The global outbound telemarketing market is characterized by the presence of a number of global, regional, and local vendors. The market is competitive with all the players competing to gain market share. The rapid advances in security technology, AI, machine learning, big data, and cloud are key factors that drive the market growth. The vendors compete based on digital services, pricing, reliability, and services. It is crucial for the vendors to offer solutions which accurately offers end-to-end customer experience management services and succeed in a competitive market environment.
According to Wantstats analysis, Teleperformance Group TTEC Holdings Inc., Atento S.A., Concentrix Corporation, Arvato AG, are some of the key players of the global outbound telemarketing market as of 2019. These companies continue to retain their strong global hold through expansion, mergers, and acquisitions and offering an extensive range of solutions.
Several vendors such as Alorica Inc, MarketOne International, DialAmerica Marketing Inc., MarketMakers Incorporated Limited, and OnBrand24, Inc., have established a sizeable market presence in the outbound telemarketing market. The competition in the market is substantially growing due to the increasing use of advanced technologies such as analytics for offering better customer experience management services.
Teleperformance Group is the leading player in the market. The company holds 11.0% of the share in the overall market. The company delver outbound telemarketing services thought various contact delivery centers. The company has strong global presence and diversified customer base. The company’s strategy is to offer comprehensive telemarketing services so that it can efficiently cater the needs of the specific industry vertical. Also, the company’s strategy is to expand its business and for the same it has been investing in opening new delivery site in part of Europe.
TTEC Holdings Inc. is one of the leading players in the market with a share of 3.0%. It has a broad product portfolio and offers customer demand & acquisition, customer growth, and expansion services. The company has been investing in enhancing its product offerings and customer base by strategic acquisitions and expansions. For instance, in July 2019, the company opened its Humanify customer engagement center in Oklahoma City, US.
Atento S.A.is looking to continuously innovate and improve its services so that it can increase its client base and improve its market presence. The company, in the year 2019, has already invested in product enhancement and expansion. For instance, in the year 2019, the company opened its new customer relationship center in Madrid, Spain. It is highly focused on improving its market presence and efficiently competing in the competitive market.
Concentrix Corporation is a subsidiary of SYNNEX Corporation that offers customer lifecycle management, marketing solutions, finance & accounting solutions, analytics & insights, IT services, and consulting services. The company’s customer lifecycle management includes sales and acquisition services wherein the company helps in outbound direct sales. The company has been focusing on product enhancement, acquisition, and expansion. This has helped the company to effectively grow and compete in the market.
Arvato AG is a global provider of customer relationship management (CRM), supply chain management (SCM), financial solutions, and IT services. The company has significant presence in Germany, and it is investing to expand in Africa. The company offers outbound telemarketing services across various industry verticals including IT & telecommunication, energy & utilities, BFSI, and e-commerce among others.
Alorica Inc. is a global provider of customer experience management. As a part of customer experience management, the company offers customer care services, revenue generation services, technical support services & solutions, back-office assistance, and omnichannel customer care services. The company focuses on offering end-to-end customer experience management services to its clients. For the same, the company invests in product development and enhancement. The company has also been hiring and training employees so that they can deliver their services efficiently.
Bargaining Power of Suppliers
The suppliers for outbound telemarketing service providers in the market are the contact center service providers that provide the proper infrastructure and suitable hardware and software integration services. These contact center service providers in the market are major players like Ozonotel, CCT Solutions, Fenero Inc., and Nexmo. These are well-established players with a strong brand image. The ratio of contact center service providers to that of the outbound telemarketing service providers in the market is considerably low. However, as the switching cost is moderate, the suppliers do not hold significant power over the prices. Hence the bargaining power is expected to remain low-moderate in the hands of the suppliers.
Bargaining Power of Buyers
The buyers in the outbound telemarketing market include various businesses and enterprises from the BFSI, healthcare, retail, and various other sectors. These enterprises avail outbound telemarketing services to enhance their sales and business portfolio. The buyer concentration in the market is high as compared to the service providers in the market. However, owing to a considerable low switching cost of services, the bargaining power of buyers in the market is expected to remain moderate.
Threat of New Entrants
The outbound service providers in the market are well-established players with a stronghold in the market. The infrastructure cost to establish the facility and offer services remains very high. Also, due to the stringent government policies, the entry of any new player in the market is restricted. Therefore, the threat of any new entrant in the outbound telemarketing market remains considerably low.
Threat of Substitutes
The outbound telemarketing market is rapidly growing with favorable growth prospects, however, due to the emergence of digital marketing platforms and services; the outbound telemarketing services may face higher competition. The growth of digital marketing is seen to be significantly high owing to its various benefits and widespread use. Online marketing services such as web marketing, social media marketing, search engine optimization, and content marketing are services gaining higher responses and offering profits to the users owing to the increased adoption of smartphones. Therefore, the threat of substitutes remains high to the outbound telemarketing market in the years to come.
Intensity of Rivalry
The outbound telemarketing market consists of a number of players both established and emerging start-ups. The presence of these players offering their services at affordable prices to the customers makes the rivalry among players considerably high. Also, due to the low product differentiation and medium pace of the industry growth the intensity among rivals is expected to stay high.
