TMCnet News
Call Centers in Europe, the Middle East and Africa To Swell to 45,000 by 2008 With 2.1 Million Agent Positions Findings from a new report by independent market analyst Datamonitor (DMT.L) “Vertical Guide to Call Centers in EMEA,” reveal the number of call centers in Europe, the Middle East and Africa (EMEA) will increase by over 50 percent through 2008. The report, which covers 26 countries across 13 vertical industries, finds that the biggest growth will be in Eastern Europe and Middle East & Africa (MEA) not only due to their youth, but also as a result of call center outsourcing from Western Europe. Datamonitor estimates that by 2008, 15 percent of EMEA call centers will be multichannel-ready, up from 6 percent in 2003, as they adapt to accommodate customer interactions using web-chat, email and SMS channels. Smaller call centers are the fastest growing size-band in mature markets. Large facilities remain popular in Eastern Europe and MEA. The fastest growing verticals for call center services will be the public sector, healthcare, outsourcing, entertainment, and utilities. As EMEA’s call centers shift, targeting the right vertical markets will be crucial, and the report warns technology vendors who want to play by the same old rules that they will only get left behind.Smaller call centers are the fastest growing size-band segment in mature markets, while large facilities remain popular in Eastern Europe and MEA Total agent positions in EMEA will grow from 1.5 million at the end of 2003 to 2.1 million by 2008, a compound annual growth rate (CAGR) of 6.3% through this period. There were approximately 29,000 call centers in EMEA at the end of 2003. By 2008, this figure will have swelled to 45,000. According to Datamonitor, the largest call center size band in EMEA through 2008 will be the 10 – 30 call center agent position segment, which will constitute 55% of total call center facilities in 2008 compared to 50% at present. Smaller-to-mid sized operations are the next largest category, but will fall from 37% to 34% in 2008. Larger EMEA call center operations (101 – 250 agent positions) will also decrease from 10% to 8%. Those in excess of 250 agent positions will shrink from 4% to 3%. The onset Internet Protocol (IP) technology will mean more call centers and fewer agents. As such call centers in Western Europe and the Nordic countries will shift away from larger-scale operations. However, in the less mature markets of Eastern Europe and MEA, outsourcing from Western Europe and nascent vertical markets will mean that larger facilities will maintain a solid degree of market share. It is these sub-regional tendencies that vendors need to keep in mind when considering the EMEA call center market. Shifting vertical markets provide new revenue opportunities – outsourcing will be big business in Eastern Europe, the Middle East and Africa There are growing vertical opportunities for call centers in EMEA vertical markets, most notably the public sector, outsourcing, health care, retail, and utilities. From the standpoint of government, health care, and utilities, these verticals are late adopters, and are catching up with other industries, for example financial services and communications, that have a legacy in call center services. Datamonitor also notes that government spending will be varied, coming from both local and national levels, as access to information becomes a reality across the region. Outsourcing will be big business, especially in Eastern Europe and MEA, fuelled mainly by cost-conscious Western European firms. “Vendors targeting the public sector, health care, and utilities need to consider that these verticals are relatively nascent and still maintain tendering policies that are bureaucratic and slow-moving. Thus, dedicated resources for these specific industries could prove advantageous from a competitive standpoint,” says Peter Ryan, Datamonitor call center analyst and author of the report. Multichannel capabilities are key for EMEA call centers Call centers will need to adapt in order to accommodate customer interactions using web-chat, email and SMS channels. Datamonitor estimates that by 2008, 15% of EMEA call centers will be multichannel-ready, up from 6% in 2003 “Western European markets, especially the Nordics, UK, and the Netherlands will have multichannel penetration of up to 25% by 2008, reflecting mobile telephony and Internet adoption within these countries. While other Western European markets may not boast the same amount, multichannel capability cannot be ignored. The same applies to call centers in Eastern Europe and MEA, which will need to stay current with all forms of customer communication, especially for serving the Western European outsourcing market,” says Mr Ryan. Succeeding in EMEA’s call center market Datamonitor’s report highlights the most important steps for vendors to take in order to profit in the EMEA call center market. Targeting the right vertical markets will be crucial, especially considering those that will show considerable strength in particular regions, such as outsourcing in Eastern Europe or the public sector in Western Europe. Vendors must also take into account the drop in size-bands across EMEA, and make sure that solutions are tailored accordingly. This will be important in Western Europe, where the 10 – 30 agent positions range is growing most rapidly. However, in Eastern Europe and MEA, larger solutions will still find a marketplace. Across EMEA, call center solutions must be multichannel-capable, as this is becoming a standard requirement from customer care vendors. Ryan concludes: “The EMEA call center market is growing, as are opportunities for vendors. By strategically identifying the right space in terms of vertical market, geography, and size bands, solution sellers can profit. Success will come to those that offer timely and complete solutions with multichannel capacity that can be adapted to any call center size. EMEA’s call centers are shifting, and vendors that want to play by the same old rules will only get left behind.” |