Contact Center Solutions Featured Article

October 12, 2007

Study Finds Brazil Contact Center Industry Maturing

By Susan J. Campbell


Brazil and its contact center industry have often been studied in order to measure the amount of opportunity the country has to offer. As companies in the U.S. are catering more to the Spanish-speaking community as its numbers have grown, offshore and outsourced opportunities in Latin America have become more appealing.

According to a study recently published by IT business consultancy, E-Consulting and holding firm Grupo Padro, Brazil’s contact center is reaching maturity after growth over the past few years. The industry is actually now entering a price war.

This study found that this year, Brazil’s call center industry expects to move roughly 17bn reais, or US$9.5bn. Of this amount, outsourcing firms are expected to represent 6bn reais, 8.6 percent higher than last year. The report revealed that in 2006, call center outsourcing firms account or 5.52bn reais, growing 11.7 percent over the 4.84bn billed in 2004.

A slowdown has also been seen in revenues per workstation. This area expects 3 percent growth in 2007, compared to 17 percent in 2005. Revenues per workstation actually fell 2 percent in 2006 compared to the previous year. The index is expected to grow 4 percent in 2008.

Daniel Domeneghetti, associate and founder of E-Consulting noted that the slow growth is mostly an aftereffect of the increased demand prior to 2006.
 "In 2009, growth of revenues per workstation will outgrow inflation at 6-7%, which corresponds to stability in consolidated industries," Domeneghetti said in the report.

Domeneghetti also highlighted that lower production is the result of technological substitution. Such technologies that have been implemented in call centers include VoIP, predictive dialing software, mobility and workforce management systems. As a result of these new technologies, managers and call center operators are faced with training employees in new solutions.

While technology implementations can certainly have an impact on the industry, the advantages that the industry will realize as a result of these innovations can only help to drive efficiency and even revenues.

Many of these technologies are designed to streamline processes, increase productivity and reduce the number of employees required to run a campaign. The resulting impact on the bottom line can only be positive for these companies.

Brazil also faces stiff competition from other countries. While it does have the advantage of its location in relation to the United States, other countries such as the Philippines and South Africa are presenting compelling advantages at competitive prices. Brazil will have to capitalize on its advantages and position itself strategically against these competitors in order to continue on a growth path.

 
Susan J. Campbell is a contributing editor for TMC (News - Alert) and has also written for eastbiz.com. To see more of her articles, please visit Susan J. Campbell’s columnist page.
 


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