Contact Center Outsourcing in Argentina - An alternative for Spanish-speaking markets? (Analyst Brief)

Table of Contents

DATAMONITOR VIEW

• CATALYST
• SUMMARY

ANALYSIS

• Market overview
  • Overall market snapshot
  • Onshore / offshore splitDatamonitor estimates that in 2009, approximately 59% of outsourced agent positions in Argentina were serving local end-users, while 41% were servicing customers abroad. These proportions are not expected to shift heavily in the coming four years, effectively remaining flat, with a slight increase in favor of offshore delivery. This has much to do with the fact that Argentina is a relatively mature contact center market, with a growing number of domestic clients that require third-party services, coupled with the fact that its promotion of offshore services has been limited, relative to other more aggressive Latin American locations.
  • Vertical trends in Argentinean contact center outsourcingArgentina' s outsourced contact center industry split is relatively diverse for a Latin American location. Among mature verticals in 2009, Datamonitor notes that the bulk of APs are found in the telco (34%) and financial services (32%) sectors, with manufacturing and retail significantly further back, at less than 10% each. By 2013, each of these sectors is projected to decline marginally on a proportionate basis, with the exception of manufacturing, which will increase slightly through the period.

• Competitive issues in Argentina' s contact center outsourcing market
  • Existing outsourced contact center industry
  • Labor availability
  • Pricing issues
  • Secondary cities

• Overall stability
• Business environment
• Offshore market opportunity
  • US Hispanic market
  • European Spanish Market
  • Other offshore markets

ACTIONS

• Profit from existing investment incentive programs
• Develop an industry-wide global marketing strategy
• Aggressively court offshore contracts
• Gradually aim for US bilingual services
• Seek regional partners for domestic offshore work

APPENDIX

• Methodology
• Further reading
• Ask the analyst
• Datamonitor consulting
• Disclaimer

TABLES

• Table: Argentinean Outsourced Contact Center Market, 2007 - 2013
• Table: Real Estate Pricing and Vacancy Rates - Selected Latin American Cities, 2008
• Table: Secondary Cities in Argentina
• Table: Transparency Rankings - Selected Latin American Countries, 2008
• Table: Business Environment Rankings - Selected Latin American Countries, 2009

FIGURES

• Figure: Argentinean Outsourced Contact Center Market, 2007 - 2013
• Figure: Argentinean Outsourced AP Domestic / Offshore Split, 2007 - 2013
• Figure: Argentinean Outsourced Contact Center Vertical Market Evolution, 2008 & 2013
• Figure: Selected Latin American Unemployment Rates and Labor Market Magnitudes, 2008
• Figure: Selected Latin American Inflation Projections, 2007 - 2012
• Figure: Location of Birth of Foreign Born US Hispanic Population, 2000