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Findings:Brazil's Hosted Call Centers Need to Step Up

Findings:Brazil's Hosted Call Centers Need to Step Up

June 04, 2014
By TMCnet Staff

Is the Brazilian BPO and contact center outsourcing service market in the doldrums? Not really, when you consider the fact that the decline in revenue in 2013 was primarily an offshoot of the exit of a couple of companies, and the reduced performance of a few others. Frost & Sullivan (News - Alert) believes that the market will bounce back after the initial hiccups.


The research firm forecasts that revenues will steadily increase and touch $7.34 billion in 2018, increasing from $5.19 billion in 2013. There are other things in the pipeline that paint a rosier picture for the industry as a whole in the next five years.

Companies have widened their portfolio to meet the needs of a larger spectrum of industry, focusing on providing specialized services in an effort to cater to the unique needs of different industries. All this has not been in vain, for they have seen an increase in revenue share. Brazil, too, hopes that its decreased focus on cost reduction and increased emphasis on customer service will pay rich dividends.

“This trend, along with the commencement of operations by new companies such as Konecta and Acticall, demonstrates that the Brazilian BPO and contact center outsourcing services market has space for more competition," said analyst Maiara Paula Munhoz.

While the entry of other companies is a healthy sign, it does introduce a greater sense of competitiveness among outsourcing companies, which could threaten to upset the apple cart for the Brazilian BPO and contact center outsourcing services market. A limited workforce and poor public transportation are dampeners that could prevent forward movement of this market.

Agents, plagued daily by traffic snarls and an insipid transport system, could well migrate to other companies that give them better salaries and working conditions. As a result, contractor training costs will increase and call center operators may see their profit margins shrinking dramatically.

However, there are always workarounds for such problems. Munhoz recommends that outsourcing companies invest in their agents in terms of salary, training, career development, and other benefits to improve the employee experience and lower turnover rates, and also increase productivity and enhance the customer experience.

And, to counter competition, the analyst advises the Brazilian BPO and contact center outsourcing industry to open headquarters in the northeastern and southern parts of Brazil, where there will be less competition, availability of a low-cost workforce and reduced churn rates. 


Edited by Rory J. Thompson



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