Contact Center Solutions Featured Article

Study Shows Brazil as Strong Player in Global Contact Center Outsourcing Market

July 19, 2007

No matter your personal opinion on the outsourcing of jobs to offshore locations, either through contracted vendors or establishing overseas operations, the reality is that for some companies, the practice is making sense. As a result, we will continue to see companies moving their contact center operations offshore.

While the first assumption may be that the center is moving operations to India, the end destination could be thousands of miles from this dominant market. In fact, Brazil is regarded as one of the four key catalysts among the BRIC (Brazil, Russia, India China) nations that are driving service globalization.

Brazil has shown success in both service export and internal economic expansion, according to Zagada Institute’s Brazil Executive Call Center Report 2007: An Emerging Sourcing Giant. Driving this success is the country’s emphasis on contact center Business Process Outsourcing (BPO) and IT services.

Brazil represents the largest economy for Latin America, as well as the region’s largest contact center or voice-based BPO agent population of just over 200,000 agents. This is a significant increase from the agent base of 55,000 in 2001. Brazil’s overall contact center BPO and IT outsourcing revenue is estimated to be US$2.4 billion with about 10 percent generated from international contracts.

According to Zagada projections, the country is on track to have 350,000 agents by the end of 2007, although the country has seen a slow don in its average annual growth rate in the sector. The report reveals that while Brazil has more than 1,000 call center operators, the market is highly segmented with 10 larger centers generating under 20 percent of the market’s revenues.

A larger percentage of Brazil’s centers use advanced e-mail and collaboration customer interaction technology when compared with the U.S. and Europe. Over US$2 billion in revenues are generated by the industry, with 90 percent represented by internal outsourcing and companies who manage their own centers. Roughly 10 percent of revenues are generated from international markets led by the U.s. and followed closely by Europe and Asia.

Available skilled talent is always an issue for companies considering an offshore location for their contact center. Close to 300 of Brazil’s almost 2,000 universities and institutions of higher learning serve the Sao Paulo-Rio axis and graduate 1.2 million students each year. As a result, BPO companies considering Brazil will have access to a steady source of talent.

Zagada found that although Brazil offers a large internal market and an expanding contact center BPO and IT sector, the country also faces a number of internal and external challenges. Internal challenges include rising inflation rates, increasing wages and high levels of software piracy rates. The government projects a 5 percent GDP 2007 growth rate, while most analysts agree on a range under 4 percent.

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.
 
Want to learn more about contact centers? Then be sure to check out TMCnet’s White Paper Library, which provides a selection of in-depth information on relevant topics affecting the IP Communications industry. The library offers white papers, case studies and other documents which are free to registered users. The papers are authored by industry leaders, who, in turn, receive qualified sales leads from interested parties. Check here for the latest in CRM information.
 
 

Article comments powered by Disqus

Related Contact Center Solutions Articles

Contact Center Solutions Week in Review: Interactive Intelligence, BT and Accenture

The future is now, or at least it is coming at us fast in the Contact Center Solutions Community, and there are two great ways to be part of the industry buzz as to what is unlikely to unfold in 2015. The first is to attend ITEXPO East, January 27-30, 2014 at the Miami Beach Convention center. This is a great opportunity to be warm and more to the point, hear, see and discuss contact center issues in person with peers and subject matter experts. [ Read More ]
01/17/2015

Customer Experience: The Last True Differentiator

In Ernst & Young's Global Consumer Banking Survey 2014, customers chose "the way I am treated" as the second most important reason for trusting their banking provider, just behind the understandably important "financial stability" of their bank. Customer experience was also cited as the most common reason for opening and closing accounts, more important than fees, rates, locations or convenience. Approximately 40 percent of customers planned to open or close an account in 2014. This means banks … [ Read More ]
01/16/2015

Digital Is Driving Businesses to Offer Personal and Intuitive Customer Experiences says Accenture Report

The preoccupation with improving the customer experience (CX) by C-levels around the world has been a trend for several years. In fact, the fastest growing C-level position is Customer Experience Management Officer (CEMO) or some variation on the title. And, as CX becomes ever more important as the means to provide differentiated value, delighting existing customers and for obtaining and keeping new ones, the preoccupation will not only grow more intense in 2015, but so will the investments in t… [ Read More ]
01/16/2015

BT Launches New Personalized Video Message Service

When it comes to contact center out-reach there are two trends that everyone needs to literally and figuratively keep an eye on in 2015. They are "personalization" and "video." And, while the first may seem obvious since the goal of marketers is to make customers and prospects feel appreciated with tailored messages uniquely for them, the use of video on the outbound side of things is after many years becoming something more than a novelty. [ Read More ]
01/15/2015
Subscribe here for your FREE Contact
Center Solutions
enewslettter.

Events

Weekly Live Demo
Contact Center Solutions

Register Today!


Weekly Live Demo
CaaS Small Center

Register Today!