Cost Savings is Not the Primary Driver in Contact Center Outsourcing

Clients of global Contact Center Outsourcing (CCO) engagements increasingly are looking beyond cost savings to more growth-oriented value, according to a new report issued by Everest Group, an advisory and research firm on global services.

Instead, buyers want a partnership with their service providers to unlock new forms of value including customer retention and growth while unlocking new business opportunity from customer data and engaging customers via non-voice channels, especially social media, according to Everest.

Everest research showed that the market for CCO globally grew at 7 to 8 percent in 2012, reaching $65 to70 billion, a steady rise from the lows seen in 2009. Global contact center spending stands at $300 to $350 billion, of which third-party outsourcing accounts for 20 percent.

“As the global economy has shifted towards growth, the customer care function is once again viewed as a strategic operational area,” said Katrina Menzigan, vice president, Everest Group, in a statement. “A maturing CCO value proposition has moved beyond cost savings and labor arbitrage to include support of business growth. As a consequence, we’re seeing forward-thinking service providers and savvy clients build new contracting relationships where service providers identify and deliver new sources of value. It’s an important trend that’s driving the high single-digit growth we’re now seeing and expect to continue for the next sev