Call Center Industry Statistics Related to
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Call Center Industry Statistics Related to MARKET SIZE
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Snapshotz Research Results – Feb 2012
* 28% of centers complete legacy work and/or serve the needs of third parties that are not core to the operation and function of the call center. These activities can include: Supporting Reception and the front counter, Providing staff for warehouse support, completing data entry etc.
* 62% of call center characterize their operating philosophy as “meeting operating, production and quality targets and managing costs”- Only 12% of centers “try to Understand our strengths and weaknesses so that we can support the organizational goals”
* 82% of call center leaders say that alignment to corporate goals and objectives in very important for the call center. Yet only 20% of centers said that their alignment was Good or Excellent. 77% stated that they just Meet Basic Criteria.
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Canadian Call Centers Grow 28%
Canadian call centers experienced an annual average increase in revenue of nearly 28% between 1998 and 2006, according to Statistics Canada.
In the country, telephone call centers are located disproportionately in smaller urban areas with higher unemployment and a labor force with a relatively high rate of postsecondary education, the report found.
In addition, the report found that on average, there were 6.8 call centers per 10,000 business establishments nationwide. However, the numbers for Prince Edward Island (15.8), New Brunswick (13.1) and Ontario (8.4) were considerably higher. In contrast, in the Western provinces, where labor markets are tighter, there was a lower than average number of telephone call centers.
Industry revenues climbed rapidly from just over $400 million in 1998 to almost $2.8 billion in 2006, an average annual increase of 27.7%. By comparison, the overall economy expanded at an average annual rate of 5.9% in the same period. Over two-thirds of the industry’s revenue growth was generated by call centers in Ontario, the report also found.
Stats Canada
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On Demand Growth
The Aberdeen Group reports the following about On-Demand usage in an issue from May 2007: nearly half of all companies surveyed will use on-demand solutions this year; 32% of whom claim ‘on-demand solutions as [to be] one of their top two planned technology investments.’
Aberdeen
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UK Call centre industry
-£25bn: the UK contact centre industry’s annual expenditure
- 41%: the proportion of contact centres with an IP environment by 2009
- CRM: the most important area of planned contact centre expenditure in the next two years
- £906m: the annual amount wasted on taking callers through security manually
- 23%: the proportion of interactions that contact centres want to be email (the current reality is 6%)
Contact Babel
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15 percent of the UK’s 6,000 contact centres are in the hands of providers.
Mycustomer.com
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12% of call center companies do not measure Customer Satisfaction at all.
60% rely on the agent to assess the customers satisfaction.
Ventana Research
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Call Center performance metrics-
77% Average time to answer,
76% Call length,
70% Abandoned calls,
70% Queue times,
44% First Call Resolution,
36% Lifetime value,
28% Calls placed on hold,
23% Root Cause Analysis,
50% of call centers target less than 4 minutes per call,
48% track revenue generated by the call center,
46% employ up-sell or cross efforts,
VoIP- 75% are planning or seriously considering deployment of VoIP.
62% of call centers are employing voice recording.
60% of call centers employ IVR,
18% of call centers have deployed web chat,
42% of call centers have deployed E-learning,
44% of call center produce a center wide scorecard and 34% produce a customer focused scorecard,
CRM is in use in 44% of call centers,
Knowledge Management is in use in 34% of call centers,
Only 17% of call centers are currently planning to outsource their call centers.
45% of call centers use business process management to define processes,
48% employ scripts,
Ventana Research
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60% of companies employ previous call patterns to determine future agent requirements.
Ventana Research
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58% of call centers are under 100 seats.
Ventana Research
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IDC report calculated that call-center-based agents cost companies $31 per hour, including overhead and training, while home-based agents cost $21.
IDC
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A new report, predicts the number of agents in Brazil will rise from 3,900 in 2005 to 11,500 in 2010. Datamonitor expects demand for service based in Brazil from U.S. companies to grow at a compound annual growth rate (CAGR) of 27% between 2005 and 2010 compared to 21% from other regions.
Caribean and Latin American based contact center agents servicing offshore customers to more than triple from 16,200 in 2005 to 44,900 in 2010.
Datamonitor
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Datamonitor in their report, Mexico–A solution for the US Hispanic Market predicts a compounded annual growth rate of 18% in agent positions in Mexico to 2010. This will increase the number of Agent positions from 33,500 today to nearly 88,000 by 2010.
The principal drivers for this growth is the Mexican market as well as the growing and increasing US Spanish speaking market, which is growing both in terms of numbers and in household income.
