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

Appeals Court OKs Redbox's Customer Info Disclosure to Third Parties

The U.S. Court of Appeals for the Seventh Circuit, based in Chicago, has given its approval of Redbox's practices for disclosing customer information to a third party regarding customer service issues. [ Read More ]
10/31/2014

On How to Avoid Challenges and Added Costs of Open Enrollment Period for 'Obamacare'

If you live in the U.S., consider this a type of public service announcement. We are about to enter the open enrollment period for 2015 as part of the continuing rollout of the Patient Protection and Affordable Care Act (PPACA), which has become better known as "Obamacare." As we are all aware, the initial rollout of Obamacare was problematic-to put it politely. However, the good news is that, thanks to some great work by the IT industry experts called in to fix it, healthcare.gov is working bet… [ Read More ]
10/31/2014

Getting Ready for the Holiday Rush-The Role of Customer Experience Transformation

It should be no surprise to anyone that the holiday season is fast-approaching, which means "all hands on deck" in the contact centers of retailers. And, as we move into what can best be characterized as the "Omni-channel Era" when it comes to providing a compelling customer experience, retailers are busy transforming virtually every aspect of how to provide such experiences. [ Read More ]
10/31/2014

When it comes to Contact Center Agents 'Mind the Gap'

As content curator and contributor to the Contact Center Solutions Community, part of my function is to review information and insights from around the Web and illuminate them to our readers. In this regard, I would like to recommend an insightful posting from IT-Online titled, "How to differentiate customer experience." [ Read More ]
10/30/2014
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!