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Industry Research Featured Article

January 09, 2008

Study Shows Strong Growth in Latin American Contact Center Outsourcing in 2008

Contact center outsourcing for many companies is the optimal strategy to contain costs while meeting customer service and interaction needs. For those companies that have implemented strategies to keep those contact centers as close to shore as possible, Latin American and the Caribbean have proven to be prime locations.

According to Datamonitor, these locations will deliver strong growth in contact center outsourcing through 2008. The market itself is sized in terms of total agent positions and call centers and is divided into thirteen vertical markets.

Outsourcing itself is divided into twelve vertical markets as Datamonitor focuses on the promoters and inhibitors of domestic and offshore outsourcing.

To reach its conclusions, Datamonitor covers such countries as Argentina, Brazil, Chile, Colombia and Mexico, while also examining outsourcing in the Caribbean. The firm also analyzed outsourcing by vertical market and compared as a proportion of the overall market. Offshore outsourcing was sized by agent position, call origin and characteristics that influence attractiveness of each country as offshore destination.

Datamonitor identified growth in this area in terms of call center agents. The number of agent positions in CALA is expected to grow to 730,000 in 2008. The last measure for the number of agents in 2003 found there to be 336,000 positions.

In 2003, Mexico and Brazil accounted for 290,000 agent position, or 86 percent of the entire agent population. While these two companies will still remain strong, at the end of 2008, they are expected to maintain 83 percent of the total Latin American agent population.

Datamonitor also estimated that the fastest growing offshore-outsourced agent population in CALA is the Argentine, which is expected to add 7,000 agent positions and total 10,000 APs by 2008.

The fastest growing offshore-outsourced agent population in CALA is the Argentine, which will add 7,000 agent positions and total 10,000 APs by 2008.

The examination of this market is significant for U.S.-based organizations as the Spanish-speaking population is growing throughout the nation. This growth also translates into buying power as it is also gaining ground. In order to capitalize on this growth, companies need to be able to capture to this segment of the market.

One of the best methods for meeting this need is to establish call center operations in a country or region that caters to this demographic. By keeping the call center operation close to shore, the organization can keep better control over its operation, while also enjoying cost savings. This strategy may not prove to be beneficial for all companies, but the area’s growth signifies that for some, it is the ultimate strategy.
Susan J. Campbell is a contributing editor for TMC (News - Alert) and has also written for To see more of her articles, please visit Susan J. Campbell’s columnist page.
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