Studie - Profiting From Onshore Contact Center Outsourcing During the Recovery (Strategic Focus)

Introduction

The onshore contact center outsourcing sector has evolved considerably since the beginning of the recession. This report will analyze trends in major western markets, and will provide insight into the competitive challenges facing outsourcing vendors aiming to provide domestic delivery of services.

Scope

*An overview of what has made onshore outsourcing a more financially viable model over the past 12-18 months

*A discussion of pressures facing vendors to keep as much work domestically-delivered as possible

*Indicators of challenges that outsourcing vendors could face in the economic recovery, related to maintaining or expanding onshore delivery

*Strategic recommendations for vendors on how to maintain commercially-viable onshore outsourced solutions

Highlights

Contact center outsourcers have been well-positioned to undertake domestic delivery of their services, due to stable price points, as well as ongoing pressure to maintain jobs at home.

However, as the recovery becomes more apparent, outsourcers will be challenged to maintain stable price points, putting pressure on this business model

Only through innovative strategies that cut costs without sacrificing quality will succeed in keeping onshore outsourcing a commercially popular strategy

Reasons to Purchase

*Learn about the evolution of onshore contact center services during the past 18 months

*Understand the challenges associated with this business model during the economic recovery

Overview 1

Catalyst 1

Summary 1

Key Messages 2

The economic recession made onshoring a more affordable delivery option 2

Client pressures for more onshore delivery have also led to more domestic delivery 2

Cost pressures related to economic growth may limit onshoring over the long-term 2

Innovative strategies will be needed to keep onshore outsourcing sustainable for clients 2

Table of Contents 3

Table of figures 4

Table of tables 4

Chapter 1 - Market Opportunity 5

Market Snapshot - Onshore Contact Center Outsourcing Shows Steady Growth 5

Regional breakout 7

The case for onshore contact center outsourcing 9

Bad economic times mean stable onshore price points 9

Growth in client pressure for onshore outsourcing 12

Limited plans to offshore contact center work 12

Offshore not currently seen by clients as principal strategy to achieve cost savings 13

Onshore outsourcers favoured over global players 14

Ease of doing business onshore 19

Transparency 19

Potential long-term implications of an onshore strategy 20

Cost escalations associated with the economic recovery 20

Increased agent related costs 20

Commercial real estate 21

Increased viability of offshore 21

Existing offshore price points 22

Growth in onshore inflation levels 23

Favourable onshore exchange rate shifts 24

Chapter 2 - Customer impact 26

Potential for better service quality using onshore strategy? 26

Reduction in accent confusion 26

Cultural empathy 26

Commercial familiarity 26

Long term onshoring challenges 27

Higher-price points 27

Longer queue times 27

Alternative service delivery mechanisms 27

Increased onshore attrition 28

Chapter 3 - Go to market 29

Target the right verticals for onshore delivery 29

Innovation for lower-cost onshore delivery 29

Use onshoring as means of winning new outsourcing clients 30

Methodology 31

Further reading 31

Ask the analyst 31

Datamonitor consulting 31

Disclaimer 31

List of Tables

Table 1: Onshore outsourced contact center APs, 2008 - 2013 6

Table 2: Onshore outsourced contact center APs by country, 2008 - 2013 9

Table 3: Inflation rates in onshore and selected offshore locations, 2007 - 2009 (annual % change) 10

Table 4: Unemployment rates in selected onshore markets, 2007 - 2009 (% of total workforce) 11

Table 5: Selected onshore office vacancy rates, 2008-2009 (%) 12

Table 6: 2009 Corruptions Perception Index 20

Table 7: Projected Inflation rates in onshore and selected offshore locations, 2010 - 2014 (annual % increase) 24

Table 8: Onshore currency shifts relative to offshore currencies, November 2008 - November 2009 25

List of Figures

Figure 1: Onshore outsourced contact center APs, 2008 - 2013 6

Figure 2: Onshore outsourced contact center APs by country, 2008 - 2013 8

Figure 3: In what timescale do you plan to offshore your call centre functions? - DPTC0063 13

Figure 4: How will you seek to reduce cost in your operations functions in 2009? - DPTC0063 14

Figure 5: To whom would you/do you feel most comfortable outsourcing your call center functions? (Please rate 1-4, with 4 being the most trustworthy) - DPTC0063 15

Figure 6: How important are the following goals to your company in 2009? - DPTC0063 16

Figure 7: Whether you do or do not outsource, please rate the importance of the following criteria in choosing an outsourcer? (Please rate 1-4: 1 being unimportant, 4 being 'critical') - DPTC0063 18

Figure 8: Onshore and offshore inbound hourly agent pricing, 2008 23

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