Despite A Regional Economic Slowdown, The Call Center Market Continues To Thrive In Latin America
MIAMI, FL – NOVEMBER 2, 2001 – According to a recently released study by IDC Latin America, "Who's Calling, The Contact Center Market in Latin America Market Review and Forecast 2000-2005", the call center market is becoming one of the fastest growing telecommunications services segment with over 34% growth in revenues in 2000 reaching about US$915 million.
IDC Latin America interviewed the main service providers in the call center market of the top six markets in Latin America (Brazil, Argentina, Mexico, Colombia, Chile and Venezuela). Although there is still resistance from enterprises to outsource the management of their sensitive information, results show that the rate of adoption of outsourced call center solutions is increasing rapidly. In addition, executives from enterprises surveyed in the top three markets (Brazil, Argentina and Mexico) consistently reported a future need for call center solutions in their organizations.
Brazil, Latin America's largest call center market generated over 55% of the total regional revenues in 2000. In 2001 the Brazilian market is expected to grow 38% due to, among other factors, a government mandate requiring businesses to provide their clients with telephonic customer care.
"Although we have seen the number of active positions soar in Brazil as a result of the government's initiative, the utilization rate of most call centers is still below international standards, suggesting a certain degree of over-capacity", said Hector Hernandez, Research Manager with IDC Latin America. "Regional operator Atento is competing heavily with telecom incumbents in the higher-end contact center space, whereas smaller operators that migrated from less promising services such as paging and trunking, are competing aggressively for the lower-valued bare-bones inbound market."
Demand for outsourced call center solutions in Latin America in 2000 came primarily from the telecom and media segment with over 44% of the total revenues. Latin American large businesses continue to represent the majority of the call centers business. In fact, operators saw the small and medium businesses sector decrease its market share from 1999 to 2000.
"Due to the early stages of call center market development throughout the region, user databases are not readily available. As a result, the bulk of the call center market campaigns are related to inbound calling and database creation", said Hernandez.
Aware of the opportunity, service providers have invested heavily in setting up call center facilities in many Latin American markets. Most of the call center infrastructure was deployed between 1998 and early 2001. The investment pace has slowed down, partially because of the current state of affairs, but also because operators are now trying to increase the levels of utilization and efficiency of their current infrastructure. For more information regarding the study, IDC Latin America "Who's Calling, The Contact Center Market in Latin America Market Review and Forecast 2000-2005" #LA1188G or to purchase the complete study, please contact Barbie Cordero of IDC Latin America firstname.lastname@example.org
About IDC Latin America
IDC Latin America has established an unrivaled reputation for analysis of the IT, Internet, and Telecom markets in Latin America. Its research group is comprised of over 90 analysts in Argentina, Brazil, Chile, Colombia, Mexico, and Venezuela who are devoted to generating the most authentic and up-to-date information on these markets. Following a commitment to excellence, IDC has pioneered primary research in the countries of Costa Rica, Dominican Republic, Ecuador, Guatemala, Panama, Peru, and Puerto Rico. This distinctive local presence results in the most comprehensive and trustworthy market coverage of the Latin American region. For more information, visit www.la.idc.com
IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies and the financial community. Additional information can be found at www.idc.com.
IDC is a division of IDG, the world's leading IT media, research and exposition company.