Contact Center Solutions Featured Article

Asia-Pacific is the Fastest Growing Region for Contact Center Services

June 24, 2013

In 2012 , the Asia-Pacific (APAC) contact center market with contact center grew by 8.4 percent, higher than any other region. A high performing domestic contact center outsourcing industry shows the next stage of growth in the region.

According to the assessment of Asia Pacific Contact Center Markets CY 2012, the markets had over 3.7 million agents employed in 2012 and is expected to employ over 6 million agents in 2019.

It is expected that APAC will continue to show high growth in the global contact center outsourcing industry, looking at the growing domestic markets with increasing demand from the telecommunications and banking and finance (BFS) sectors.

"Historically, offshore revenue has been the key driver of the Asia-Pacific contact center market, and in 2012 contributed 39.6 percent of the total market. Cost savings, a large and relatively low cost labor pool, strong infrastructure, language proficiency and experience of serving western world customers make many Asia-Pacific locations preferred offshore destinations for contact center outsourcing for American and European companies," stated Frost & Sullivan (News - Alert) Research Manager Krishna Baidya.

"A growing focus on quality customer service is, at the same time, resulting in domestic contact center outsourcing escalating in the region as well," Baidya added.

"Demand from local Asian economies is expected to have a high impact during the entire forecast period. Rural BPO is getting attention and offering a viable option to pursue, especially while serving domestic customers," Baidya adds further.

Growth in customer service enhancement was observed in 2012. Contact centers are leveraging the available technology and new business models to enhance operational efficiency and getting cost advantages.

"The contact center service segment, including consulting, implementation, management and agents' training services, has become important for vendors and system integrators," continues Baidya. "More professional agents are set to be recruited and trained in the future to enhance the overall service quality of contact centers."

There are also some concerns like market saturation, anti-offshoring outlook in many countries, emergence of alternative locations, increasing attrition rate resulting in higher costs as well as concerns of quality of services.

"Traditional third-party outsourcing relationships based on cost and labor arbitrages have become passe," also says Baidya. "Providing customer service at a lower cost simply won't win more wallet share or new customers anymore. End-to-end support and overall value proposition to customers' business will be key in nurturing customer and provider relationships going forward."




Edited by Ryan Sartor

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