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Growth in Contact Center Outsourcing Market Equalled by Demand for Skilled Agents

By Priya George

Offshore outsourcing is a global phenomenon that has driven the growth in the contact center outsourcing market in Asia-Pacific, and is expected to continue to be the key growth driver. As the contact center outsourcing market in Asia Pacific continues to chalk strong growth, the demand for skilled agents increases in tandem...

Frost & Sullivan has revealed that revenues in the Asia Pacific Contact Center Outsourcing Market industry covering 13 major Asia Pacific economies totaled to USD 7.2 billion in 2005 and is estimated to be worth USD 25.1 billion by end-2012.

"Offshore outsourcing is a global phenomenon that has driven the growth in the contact center outsourcing market in Asia-Pacific, and is expected to continue to be the key growth driver," explains Frost & Sullivan industry analyst Shivanu Shukla. "Proximity to the West, cultural similarities within Asia Pacific, and increased focus on outsourcing and off shoring by the governments in Asia Pacific are expected to boost growth."

Today, many enterprises from the United States and United Kingdom have outsourced significant portions of their customer care functions to countries like India and the Philippines. More than USD 2.17 billion worth of contact center outsourcing contracts from the U.S. and U.K. were serviced out of the Asia Pacific region in 2005.

The primary challenges that the industry faces today is labor attrition, agent recruitment, and data security. In order to circumvent the problem contact center outsourcing service providers are developing structured career paths, training and coaching, better incentives, stringent processes, and quality certification. The need to train and coach agents and leaders to build a strong middle management team is also necessary to retain employees.

"As the contact center outsourcing market in Asia Pacific continues to chalk strong growth, the demand for skilled agents increases in tandem," explains Shukla. "Since employment as a contact center agent is not perceived as a great career option in most parts of the region, inadequate compensation and incentives become key reasons for attrition, and agents tend to move fast within the industry."


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