Going Social and Visual in Latin America
Contact Center Outsourcing Services Providers Survey
Joaquin Saravia, Research Analyst
Information & Communication Technology IndustryInformation & Communication Technology Industry
June 28th, 2011
Today’s Presenters
Joaquin Saravia, Research Analyst
2
Joaquin Saravia, Research Analyst
Frost & Sullivan
Focus Points
Introduction 3
Demographics 4
Future Plans 10
3
Future Plans 10
Future Strategy 17
Key Findings 21
Web-Based Survey
5%100-499
Research Objectives
The objective of this survey was to research, measure and understand current and future
trends, and establish an overview of the Outsourcing Services Market in Latin America.
Survey Sample
We targeted 40 key contact-center outsourcing companies in Latin America.
4
5%
10%
23%
55%
7%
0% 20% 40% 60%
100-499
500-999
1,000-1,999
More than 2,000
Don't Know
Num
ber of S
eats
Source: Frost & Sullivan
Demographics
5
Demographics (Contd…)
1) In which of the following Latin America countries does your company have subsidiaries?
Subsidiary Locations
(N=40)
38%40%
45%48%
23%28%
ArgentinaBrazilChile
ColombiaCosta RicaEl Salvador
Co
un
trie
s
6
28%20%
5%3%
43%8%
18%33%
10%5%
10%8%
0% 10% 20% 30% 40% 50%
El SalvadorGuatemala
HondurasJamaicaMexico
NicaraguaPanama
PeruPuerto Rico
Dominican RepublicVenezuela
Others
Co
un
trie
s
Note: Multiple-mention question. Proportions may not add up to 100%. Source: Frost & Sullivan
Demographics (Contd…)
2) What functions do your contact centers currently offer?
Primary Functions of the Contact Centers
(N=39)
87%
100%Customer Care, Retention &
Acquisition
Outbound Sales
7
Note: Multiple-mention question. Proportions may not add up to 100%.
41%
59%
77%
85%
0% 20% 40% 60% 80% 100%
Inbound Sales
Help Desk & Tech Support
Debt Collection
Others
Fu
nc
tio
ns
Source: Frost & Sullivan
Demographics (Contd…)
3) What vertical segments do your contact centers currently serve?
Primary Vertical Segments Served by Contact Centers
(N=40)
88%
83%
63%
Telecommunications
BFSI
Information & Technology
8
Note: Multiple-mention question. Proportions may not add up to 100%.
63%
53%
48%
45%
38%
20%
0% 20% 40% 60% 80% 100%
Retail & Consumer
Utilities & Energy
Travel & Hospitality
Government & Education
Healthcare
Others
Vert
ica
ls
Source: Frost & Sullivan
Demographics (Contd…)
4) What inbound customer-interaction channels do your contact centers support today?
Primary inbound customer interaction channels
(N=40)
100%
93%
75%
Telephone
IVR-Voice Portal Application
Inte
rac
tio
n C
ha
nn
els
9
Note: Multiple-mention question. Proportions may not add up to 100%.
50%
48%
40%
30%
10%
0% 20% 40% 60% 80% 100%
SMS Text Messages
Web-based collaboration
Social Media
Face to Face
Video
Inte
rac
tio
n C
ha
nn
els
Source: Frost & Sullivan
Demographics (Contd…)
5) Do your contact centers support languages other than Spanish?
What other languages do your contact center(s) support?
Support Languages Other Than Spanish
(N=40)
85%Yes
Other Languages Supported by Contact Centers
(N=34)
65%
91%English
Portuguese
10
15%
0% 20% 40% 60% 80% 100%
No
18%
15%
26%
29%
0% 20% 40% 60% 80% 100%
French
German
Italian
Others
Note: Multiple-mention question. Proportions may not add up to 100%.
Source: Frost & SullivanSource: Frost & Sullivan
Demographics (Contd…)
6) Which are your preferred communications and collaboration technology vendors?
Top Technology Vendors (N=40)
82.5% 5.4%
2.5%
2.5%
5.0%
2.5%
5.4%
13.5%
6.1%
6.1%
3.0%Avaya
Aspect Software
Siemens
inConcert
#1 Ranking #2 Ranking #3 Ranking
11
2.5%5.4%
18.2%
6.1%
36.4%
2.5%
2.5%
5.4%
10.8%
8.1%
2.7%
13.5%
40.5%
3%
15.2%
3%
6.1%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Altitude Software
Cisco Systems
Interactive Intelligence
Mitrol
Nice Systems
Verint Witness
Autonomy Etalk
Alcatel-Lucent
Others
Ve
nd
ors
Source: Frost & Sullivan
Future Plans
12
Future Plans (Contd…)
7) Which new channels for inbound customer contact do you plan to add over the next 12 to 18 months?
