January 04, 2006

 

Home-based customer care agents are expected to nearly triple by the year 2010 according to a newly published IDC study, Home-Based Agent 2005-2010 Forecast and Analysis: Converging Economic Forces to Drive the Expansion of Homeshoring in the United States.

The study found that the growth in the use of home-based agents is based on the need for more productive agents, higher retention rates, greater flexibility in responding to peaks and valleys in voice traffic and on a set of key macroeconomic trends.

 

Of the estimated 112,000 home-based phone representatives in the United States, IDC predicts that by 2010, that number could reach over 300,000 as companies increasingly develop and invest in home-based agents. Companies are focusing on both outsourcers and their own employees.

 

Stephen Loynd, senior analyst for IDC’s CRM and Customer Care BPO service predicts that homeshoring, the neglected sibling of offshore outsourcing, is about to hit a growth spurt. Loynd stated that over time, offshore outsourcing will be associated more and more with homeshoring of US jobs and the expansion of employment opportunities in the United States.

 

The up-and-coming market for home-based customer care agents is examined by IDC in this study. Also included are profiles of certain key providers that are influencing the growth of homeshoring. Such questions that are answered include:

 

·   Who are some of the main providers of home-based agent services?

·   What are the macroeconomic trends that will influence the growth of the homeshoring market?

·   Why are the influential economic trends considered systemic, with long-term implications?

·   What is the expected growth for the market over the next fine years?

·   What are the factors that make homeshoring appealing?

 

While the study did not focus on one company in particular, it did look at business categories in North America and the United States. The categories included, but were not limited to, customer relationship management (CRM), communications, business process sourcing, global IT and economic markets and IT and the economy.

 

IDC specializes in market intelligence and advising in the information technology and telecommunications industry. With analysis and technology trend predictions provided by IDC, clients are able to make strategic, fact-based decisions on IT purchases and business strategies. In forty years, the company has grown to over 700 analysts in 50 countries.

 

The trends in offshore outsourcing have created a large stir in both internal and external customers of companies that have engaged in this practice by sending its call centers overseas. Due to the controversy this practice has caused, homeshoring has been overlooked and underestimated. Companies are starting to realize the financial benefits of being able to maintain current employees or hire outsourced agents that reside in the United States, but work from home.

 

With the advancements in technology and new software available for call centers, agent location has become almost irrelevant. As this was once more of a threat, it can now mean a happier and more loyal employee who has the flexibility of working from home. IDC predicts this trend to continue and it probably won’t be long before homeshoring starts to dominate the headlines, overshadowing offshore outsourcing.

 

To learn more about who is capitalizing on home-based agents and other exciting happenings in the telecommunications industry, don’t miss the upcoming INTERNET TELEPHONY Conference & Expo, EAST, which runs January 24-27, 2006, in Fort Lauderdale, Fla. The Service Provider Summit and the VoIP Peering Summit are just two of many exciting events you won’t want to miss.

 

Susan J. Campbell is a contributing editor for TMC and has also written for eastbiz.com. To see more of her articles, please visit Susan J. Campbell’s columnist page.