skip to main content
Close Icon We use cookies to improve your website experience.  To learn about our use of cookies and how you can manage your cookie settings, please see our Cookie Policy.  By continuing to use the website, you consent to our use of cookies.
Global Search Configuration

Ovum view

Summary

With the reporting season for publicly traded contact center outsourcing vendors coming to an end, a healthy picture of the CRM outsourcing industry’s 2014 revenue performance is emerging. For the most part outsourcers posted net gains in both their full-year and Q4 results, giving ample reason for optimism. However, Ovum cautions that 2015 will be a challenging year for the CRM services space, both in terms of industry-driven disruptors and external factors.

Q4 results point to strong finish in 2014

The final three months of 2014 were generally good for publicly traded CRM outsourcing vendors, representing a solid finale to what most observers believe was one of the most positive for the industry since the global financial crisis. Notable performances in 4Q14 include Teleperformance, which reported a 24% increase in turnover relative to the same period in 2013 (6.5% on a like-for-like basis), and Sykes, whose quarterly revenue increased 4.5% year-on-year. While for the most part the industry performed positively, a notable exception was Firstsource, whose revenues for the period dropped nearly 6% compared to 4Q13.

2014 revenues indicate CRM outsourcing is regaining strength

Broadly speaking, 2014 was a solid year for contact center outsourcing. This was illustrated by the fact that all US-based publicly traded vendors grew their revenues year-on-year, with standout performers including Sykes, TeleTech, StarTek, and Convergys (whose revenues were boosted by its acquisition of Stream Global Services in January 2014). Among non-US outsourcers that had reported their financials at the time of writing, Teleperformance was certainly a standout performer, with annual revenue growth of 13% (9.9% on a like-for-like basis).

2015 will challenge vendors to maintain momentum

CRM outsourcing vendors will need to innovate in 2015 in order to navigate potential business obstacles and continue to grow their revenues. Within the industry, outsourcers will face tremendous pressure from clients to limit price growth, and this trend will be compounded should more consolidation occur within the sector. Equally, uncertainty related to the economic situation in developed economies across Western Europe and Canada could hurt consumer demand, reducing call volumes and the need for contact center services. Outsourcers will need to focus on quality in all delivery centers, while at the same time promoting value-added services, such as consulting and analytics, in order to ensure 2015 finishes on the same positive revenue footing as the previous year.

Appendix

Author

Peter Ryan, Principal Analyst, IT Services

Peter.ryan@ovum.com

Recommended Articles

  • Service Provider Markets, Consumer & Entertainment Services,...

    MWC 2018 Highlights

    By Ronan De Renesse 27 Feb 2018

    Over 20 of our senior Ovum analysts and consultants attended this year’s Mobile World Congress in Barcelona at the end of February. In between meetings, briefings and presentations, our analyst team were blogging and tweeting about key developments, trends and rumors. Have a look through our daily MWC 2018 Highlights to find out what happened.

    Topics 5G AI IoT Cloud Payments SDN/NFV Smart home

  • Internet of Things

    IoT Viewpoints 2018

    IoT Viewpoints explore the IoT opportunity in 2018 and beyond. Download our latest e-book to get our newest collection of thought leadership articles on the emerging IoT trends, technologies and opportunities.

    Topics IoT

  • Consumer & Entertainment Services

    US pay TV: Is it facing an existential threat?

    By Adam Thomas 28 Mar 2018

    With US pay TV having endured the worst year in its history, thoughts have inevitably turned to the future. The likelihood remains that the immediate future will remain highly uncomfortable for everyone except the scaled multinational digital platforms.

;

Have any questions? Speak to a Specialist

Europe, Middle East & Africa team - +44 (0) 207 017 7700


Asia-Pacific team - +61 (0)3 960 16700

US team - +1 646 957 8878

Email us at ClientServices@ovum.com

You can also contact your named/allocated Client Services Executive using their direct dial.
PR enquiries - Call us at +44 788 597 5160 or email us at pr@ovum.com

Contact marketing - 
marketingdepartment@ovum.com

Already an Ovum client? Login to the Knowledge Center now