Addition of new channels for inbound customer contact
(N=39)
26%
28%
38%Social Media
Web-based Collaboration
No new channel plans
Ch
an
ne
ls
13
Note: Multiple-mention question. Proportions may not add up to 100%.
10%
13%
18%
21%
23%
0% 20% 40%
SMS-Text Message
IVR-Voice Portal
Video
Face to Face
Ch
an
ne
ls
Source: Frost & Sullivan
Future Plans (Contd…)
8) In the next 12 to 18 months, what changes do you think might occur in your use of pro-active customer contact?
Which technologies or applications will be part of your outbound or pro-active contact capability over the next 12 to 18 months?
Changes in use of pro-active customer contact
(N=40)
70%Increased Use
Additions to current pro-active contact capability
(N=27)
63%
56%
Outbound dialing
Outbound IVR
14
30%
0% 20% 40% 60% 80%
No Change
56%
37%
26%
19%
0% 20% 40% 60%
Pro-active
customer surveys
Notification or
alerting
Voice portal
applications
Others
Note: Multiple-mention question. Proportions may not add up to 100%.
Source: Frost & SullivanSource: Frost & Sullivan
Future Plans (Contd…)
Application Upgrades
(N=40)
63%
50%
48%
Performance Management
Workforce Management
Quality Monitoring
Ap
pli
ca
tio
ns
9) In 2011, which Agent Performance Optimization (APO) applications are you planning on making new
investments/upgrades to?
15
35%
35%
25%
13%
10%
0% 20% 40% 60%
Speech Analytics
e-Learning
Coaching
Automated Customer Feedback
None
Ap
pli
ca
tio
ns
Note: Multiple-mention question. Proportions may not add up to 100%. Source: Frost & Sullivan
Future Plans (Contd…)
10) Which technologies or applications are you planning to add or increase support in your contact center(s) over the next
12 to 18 months?
Application addition/Support increase
(N=38)
58%
42%
34%
Analytics in support of contact-center operations
Analytics in support of customer behavior-values insights
Support for security or customer-information privacy
16
29%
26%
24%
24%
13%
8%
0% 20% 40% 60%
Web 2.0 technologies
Support for mobility (mobile customers or mobile employees)
Others
Agent process simplification or agent desktop unification
Support for easy-fast access to product or customer information
Support for occasional or expert agents
Applications
Note: Multiple-mention question. Proportions may not add up to 100%. Source: Frost & Sullivan
Future Plans (Contd…)
11) Is your organization planning to deploy advanced communications and collaboration applications over the next 12 to 18
months?
Communications and Collaboration Application Deployment
(N=40)
50%Yes
17
Source: Frost & Sullivan
17%
33%
0% 20% 40% 60%
No
Don't Know
Future Plans (Contd…)
11) Which advanced communications and collaboration applications will you be deploying?
Communications and Collaboration Applications
(N=20)
50%
55%
55%
60%Video conferencing
IP PBX
Web conferencing
Enterprise social media tools
18
20%
25%
25%
35%
35%
35%
35%
45%
0% 20% 40% 60%
Audio conferencing
Telepresence
PC-based softphones
Instant messaging
Mobile
Unified communications client
Shared/ collaborative teamspaces
Unified messaging
Ap
plic
ati
on
s
Note: Multiple-mention question. Proportions may not add up to 100%. Source: Frost & Sullivan
Future Plans (Contd…)
12a) Do you use a hosted contact-center solution?
What factors motivated you to use this solution?
Usage of hosted contact centers
(N=40)
18%Yes
No, but plan to
Motivational factors leading to purchase of hosted
contact centers
(N=7)
29%
29%No capital investment, pay-as-you-go
expense
Rapid time to deployment
19
35%
25%
22%
0% 20% 40%
No, but plan to
use in the next 2
years
No, and don't plan
to use a hosted
contact-center
service
Don't Know 14%
14%
14%
29%
0% 20%
Rapid time to deployment
Ease of provisioning and managing
multi-site and remote agents
Flexible scalability and business agility
Reduced system maintenance and
management costs
Source: Frost & Sullivan Source: Frost & Sullivan
Future Plans (Contd…)
12b) Do you use a hosted contact-center solution?
