IDC Expects Double-Digit Revenue Growth in the Call Center Outsourcing Market

FRAMINGHAM, Mass., March 8 — A smaller number of players are competing for a larger amount of revenues in the call center outsourcing market. Recent data from International Data Corporation (IDC) indicates revenues in this market will increase 15-25% annually for the next two to three years. This expanding opportunity is leading many in the industry to reorganize their operations through acquisitions and mergers.

"Over the past 12 months, we have seen consolidation among the industry's largest players and restructuring by other significant market players," explained Katrina Menzigian, a senior analyst with IDC's Call Center Services program. "These maneuvers are intended to expand the service offerings and capabilities of call center service providers so that they can better meet the changing demands of their clients."

Clients' demands are changing because organizations are attaching more importance to customer care. With increasingly competitive global markets, many companies are looking to customer care as a strategic means of differentiation. Large and small companies are using call centers to connect with their customers. However, call centers require significant investments in equipment, people, processes, and facilities. Many companies, therefore, hand over their call center operations to call center outsourcing providers. With the hand-off, come expectations for more than just teleservices.

"Over time, call centers will transition into customer interaction centers," Menzigian said. "They will increasingly adopt advanced computer telephony, e-mail, Internet, and voice-recognition capabilities."

IDC believes that call centers' transition into customer interaction centers will bring about two major changes in the market. First, midsize companies will feel pressure to strengthen their positions, setting off another wave of consolidation. Second, service providers will develop offerings geared toward specific industries, functions, and services as a way to differentiate themselves.

"Just as market competition has pushed companies in various industries to seek superior customer care as a vehicle for differentiating themselves, it will push companies that offer call center outsourcing toward specialization so that they can provide more customized customer care services to their clients," Menzigian said.

IDC's new report, titled Call Center Outsourcing: A Market Overview and Segmentation of the Teleservices Industry (IDC #B17925), thoroughly discusses the call center outsourcing market, which is also known as the teleservices industry. The report examines market characteristics and industry trends. Additionally, it segments the market players into three groups and profiles 11 companies. To order a copy of the report, contact Cheryl Toffel at 1-800-343-4952, ext. 4389 or at ctoffel@idc.com. Additional information on IDC can be found on its Web site at http://www.idc.com.

About IDC

International Data Corporation is the information technology industry's most comprehensive resource on worldwide IT markets, trends, products, vendors, and geographies. IDC provides data, analysis, and advisory services to the world's leading IT suppliers as well as IS professionals in finance, insurance, entertainment, advertising, consumer goods, and publishing. IDC's research and opinions are based on the results of more than 300,000 end-user surveys, in-depth competitive analysis, broad technology coverage, and strategic analysis. IDC is committed to providing global research with local content through its 500 analysts in more than 40 countries worldwide. Additional information on IDC can be found on its Web site at http://www.idc.com.

IDC is a division of International Data Group , the world's leading IT media, research, and exposition company.

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