Frost & Sullivan: Low Employment Costs is a Top Driver for Vietnam's Fast-growing Contact Center market
KUALA LUMPUR, Malaysia, Sept. 25, 2012 /PRNewswire/ -- Vietnam's economic growth rate has been among the highest in the Asia Pacific region in recent years, with an annual GDP rate of 7% - 8.5%. With customer service becoming a key focus in Asia Pacific, Vietnam is improving customer relationships for the purpose of greater loyalty, brand recall and profitability.
According to Dao Thi Minh Thao, Research Associate, ICT Practice, Frost & Sullivan APAC, this effort is leading to an impressive growth in its contact center industry that was estimated to be worth US$4.2 million in 2011 and is expected to reach US$11.4 million in 2018 with a growth rate of 15%.
Basic applications like Automatic Call Distributor (ACD), Computer Telephony Integration (CTI), Interactive Voice Response (IVR), and Call Monitoring (CM) are still leading the trends in the Vietnam contact center market.
"ACD is the biggest contributor that accounts for almost 40% of all applications and is still growing at a fast rate as majority of contact centers' primary purpose is to support incoming voice calls. It is forecasted that in 2018, ACD will reach the saturated status of 31.7% from 37.3% in 2011 and start to slow down. The same will happen to other current major applications like CTI and IVR," said Thao.
BFSI and Telco are the largest contributing verticals and are likely to remain so due to an ever- increasing customer base and an adequate supply of capital to invest in new technologies and solutions. The customer-intensive industries of BFSI and Telco are characterized by large deployments of centers with 200 seats and above. This size band will grow in prominence as these two industry verticals are likely to dominate revenue contribution.
"Most contact center projects in Vietnam are deployed by banks, financial institutions and Telco service providers. These sectors require a high level of customer care; large seat numbers are needed to always be available to serve customers," said Thao.
She added, "Currently, the less than 50 seat contact centers comprise of only more than 2%. Over time, the market is expected to see a higher growth of less than 50 seats and 51-200 seat horizontals based on the increasing demand from the SMB segment as well as more integrated, cost-effective solutions provided."
Vietnam has been established as a credible low cost alternative destination for offshore and outsourced services. Hiring IT professionals in Vietnam is 30%-50% less expensive as compared to other outsourcing countries like India and the Philippines.
"Studies have showed that Vietnam with a strong workforce of more than 15,000 IT engineers of software outsourcing alone and its low labor cost is an undeniable advantage that drives international companies to this new ideal outsourcing destination," said Thao.
She continued, "Although the language barrier is an obvious drawback, almost 80% of the workforce is comprised of young, enthusiastic college graduates with science degrees that are always keen to learn. Vietnam is propelling their way up in the IT outsourcing industry."
"For further growth and success, companies should look forward to more efficient contact center application adoption to align these trends for the future. Emerging global vendors in providing suitable solutions also need to offer more customized solutions and effective marketing activities At more affordable prices," she said.
If you are interested in more information on this research, please send an email to Donna Jeremiah, Corporate Communications, at djeremiah@frost.com, with your full name, company name, title, telephone number, company email address, company Web site, city, state and country.
This abstract on the Vietnam Contact Center Market is part of the Contact Centers Growth Partnership Services program, which also includes the research report on Asia Pacific Contact Center Applications Market which studies segments of the contact center applications market across 14 countries in APAC by 8 different application segments including ACD, CTI, IVR, outbound, call monitoring, WFM, speech, and multimedia applications, providing the market sizing and market share by application and by country.
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Media Contacts:
Donna Jeremiah
Corporate Communications, Asia Pacific
P: +61-(02)-8247-8927
E: djeremiah@frost.com
Jessie Loh
Corporate Communications, Asia Pacific
P: +65-6890-0942
E: jessie.loh@frost.com
Carrie Low
Corporate Communications, Asia Pacific
D: +603-6204-5910
E: carrie.low@frost.com
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