The Asia Pacific contact center outsourcing market is growing rapidly due to increasing domestic demand for third-party services, according to Frost & Sullivan.
The study finds that telecommunication growth in India has been complementing the outsourcing of contact center operations.
In 2011, 60.9 percent of the total revenue was from domestic markets, largely because of the upswing in the telecommunications and banking and financial services (BFS) sectors.
The market earned revenues of $17.18 billion in 2011 and is estimated to reach $29.72 billion in 2017.
Also in China, the mushrooming of banks and multinational companies has popularized the outsourcing of customer relationship management (CRM) services.
Asia Pacific region has become the destination for outsourcing, due to domestic growth, solid infrastructure, geographical and cultural proximity to western countries, and the presence of well-qualified, college-educated, and low-cost labor.
“While certain companies do not wish to outsource, some are willing to outsource, provided the operations are on-shore or near-shore to locations with similar language, diction, and culture,” said Frost & Sullivan Senior Research Analyst Sathya Subramanian.
The study noted that outsourcers are looking to win back customers’ confidence by implementing several new technologies and strategies that will help them improve the quality of services and offer better data security features.
“Entities throughout the Asia Pacific region are exploring various hosted contact centers and Internet protocol-based technologies to provide superior services in the most cost-effective manner,” noted Subramanian.
The study anticipates that outsourcers can maintain CAGR of 9.6 percent from 2011 to 2017.