BPO Growth Climbs with a Laser Focus on Industry Verticals
Feb 13, 2015
As many of you who follow BPO growth already know, the market for the outsourcing of customer care in North America is very fragmented and fiercely competitive. There are fewer than a dozen global Tier I outsourcing firms that continue to dominate the industry.
For 2015, customer care outsourcing firms report to Frost & Sullivan that they’ll face a set of key challenges, including the need to contain cost, drive out agent inefficiencies, deliver high-quality interactions for clients, and grow top-line revenues, while still achieving the highest levels of customer satisfaction for clients. Whether it’s a B-to-B or a B-to-C model, the consistent delivery of high-quality customer care is a difficult goal to achieve. This is especially relevant in our device-driven world, an “always-on,” hyper-connected environment laced with multiple customer touch points. A superior Customer Experience enabled by actionable insights is often the Holy Grail of business for the modern-day enterprise.
I’ve just published a Market Insight on the top verticals that we forecast to grow the most quickly, from 2014 to 2018. The fastest growing segments, measured by Compound Average Growth rate (CAGR) are:
- Healthcare (6.5%)
- Hi Tech (6%)
- Telecommunications (4%)
- Banking & Financial Services (3.5%)
Market participants briefed for this insight tell Frost & Sullivan that their companies have moved forward with plans to better align their sales forces and professional services teams, given client demand for industry vertical expertise. This is especially true in the dominant financial services and communications industries, but also can be applied to other sectors like consumer goods, high tech, travel, energy, and healthcare. In preparing this report, Frost & Sullivan conducted interviews with executives from the following BPO companies and includes secondary research on the topic:
- Alorica - Todd Werner, SVP Sales & Marketing
- Concentrix- Jyllene Miller, SVP of Client Engagement Strategy
- Firstsource - Mike Roy, VP of Strategy, Channels and Advisor Relations
- The Minacs Group – Neri Basque, VP Solutions Architecture and IT Governance
- TeleTech – Mark Grindeland, Chief Marketing Officer
My Market Insight is titled, “Growth Verticals: Customer Care Outsourcing North America: Challenges and Keys to Driving Greater Market Penetration “. It can be found on www.frost.com. It is a quick read that talks about why these sectors are growing so quickly and the myriad challenges that BPO’s must overcome to be successful. You’ll also learn some interesting history, highlights, key stats and industry coverage areas for each of the companies profiled above.
Our research shows that clients are, more than any other time perhaps, looking for true partnerships with their outsourcing providers. They want to build a relationship with a provider that accelerates the growth of their companies and the strength of their brand in an Omnichannel consumer environment. True value will come in the outsourcing providers’ ability to be innovative and proactive. Increasingly, BPO providers will be expected, across verticals, to find ways to improve processes and increase customer satisfaction while reducing costs.
DeSalles has 25 years of contact center operational experience. He combines this with 10 years of research and analytical expertise in: Emerging trends, convergence, collapse and disruptive technologies in the contact center industry; Insight into site management, supervision and agent development; Customer care outsourcing; Skills based routing; BPO Near shore deployment; Home based agents