Indian contact center gaining at U.S. cost

By agencies   |   Monday, 19 September 2005, 19:30 IST
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NEW DELHI: The contact center business in the U.S. is losing its share of global business as Indian firms beat them in bagging contracts, London based market analyst Datamonitor has said. In its report called ''Contact Center Outsourcing in the United States',' It said 'Canada, India and the Philippines are expected to be the beneficiaries as tight profit margins are driving outsourcers to move offshore and automate where viable.'' It also said as a result of ban on tele marketing due to the Do-Not-Call registry, nine out of ten jobs lost in the U.S. contact center industry will be the outbound telemarketing jobs. ''In addition, the number of agent positions in offshore and nearshore countries will continue to grow, due to the growing demand from US and captive market businesses,'' it said. The U.S. had about 37 percent of the world's outsourced contact centre agent positions in 2004 which will come down to 25 percent by 2008, Datamonitor predicted. ''The boundaries between US-based contact center providers and other business process outsourcers are dissolving, and firms are invading each others' territories,'' Datamonitor Associate Analyst Ri Pierce-Grove said adding ''As the market contracts through to 2009, it will be imperative for outsourcing service providers to choose between competing on the basis of cost or reinventing themselves.''