Economic Slowdown Promises Long-Term Gains for Outsourced Call Center Markets

The recent economic downturn has temporarily restricted revenues in the outsourced contact center services market. However, over the long term, an increasing number of companies will turn to outsourced solutions to save costs over in-house call center agents.

Ultimately, outsourcing call center services will offer cost-conscious companies a means of scaling facilities to match their fluctuating needs. As the economy regains momentum, these new accounts are expected to propel these markets to all-time high levels of demand and revenues.

New analysis from Frost & Sullivan (www.frost.com ), North American Outsourced Contact Center Service Markets, reveals that this industry generated revenues totaling $27.2 million in 2000. After a brief slowdown in 2001, steady growth will continue through 2008.

To capitalize on this burgeoning field, call center service providers will have to overcome several key challenges, including the high costs of employing live agents. Despite the potential for implementing automation, there will always be a need for live agents. Participants must restrict the expense of employing representatives while still reducing high turnover rates.

"To address these challenges, several outsource providers are employing telecommuting call center agents," says Frost & Sullivan Research Analyst David Alexander. "Telecommuting agents have enabled contact centers to lower their per-seat costs and also to extend the scope of their employment pool to find the most qualified personnel."

At the same time, call center providers will have to mitigate the impact of pending telemarketing legislation.

"Do-not-call (DNC) lists continue to be a significant legislative threat to the outsourced contact center service markets," says Alexander.

Initially adopted to limit annoyance from telemarketers, DNC regulations require companies to remove the names of individuals from their databases who have requested that they not be called. If companies do not obey, they can be sued.

"The Privacy Act of 2001 would further affect the outsourced contact center service markets by prohibiting the collection of some personal information," says Alexander.

Call center providers must develop strategies to retain the marketing potential inherent in their activities while still adhering to new laws.

Frost & Sullivan presents the 2001 Marketing Engineering Award to a company that has worked diligently to make a positive contribution to the outsourced call center services industry. This market-specific award is presented to Convergys Corporation.

Frost & Sullivan will hold a conference call at 1 pm (EST)/ 10 am (PST) on January 31 to provide manufacturers, end-users and other industry participants an overview, summary, challenges and latest coverage on North American Outsourced Contact Center Service Markets. Those interested in participating in the call should send an e-mail to Dustin McVey at dmcvey@frost.com with the following information for registration: Full name, Company Name, Title, Contact Telephone Number, Contact Fax Number, E-mail. Upon receipt of the above information, a confirmation/pass code for the live briefing will be emailed to you.

The following is a list of key industry participants: Abacus Communications; Acacia Teleservices; Access Direct Telemarketing, Inc.; Accent Marketing Services, Inc.; Advanced Data-Comm, Inc.; Affina; Aegis Communications Group, Inc.; Alert Communications Ltd.; Alicomp; Alliance TeleServices, Inc.; Alta Resources; APAC Customer Services, Inc.; BlueStar Solutions; Business Response, Inc.; ClientLogic Corp.; Contact America, Inc.; Convergys Corp.; CSC; CSG Systems International, Inc.; CTC Teleservices, Inc.; CyberRep; Dakotah Direct; DialAmerica Marketing; DRG Telemarketing; EDS; eTelecare; Excell Global Services; FutureCall Telemarketing, Inc.; Gage Customer Service; GC Services Ltd.; ICT Group, Inc.; Infotel; Integrated Sales Solutions, Inc.; Integrated Messaging, Inc.; Interactive Teleservices; King TeleServices; L&S TeleServices; Line One Inc.; LiveBridge, Inc.; Market USA; Marketing Ally; Midco Call Center Services; Millennium Teleservices; OnPoint; O'Currance, Inc.; Optima Communications Canada, Inc.; ORC ProTel; OSC TeleServices; Precision Response Corp.; Proxy Communications, Inc.; Reese Brothers, Inc.; RMH TeleServices; Ron Weber and Associates; Ross Marketing, Inc.; Sitel Corp.; Source One Communications; Spherion; Sprint Telecenters, Inc.; Stream International, Inc.; TCIM Services, Inc.; Technion Communications Corp.; TeleQuest Teleservices; Telerx; TeleSpectrum Communications; TeleTech Holdings, Inc.; The Connection Total Telemarketing Concepts; Transcom Worldwide; USA 800, Inc.; UTR; West Corp.; World Access Service Corp.; and Young America Corp.

Frost & Sullivan is a global leader in strategic market consulting and training. This ongoing research is part of the Contact Centers Market Subscription, which also includes market analyses on IP Contact Center Markets and IVR System Markets. Frost & Sullivan also offers custom consulting to a variety of national and international companies. Executive summaries and interviews are available to the press.

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