A recent report by Markets and Markets noted that the cloud-based contact center market is expected to grow from $4.15 billion in 2014 to $10.9 billion in 2019 at a CAGR of 21.3 percent during the period, with North America taking the lead and with emerging economies in the rest of the world catching up in the future.
David L. Papp CEO and Founder of Comforce and its U.S. subsidiary CloudAgents said that there are two key drivers behind the growth of the industry: double digit spending growth in global cloud-based IT solutions, which is driven by mobile devices, and the growth in the acceptance of home-based work.
Papp said that one of the advantages of cloud-based contact centers is in home-shoring. ”In the last decade, approximately two million American jobs were outsourced to India and the Philippines,” he said. “There is more pressure from the US government on companies who have chosen to outsource, to bring the jobs back to America; however, due to the difference in labor force costs, it is financially difficult.” But, Papp said, as a result of cloud technology, home-shoring customer service using cloud-based contact centers is a realistic alternative.
“Generally, native speaking agents who can understand the American culture and provide a higher level of quality customer interactions can be employed, technically anywhere,” he said. “To meet financial budgets, agents can be employed from rural areas in the native country. In the case multilingual customer interactions are required agents can be hired in Latin America or Eastern Europe.”
Papp said the model is a win-win for staff and outsourcers. Agents, especially those in the younger generation, “want to work wherever they want, they want to work whenever they want, they want to save money on commuting, clothing and food, they want to be guided instead of controlled, and they want a more balanced lifestyle,” he said.
The advantages for the outsourcer, Papp added, are: higher quality of service, better language skills and access to a larger talent pool, uninterrupted service (in case of strikes, war or natural disasters), and cost saving flexibility that enables increasing and decreasing the number of resources when the call volume changes.