Brazil Executive Call Center Report 2007: An emerging Sourcing Giant

Published by	Zagada Markets, Inc.
Published	December, 2006	Product code	47553
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Price	US $ 4395 PDF By E-mail (Departmental License) US $ 7895 PDF By E-mail (Country License)

Introduction
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Brazil Executive Call Center Report 2007: An emerging Sourcing Giant published by Zagada Markets, Inc. in December, 2006. This report price starts from US $ 4395.

Introduction

Abstract

I. INTRODUCTION

Zagada is a Business Development Analytics Firm. Zagada is committed to producing quality research and analysis on countries, region, cities and vendors operating in key Nearshore and Offshore locations. The company is innovating its publishing approach by producing short executive reports that will also cover Chile, Brazil and Mexico. Through its SphaeroAlliance.com vendor platform, the company is simplifying the Nearshore sourcing process. Zagada develops cutting edge quantitative valuation tools for evaluating locations, vendor performance and business Development growth performance. Fortune 1000 and small to medium size (SME) vendors and distributors accessing Offshore and Nearshore locations benefit from Zagada' s analysis and advisory.

II. EXECUTIVE SUMMARY

Brazil is regarded as one of the four key catalysts among the so-called BRIC (Brazil, Russia, India, China) nations driving service globalization. Central to both its service export success and internal economic expansion is its emphasis on contact center Business Process Outsourcing (BPO) and IT services. The country is Latin America' s biggest economy and also boast' s the region' s largest contact center or voice based BPO agent population of just over 200,000 agents (216,243). A higher percentage of its centers uses advance email and collaboration customer interaction technology when compared with the U.S. and Europe. The industry generates over US$2 billion in revenues, with 90% coming from internal outsourcing and companies managing their own centers. Approximately 10% of revenues are generated from international markets lead by the U.S. and followed by Europe and Asia.

Agent density has increased from 55,000 in 2001 to 199,438 at the end of 2005. Agent count is projected to exceed the 250,000 mark by the end of 2006 and approach 350,000 by December 2007. Brazil' s contact center growth is characterized by deployment and adoption of contact centers within its large and mid size indigenous firms and multinational corporations operating in its market, as well as contracts outsourced internally to third party service providers. The U.S. Europe and Asia generate a small but growing percentage of the market' s revenues.

Its 15% average BPO growth rate for the last 3 years will slow down slightly to around 10% in 2007 occasioned by industry consolidation. The country' s regional leadership is reflected in its 55% capture of the Latin America agent population. Our analysis indicates that an increasing proportion of revenues would moderately increase international outsourcing revenues over the next 3 years.

10 contact center BPO service providers dominate the Brazilian call center industry and are concentrated in Sao Paulo (SP) and Rio de Janeiro (RD). Revenues from these centers should exceed US$ 70 million in 2006 and are projected to reach US$ 93 million by 2007. These two mega cities, together with the thee additional Tier 2 cities of Belo Horizonte, Curitiba and Florianopolis featured in this report, are responsible for 90% of the market' s agent density. Sao Paulo (SP) has one of the highest concentrations of software university graduates in Latin America.

Over 1.2 million university graduates from the 290 universities serving the five cities provide expanding talent base for companies locating in these cities. A total of 1,859 universities exist in Brazil. Furthermore, recent affirmative action initiatives in its educational system are anticipated to further deepen its talent pool. On the bilingual front, Brazil has over 20,000 schools and language institutes offering English and Spanish bilingual programs. The contact center industry has also embarked on expanded customer care driven training and initiatives.

These priority education and bilingual competency driven initiatives, coupled with its large internal market, a strong currency buffeted by expanding internal demand, falling E1 telecommunication costs, moderately attractive labor costs and favorable BPO and IT investment incentives make Brazil a strategic location for expansion consideration.

Brazil' s contact center BPO market faces a number of internal and external strategic challenges. Internal challenges include rising inflation rates, wage increases, high levels of software and intellectual Property piracy, and the need to internationalize its locally successful operators. GDP growth of 3.5% expected in 2006 and 3.8% in 2007 raises concerns about needed growth acceleration. Additionally, Argentina, Mexico, Central America and Caribbean Nearshore locations (Dominican Republic), as well as India and the Philippines continue to accelerate their competitive challenge.