Asia Pacific Contact Center Outsourcing - Domestic and Offshore Markets
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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 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
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.
2
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
Carrie Low
Corporate Communications
Asia Pacific
+603 6204 5910
Jessie Loh
Corporate Communications
Asia Pacific
+65 6890 0942