Taking Care of Business: Companies Will Spend More Than $76 Billion on eCustomer Care Services by 2005, IDC Says
FRAMINGHAM, MA – JUNE 18, 2001 – Businesses have elevated the customer to the top of their business strategy priority list, fueling the market for customer care and customer relationship management services. According to IDC, the amount companies spend on these services will surge at a compound annual growth rate (CAGR) of 20%, from $30 billion in 2000 to over $76 billion in 2005.
"All types of players in the ecustomer care services space have been able to capitalize on this burgeoning market opportunity," said Brian Bingham, senior analyst for IDC’s eCustomer Care Services research program. "Going forward, the market, while slowing modestly, will continue to expand into new arenas of service. Consequently, service bureaus can expect an upswing in the demand for their offerings over the next five years."
The ecustomer care services market continues to be fragmented, with no player accounting for more than 7% of overall market share. IDC ranks the top 5 U.S.-based ecustomer care outsourcing providers according to 2000 revenues as follows:
According to IDC, robust growth is flourishing throughout various regions of the world. The United States will continue to represent the largest portion of the worldwide market opportunity, with Western Europe a distant but strong second. Together, these two regions will account for nearly 80% of the worldwide ecustomer care services revenue in 2005. Latin America will boast the strongest growth, with a 2000-2005 CAGR of 33%, while the rest of the world will exhibit the lowest growth – below 20%.
The demand for customer care services is prominent across a few vertical industries. According to IDC, telecommunications, retail/consumer goods and services, information technology, and banking will account for over 70% – or $54 billion – of worldwide customer care services revenue in 2005. Telecommunications, alone, will account for one-third – or $25 billion – of total revenue during this time.
In eCustomer Care Services: Worldwide Market Forecast and Analysis, 2000-2005 (IDC #B24744), IDC addresses both consulting services and customer care outsourcing services. Revenue forecasts are provided by service, region, vertical industry, channel of delivery, and interaction campaign through 2005. For each region, industry, and channel of delivery, major trends and market forecasts are provided. Also provided is a list of the top 10 vendors in the customer care outsourcing industry. The report concludes with recommendations made to ecustomer care service providers.
IDC delivers dependable, high-impact insights and advice on the future of ebusiness, the Internet, and technology to help organizations make sound business decisions. IDC forecasts worldwide markets and trends and analyzes business strategies, technologies, and vendors, using a combination of rigorous primary research and in-depth competitive analysis. IDC provides global research with local content through more than 700 analysts in 43 countries worldwide. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at http://www.idc.com.
IDC is a division of IDG, the world's leading IT media, research and exposition company.
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