Frost & Sullivan has published a report on ‘Asia Pacific Contact Center Outsourcing – Domestic and Offshore Markets: Outlook for Domestic and Offshore Markets - Growth Opportunities for BPOs’ The report identified the key findings which are: - India, Japan and The Philippines are the top 3 locations by market size. - Upswing in Domestic market & Low-Labor Cost have been Major Drivers and continue at least for next 5 years. Large Labor Pool will contribute strongly to drive the industry in near future. - Market Saturation, Attrition Rate & Increase in Cost, Anti-Off shoring Outlook in many countries have attributed as Major Challenges. - BFS & Telecoms are the highest contributor in Revenue. KPO, HRO will come as the next things to watch. In conclusion, Asia Pacific will continue to show the highest growth while Domestic Market will be the key Drivers to the growth. The Philippines, India & China will share the maximum growth.

1. Asia Pacific Contact Center Outsourcing –
Domestic and Offshore Markets
Outlook for Domestic and Offshore Markets - Growth Opportunities for BPOs
Sathya Subramanian, Senior Research Analyst
Information & Communication Technologies
16 July 2012
© 2012 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of
Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.

2. Focus Points
1 Scope and Overview of the Contact Center Outsourcing Market
2 Drivers and Restraints for the Contact Center Outsourcing Market
3 Current and Future Key Trends
4 Contact Center Outsourcing Industry – Revenue Trends
5 Competitive Landscape
2

3. Scope - Market Segmentation
Contact Center Outsourcing Industry: Market Segmentation (Asia Pacific), 2011
Contact Center Outsourcing Industry
Industry Segmentation Geographical Segmentation Offerings Segmentation
Banking and Financial Australia Malaysia Domestic
Services (BFSI)
Telecommunication China New Zealand Offshore
Retail Hong Kong The Philippines
Technology Singapore
India
Travel & Hospitality South Korea
Indonesia
Others* Taiwan
Japan
Thailand
‘Others’ include Energy and Utilities, Media and Entertainment, Public Sector , Healthcare, Manufacturing, and Logistics etc Source: Frost & Sullivan
ROWE 3

4. Overview of the Asia-Pacific Contact Center Industry
 Most contact center functions in Asia-Pacific are held in-house. Still outsourcing
shows strong growth. The region is one of the high-growth region for contact
centers in the world.
 The Asia-Pacific countries facilitate multiple Asian languages, English and some
European languages.
 There are three streams of outsourcing opportunities in this region:
 Domestic outsourcing
 Offshore outsourcing from North America and Europe
 Offshore outsourcing from other countries within Asia-Pacific
 Cost savings, solid infrastructure and language proficiency make many Asia-Pacific
locations preferred as offshore destinations for contact center outsourcing.
 India, Japan and The Philippines are the top 3 locations by market size.
4

5. Major Drivers (Current and Future)
Source: Frost & Sullivan analysis
5

6. Major Challenges for Contact Center Outsourcing
Industry
Market Saturation
Attrition rate and increase
Anti-offshoring outlook in in costs
many countries
Need for self-service
In-House contact centers .....
Major Challenges for Asia-Pacific Contact Center Outsourcing industry
6

7. Current and Future Key Trends
Current Future
Trends Trends
Greater emphasis on new
BFS and Telecom, the highest technology such as hosted
contributors to revenue. technology, unified communication
and WAHA
New locations in Asia Pacific Jobs migrating from regions of high
are being considered. operation costs to regions of lower
costs
Providers diversify their offering
New industries such as gaming
to KPO, HRO and others to
are serviced.
provide end-end solution.
Source: Frost & Sullivan
7

8. Contact Center Outsourcing Industry – Revenue Trends
8

9. Contact Center Outsourcing Industry – Revenue Trends
 Growth in the Asia-Pacific contact center industry from 2010 to 2011 is 7.9 percent.
This growth is expected to continue until the end of the forecast period.
 In 2011 there were around 838,200 seats in the region. Of these, nearly 60 percent of
seats cater to domestic services and the rest 40 percent to offshore services. The
region registered a 13 percent growth in the number of seats from 2010 to 2011
 Among verticals the technology vertical saw highest growth of 11.1 percent in 2011.
The biggest contributors to the revenue are telecom and banking and financial
services (BFS) sectors. Both of these together contribute 56.3 percent of the
revenue.
 Among the 13 countries taken up as part of the study China is seen to have the
highest growth due to high domestic demand.
 India, Japan and the Philippines together make up 82 percent of the Asia-Pacific
contact center market.
9

10. Competitive Landscape
 The Asia-Pacific contact center market is highly fragmented with 3 types of market participants
Types of Competitors
 Multinational companies (owned and headquartered outside Asia-Pacific)
 Multinational companies (owned and headquartered inside Asia-Pacific)
 Domestic outsourcers serving regional languages
 Revenue from the top 12 participants in the Asia-Pacific region constitute 33.3 percent of the total
revenue from the region.
 Top participants in the region include
24/7 Customer HGS Scicom
Aegis IBM Global Process Sitel
Bell System 24 Infomedia Nusantara Sykes
Convergys KTCS Teleperformance
China Elite One-to-One Contacts Teletech
China Motion Moshi Moshi Hotline Transcosmos
Datacom PCCW Teleservices VADS
Firstsource NTT Solco VXI
Genpact Salmat WNS
Source: Frost & Sullivan analysis
10

11. Conclusion : Key Take-Aways
In 2012 and beyond, the Asia Pacific region will continue to show the highest growth
1 in the global contact center outsourcing industry. Domestic markets will be the key
drivers to this growth.
Banking and the telecommunication sector will continue to be the leading verticals
2 in the region. Retail, especially e-commerce, will also see increasing growth in the
region.
3 The Philippines, China, and India will see maximum growth in the industry.
11