Contact Centers and Beyond

October, 2012
III CONVENCION APECCO 2012 Peter Ryan, Practice Leader Ovums Services Team

Copyright Ovum 2010. All rights reserved. Ovum is part of the Datamonitor Group.

Structure of Presentations

Introduction Outsourced contact center trends Why move to new service delivery strategies? Wrap-up

Copyright Ovum 2009. All rights reserved. Ovum is part of the Datamonitor Group.

Introduction
Contact centers have been invaluable for developing outsourcer market presence
Technology / service based delivery Social mobility for workforce

Outsourcing can be so much more

Back-office BPO

Now is the time to seize the initiative

Increased exposure to the world Perception of higher value Better margins Evolving labor skills

Copyright Ovum 2009. All rights reserved. Ovum is part of the Datamonitor Group.

Why Outsourced Contact Centers?

Employment

Social development

Stability
4

Awareness
Copyright Ovum 2009. All rights reserved. Ovum is part of the Datamonitor Group.

Outsourced Contact Center Requirements for Vendors

Agent pool

University graduates

Incentives

Commercial property
5

Infrastructure
Copyright Ovum 2009. All rights reserved. Ovum is part of the Datamonitor Group.

Regional outsourced contact center growth 2011 - 16

Workstations
Source: Ovum

Copyright Ovum 2009. All rights reserved. Ovum is part of the Datamonitor Group.

Challenges Facing Outsourced Contact Centers - 1

Political Pressure

Copyright Ovum 2009. All rights reserved. Ovum is part of the Datamonitor Group.

Challenges Facing Outsourced Contact Centers - 2

Market crowding

Copyright Ovum 2009. All rights reserved. Ovum is part of the Datamonitor Group.

Challenges Facing Outsourced Contact Centers - 3

Tightening profits

Copyright Ovum 2009. All rights reserved. Ovum is part of the Datamonitor Group.

Challenges Facing Outsourced Contact Centers - 4

Attrition

10

Copyright Ovum 2009. All rights reserved. Ovum is part of the Datamonitor Group.

Challenges Facing Outsourced Contact Centers - 5

Linguistic / Cultural Sensitivities

11

Copyright Ovum 2009. All rights reserved. Ovum is part of the Datamonitor Group.

Moving to the next level of outsourcing..

Contact Centers

Broader BPO
12
Copyright Ovum 2009. All rights reserved. Ovum is part of the Datamonitor Group.

Why vendors are moving to non-contact center BPO?

Diversification of the outsourcing value proposition

Better margins Labor pool size Less exposure to onshore controversy

13

Copyright Ovum 2009. All rights reserved. Ovum is part of the Datamonitor Group.

Global / LATAM BPO market size and growth to 2016

Source: Ovum

14

Billions (USD)

Copyright Ovum 2009. All rights reserved. Ovum is part of the Datamonitor Group.

What is needed to deliver back-office BPO?

Talent pool

University graduates

Incentives

Commercial property
15

Infrastructure
Copyright Ovum 2009. All rights reserved. Ovum is part of the Datamonitor Group.

But, is it that simple???

16

Copyright Ovum 2009. All rights reserved. Ovum is part of the Datamonitor Group.

Challenges in offering back-office BPO services

Higher education requirements

Increased investment in training Fighting a call center-only perception

Process familiarization
Standards compliance
17
Copyright Ovum 2009. All rights reserved. Ovum is part of the Datamonitor Group.

Locations That Have Made the BPO Transition

18

Copyright Ovum 2009. All rights reserved. Ovum is part of the Datamonitor Group.

Wrap-up

Contact centers are an attractive way to kick off an outsourcing value proposition
Exposure to enterprises Straightforward offering Development of broader skills and marketplace

Back-office BPO an attractive option

Strong levels of growth anticipated by Ovum
But clearly sensitive to challenges

Those firms that can manage to diversify into non-voice outsourcing will secure long-term benefits
19
Copyright Ovum 2009. All rights reserved. Ovum is part of the Datamonitor Group.

Questions?

Peter Ryan Practice Leader Ovums Services Team peter.ryan@ovum.com

20

Copyright Ovum 2009. All rights reserved. Ovum is part of the Datamonitor Group.