take a ride into the latam contact center bpo panorama: present and future

LATAM Contact Center - BPO Panorama

Present and Future

Sebastian Menutti, Industry Analyst

Contact Center Outsourcing

November 4th, 2014

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Today’s Presenter

• Five Years of Experience base covering the Information and Communications

Technologies (ICT) industry in Latin America.

• Business Process Outsourcing (BPO).

• Customer Relationship Management (CRM)

• Unified Communications & Collaboration (UC&C)..

• Telecommunications.

• Frequent speaker at international industry events.

Sebastian Menutti, Industry Analyst

Frost & Sullivan

Follow me on (connect via social media):

@smenutti

ar.linkedin.com/pub/dir/Sebastian/Menutti

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Agenda

• Status of the Latin American Market

• Drivers, Restrains & Challenges

• Key Trends Towards 2015

• Last Word – Recommendations & Conclusions

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The global demand for BPO-CRM services will surpass $ 65.9 billion in

2014 and a 5% growth is forecasted for 2015.

Latin America accounts for close to 14% of the global market.

Latin America in the Global Market

Source: Frost & Sullivan

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Status of the Latin American Market: Key Indicators

Expected

Growth 2015

7.2%

Workstations

522,000

2014

Revenue

$11.36 B

2014

Market Share

Top 3 Players

43.2%

2013

Offshore

24.0%

2014

Agents

739,000

2014

Source: Frost & Sullivan

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Mercado de BPO-CRM en América Latina - 2013Status of the Latin American Market: Key Indicators

Source: Frost & Sullivan. Base year 2013.

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Status of the Latin American Market: Key Indicators

Source: Frost & Sullivan. Base year 2013.

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Mercado de BPO-CRM en América Latina - 2013Status of the Latin American Market: Key Indicators

Source: Frost & Sullivan. Base year 2013.

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Status of the Latin American Market – Country Analysis

Balanced mix between domestic and

offshoring businesses.

Most dynamic market in the region. Solid momentum with U.S. Nearshoring.

Almost the entire market is focused on U.S. customers.

Several countries with different levels of maturity and different

growth paths.

Source: Frost & Sullivan

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Status of the Latin American Market – Country Analysis

Consolidated hub for nearshore services within Latin America.

Almost entirely focused on domestic

businesses.

Market’s been stable in 2013 and expects moderate

growth for 2014.

Argentina’s increased labor costs have turned the focus to the local

business.

Source: Frost & Sullivan

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Status of the Latin American Market – Country Analysis

Source: Frost & Sullivan. Base year 2013.

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Agenda

• Status of the Latin American Market

• Drivers, Restrains & Challenges

• Key Trends Towards 2015

• Last Word – Recommendations & Conclusions

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Drivers

Strong growth is expected both for domestic and offshoring businesses.

Bo

osti

ng

Facto

rs

Increasing Adoption of BPO

Private and Public Associations Support

U.S. Market: English-Speaking & Hispanic Customers

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Restrains

Latin America needs to overcome these restrain to assure growth.

Restr

icti

ng

Facto

rs

Challenging Regulatory Environment

Key Markets’ Underperformance

Shortage of Bilingual English-Speaking Workers

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Top Three Challenges in All Contact Centers

Quality

Customer Satisfaction

Reduce

Cost

#1 Challenge

#2 Challenge

#3 Challenge

Some of the Cost Related Challenges…

Cost ReductionCost Control

Cost Management

Some of the Customer Satisfaction Related Challenges…

Customer LoyaltyCustomer RetentionCustomer Service

Some of the Quality Related Challenges…

Quality ControlQuality ManagementQuality Monitoring

What are the three (3) biggest challenges in your contact center?

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Agenda

• Status of the Latin American Market

• Drivers, Restrains & Challenges

• Key Trends Towards 2015

• Last Word – Recommendations & Conclusions

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Increasing Outcome-Based Contracts

Risk Managment

Hybrid Models

Differentiated Goals

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Heavy Growth in Social Media Continues

Latin America is one of the regions in

the World that grows faster in terms of

Social Media users.

Five countries in Latin America are within the TOP 20 nations with the

greatest number of Linkedin users.

Five countries in Latin America are part of the TOP 10 nations that spend

more time in social media sites per

month.

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Omni-Canal: Una estrategia posible para mejorar la CSE

� Several Channels

� One Platform

� Same Experience

Omnichannel Approach

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• Personal data

• Preferences

• App history

• Geolocation

• Calendar

• Camera / video

• Social activity

• Alerts

• Notifications

Mobile Devices Change Customer Interactions

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� Smartphones, Laptops, Tablets, Video Rooms, Telepresence,

etc… En Latin America there will be 1.3 billion connected

devices in 2016.

� From Consumer-to-Consumer interactions to Business-to-

Consumer.

� Anyone can Plug & Play, from any device and wherever.

Video for Contact Centers

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Work at Home Agents (WAHA)

Reduce Attrition Rates

Larger Labor Pool

Cut Real State Costs

Increase Productivity

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More Cloud-Based Contact Center Apps Implementations

Hybrid

Disruptive

Strategic

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Virtual Agents

Evolution of IVR

Reduced Capex

Happy Customers

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Voice of the Customer: Learn more about your customers

� Capture and centralize information from multiple points

of contact.

� Analyze unstructured data quickly and effectively.

� Leverage the results to enhance business processes

and customer experience.

� Detect negative feelings of the customers and act on

them.

� Delivering an omni-channel experience.

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Agenda

• Status of the Latin American Market

• Drivers, Restrains & Challenges

• Key Trends Towards 2015

• Last Word – Recommendations & Conclusions

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The Last Word – Recommendations for Contact Centers

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The Last Word - The Gold Opportunity: U.S. Nearshore

2 Key Asset: Cultural Affinity

4 Need to Wipe Safety Concerns & Improve LATAM Brand

3 Work towards Bilingualism

1 Chance to Increase Share Against India & The Philippines

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January 29, 2015 – São Paulo, Brazil

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Your Feedback is Important to Us

Growth Forecasts?

Competitive Structure?

Emerging Trends?

Strategic Recommendations?

Other?

Please inform us by “Rating” this presentation.

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Questions & Answers

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For Additional Information

Francesca Valente

Marketing & Corporate Communications Executive, Latin America

(54) 11 4777 5300

Francesca.valente@frost.com

Sebastian Menutti

Industry Analyst

Information & Communications Technologies – Latin America

sebastian.menutti@frost.com

Juan Gonzalez

Industry Manager

Information & Communications Technologies – Latin America

juan.gonzalez@frost.com

Jose Roberto Mavignier

Director

Information & Communications Technologies – Latin America

joseroberto.mavignier@frost.com