Datamonitor
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A Yankee Group study of 350 US and Candaian call centers has found that 24% of agents or 672,000 workers, work from their homes.
This number is expected to grow by 24% per year through 2010.
Yankee Group
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In a published Brief, “Selling Offshore Outsourced Contact Center Services to the Healthcare Industry,” independent market analyst Datamonitor (DTM.L) puts 2005 global contact center outsourcing revenues associated with healthcare at approximately $800 million. By 2008, Datamonitor expects it to exceed $1.1 billion.
Datamonitor
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The number of Asia Pacific call centres is expected to swell from 21,360 to 39,247 by the end of 2011, according to new research.
The growth is fueled mainly by the regions healthy outsourcing market, says the report.
Frost & Sullivan
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IDC estimates the number of home-based phone representatives in the United States, to grow from 112,000 today to over 300,000 by 2010.
IDC
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The market for VoIP services in Asia, including Japan, is expected to grow at a rate of around US$1 billion per year between 2005 and 2009 to more than US$10 billion, as the number of users more than doubles, according to new research.
Service providers have been leading the VoIP charge in Asia through offering customers discount mobile phone or home rates on long distance calls that are transferred to the IP network, according Victor Liu of research company to In-Stat. But while VoIP is doing well in East Asia’s wealthier nations, the study said governments in some other countries have been over-protective of incumbent telecoms operators, resulting in poorer adoption of VoIP.
The In-Stat study said that at the end of 2004, VoIP services revenue in Asia totaled US$5.5 billion, with 8.7 million local VoIP lines. In-Stat forecasts the number of VoIP users in Asia will rise to over 20 million by 2009.
Originally published in Callcentres.net
In-Stat
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Call centers: outsourcing on the increase in Western Europe
4 November 2005
As businesses increase their propensity to outsource, all Western European call center markets will see the number of outsourced agent positions continue to grow over the next four years. In 2009, 14.5% of all call center agent positions will be outsourced positions, compared to just over 12% in 2004. This represents around 196,000 outsourced agent positions in western Europe by 2009.
Source: Datamonitor, “Call Center Outsourcing in Western Europe” (DMTC1106)
Datamonitor Nov 2005
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Latin America call center workstaions will grow from 336000 in 2004 to 730000 in 2008
Datamonitor
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90% of executives see Customer Service as crucial to their future business success. In the same study more than 70% of senior call center executives revealed that their companies fail to meet their customers’ expectations.
Bain Consulting
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92% of customers form their opinion about a company based on their call center.
Purdue University
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68% of Customers will switch brands based on a poor service experience.
Gartner Group
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BPO to Grow 10 Percent Annually
The worldwide business process outsourcing market is “vibrant and brimming with opportunity,” according to International Data Corp., which predicts the market will top $640 billion in 2006.
ICD
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EMEA (Europe Middle East Asia) Agent positions will grow from 1.5 million Agent positions in 2003 to 2.1 million by 2008, with a CAGR 0f 6.3% through this period.
Datamonitor- April 2004
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Among North American SMBs with revenues of $10 million and $250 million, 51 percent failed to respond to emails at all and 70 percent did not respond within 24 hours, compared to 41 percent of enterprises not responding at all and 61 percent not responding within 24 hours
Customer Relationship Management/Email Response Times Lag Still/September 2005
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The worldwide market for customer service outsourcing is set to grow from $8.4 bln in 2004 to $12.2 bln in 2007, but the offshore component will remain small, according to Gartner.
Customer Service Outsourcing to grow to $12.2 bln by 2007
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Workforce Optimization Technologies (WOT’s) are growing at the rate of 12.1% CAGR
Datamonitor- April 2005
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The Indian call center market will grow by 65% in 2005.
CallCentres.net
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27% of all calls to Asian call centers are prrocessed by an IVR.
Dynamic Asian Markets 2004
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Indian revenues from call centers have grown an estimated 107% over the past year and this particular area employs over 120,000 people today
Research and Markets- Dec 2004
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Almost half (48%) of Call Centres in Australia are equipped for fewer than 20 agents, a higher proportion than in 2002 (33%) and 2003 (30%).
Just over 1 in 10 (12%) Call Centres are equipped for 100 or more seats, lower than in 2003 and 2002.
ACCN
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Decline in call centre certification.
Over one third (36%) of the Call Centres offer their agents industry recognised qualifications, compared to 45% in 2003.
Australian Call Centre Survey, 2004
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Agents receive an average of 15 days of training each year. Larger call centres offer more training days than smaller centres.
