Telephone Call Centers Industry
Insights from D&B Hoovers

Industry Overview

Description

Companies in this industry operate telephone call centers that provide telemarketing, customer care, and other outsourced business services on a contract basis. Major companies include Alorica, Conduent, Convergys, Sitel, and TeleTech (all based in the US), as well as Atento (Brazil), Teleperformance (France), and Transcom Worldwide (Luxembourg).

Competitive Landscape

Demand is largely driven by consumer spending and business activity. The profitability of individual companies depends on efficiency of operations. Big companies have the scale to provide services to large corporate customers. Small companies can compete successfully for small and midsized customers, because there are few economies of scale. The US industry is concentrated: the top 50 companies account for about 55% of revenue.

Products, Operations & Technology

Major services are telemarketing sales, customer care, technical support, and call answering. Smaller companies generally specialize in one of these services. Call center operations are typically a function of business process outsourcing (BPO) services, which include the contracting of back office tasks (such as billing or purchasing) or front office, customer-related tasks (such as marketing or tech support).

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