Opportunities for CCOS Vendors in Business Process Outsourcing (Strategic Focus)

Publication Date	September 2008
Publisher	Datamonitor
Product Type	Report
Pages	25
ISBN Number	not applicable
Product Code	DAT13536

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Summary

Introduction

Through the course of the last 12 to 18 months, many clients of BPO services have expressed the desire to amalgamate providers, in order to reduce contract overhead. At the same time the slowing economy makes diversification an imperative for vendors. This report will identify the challenges for contact center players, as well as strategies to market.

Scope

Examines the potential global market opportunity for back office services that can be addressed by contact center outsourcers
Evaluates which BPO markets contact center outsourcing vendors have the best chance of successfully entering
Research findings based on interviews with many major contact center and business process outsourcing vendors
Assesses the impact of the economic downturn on contact center and BPO vendors

Highlights

The BPO market is strong and is proving to be relatively safe in economic downturn, but contact center volumes and margins are under threat necessitating diversification.

COS vendors have struggled to make headway in the broader BPO market, due in part to a lack of visible peer group success which has put vendors off making investments.

Vendors are targeting processes within the customer transaction lifecycle, but there is a shift in culture and higher level of investments required to make an major impact in the BPO market.

Reasons to Purchase

Quantify business opportunity of BPO
Identify opportunities within BPO which offer the best strategy for your company
Learn strategies to take new process offerings to market

Content

Overview
Catalyst
Summary
Key Messages
- The Bpo Market Is Strong And Is Proving To Be Relatively Safe In The Economic Slowdown
- Contact Center Volumes And Margins Are Under Threat Necessitating Diversification
- Ccos Vendors Have Struggled To Move Into The Broader Bpo Market
- The Lack Of Visible Peer Group Success Has Put Vendors Off Making Investments
- Vendors Are Targeting Processes Within The Customer Transaction Lifecycle
- Vendors Have Not Fully Exploited Partnerships Opportunities
- Most Bpo Success Has Come Through Collections Work
Market Opportunity
- Business Process Outsourcing Is A $264bn Market With Steady Growth Forecast To 2013
- Contact Center Outsourcing Vendors Are Well Placed To Enter A Number Of Bpo Markets
- Contact Center Vendors Need To Diversify
- Threat To Margins
- Lower Volumes Forecast
- Convergys
- Sykes Enterprises
- Teletech
- Ict Group
- Increased Focus On Technology May Cannibalize Revenues
- Benefits Of Diversification
- Increased Margins
- Increased Revenues
- Protect Existing Business
- Diversification Challenges
- Lack Of Credibility Outside Ccos
- Difficult To Hire Skills
- Retention Of Skilled Workers
- Required Investment
- Integrated Customer Lifecycle Services Diversification
- Integrated Customer Transaction Lifecycle
- Bundling Versus 'Best Of Breed'
- The Evolution Of 'Best Of Breed'
- The Bundling Option
- Ccos Players As Bpo Providers
Customer Impact
- Opportunities
- Challenges
Go To Market
- Bpo Areas Of Opportunity
- Finance And Accounting Outsourcing
- Collections
- Human Resources Outsourcing
- Procurement / Supply Chain Outsourcing
- Knowledge Process Outsourcing
- Financial Transaction Processing
- Recommendations
- Ccos Companies Need To Act More Strategically For Long Term Bpo Success
- Ccos Companies Should Consider Acquisitions To Bridge The Credibility Gap
- Ccos Companies Should Consider Forming Partnerships With Bpo Vendors
- Ccos Companies Need To Focus On Process Expertise
Appendix
- Definitions
- Methodology
- Further Reading
- Ask The Analyst
- Datamonitor Consulting
- Disclaimer
List Of Tables
- Table 1: Forecast Of Business Process Outsourcing Market, 2007-2013 ($Bn)
- Table 2: Average Operating Margin For Selected Contact Center Companies, 2006-2008
- Table 3: Forecast Of Business Process Outsourcing Market, 2007-2013 ($Bn)
List Of Figures
- Figure 1: Forecast Of Business Process Outsourcing Market, 2007-2013
- Figure 2: Average Operating Margin For Selected Contact Center Companies, 2006-2008
- Figure 3: Importance Of Various Criteria In Choosing An Outsourcing Provider
- Figure 4: Bpo Opportunities In The Customer Transaction Lifecycle
- Figure 5: Call Center Companies Offering Wider Bpo Services
- Figure 6: Companies Which Already Outsource Some Contact Center Work Were Asked: How Will You Seek To Reduce Cost In Your Operations Functions In 2008?