Contact Center Market Vendor Intelligence – Top Five Vendors Occupying Nearly 35% of Global Share, 2020-2025 | Grand View Research, Inc.
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According to a new study from Grand View Research, labor costs are the top cost drivers for a contact center. Contact centers operate on a value-based pricing system. There are also examples of contact centers, which use a flat rate pricing system.
The dynamics of the contact center market before and after the COVID-19 scenario are drastically different. The pandemic has led companies to partner up and acquire other companies, which has led to a higher degree of market consolidation. Additionally, contact centers are improving their technology offerings to automate and streamline processes. 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 of 2021 is Avaya’s acquisition of contact center developer CTIntegration. CTIntegration has been a technology provider for Avaya. He is the creator of CT Suite and its connectors and was part of Avaya’s DevConnect bringing his expertise to the Avaya OneCloud platform to understand customer behavior and thereby streamline responses and requirements. The acquisition took place in August 2021 and the financials involved were not disclosed.
There have also been other technological advancements in the market. Coca-Cola Europacific Partner, Indonesia chose to work with Taps 8X8. The goal of this engagement is to provide a secure mobile experience for handling orders through the Taps 8X8 SMS API. Los Angeles Pacific University has decided to move all of its contact center operations, including admitting, enrolling, and connecting alumni to Dialpad’s cloud system. The system integrator for this project is Dialpad.
The Contact Center Market Procurement Intelligence report, by Grand View Research, delves into the following industry insights:
- Migration to a cloud-based environment and technological advancements are the major market trends – The COVID-19 pandemic has brought about several changes in the market. While in-house contact centers still dominate the market, the shift to cloud-based contact centers is growing significantly due to social distancing standards, which prevent 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 contact centers.
- The market presents a highly fragmented competitive landscape – The contact center market is highly fragmented, with the top five vendors occupying almost 35% of the overall share. Market barriers are relatively low because the cost of capital required to enter the market is low. However, the fragmented nature of the market as well as competitive pricing could act as a deterrent to new market entrants.
- Suppliers prefer the in-house service provider model to leverage their expertise – From a procurement perspective, the majority of vendors opt for an in-house service provider engagement model. Since the core competency is contact center services, it makes sense for an operation as well as from a cost perspective to operate on an in-house engagement model.
- Labor costs are the largest cost item for a contact center – The main cost of a contact center is the cost of labor. Variable labor costs represent 60-65% of the overall cost incurred by a contact center. In addition, there are other labor costs such as fixed labor and technical support costs. Currently, the technology occupies a nominal cost head in the overall cost structure.
Contact Center Cost Intelligence – Key Components:
- Variable labor (60-65% of total cost)
- Fixed work
- Technical Support Labor
- Technology cost
- Telecommunication and network costs
- Miscellaneous overhead
Contact Centers Supplier Intelligence – Ranking and selection criteria based on capabilities with weighting:
Operational Capabilities –
- Years of service – 10%
- Employee strength – 25%
- Revenue generated – 20%
- Key Industries Served – 25%
- Key Customers – 20%
Functional Abilities –
- Deployment Type – 40%
- Gender – 40%
- voice based
- Based on social networks
- Use of technology – 20%
- Chatbots, automated call manager
- Call analysis tools
- Process automation tools
List of key vendors in the contact center industry:
- 7.ai, Inc.
- Alliance Data Systems, Inc.
- Alorica, Inc.
- BT Communications Ltd.
- Convergys Corp.
- IBM Global Process Services Pvt. ltd.
- Tata Consultancy Services Ltd.
Additional services offered by Grand View Research:
- Should we analyze the costs – In the Home Care Contract Manufacturing Market Supply Information Report, we have estimated and forecasted the prices of major cost elements while availing the services of contract manufacturers. The cost of raw materials is the largest cost component of home care contract manufacturing services. It accounted for more than 75% of the overall manufacturing cost. Among raw materials, chelating agents are the main cost element with a share of about 24%, followed by surfactants and buffer solution. The price of surfactants is mainly determined by crude oil prices. However, in 2018, surfactant prices declined regardless of rising crude oil prices. As the demand for personal care and home care products increases, the prices for buffers and others are expected to stabilize over the forecast period.
- Comparative rate analysis – As chelating agents are the single largest cost component for manufacturing cleaning products, the type of chelating agents is one of the most important aspects when analyzing cleaning service price benchmarking. home care contract manufacturing. In our research, we analyzed the levels of citric acid, nitrilotriacetic acid (NTA) and phosphonates. These three types of chelating agents are the most commonly used to make cleaning products. Using comparative rate analysis, we found that using NTA as chelating agents is 15% to 20% more cost effective than using citric acid and phosphonates as chelating agents. Additionally, due to their toxicity, phosphonates are banned in the EU, Canada and Australia. Therefore, the use of NTS and citric acid is the most preferable chelating agent for home care contract manufacturers.
- Salary Benchmarking – Labor is one of the major cost items incurred when delivering a product or service. Understanding the salary pricing structure is important for organizations to select the appropriate vendor and build a good negotiation strategy. This is also an important factor in determining whether the targeted category should be outsourced or built in-house.
- Supplier Newsletter – It is tedious for any organization to constantly keep up with the latest developments in its supplier landscape. Our newsletter service helps them stay informed, avoid any supply chain disruptions they may face, and keep up with the latest supplier innovations. Outsourcing these activities helps customers focus on their core offerings.
A smart and efficient supply chain is essential to the growth of any organization. Grand View Research’s Pipeline Division provides detailed insight into every aspect of the supply chain, which helps make effective sourcing decisions.
Our services include (but are 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 ownership
- Supplier Intelligence – rich insight into the supplier landscape and identifies suppliers that dominate, emerge, bask and specialize
- Sourcing / Procurement Intelligence – best practices followed in the industry, identification of standard KPIs and SLAs, peer analysis, negotiation strategies to be used with best-suited suppliers and countries for sourcing to minimize chain disruptions supply
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