Latin American contact center outsourcing services continue to grow

The contact center outsourcing services market in Latin America have showed mild growth in 2014, mainly driven by good performance in Chile, Argentina, Peru, Colombia and the Central America and Caribbean (CaCar) market, according to new analysis from Frost & Sullivan.

The study, called the Analysis of the Latin American Contact Center Outsourcing Services Market, found that the market earned revenues of $10.96 billion in 2014 and estimates this to reach $15.13 billion by 2020.

“While there has been a fall in demand from Spain due to the national economic crisis, the Latam-shoring business from other Latin American countries, especially Argentina and Chile, has continued growing,” Frost & Sullivan Information & Communication Technologies Industry Analyst Sebastian Menutti said. “Overall, serving other Latin American locations has become the principal offshore market for many countries in the region.”

Contact center outsourcing revenues in dollar terms have taken a hit because many Latin American currencies are facing a devaluation against the U.S. dollars; however, these Latin American countries have become much more cost-competitive for U.S. customers.

“CCO service providers in the region are looking forward to new opportunities in the high tech, travel and hospitality and healthcare industries, as these three segments are expected to exhibit high growth rates,” Menutti said. “While the telecom as well as banking and financial service sectors will continue to dominate revenue share, emerging verticals will be important for new business.”