Contact Centers Market Supplier Intelligence – Top Five Suppliers Occupying Nearly 35% of the Overall Share, 2020 – 2025 | Grand View Research, Inc.

Grand View Research, Inc.
According to new study by Grand View Research, Labor costs are the largest cost heads for a contact center. Contact centers operate on a value-based pricing scheme. There are also instances of contact centers, which use flat-fee pricing scheme.

The contact centers market dynamics pre- and post-COVID-19 scenario are drastically different. The pandemic has resulted in companies partnering and acquiring other firms, leading to a higher degree of market consolidation. In addition, contact centers are improving their technological offering to automate and streamline processes. The contact center market was valued at USD 365 billion in 2020 and is expected to grow at a CAGR of 4.2% from 2021 to 2025

One of the biggest acquisitions in 2021 is Avaya’s acquisition of contact center developer CTIntegration. CTIntegration has been a technology provider to Avaya. It is the maker of CT Suite and its connectors and has been a part of Avaya’s DevConnect bringing expertise into Avaya OneCloud platform to understand customer behavior and thereby streamline replies and requirements. The acquisition occurred in August 2021, and the financials involved has not been disclosed.

There have been other technological advancements in the market as well. Coca-Cola Europacific Partner, Indonesia has opted to work with Taps 8X8. The objective of this engagement is to provide a secure mobile experience to manage orders through Taps 8X8’s SMS API. The Los Angeles Pacific University has decided to move their entire contact center operations including admission, enrollment, and alumni connect to Dialpad’s cloud system. The system integrator for this project is Dialpad.

Contact Center Market Procurement Intelligence report, by Grand View Research, deep dives into the following insights from the industry:

Migration into a cloud-based environment and technological advancements are the largest trends in the market – The COVID-19 pandemic has resulted in several market changes. While in-house contact centers still dominate the market, the transition to cloud-based contact centers is significantly growing due to the social distancing norms, which are keeping offices from operating at 100% capacity. Asia Pacific is the largest market for contact centers with the Philippines, India, China, Vietnam, and Singapore being the largest hubs for contact centers.

 

The market features a highly fragmented competitive landscape – The market for contact centers is highly fragmented with the top five suppliers occupying nearly 35% of the overall share. Market barriers are relatively low as the capital cost required to enter the market is low. However, the fragmented nature of the market along with competitive pricing might act as deterrents to new market entrants.

 

Suppliers prefer in-house service provider model to leverage their expertise – From a sourcing perspective, the majority of suppliers opt for an in-house service provider engagement model. Since the core competency is that of contact center services, it makes sense for an operation as well as cost perspective to operate on an in-house engagement model.

 

Labor costs are the largest cost heads for a contact center – The primary cost of a contact center is the cost of labor. Variable labor costs make up 60-65% of the overall cost incurred by a contact center. In addition, there are other labor costs like fixed labor and tech support labor costs. At present, technology occupies a nominal cost head in the overall cost structure.

 

Contact Centers Cost Intelligence – Key Components:

Variable Labor (60-65% of total cost)
Fixed Labor
Tech Support Labor
Technology Cost
Telecom and Networking Costs
Facilities
Miscellaneous Overheads
Profits

 

Contact Centers Supplier Intelligence – Capability based ranking & selection criteria with weightage:

 

Operational Capabilities –

Years in Service – 10%
Employee Strength – 25%
Revenue Generated – 20%
Key Industries Served – 25%
Key Clients – 20%

 

Functional Capabilities –

Type of deployment – 40%
On-premise
Cloud-based
Type – 40%
Voice-based
Text based
Social media-based
Use of technology – 20%
Chatbots, automated call director
Caller analytics tools
Process automation tools

 

List of Key Suppliers in the Contact Centers Industry:

[24]7.ai, Inc.
Alliance Data Systems, Inc.
Alorica, Inc.
Atento
BT Communications Ltd.
Concentrix
Convergys Corp.
Genpact
IBM Global Process Services Pvt. Ltd.
Tata Consultancy Services Ltd.
Wipro

 

Addon Services offered by Grand View Research:

Should Cost Analysis – In the homecare contract manufacturing market procurement intelligence report, we have estimated and forecasted pricing for the key cost components while availing services from contract manufacturers. Raw material cost is the largest cost component of homecare contract manufacturing services. It accounted for more than 75% share in overall manufacturing cost. Among raw materials, chelating agents is the largest cost component with ~24% share followed by surfactants and buffer solution.  The price of surfactants is majorly determined by crude oil prices. However, in 2018, surfactants’ prices declined, irrespective of higher crude oil prices. As the demand for personal care and home care products increases, the prices for buffer solutions and others are expected to stabilize over the forecasted period.

 

Rate Benchmarking – As chelating agents are the most important cost component for cleaning product manufacturing, the type of chelating agents is one of the most important aspects while analyzing the rate benchmarking of homecare contract manufacturing services. In our research, we have analyzed the rates of citric acid, nitrilotriacetic acid (NTA), and phosphonates. These three are the most common types of chelating agents used to produce cleaning products. By using rate benchmarking analysis, we found that using NTA as chelating agents is 15%-20% cost-efficient than using citric acid and phosphonates as chelating agents. Moreover, due to their toxicity phosphonates are banned in the EU, Canada, and Australia. Hence, using NTS and citric acid is the most preferable chelating agent for homecare contract manufacturers.

 

Salary Benchmarking – Labor is one of the key cost components incurred while offering a product or service. Understanding the pricing structure of salary is important for organizations in selecting the appropriate supplier and to build a good negotiation strategy. It is also an important factor in determining whether the category under focus should be outsourced or built in-house.

 

Supplier Newsletter – It is cumbersome for any organization to continuously track the latest developments in their supplier landscape. Our newsletter service helps them remain updated, to avoid any supply chain disruption which they may face and keep a track of the latest innovations from the suppliers. Outsourcing such activities help clients focus on their core offerings

 

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain which helps in efficient procurement decisions.

 

Our services include (not limited to):

Market Intelligence involving – market size and forecast, growth factors, and driving trends
Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions

 

Browse through Grand View Research’s collection of procurement intelligence studies:

Medical Waste Disposal Market Procurement Intelligence Report – The global medical waste disposal market is valued at USD 7 billion in 2020 and it is expected to grow at a CAGR of 6% from 2020 to 2025 due to the increasing volume of healthcare waste and from the pharmaceutical and healthcare industry post-Covid-19. North America and Europe have the largest share in the medical waste disposal market as these two regions have more standardized and structured medical waste management systems in place compared to other regions. However, APAC is expected to witness the highest growth rate, due to the rising social awareness and establishment of strict regulations for the proper disposal of medical wastes.

 

Paraffin Market Procurement Intelligence Report – The global production for paraffin was valued at 3.7 million MT in 2020. This demand is expected to increase by a CAGR of 1.6% between 2020 to 2025. OF the 3.7 million MT produced, APAC manufacturers approximately 1.5 million MT. However, this only represents 92% to 95% of the overall demand for paraffin in APAC. To improve the production capacity to meet the demand of the market, there were planned installations in Vietnam. However, due to the COVID pandemic and the supply chain disruptions, the additional capacity could not be added in time. Moreover, a recent fire accident in an Iranian petroleum plant resulted in a supply shortage of paraffin in the market.

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