TMCnet - The World's Largest Communications and Technology Community
New Coverage :  Asterisk  |  Call Recording  |  SIP Trunking  |  Fax Software  |  Load Balancer  |  PBX  |  CTIA  |  INTEROP  |  Small Cells
Virtual Contact Center Channel
> Virtual Contact Center Home

[November 2, 2005]

Study Predicts Growth in Customer Care Market

By DAVID SIMS
TMCnet CRM Alert Columnist


According to a recently released IDC study, the continued strength of the global economy will result in an improved market opportunity for customer care services in the near term, followed by solid growth from 2005 to 2009.

This fits with the optimistic predictions IDC has been making for the world customer care BPO industry for the past two years.

The report, which provides detailed profiles of 27 customer care BPO providers, placing them within the context of developing trends and locating them within IDC's Leadership Grid, finds that customer care services will continue to gain traction over the next 12-18 months.

Last year IDC issued a report finding that customer-care BPO companies are expanding the definition of "service," and are offering an increasingly broad array of options. This is an "essential move in what still is a competitive market," said Brian J. Bingham, IDC research manager author of "Worldwide Customer Care BPO: 2004 Competitive Landscape Leadership Report."

The recent trend has to do with way BPO firms are responding to new buying demands, Bingham thought. Specifically, "there is a growing demand for innovative pricing structures and an increasing need to identify and escalate purchasing decisions to higher levels within the client organization. BPO firms, like their customer-service software counterparts, are responding in kind to win the deal."

And this spring IDC predicted that, driven by a growing interest in BPO and offshoring, customer care services will continue to gain solid traction over the next 12-18 months and experience healthy growth through 2009.

"In light of the current economic climate, opportunities are increasingly emerging within the worldwide and U.S. customer care services marketplace," Bingham said. "Being attuned to cost containment, ROI, and business process optimization, however, must be the mantra if service providers plan to thrive and succeed."

IDC estimates that 2004 worldwide customer care revenues totaled $45.8 billion and predicts the market will reach $83.5 billion by 2009, experiencing a five-year compound annual growth rate of 12.7%.

"This study is the most sweeping and detailed competitive landscape IDC has published. As the cornerstone of our research in this area, it highlights how several trends and undercurrents -- some continuing, others emerging -- are affecting how providers build and provide solutions," states Stephen Loynd, senior analyst for IDC's CRM and Customer Care Services program.

The report, "Worldwide Customer Care BPO 2005 Vendor Profiles: A Competitive Analysis," addresses essential topics within the customer care BPO landscape, such as the market leaders, innovators, and possible up-and-coming players; trends and undercurrents affecting the market, the market segments likely to offer the greatest opportunity for services firms in the near future and strategic moves that service providers should consider in light of current trends.

David Sims is contributing editor for TMCnet. For more articles by David Sims, please visit:

http://www.tmcnet.com/tmcnet/columnists/columnist.aspx?id=100005

Virtual Contact Center


TMC LOGO
Technology Marketing Corporation,
2 Trap Falls Road Suite 106, Shelton, CT 06484 USA
Ph: 800-243-6002, 203-852-6800; Fx: 203-866-3326
General comments: tmc@tmcnet.com. Comments about this site: webmaster@tmcnet.com.
About   Contact  Advertise
Technology Marketing Corp. 1997-2024 Copyright. Privacy Policy Sitemap