Outsourcing companies handling traffic from Europe, the Middle East and Africa (EMEA) are staying above the financial trouble brought on by the global economic downturn.
A recent report, published by research firm Frost & Sullivan, says outsourcing businesses in the region have remained profitable because of cost containment initiatives implemented during the crisis.
Frost & Sullivan says contact outsourcing markets earned revenue of $15.2 billion in 2008 and estimates it could hit the $19.9 billion mark by 2014. "Despite the economic downturn, market participants in EMEA have high expectations for continued expansion plans with new and existing clients into 2009," explains Frost & Sullivan strategic analyst Michael DeSalles.
He says outsourcers have many benefits to offer clients during cash-strapped times, which includes the cutting of capital expenses, access to labour and management techniques. “They also have the opportunity to gain access to state of the art technology, without massive financial outlays."
DeSalles says the effect of the global economic crisis is that perceptions of loss of control over customer interactions are diminishing. “A number of market participants report they have moved to better align their sales forces with client demand for vertical expertise, especially in financial services, as well as telecom, travel and healthcare.”
He says the offshore option provides clients with lower labour costs and “follow-the-sun” service provisioning, especially for English-language call volumes. “However, hiring sufficient support for other European languages is a challenge for all providers."
Frost & Sullivan notes those providers offering multiple solutions and agent models, such as client in-house agents, vendor brick-and-mortar agents, self-service options, and work-at-home or remote agents, are in a favourable position to take advantage of the market.
Related stories:
Zain outsources to Ericsson
Telcos turn to outsourcing
Eskom hike could cripple BPO industry
Share