Australian Call Centre Survey, 2004
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IDATE projects 40% of business lines will be VoIP or telephony over IP by 2009.
-IDATE
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By 2008, Datamonitor expects this to shrink to 2.72 million APs spread through 47,500 call centers. The United States currently houses 2.86 million agent positions (APs) in 50,600 call centers. This represents 2900 call centers and 140,000 jobs.
3000 call center be lost- Datamonitor
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Total Revenues from Outsourced Contact Management, Including Phone-Based Services Comprised of Live and Automated Handling, as Well as Live Agent-Based Internet Contacts (Email, Text Chat) Reached $18.5 Billion in 2002
Research and Markets
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The worldwide customer relationship management (CRM) applications market will reach $11.4 billion in revenues by 2008, experiencing a compound annual growth rate (CAGR) of 8.9% over the 2004-2008 forecast period.
IDC- August 2004
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Over 23 million households in North America are making high-speed Net connections
Forrester- July 2004
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Only 37% of executives claimed that they had the tools and authority to resolve customer problems.
Strativity Group- July 2004
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In 2003, sales of CRM software grew by 4 percent. This year, they are expected to jump another 6 percent.
I.T. groups are spending an average of 18 percent of their budgets on CRM projects. However, the products with the biggest growth rates are the simpler ones. Microsoft , for example, is seeing big jumps in sales of its CRM application.
AMR Research-June 2004
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Best Buy was the top computer and computer-related products retailer in 2003, according to TWICE Market Research.
TWICE Market Research released its list of the Top 25 US computer retailers in 2003 this week, indicating that Best Buy and Dell Computer retained their respective number one and two spots as the top PC retailers. In general, computers and especially notebook sales drove revenue growth, as opposed to peripherals like flat-screen monitors and cameras as in past years.
Consumer electronics retailer Best Buy held onto the top spot, increasing its sales revenues by 22.4%, from $6.25 billion in 2002 to $7.65 billion in 2003, and outselling number two Dell by $2.5 billion. While trailing Best Buy by a significant margin, Dell also held its second place spot quite securely, increasing its sales revenues by 13.5% and outselling number three Staples by almost $2 billion.
Staples, which specializes in office supplies, jumped up two spots from last year, with only a slight increase in sales. Much of Staples’ success can be attributed to the relatively poor performance of some close rivals, like Circuit City, CompUSA and Gateway, all of which saw their sales revenues drop or stay flat. Staples helped itself up the list by adding over 60 new stores in 2003.
Other notable movers included Target, which jumped 10 spots on the strength of 100 new stores and a 33.5% increase in sales revenues, CDW, which increased its sales revenues by over 600% by acquiring Micro Warehouse, and Sears, which fell 10 spots due to its phasing out of IT sales operation.
A breakdown of sales by channel shows no one type of store dominating the market, though stores not specializing in computers — electronics & appliances stores and home office stores — claim the top two positions.
emarketer.com
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Training Budgets increas by 15%
Australian Call Centres are investing 3.4 hours per week in training (1.4 hours in training off the phones, 1 hour of one-on-one coaching and 1 hour for personal development) .
This average of approximately month per year to training is a 15% increase on the previous year. Based on an entry level agent salary, this equates to $8,500 per person, not including the cost of the actual training.
This training investment was offset by a significant decrease in attrition and increase in productivity.
Australian Call Centre Survey, 2004
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BPO Market continues to Grow
52% of all North American outsourcing contracts are for BPO services, surpassing IT outsourcing in Q1 2004. BPO outsourcing represented 39% one year earlier.
The Global Outsource BPO contract value in 2003 was $6.9 billion with 68% of this value coming from North America.
Front and middle office BPO acccounted for 78% of total contract value.
The top 3 BPO vendors during this period were; IBM Global Services, Capita, and ACS
NelsonHall May 2004
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Staff turnover rates in Financial Services Call Centers are as high as 39% per annum.
Cutting Edge Information – 2003
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53% of respondants to a recent survey indicated that their opinion of particular Brand decreased after contacting the compant call centre.
Transversal – Jan 22, 2004
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The US domestic Directory Assistance Market for 2004 is estimated at $6 billion, growing to over $8 billion by 2007.
Pierz Group, Feb. 2004
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The 2003 Directory assistance market brought in $$22 Billion from North and South America.
Zelos Group
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Worldwide phone sales in 2003 increase 21% over 2002.