From who would you purchase such a solution?
Usage of hosted contact centers
(N=40)
18%Yes
No, but plan to
Type of provider most likely to purchase from
(N=9)
23%
33%Application
service provider
Telecom service
provider
20
35%
25%
22%
0% 20% 40%
No, but plan to
use in the next 2
years
No, and don't
plan to use a
hosted contact-
center service
Don't Know
22%
11%
11%
23%
0% 20%
provider
Outsourcer
CPE Vendor
Don't know
Source: Frost & Sullivan Source: Frost & Sullivan
Future Plans (Contd…)
12c) Do you use a hosted contact-center solution?
What are the main barriers restraining you from using them?
Usage of hosted contact centers
(N=39)
18%Yes
No, but plan to
Adoption Barriers
(N=10)
20%
30%Security concerns
Perceived loss of control over
contact center applications
21
35%
25%
22%
0% 20% 40%
No, but plan to
use in the next 2
years
No, and don't plan
to use a hosted
contact-center
service
Don't Know10%
10%
10%
20%
0% 20%
Does not have a strong long-term
business case
Reliability / uptime concerns
Others
Don't know
Source: Frost & Sullivan Source: Frost & Sullivan
Future Strategy
22
Future Strategy
Management Strategy emphasis
(N=40)
25%
33%
38%Mostly focused on revenue-add and increased customer loyalty
Balanced between cost reduction and revenue addition, leaning
toward revenue addition
Balanced between cost reduction and revenue addition leaning
Ma
na
ge
me
nt
Str
ate
gy
13) Over the next 12 to 18 months, what will be the emphasis of your management strategy?
23
3%
10%
13%
25%
0% 20% 40%
Balanced between cost reduction and revenue addition leaning
toward cost reduction
Others
Mostly focused on cost containment and cost reduction
Don't know
Ma
na
ge
me
nt
Str
ate
gy
Note: Multiple-mention question. Proportions may not add up to 100%. Source: Frost & Sullivan
Future Strategy (Contd…)
14) To which countries do you plan to expand outsourcing of contact-center operations in the next 2-3 years in Latin
America?
Expansion Plans
(N=40)
10%
30%
15%
25%
10%
10%
Argentina
Brazil
Chile
Colombia
Costa Rica
El Salvador Change in Headcount
24
10%
13%
5%
18%
3%
3%
18%
3%
13%
13%
15%
0% 10% 20% 30%
El Salvador
Guatemala
Honduras
Mexico
Nicaragua
Panama
Peru
Puerto Rico
Others
Don't Know
No plans to expand
Co
un
try
Note: Multiple-mention question. Proportions may not add up to100%. Source: Frost & Sullivan
Change in Headcount
(N=40)
90.0%10.0%
Increase Remain the same
Future Strategy (Contd…)
15) In which vertical segment(s) do you foresee greater potential growth during the 2011-2012 period?
Primary Vertical Segments with greater potential growth
(N=40)
48%
58%
63%Telecommunications
BFSI
Retail & Consumer
25
Note: Multiple-mention question. Proportions may not add up to100%.
18%
23%
28%
28%
38%
48%
0% 20% 40% 60%
Retail & Consumer
Healthcare
Information & Technology
Utilities & Energy
Government & Education
Travel & Hospitality
Ve
rtic
als
Source: Frost & Sullivan
Key Findings
26
Key Findings
� Outbound and inbound sales still on top
� Healthcare and retail are the fastest growing verticals
27
� Still nascent market for hosted solutions
� Peru, Colombia and Brazil are the most desirable future destinations
� Positive economic climate driving industry growth
Key Findings
� Avaya remains the key vendor in the region
� Social media and video conferencing are on the rise
28
� Outbound dialing is most popular proactive customer contact capability
� Agent Performance Optimization is focused on improving services
� Management strategies returning to the basics
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For Additional Information
Juan Manuel Gonzalez
Industry Manager
ICT, Latin America
(+5411) 4777-1554
Fernando Serra
Sales Director
Latin America
(+5411) 4777-1550
32
Joaquin Saravia
Research Analyst
ICT, Latin America
(+5411) 4776-8063
Tatiana Brull
Marketing Communications Executive
Latin America
(+5511) 3065-8445