Public sector and retail driving growth in contact centre outsourcing

7th Jul 2011

The European contact centre outsourcing market will grow at a compound annual rate of 3% to hit E16 billion by 2017 driven in the west by increased demand from the public sector, travel/hospitality and retail/consumer packaged goods industries.

A report by Frost & Sullivan indicated that, although the sector especially in Western Europe had been hit by the recession in recent times, competition was now set to intensify as new participants entered the fray and the trend towards offshoring picked up momentum.

The outsourcing of technical support and sales functions was expected to prove particularly popular, but senior industry analyst Suvradeep Bhattacharjee also identified social media as a customer channel that was set for strong future growth - although he warned that "few [vendors] have developed strong offerings to drive that growth" to date.

But growth in Western Europe would also be driven by the spending reviews undertaken by all of the major governments in the region, particularly the UK and Germany. Moreover, "demand from the retail/CPG sector is rising as retailers in Europe launch new products and services in the retail, telecom and banking domains," Bhattacharjee added.

The highest levels of growth would come from Eastern Europe and elsewhere, however, as economies in the region expanded and demand increased in expanding sectors such as telecoms and financial services, which were starting to be liberalised and privatised.

"While the contact centre outsourcing market in Western Europe is relatively mature, Eastern Europe, Russia, the CIS and Middle East and Africa will experience higher growth rates starting from 2011," Bhattacharjee said.

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