Gartner
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The Taylor Reach Group Inc. research suggests that less than 50% of Canadian businesses are compliant with the ‘Personal Information Protection and Electronic Documents Act’(PIPEDA), 2 months after it became law.
The Taylor Reach Group Inc. Feb 27, 2004
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The market for e-learning in the U.S. call center industry is expected to grow at a compound annual growth rate of 110% over the next four years, according to a report by Saddletree Research. (Cited in Call Center Management Review, May 2002, www.ccmreview.com
Saddletree Research, 5-1-2002
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Frost & Sullivan projects that Internet Protocol (IP) industry revenues will grow to $841 million by 2008, from $32 million in 2001.
Asia Pacific Call Centre News, 4-24-2002
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Revenue in the call center industry in India is projected to grow 70% in 2002, according to Nasscom, India’s National Association of Software and Services Companies.
Asia Pacific Call Centre News, 4-18-2002
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Revenue in the call center industry in India is projected to grow 70% in 2002, according to Nasscom, India’s National Association of Software and Services Companies.
Asia Pacific Call Centre News, 4-11-2002
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Latin America was estimated by IDC to have more than 60,000 call center seats by the end of 2001.
Asia Pacific Call Centre News, 4-5-2002
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IDC estimates revenue in the contact center training industry will grow from $415 million in 2001 to nearly $1 billion in 2006.
ICCM Weekly, 4-3-2002
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Any information which quantifies how many or how much in relation to call centers or the technology/ products used by call centers: Number of call centers/agents, volume of transactions, revenue/sales amounts for products/technology/regions.
Datamonitor estimates that the 2.5 million agent positions in the United States today will increase more than 14% by 2005
Cited in Call Center Management Review, May 2002, www.ccmreview.com
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IDC estimates North American businesses sent 1.4 trillion email messages in 2001, an increase from 40 billion in 1995.
Wall Street Journal, 1-10-2002
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Datamonitor projects that global spending on voice technologies will grow at a compound annual growth rate of 43% between 2000 and 2006. (Cited in Call Center Management Review, December 2001, www.ccmreview.com)
Datamonitor, 12-1-2001
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Frost & Sullivan projects Asia-Pacific call center industry revenues will increase from $655 million in 2000 to $1.5 billion in 2007.
Asia Pacific Call Centre News, 11-5-2001
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According to Ovum, the rate of call center growth in Central and Eastern Europe, along with South and Central America (including the Carribean), will accelerate so rapidly that each of these regions’ share of global call center capacity will increase from 2% of worldwide call center seats in 2001 to 7% in 2006 (a combined increase to 14% from 4%). Much of the increased capacity will come from new call centers that will be designed as multichannel contact centers
Ovum, 6-14-2001
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Ovum predicts that call center capacity worldwide will nearly double within five years, growing from 7.3 million seats in 2001 to over 13 million early in 2006. Seats in multichannel contact centers will also increase as a percentage of total call center seats, from 18% in 2001 to 51% in 2006, representing growth from 1.3 million multichannel contact center seats to 6.8 million
Ovum, 6-14-2001
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Call Center Week reports a 24% annual growth rate for call centers in Canada, and estimates the number of Canadian call centers to be 6,500
Call Center Week, 5-14-2001
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Customer Interface’s 2000 survey found that 23.5% of U.S. customer contact centers were in the Mid-Atlantic region, 22.2% were in the West (including Alaska), 18.5% were in the Midwest, 14.7% were in the Southwest, 13.3% were in the South, and 7.8% were in the Northeast.
Customer Interface, 2-9-2001
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Dataquest, Inc. projects that voice-over-packet (VoIP) services will reach $87 billion by 2004.
GartnerGroup, 2-6-2001
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Workforce management software was used in less than 12% of U.S. call centers at the end of 2000, according to a report published by Saddletree Research, but the market is expected to grow to $1.2 billion at a 74% compound annual growth rate through the year 2004.
SaddleTree Research, 2-5-2001
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According to TeleManagement Search (TMS), average salaries for inbound call center supervisors are about $30,000, while managers earn, on average, in the low $60,000 range. Call center directors in consumer operations earn an average of $92,700 and those in business-to-business operations earn $83,100. (Cited in Call Center Management Review, February 2001, www.ccmreview.com )
TeleManagement Search, 2-1-2001
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According to TeleManagement Search (TMS), there are 7 million call center agents in the U.S., and the annual growth rate is expected to be 20%. The number of call centers is estimated to be 69,500 and will grow to 78,000 in 2003. (Cited in Call Center Management Review, February 2001, www.ccmreview.com )
TeleManagement Search, 2-1-2001
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The global call center market will have a value greater than $56 billion by 2003, according to a study by International Data Corporation.
