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Industry Research Featured Article

March 21, 2008

Research Focuses on Asian Contact Center Industry

The Indian contact center industry is one of the most competitive in the world, offering high-skilled talent, low wages, low overhead and ample supply of educated individuals. The area still poses its own challenges and many are not exclusive just to this particular industry.

According to’s newly released 2008 Asian Contact Center Industry Benchmarking Report, the biggest challenges for the Indian contact center industry include employee attrition, recruitment, agent training and implementing new service channels.

This report also indicates that Indian contact center executives are attempting to improve human resource management results by offering financial incentives, reward and recognition programs, as well as better career planning for agents. Currently, average tenure for an Indian contact center agent is lowest in the region at 9 months.

The study included 72 percent outsourced contact centers and 28 percent in-house or captive centers. It found that agent absenteeism or sick leave in Indian contact centers had reduced on average from 15 days in 2007 to 9 days per year in 2008. While this reduction is a move in the right direction, employee tenure remains a critical problem.
This research that focused on the contact center industry in Asia, was sponsored by Autonomy etalk and Genesys (News - Alert), and involved interviewing 539 contact center executives representing 2,488 contact centers and 259,699 contact center seats across Asia, including 107 centers in India.

Other studies are showing strong contact center growth within the Asian market. A recent report by Global Industry Analysts shows that the global contact center market is projected to reach US$195 billion by 2010, with Asia leading the growth.
North America and Europe continue to dominate service revenues and account for roughly 85 percent. Yet, Asia-Pacific holds enormous potential, and is projected to drive growth in the global arena.

As a dynamic market, it consistently endures changing tides. Major trends include expanding operational costs and budgetary allocations, declining telecommunications costs, rise in number of hosted contact centers, growing significance of Asian call centers.

The report has also shown that the transformation of call centers into contact centers will have a continuing impact. Despite its status as the fastest growing employer, contact centers face challenges in the form of shortage of skilled employees, and high employee turnover rate.

The contact center will continue to be a changing market and to remain competitive, these organizations must continue to adapt to these changes. The demand for customer interaction and service will continue to grow yet the best location for that growth could change based on a variety of different elements. Only time will tell.
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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