In spite of dwindling offshore revenue, contact centers in Argentina and Chile don’t appear to be in the red; on the contrary they appear to be doing quite well as outsourcing services markets in both these regions continue to contribute to increasing revenue from domestic business. News analysis from Frost & Sullivan confirms this trend.
Because of the high cost of operations and high prices charged, Chile couldn’t compete with other locations in Latin America and lost considerable contact center outsourcing orders to Columbia, Mexico and Peru.
But analysts indicated that both Chile and Argentina will continue strongly on the outsourcing front and offer significant services to other Latin American countries, with revenues from off shoring continuing to be limited.
The arrival of social media has left its fingerprints everywhere and contact centers are no exception. Although a majority of customer interactions are still performed through voice channels, social media as a contact medium in contact centers across Argentina and Chile is becoming popular.
Industry Analyst Sebastian Menutti views this growing trend optimistically and notes that it “is opening up lucrative opportunities for contact center outsourcing service providers.” Those who already had solutions to manage social media interactions in place would benefit.
Apparently however, things are not as rosy as they seem, for analysts point out that competition in the contact center outsourcing services market is intense. Also policies regulating the market and forcing service providers to adopt restrictive practices are likely to cut profit margins. Political and economic uncertainty in both countries is not making things any easier.
However, According to Menutti, some players are adopting aggressive pricing strategies while others are focusing on developing high value complex services that are likely to increase profitability in the Argentinean and Chilean contact center outsourcing services markets.
Hence, it’s easy to see why the research firm’s forecast for both these markets: Argentinean market is expected to reach $1,018.2 million in 2020 and Chilean market is expected to go up to $529.4 million by 2020, is not merely optimistic speculation.