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Domestic Market Remains Key Revenue Source for Brazil's Contact Center Outsourcing Service Vendors Finds Frost & Sullivan - Vendors are moving beyond traditional customer service to offer premium and online services
Domestic Market Remains Key Revenue Source for Brazil's Contact Center Outsourcing Service Vendors Finds Frost & Sullivan

 

NewswireToday - /newswire/ - Sao Paulo, Brazil, 2013/08/01 - Vendors are moving beyond traditional customer service to offer premium and online services.

   
 
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Growth in the contact center outsourcing services market was restrained by the overall cautious economic scenario in Brazil. Increased efforts on improving operations' profitability have impacted the outsourced workstation's growth rate during 2012 and will continue to do so during 2013. However, new opportunities for outsourcing vendors are arising when positioning premium and online solutions.

New analysis from Frost & Sullivan (contactcenter.frost.com), Brazil's Contact Center Outsourcing Services Market 2013, finds that the market earned revenues of $5.39 million in 2012 and estimates this to reach $9.42 million in 2019 at a compound annual growth rate (CAGR) of 8.3 percent. The number of workstations will reach 292,454 by 2019 at a CAGR of 6.4 percent. The telecommunications vertical will be the highest revenue generator.

Considering the benefits of strengthening outsourcing services in a still growing economy like Brazil, the government is looking to review current regulations in order to broaden the scope of services available for outsourcing business activities.

"Tax incentive policies have decreased the financial burden on the contact center industry, encouraging expansion," said Frost & Sullivan Information and Communication Technologies Industry Analyst Daniela Pineiro. "For instance, the 2012 payroll tax exemption for the Brazilian contact center industry has reduced employer's tax contribution from 20 percent on the payroll to two percent of the annual revenue."

Despite these breaks, several cost factors continue to plague the market. The lack of a skilled labor force affects service quality and hence vendor margins. The long-standing challenges concerning access to and quality of education in Brazil has compelled contact center service providers to heavily invest in training. As a result, operational costs have heightened, and along with the high turnover rate, delay returns on investment.

Brazil's steep social labor cost and complex bureaucracy are causing a drop in foreign investments. Nevertheless, foreign contact center outsourcing companies continue to launch and expand operations in Brazil due to the overall solid economy and the upcoming boost of infrastructure enhancements.

Detaching from business models based on pricing or workstations and migrating to comprehensive solutions will further ensure sustainable operations. Different industries have different requirements and fostering long-term client-provider relationships begins with offering custom, end-to-end solutions.

"Innovative contact center leaders in Brazil are looking to diversify their services to provide a more professional and up-to-date platform, changing the perception that the contact center industry is just a commodity provider, while widening margins," commented ICT Industry Manager Juan Manuel González. "In fact, in the long run, communications, marketing, IT and financial companies will tend to merge some of their businesses with contact center services."

If you are interested in more information on this research, please send an e-mail to Francesca Valente, Corporate Communications, at francesca.valente[.]frost.com, with your full name, company name, job title, telephone number, company e-mail address, company website, city, state and country.

Brazil's Contact Center Outsourcing Services Market 2013 is part of the Contact Centers & CRM Growth Partnership Service program. Frost & Sullivan's related research services include: Colombian and Peruvian Contact Center Outsourcing Services Markets, Argentinean and Chilean Contact Center Outsourcing Services Markets, Latin American Contact Center Applications Markets, and Mexico, Central America and Caribbean Contact Center Outsourcing Markets. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

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Brazil's Contact Center Outsourcing Services Market 2013 / NCB3-76

 
 
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Domestic Market Remains Key Revenue Source for Brazil's Contact Center Outsourcing Service Vendors Finds Frost & Sullivan

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