Peppers and Rogers Group, 1-15-2001
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Datamonitor estimates the number of call centers in the United States will be around 78,000 in 2003. (Cited in Call Center Management Review, September 2001, www.ccmreview.com)
Datamonitor, 9-1-2001
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According to an Ovum study, by early 2006, 23% of internet users, or 166 million people around the world, will be using IP telephony to regularly make phone calls from their PC, up from 5%, or 11.3 million users, at the start of 2001. These calls will produce 251 billion minutes of IP telephony traffic in 2005, up from 3.4 billion minutes in 2000. Annual revenues for these services will be $6.2 billion by 2005.
Ovum, 1-3-2001
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Dataquest, Inc. reports that the average amount companies spend on CRM initiatives is greater than $1 million, and will be twice as high by the end of 2001. Dataquest estimates the global market for CRM grew 28% in 2000, to $19.9 billion.
GartnerGroup, 12-20-2000
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A Gartner Group study projects that North American spending over the internet will reach 5 – 7% of all retail spending by 2004, up from less than 1% in 1999. According to Gartner, 1999 internet retail spending in North America was $16.8 billion, which was 157% higher than in 1998. 2000 spending is projected to exceed $29.3 billion. The largest segment of this market will continue to be computer hardware, software, and consumer electronics, which totaled $7.5 billion in 1999 and could grow to $59.7 billion by 2004. Growth in banking and financial services totaled $3.6 billion in 1999, and should reach $12.3 billion by 2004.
GartnerGroup, 6-27-2000
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Ovum estimates the web shopping market will grow to $10.39 billion by 2005, representing a huge opportunity for companies who have implemented e-CRM solutions, which personalize self-service electronic channels for the needs of their customers.
Ovum, 9-28-2000
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IDC estimates that softswitches, which control the flow of voice and data traffic by managing both internet protocol (IP) and public switched telephone network (PSTN) on a telecommunications network, will grow to $5.7 billion by 2004.
IDC, 6-14-2000
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Dataquest, Inc. estimates that the number of “telewebber” (people who watch TV and surf the web at the same time) households in the U.S. grew from 27 million in 1999 to 44 million in 2000, and will grow to 52 million early in 2001. In 1999, 44% of these telewebbers used the internet to find information occasionally about a product they saw on television, and 20% placed orders online. In 2000, those percentages increased to 60% who sought information and 32% who placed orders. 12.5% of telewebbers have broadband access to the internet, compared to 6% of the U.S. adult population as a whole. By the middle of 2001, Dataquest projects 18% of telewebbers will have broadband access, while the percentage for the U.S. overall will only have grown to 8%.
GartnerGroup, 6-8-2000
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According to a Datamonitor study, spending on call center outsourcing in Europe was $7 billion in 1999 and will be approximately $15.1 billion in 2003.
Datamonitor, 12-6-1999
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By 2004, North America’s share of voice-over-packet (VoIP) revenues will be less than 40%, down from 65% in 2000.
GartnerGroup, 3-6-2000
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The Philippines this year will pocket $5.7 billion for call center work from the U.S., Europe, and Australia, vs. the $5.5 billion that India’s call centers will take in, according to the Everest Group, an outsourcing advisory firm.- Dec 2010
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24% of UK customer have stopped doing business with a company in the past 6 months due to a bad service experience – Satmetrix
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– Customer Service Fact: 90% of companies agree that the customer experience is important and critical to their 2010 plans. 80% of those companies want to use customer service/experience as a way to differentiate themselves from their competition. (Source: Forrester’s The State of Customer Experience, 2010)
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– Customer Service Fact: 82% of consumers stopped doing business with a company because of bad customer service. This is up from 59% just four years ago. (Harris Interactive, Customer Experience Impact Report – 2010)
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– Customer Service Fact: Even in a down economy, 85% of consumers will pay more to the company that provides them better customer service. (Source: Harris Interactive, Customer Experience Impact Report, 2010)
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84% of customers said their expectations were not exceeded during their last Customer Service interaction- HBR- Aug 2010
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According to IBM’s Global Locations Trends: Annual Report (2010); The Philippines has overtaken India to become the global leader in offshore call center outsourcing, employing more than 400,000 people. Low labor costs, an American culture, native English language skills, and a highly educated workforce combine to make the Philippines the most attractive offshore destination, adding an average of 2,000 new call center positions every week.
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