[Research Report] The customer care BPO market is projected to grow from US$ 22,598.82 million in 2022 to US$ 34,570.73 million by 2028; it is estimated to record a CAGR of 7.5% from 2023 to 2028.

Customer care outsourcing utilizes third-party services to manage customer interaction in pre-buying, buying, and post-buying stages. The customer care BPO service caters to customer queries through various channels, such as website, email or messaging, phone, live online chat, social media, and text or messages. These multi-channel solutions aid outsourcing companies in delivering services efficiently. Further, the emergence of the work-from-home (WFH) trend in various industries, such as IT & Telecom and BFSI, is facilitating the customer care BPO market growth. In July 2020, Comdata, a key market player that provides customer management solutions, developed a new advanced work-at-home delivery model in customer management BPO. This delivery model focuses on employees and businesses that will guide clients' consumer interaction through improved integration of data security, operation management, and business continuity.

The customer care BPO market in North America is segmented into Canada, the US, and Mexico. The US accounted for the largest share of the customer care BPO market in North America. The US is one of the world's most developed countries, with several multi-billion dollars businesses such as Microsoft Corporation, Apple Inc, Proctor & Gamble, and General Motors. The presence of such varied large companies has led to rising demand for customer service representatives to support the various requirements of customers. As per the US Bureau of Labor Statistics, more than 2,890,000 people were employed as customer service representatives in the US in 2021. Also, the country is technologically advanced and known for adopting advanced technologies at an early phase. Due to the presence of various tech firms in the US, including small and medium enterprises (SMEs) and large enterprises, the country is evolving exponentially. Increasing adoption of the Internet of Things (IoT) and rising application of artificial intelligence (AI) have been promoting the growth of various technology-related firms in the country. It has opened doors to various technical support services, offering growth opportunities for call center BPO market growth.

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Customer Care BPO Market: Strategic Insights

Customer Care BPO Market

• 
  CAGR (2022 - 2028)

  7.5%
• Market Size 2022
  US$ 22.6 Billion
• Market Size 2028
  US$ 34.57 Billion

Market Dynamics

GROWTH DRIVERS

• Rising focus of organizations on ensuring greater customer satisfaction
• Huge cost benefits conferred by Customer Care BPO

FUTURE TRENDS

• Progressive IT and Telecommunications sector

OPPORTUNITIES

• Emergence of technologies such as artificial intelligence and cloud computing

Key Players

• Alorica Inc
• Telus International Cda Inc
• Simply Contact International
• Comdata SpA
• Concentrix Corp
• Foundever Operating Corp
• Front Logix Solutions LLC
• TTEC Holdings Inc
• Webhelp Inc

Regional Overview

• North America
• Europe
• Asia-Pacific
• South and Central America
• Middle East and Africa

Market Segmentation

Solution

• Onshore Outsourcing
• Offshore Outsourcing
• Nearshore Outsourcing

End User

• BFSI
• IT and Telecommunication
• Retail and E-Commerce
• Manufacturing
• Healthcare and Pharmaceutical
• Transport and Logistics
• Media and Communication
• Automotive
• Others

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Impact of COVID-19 Pandemic on European Customer Care BPO Market

The COVID-19 outbreak positively influenced the customer care BPO market. The COVID-19 pandemic severely impacted European countries, including Italy, Spain, France, and Germany, with Italy being the most affected. The imposition of lockdowns to curb the spread of the virus resulted in the shutdown of several industries, such as manufacturing, BFSI, automotive, and construction. These industries adopted digitization to cope with the new normal scenarios of the COVID-19 pandemic. According to the speech by Andrea Enria, Chair of the Supervisory Board of the ECB, at the Spanish Banking Association Conference, the pandemic accelerated digitization in the banking sector. In February 2023, ebankIT, an omnichannel banking software company based in Europe, announced a partnership with Gila, a provider of Digital Customer Service (DCS). With this partnership, ebankIT will offer Glia's DCS solution for digital-first customer service as part of its digital banking platform. Furthermore, after the Q3 of 2020, Europe witnessed rising investments in the customer care BPO market. In June 2022, Onepilot, a Paris-based platform enabling e-merchants to outsource customer care, raised ∼US$ 15.77 (EUR 15) million in a series A funding round. With this investment, the company aims to expand its operations outside the UK and France. Thus, growing investments and digitization fueled the customer care BPO market growth in Europe during the pandemic.

Market Insights – Customer Care BPO Market

Emergence of Technologies such as Artificial Intelligence and Cloud Computing to Drive Customer Care BPO Market Growth in Coming Years

Technological evolution, digital transformation, and the COVID-19 pandemic have led to increased integration of AI into customer care BPO services. The integration allows service providers to improve real-time communications with customers. AI has changed the way brands connect with customers, making it easier to create personalized experiences and nurture long-term relationships. Moreover, AI and cloud computing also bridge the gap between the high-volume, high-velocity data being generated and the ability to use these data to engage customers in real time. The integration of customer care services with AI helps BPO firms provide 24/7 support, along with resolving simple issues and personalizing their services. In sales businesses, it helps personalize and scale the sales process. AI-based speech recognition, virtual assistants, and interactive voice responses have substantially decreased the customer waiting time before reaching a customer care executive. In addition, furthering the role of AI-powered omnichannel routing allows for seamless switching between multiple channels, such as chats and voice calls, with executives always being ready to address customer queries or complaints. Smart BPOs integrated with AI help businesses optimize and automate their services, thereby making business processes less expensive, environmentally friendly, and more efficient. Thus, Emergence of technologies such as artificial intelligence and cloud computing to drive customer care BPO market growth in coming years.

End User-Based Customer Care BPO Market Insights

Based on end user, the global customer care BPO market has been segmented into IT and telecommunication, BFSI, retail and e-commerce, manufacturing, transport and logistics, healthcare and pharmaceutical, media and communication, automotive, and others. In 2022, the IT and telecommunication segment dominated the customer care BPO market. Customer care BPO helps the telecommunications industry to improve customer engagement. The rising competition in this industry is leading to an increase in the cost of customer acquisition. Hence, several telecommunication organizations cannot afford in-house customer care services, which is leading to the rise in outsourcing of these services. Similarly, with advancements in the IT field, the demand for efficient customer care services to maintain good customer relationships is rising. The key IT players are offering various software that help in effectively tracking customers' emails and requests, sending automated responses for acknowledging customer queries, and keeping all customer information in one place. These benefits boost the adoption of customer service software in customer care BPO companies.

Market players operating in the customer care BPO market mainly adopt inorganic growth strategies to stay competitive in the customer care BPO market ecosystem.

• In May 2022, Concentrix announced the acquisition of the b2b digital sales and customer success solution company ServiceSource. Concentrix will continue offering its CX services to the acquired company to a new customer base.
• In October 2022, Telus International announced an agreement to acquire WillowTree, a full-service digital product provider focused on end-user experiences such as native mobile applications and unified web interfaces.

Customer Care BPO Market Report Scope

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Market players profiled in the customer care BPO market report are:

• Alorica In
• Telus International Cda Inc
• Simply Contact International
• Comdata SpA
• Concentrix Corp
• Foundever Operating Corp
• Front Logix Solutions LLC
• TTEC Holdings Inc
• Teleperformance SE
• Webhelp Inc