Analyst Group Names Colombia and Peru Rising Stars in Call Center Outsourcing
When contact centers began outsourcing, they found a lot of promises in destinations like India. The labor costs were cheaper, the workforce was educated and spoke English, and voice over IP technology eliminated technology barriers. Since that time, the Philippines has become another popular destination for outsourcing customer care. As the outsourcing industry in those two nations has escalated, so have costs, and many North American companies have found management barriers to having their calls diverted to the other side of the world. And while the Philippines offers Spanish language support, India does not.
In recent years, South and Central America and the Caribbean have become popular destinations. They offer the same low costs and educated workforces as India and the Philippines, but they are closer (“near shore”) and offer better options for Spanish-speaking customers. While every nation has a different business climate, some are more favorable to North American businesses than others.
According to new research from analyst group Frost & Sullivan (News - Alert), Colombia and Peru are two of the biggest rising star locations. Both nations are becoming key regional business hubs fueled by their economic stability, and both nations are seeing increased investments from global companies thanks to favorable government policies and young, educated workforces. This is helping to enhance the scope of the contact center outsourcing services market.
The new report, “Analysis of the Colombian and Peruvian Contact Center Outsourcing Services Markets,” found that the market in Colombia earned revenues of more than $844.9 million in 2012 and estimates this to reach $2,323.5 million in 2019 at a compound annual growth rate (CAGR) of 15.5 percent. The market in Peru earned revenues of more than $364.5 million in 2012, and is this expected to reach $924.9 million in 2019 at a CAGR of 14.2.
"The expansion of existing companies, along with the entry of global businesses, has offered growth opportunities for call center service providers who are looking to provide specialized BPO services such as financial consulting, software development and payroll administration to boost revenues," said Frost & Sullivan ICT Research Analyst Martin Ramirez in a statement announcing the report.
Frost & Sullivan notes that the escalating popularity of social media will create demand for new solutions that enable companies to interact with customers through those mediums, generating further opportunities in both countries.
Edited by Ashley Caputo