Hold the line: Offshoring and investment in new technologies will hurt industry profit margins

Operators in the Telemarketing and Call Centers industry have experienced steady growth over the past five years as the US economy picked up traction. The domestic industry has largely been outsourcing operations to low-wage countries for a number of years, which has historically resulted in limited growth. In line with healthy growth, call centers have increasingly used technological advancements, including cloud-based systems, social media, voice recognition software and other broadband-enabled technology, to become more efficient. Over the five years to 2022, IBISWorld anticipates that industry revenue will increase...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

Industry Threats & Opportunities

  • Rising corporate profit will enable clients to increase their use of industry services
  • More call centers are using technology such as voice recognition software to increase productivity
  • New technologies, such as web-enabled call centers, will lower labor costs
  • Industry Report - Industry Products Chapter

    Inbound call servicesIn 2017, inbound call services are expected to account for 64.8% of industry revenue. Services in this segment include customer service calls, technical support, and other inbound call services. Customer service calls account for 74.0% of segment revenue, and 48.0% of overall industry revenue. Consumer-facing companies, especially those in the telecommunications sector, outsource their customer care to third-party call centers. This strategy enables them to save money on labor costs and increase efficiency and availability without expanding their own working hours. With the rise in mobile phone and internet use over the past five years, customer service centers have become increasingly prevalent. Mob...purchase to read more.

    Additional Insights for the Telemarketing & Call Centers Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Telemarketing & Call Centers Industry are

  • Ability to quickly adopt new technology
  • Ability to provide services in diverse locations
  • Provision of superior sales service
  • IBISWorld analysts also discuss how external factors such as Corporate profit and commerce sales in the Telemarketing & Call Centers industry impact industry performance..

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    What's in this report

    What is the Telemarketing & Call Centers Industry?

    Companies in this industry provide telemarketing services on a contract or fee basis. Telemarketers use telephone or email to promote clients’ products or services, take orders, solicit contributions or provide information on behalf of clients. Moreover, call centers provide phone-based services and assistance to customers of clients. Industry operators do not own the products or provide the services they represent.

    Industry Products
  • Telemarketing
  • Customer service
  • Technical support
  • Debt collection
  • Industry Activities
  • Providing telephone answering services
  • Providing contract or fee-basis telemarketing services
  • Providing wakeup call services
  • Providing voice mailbox services
  • Providing telephone solicitation services
  • Providing message services
  • Providing customer service via call centers
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Corporate profit
  • commerce sales
  • Consumer spending
  • Outsourcing for the Telemarketing and Call Centers industry
  • Private investment in computers and software
  • Total advertising expenditure
  • Trade-weighted index

  • Current Performance
  • Offshoring
  • Center development
  • Call regulations
  • Chart: Revenue Growth

  • Industry Outlook
  • Technology trends
  • Profit margins
  • Table: Telemarketing & Call Centers Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Telemarketing & Call Centers Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Retail Trade
  • Finance and Insurance
  • Public Administration

  • Key Selling Industries
  • Computer & Packaged Software Wholesaling
  • IT Consulting
  • Office Supply Stores
  • VoIP
  • Wired Telecommunications Carriers

  • Products & Services
  • Customer service
  • Telemarketing
  • Technical support
  • Other
  • Debt collection
  • Chart: Telemarketing & Call Centers Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Telecommunications and IT
  • Other
  • Retail
  • Banking and finance
  • Chart: Major Market Segmentation for the Telemarketing & Call Centers Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchases and depreciationOther
  • Chart: Cost Structure Benchmarking – Sector vs Telemarketing & Call Centers

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Telemarketing & Call Centers Industry

  • Industry Globalization
    West Corporation, Convergys Corporation,
  • Table: West Corporation - financial performance
  • Table: Convergys Corporation - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Telemarketing & Call Centers Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Telemarketing & Call Centers Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Corporate profits (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
  • A call center employee.
  • Business To Business (B2b)
  • Transactions that take place between businesses.
  • Cross-Sell
  • Selling an additional product or service to an existing customer.
  • Honeypot
  • A trap set to detect, deflect or counteract attempts at unauthorized use of information systems.
  • Initial Public Offering (Ipo)
  • The issuing of a company's common stock to the public for the first time.
  • Offshoring
  • Relocating domestic services to cheaper labor-cost countries like China or India to service domestic clients.
  • Robocall
  • A phone call that uses a computerized autodialer to deliver a pre-recorded message, as if from a robot.
  • Up-Sell
  • Selling a more expensive product or upgrade to a customer.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Telemarketing & Call Centers Industry Research Report offers insight into the market at the national level. Our analysis highlights macro trends in the overall sector and the micro trends faced by companies that do business in the Telemarketing & Call Centers industry. Our five-year outlook forecasts explain how the market is set to change and the product segments that will drive growth.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Telemarketing & Call Centers:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Telemarketing & Call Centers market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Telemarketing & Call Centers, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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