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Frost & Sullivan: Domestic Markets to Account for the Bulk of the Contact Center Outsourcing Revenues in Argentina and Chile


News provided by

Frost & Sullivan

06 Mar, 2013, 13:17 GMT

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- Contact centers likely to adapt their businesses to offer more complex services in a competitive market

BUENOS AIRES, Argentina, March 6, 2013 /PRNewswire/ -- The shrinking of offshore revenue in 2012 for both the Argentinian and Chilean contact center outsourcing market translates to a spurt in domestic revenues. In Argentina, the domestic market accounted for 90.9 percent of the total market revenue in 2012 and is projected to rise to 92.1 percent in 2019, as many outsourcers are investing in innovative applications. In Chile, the domestic market generated 84 percent of the revenue in 2012, but is expected to slightly dip in favor of offshore revenues after 2014.

New analysis from Frost & Sullivan (http://www.contactcenter.frost.com), Analysis of the Argentinean and Chilean Contact Center Outsourcing Services Market, finds that the Argentinean contact center outsourcing market earned approximately $906.5 million in 2012, and estimates this to reach $1.87 billion in 2019, mainly driven by the demand from the telecommunications vertical. Chile generated revenues of $363.2 million in 2012, and is expected to reach $628.8 million in 2019. Both local and multinational companies have substantial expansion opportunities in the country.

Chile lost considerable contact center outsourcing orders to its neighbors, Peru and Colombia. However, both Chile and Argentina will continue to offer significant contact center outsourcing services to other Latin American countries and the offshoring shares of Latin America are expected to increase to 50.7 percent in Argentina and 6.6 percent in Chile by 2019.

"Both countries have talented, experienced contact center personnel and strong infrastructure, so it is reasonable to expect that the markets will diversify into more specialized services to create more value per contact," said Frost & Sullivan ICT Research Analyst Martin Ramirez. "Some of these specialized services include software support, financial banking consulting, and health/medical virtual diagnosis."

To change the perception of the contact center market as a commodity service provider, innovative contact center leaders in Chile and Argentina are looking to branch out their services to offer a more professional platform and increase margins. Gradually, they have begun integrating communications and marketing, IT and financial services with their contact center services.

"Revenues from the telecommunications vertical are likely to decrease in the next two to three years due to the slowing down of Spanish mobile telephony as well as Chile's market saturation and Argentina's unmet portability expectations," noted Ramirez. "This will drive the contact center market to more promising industries such as healthcare, retail, government and education."

The thinning out of Spanish deals will be compensated by an expansion in business from Latin America, and may even lead in Argentina to a development of Portuguese speaking resources. Revenue shares from Latin America are expected to grow the most at a compound annual growth rate of 9.3 percent within the forecasted period. However, Spain is the biggest consumer of the Chilean market's offshore services and despite its share loss, the country will continue to dominate the Chile's offshore revenues in 2019.

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

Analysis of the Argentinean and Chilean Contact Center Outsourcing Services Market 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, Latin American Contact Center Applications Markets, CRM BPO and Contact Center Outsourcing Services Market in Brazil, 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.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

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For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

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Analysis of the Argentinean and Chilean Contact Center Outsourcing Services Market
NC21-76

Contact:
Francesca Valente
Corporate Communications – Latin America
P: +54 11 4777 5300
F: +54 11 4777 5300
E: francesca.valente@frost.com

http://www.frost.com

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