research Analyst Information & Communication Technologies 16 July 2012

Transcript of Asia Pacific Contact Center Outsourcing - Domestic and Offshore Markets

Asia Pacific Contact Center Outsourcing –

Domestic and Offshore Markets

© 2012 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.

Outlook for Domestic and Offshore Markets - Growth Opportunities for BPOs

Sathya Subramanian, Senior Research Analyst

Information & Communication Technologies

16 July 2012

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Focus Points

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3

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Drivers and Restraints for the Contact Center Outsourcing Market

Current and Future Key Trends

Contact Center Outsourcing Industry – Revenue Trends

Competitive Landscape

1 Scope and Overview of the Contact Center Outsourcing Market

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Scope - Market Segmentation

Contact Center Outsourcing Industry: Market Segmentation (Asia Pacific), 2011

ROWE

Contact Center Outsourcing Industry

Industry Segmentation Geographical Segmentation Offerings Segmentation

Malaysia

New Zealand

The Philippines

DomesticBanking and FinancialServices (BFSI)

Retail

Travel & Hospitality

Australia

China

Hong Kong

Technology

Telecommunication Offshore

„Others‟ include Energy and Utilities, Media and Entertainment, Public Sector , Healthcare, Manufacturing, and Logistics etc Source: Frost & Sullivan

Others*

India

Indonesia

Singapore

South Korea

Taiwan

Thailand

Japan

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Overview of the Asia-Pacific Contact Center Industry

Most contact center functions in Asia-Pacific are held in-house. Still outsourcing

shows strong growth. The region is one of the high-growth region for contact

centers in the world.

The Asia-Pacific countries facilitate multiple Asian languages, English and some

European languages.

There are three streams of outsourcing opportunities in this region: Domestic outsourcing

Offshore outsourcing from North America and Europe

Offshore outsourcing from other countries within Asia-Pacific

Cost savings, solid infrastructure and language proficiency make many Asia-Pacific

locations preferred as offshore destinations for contact center outsourcing.

India, Japan and The Philippines are the top 3 locations by market size.

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Major Drivers (Current and Future)

Source: Frost & Sullivan analysis

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Major Challenges for Contact Center Outsourcing

Industry

In-House contact centers

Anti-offshoring outlook in

many countries

Market Saturation

.....Need for self-service

Attrition rate and increase

in costs

Major Challenges for Asia-Pacific Contact Center Outsourcing industry

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Current and Future Key Trends

CurrentTrends

BFS and Telecom, the highest contributors to revenue.

New locations in Asia Pacific are being considered.

New industries such as gaming are serviced.

Future Trends

Greater emphasis on new technology such as hosted

technology, unified communication and WAHA

Jobs migrating from regions of high operation costs to regions of lower

costs

Providers diversify their offering to KPO, HRO and others to provide end-end solution.

Source: Frost & Sullivan

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Contact Center Outsourcing Industry – Revenue Trends

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Contact Center Outsourcing Industry – Revenue Trends

Growth in the Asia-Pacific contact center industry from 2010 to 2011 is 7.9 percent.

This growth is expected to continue until the end of the forecast period.

In 2011 there were around 838,200 seats in the region. Of these, nearly 60 percent of

seats cater to domestic services and the rest 40 percent to offshore services. The

region registered a 13 percent growth in the number of seats from 2010 to 2011

Among verticals the technology vertical saw highest growth of 11.1 percent in 2011.

The biggest contributors to the revenue are telecom and banking and financial

services (BFS) sectors. Both of these together contribute 56.3 percent of the

revenue.

Among the 13 countries taken up as part of the study China is seen to have the

highest growth due to high domestic demand.

India, Japan and the Philippines together make up 82 percent of the Asia-Pacific

contact center market.

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Competitive Landscape

The Asia-Pacific contact center market is highly fragmented with 3 types of market participants

Types of Competitors

Multinational companies (owned and headquartered outside Asia-Pacific)

Multinational companies (owned and headquartered inside Asia-Pacific)

Domestic outsourcers serving regional languages

Revenue from the top 12 participants in the Asia-Pacific region constitute 33.3 percent of the total

revenue from the region.

Top participants in the region include

Source: Frost & Sullivan analysis

24/7 Customer

Aegis

Bell System 24

Convergys

China Elite

China Motion

Datacom

Firstsource

Genpact

HGS

IBM Global Process

Infomedia Nusantara

KTCS

One-to-One Contacts

Moshi Moshi Hotline

PCCW Teleservices

NTT Solco

Salmat

Scicom

Sitel

Sykes

Teleperformance

Teletech

Transcosmos

VADS

VXI

WNS

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Conclusion : Key Take-Aways

1In 2012 and beyond, the Asia Pacific region will continue to show the highest growth

in the global contact center outsourcing industry. Domestic markets will be the key

drivers to this growth.

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Banking and the telecommunication sector will continue to be the leading verticals

in the region. Retail, especially e-commerce, will also see increasing growth in the

region.

3 The Philippines, China, and India will see maximum growth in the industry.

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Sathya is experienced in Business Intelligence Consulting and IT Services with

particular expertise in data analysis and research; designing, development and

testing of data marts; design, development and testing of business intelligence

reports. Her clients were from a number of sectors such as fleet management,

retail, healthcare and airline.

2 years of experience

Sathya Subramanian, Senior Research Analyst

Information & Communication Technologies

Frost & Sullivan

Today’s Presenter

For any other enquiries, email us:

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For Additional Information

Donna Jeremiah

Corporate Communications

Asia Pacific

+61 (0) 8247 8927

[email protected]

Carrie Low

Corporate Communications

Asia Pacific

+603 6204 5910

[email protected]

Jessie Loh

Corporate Communications

Asia Pacific

+65 6890 0942

[email protected]