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Analysis of the Argentinean Contact Center Outsourcing Services Market
Inflation Narrows Profitability Margins
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April 2014
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For Additional Information
Sebastian MenuttiIndustry AnalystICT Latin America
(5411) 4772 1152
Juan Manuel Gonzalez Industry ManagerICT Latin America
(5411) 4777 1555
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Study Description & Research Methodology
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Study Description
• This study examines trends in the Argentinean Contact Center Outsourcing Services Market and forecasts market demand.
• We provide an extensive coverage of services delivered both in each, the local market and those provided from this country to others overseas. In this sense, offshore services are defined as those services provided to serve foreign customers outside the country where each contact center is located.
• The study only shows data for outsourcing offshore services, therefore excluding those insourced operations. In this study, revenues have been defined as the revenues received by outsourcing companies for the provision of customer-agent interaction and BPO CRM services in Argentina.
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Research Methodology
• Over 20 interviews carried out utilizing extensive questionnaire.
• In all cases, decision makers (executives, managers, etc.) targeted.
Study based principally on primary research
Other Steps in Research Process:
• Regional and local secondary sources (company reports, industry associations, statistical agencies, etc.) used for key economic & market measurements used for analysis.
• Extensive forecast and market share models created through research sources, expected current and future trends.
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Report Structure - Table of Contents
Section
Executive Summary
Total Market
• External Challenges: Drivers and Restraints
• Forecasts and Trends
• Competitive Analysis
Appendix
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Executive Summary
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Executive Summary
• Revenue in the contact centre outsourcing services market in Argentina reached $867.8 million in 2013, 1.7% less than in 2012. Revenue is expected to grow at a Compound Annual Growth Rate (CAGR) of 2.3%, during 2013–2020.
• It is expected a devaluation of nearly 50% of the local currency in Argentina against the US dollar in 2014. This will negatively impact the market's revenues measured in US dollars, which will decrease a 10.7% in 2014, in the year-on-year comparison. However, in 2014 the Argentinean market will experience a 30.8% growth in revenue measured in local currency, almost entirely based on the domestic business.
• The domestic business accounted for 95.6% of total revenue in 2013, which implies a five-percentual-points increase when compared with 2012. The offshoring business decreased by 55.4% in revenue in 2013, as the Argentinean contact centre outsourcing service providers exhibits prices much higher (up to 100%) than providers in other locations in Latin America, such as Colombia, Mexico, Peru, Guyana, Honduras, and Nicaragua.
• Workstations reached 29,789 in 2013, a 9.1% decrease when compared with 2012. However, the total number of workstations will exhibit a CAGR of 3% in 2013/2020 and reach 36,541 in 2020. The number of agents attained 41,858 in 2013.
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Drivers and Restraints (Argentina)
Contact Center Outsourcing Services Market: Key Market Drivers and Restraints, Argentina, 2013–2020
Impact: H High M Medium L Low Note: Drivers & restraints are ranked in order of impact. Source: Frost & Sullivan analysis.
Mar
ket
Dri
vers
Mar
ket
Res
trai
nts
1–2 years 3–4 years 5–7 years
Regulatory updates on some vertical industries will increase the demand of contact center outsourcing services. M M M
Sufficient supply of highly-skilled labor force allows outsourcers to offer complex services with higher value added. M M M
New national association for the contact center outsourcing industry holds enhanced capabilities for lobbying and press management. M L L
Government vertical is expected to increase its demand for contact center outsourcing services in the coming years. L M M
Market’s profitability decreases.H H M
Political and economic uncertainty threatens future customer relationship management (CRM) investments. H H L
Unions veto-power limits higher volumes of contact center traffic outsourcing, especially in the banking segment. M M M
Bill issued to regulate the contact center services market may increase costs and widen the competiveness gap with other countries, such as Colombia and Peru. M L L
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Total Contact Center Outsourcing Services Market: Revenue Forecast,, 2011–2018Revenue CAGR, 2011–2018 = 6.8%
Argentinean Contact Center Outsourcing Services Market—Revenue Forecast
Note: All figures are rounded. The base year is 2013. Source: Frost & Sullivan analysis.
2013 2020 2013 2020
Revenue ($ Million) 867.77020439621 1018.20257815284
Growth Rate (%) -0.0170929414657715 0.0669000000000002
775
825
875
925
975
1,025
-2%
2%
5%
8%
Contact Center Outsourcing Services Market: Revenue ForecastArgentina, 2013–2020
Year
Reve
nue (
$ Milli
on)
Grow
th Ra
te (%
)
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Market Overview—Segmentation (Argentina)
Note: All figures are rounded. The base year is 2013. Source: Frost & Sullivan analysis.
Domestic Revenues95.6%
Offshore Revenues4.4%
Percent Sales BreakdownTotal Contact Center Outsourcing Services Market:
Argentina, 2013
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Argentinean Contact Center Outsourcing Services Market—Percent Revenue Forecast by Origin
Note: All figures are rounded. The base year is 2013. Source: Frost & Sullivan analysis.
2012 2013
Domestic Revenue 0.902475709158517 0.955781609070589
Offshore Revenue 0.0975242908414834 0.0442183909294112
10%
30%
50%
70%
90%
Contact Center Outsourcing Services Market: Percent Revenue Forecast by Origin,
Argentina, 2012–2013
Year
Reve
nue
(%)
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Voice88.1%
E-mail2.5%
SMS3.1%
Social Media3.0%
Web Collaboration & Chat1.0%
Others*2.3%
Contact Center Outsourcing Services: Percent of Activities by Contact Center Medium of Contact,
Argentina, 2013
Argentinean Contact Center Outsourcing Services Market Activities by Medium Type Analysis
.*Others include fax and in-person services.
Note: All figures are rounded. The base year is 2013. Source: Frost & Sullivan analysis.
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Appendix
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Legal Disclaimer
Frost & Sullivan takes no responsibility for any incorrect information supplied to us by manufacturers or users. Quantitative market information is based primarily on interviews and therefore is subject to fluctuation. Frost & Sullivan research services are limited publications containing valuable market information provided to a select group of customers. Our customers acknowledge, when ordering or downloading, that Frost & Sullivan research services are for customers’ internal use and not for general publication or disclosure to third parties. No part of this research service may be given, lent, resold or disclosed to noncustomers without written permission. Furthermore, no part may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the permission of the publisher.
For information regarding permission, write to:
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© 2014 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.
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