When the world is witnessing euro crisis at one end, Asia pacific region is employing more call centre agents to meet its ever increasing customer demand. Enterprises are reworking on their expenditure on customer service to stay competitive according to Frost and Sullivan.
According to new analysis by Frost and Sullivan namely, Assessment of the Asia-Pacific contact Centre Market, APAC region has recorded a growth of 9.7% in call centre seats to make it 2.5 million in 2011 and is expected to touch 4 million with a compound annual growth rate (CAGR) of 8.1% by 2018. It is expected that all emerging markets will touch double digit growth with Asia pacific region leading from the front.
As per the report, APAC region employed 3.48 million contact centre agents in 2011 and estimated that this figure will reach 5.9 million by 2018. The report also claimed that Asia Pacific region will grab the most of the contact centre outsourcing deals in 2012 and the scenario looks promising for the future.
One surprising aspect that analysts found was that the growth is driven by the increasing demand from domestic enterprises. Even though the market will win outsourcing deals from western firms due its low cost factor, much of the growth will be triggered by the domestic demand from telecommunication and banking and finance (BFS) sectors.
Main highlights from the report:
- Domestic enterprises’ shifted their focus to provide quality customer service and it has increased the competitors in the market.
- The growth of the market can be attributed to factors like availability of cheap and skilled labor, good infrastructure, English speaking and regional language speaking skills and much similarity with western culture.
- The market will continue to receive priority as the domestic enterprises are ready to invest in call centers providing high customer satisfaction.
While the analysis highlights the prospective growth of the market it also has raised some concerns like market saturation. Outsourcing markets in Singapore, Hong-Kong and Taiwan has reached the top of the growth curve and have started showing signs of saturation.
The analysts have also cautioned the marketers on the high attrition rate they are going to experience. The main cause is high stress level and career opportunities from other sectors. The average attrition rate for the market was 19.1% in 2011. The major reason why agents move out is the poor wages provided to them. The companies attempting cost reduction cut the wages of the agents. They are interested in upgrading the system and not in developing interpersonal skills and domain knowledge of the agents.
With increasing demand for quality customer service centers, the outsourcers are slowly recognizing the importance of having well-trained agents. Understanding the trend, many of the service providers are also extending their offerings in KPO, financial outsourcing and human resource resourcing.