Well served: Revenue is rising moderately, but technological change has constrained profit

The Customer Care Services industry has experienced steady growth in the five years to 2016, as the US economy gradually expanded. Early growth during this five-year period was also driven by federal commitments and incentives. This trend has resulted in a short-term boost for the industry with several companies reshoring operations, and several new operators entering the market. Over the next five years, a large portion of industry operators will continue to offshore operations to emerging economies with lower labor costs. Nevertheless, new broadband technology will continue to increase the competitiveness of US operators, enabling them to attract a greater amount of new clients...purchase to read more.

Industry Statistics & Market Size
Revenue
$9bn
Annual Growth 11-16
2.2%
Forecast Growth 16-21
Profit
Employment
250,421
Businesses
2,853

Industry Threats & Opportunities

  • Profitability has been variable, due to technological change, relocation of operations and government assistance
  • The FCC announced its intention to create call center jobs by creating competitive domestic operating costs
  • The pressure to offshore operations is a constant threat to the industry
  • Industry Report - Industry Investment Chapter

    The Customer Care Centers industry is service oriented, and as such, labor costs form the largest cost to industry operators. As a result, wages are expected to account for 59.4% of total industry revenue in 2016, and depreciation is anticipated to account for a very small portion of revenue (1.7%). Capital intensity is expected to increase over the next five years as industry operators get larger and require more infrastructure, including updated technology systems such as Voice over Internet Protocol, Interactive Voice Response, and web-enabled call centers. Alt...purchase to read more.

    Additional Insights for the Customer Care Centers Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Customer Care Centers Industry are

  • Having a high profile in the market
  • Access to quality personnel management
  • Ability to quickly adopt new technology
  • IBISWorld analysts also discuss how external factors such as Corporate profit and Consumer spending in the Customer Care Centers industry impact industry performance..

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    What's in this report

    What is the Customer Care Centers Industry?

    Industry operators answer inbound telephone calls regarding customer queries and tech support.

    Industry Products
  • Customer account activation, billing and logistical inquiries
  • Inbound customer complaints
  • Inbound technical support
  • Cross-selling, up-selling and service renewals
  • Outbound debt, collections and payment inquiries
  • Other services
  • Industry Activities
  • Activating customer accounts
  • Responding to billing and logistical inquiries
  • Responding to inbound customer complaints
  • Responding to technical support inquiries
  • Providing cross-selling, up-selling and contract renewal services
  • Providing outbound debt, collections and payment inquiries
  • Providing customer satisfaction surveys
  • 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
  • Consumer spending
  • Number of businesses
  • commerce sales
  • Private investment in computers and software

  • Current Performance
  • Government support
  • Automation
  • Chart: Revenue Growth

  • Industry Outlook
  • Offshoring
  • Expanding US economy
  • Automation
  • Table: Customer Care Centers Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Customer Care Centers Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Retail Trade
  • Information
  • Finance and Insurance
  • Healthcare and Social Assistance
  • Public Administration

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

  • Products & Services
  • Customer account activation, billing and logistical inquiries
  • Cross-selling, up-selling and service renewals
  • Inbound customer complaints
  • Inbound technical support
  • Outbound debt, collections and payment inquiries
  • Other services
  • Chart: Customer Care Centers Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Communications
  • Other
  • Technology
  • Retail and consumer
  • Financial services
  • Chart: Major Market Segmentation for the Customer Care 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 Customer Care Centers

  • Basis of Competition
  • Internal Competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Customer Care Centers Industry

  • Industry Globalization
    Convergys Corporation, TeleTech Holdings Inc., Teleperformance, Sykes Enterprises Inc.,
  • Table: Convergys Corporation - financial performance
  • Table: TeleTech Holdings Inc. - financial performance
  • Table: Teleperformance - financial performance
  • Table: Sykes Enterprises Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Customer Care 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 Customer Care Centers Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Corporate profit (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    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.
  • Voip
  • Voice over IP (VoIP) refers to delivery of telecommunications and multimedia communication services over Internet Protocol (IP) networks, such as the Internet.
  • What Our Customers Say

    Why buy this report?

    The Customer Care Centers industry market report contains data and analysis of the most influential current and future trends shaping the industry. IBISWorld’s in-depth industry market research is presented in a logical, user-friendly format, and provides growth and profit forecasts for a five-year outlook period.

    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 Customer Care 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 Customer Care 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 Customer Care Centers, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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