Hold the line: Offshoring and investment in new technologies will limit long-term industry growth

The Telemarketing and Call Centers industry has experienced steady growth over the past five years as the US economy gained speed. The domestic industry has largely trended toward offshoring operations to low-wage countries, which has historically resulted in limited growth. However, recent advancements in broadband technology have enabled call centers to hire employees that can work from home, effectively mitigating any cost differences between offshore and onshore work. Over the five years to 2023, the industry will likely benefit from rising corporate profit. However, continued use of offshoring and improved automation technology, in addition to growing market saturation, will limit the industry's growth over the long term...purchase to read more.

Industry Statistics & Market Size
Revenue
$24bn
Annual Growth 13-18
2.9%
Forecast Growth 18-23
Profit
Employment
488,879
Businesses
26,104

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 Locations Chapter

    The Telemarketing and Call Centers industry is concentrated in the Southeast, West and Mid-Atlantic regions because these areas are the three most populated US regions, providing a large and stable workforce. These regions also provide affordable real estate that can be used to establish centers. Some state and local governments even offer tax and job-creation incentives to attract them. However, due to the possibility of natural or other disasters disrupting call center services, some major industry operators position smaller centers in a number of areas. This ensures that if one center goes offline, the company will still supply ongoing services.The Southeast has the highest concentration of industry establishments at 25.5%. Thi...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-based 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
  • Technology changes
  • Center development
  • Chart: Revenue Growth

  • Industry Outlook
  • Technology trends
  • Employment growth
  • 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
  • Consumer demand
  • Downstream demand

  • Major Markets
  • Telecommunications and IT
  • Other
  • Retail
  • Healthcare
  • Financial services
  • 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
  • Wages
  • Purchases and depreciation
  • Other
  • 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
    Convergys Corporation, West Corporation,
  • Table: Convergys Corporation - financial performance
  • Table: West 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
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Corporate profits (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Agent
  • 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 countries with lower labor costs, such as China or India, to service domestic clients.
  • Robocall
  • A phone call that uses a computerized autodialer to deliver a prerecorded 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?

    The Telemarketing & Call Centers Industry Research Report measures market size, analyses current and future trends, and provides an indication of market share for the industry’s largest companies. IBISWorld’s collection of industry market research reports gives you insightful, up-to-date information on the supply chains, economic drivers, and key buyers and markets for hundreds of industries.

    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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