Nearshore Americas

Brazil Contact Center Industry Faces Consolidation, New Frost Report Forecasts

Source: BNamericas

SAO PAULO — Brazil’s contact center outsourcing services market is forecasted to bill US$7.1bn in 2015, compared with US$3.9bn in 2009, consultancy firm Frost & Sullivan said in a statement this week.

The analysts said that “vendor consolidation is likely to gain strength in Brazil.”

Frost said in its latest report that new customer regulations put into place in 2008 enabled the consolidation of the market in 2009, with large participants gaining strength at the cost of small firms. The study also found that the overall number of positions expanded during 2009.

“As companies in all different verticals of the Brazilian market had specific guidelines to follow when providing customer services (as by the new law), some had to increase investments, which has benefited outsourcing providers,” Frost said.

The study also said that revenues per position are being reduced every year. At the same time, contact centers need to provide higher service levels to their clients. Frost believes that in this scenario, investing in new technologies seems to be the best option.

“In Brazil, the local, fierce competition among the top two participants in the market is reducing prices and revenue generation. In that environment, one of the main challenges of the outsourcers is to transform the contact center environment from a cost focus to a profit focus,” Frost said.

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Outsourcers have begun to look beyond the outsourcing business from a cost-advantage perspective, and are aiming to gain participation in more complex enterprise processes such as billing, accounting, financial reporting, hiring and recruiting, and legal services.

Kirk Laughlin

Kirk Laughlin is an award-winning editor and subject expert in information technology and offshore BPO/ contact center strategies.

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