Study Sees Teleservices Growth Through 2008

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Though the industry may be smarting now, the economic downturn will benefit outsourced teleservices providers in the long term, according to a study released yesterday by research firm Frost & Sullivan.


Call center outsourcing generated $27.2 billion in 2000, according to the study, "Outsourced Contact Center Service Markets." Despite a slowdown last year, the industry can expect growth through 2008, it said.


As companies search for ways to trim budgets because of the sluggish economy, many will consider outsourcing as an alternative to maintaining an inhouse call center work force.


To take advantage of this trend, teleservices providers need to learn to deal with challenges that face the industry. Key among these will be the cost of employing live agents, the study said. Teleservices outsourcers are developing ways to control the per-seat cost of call center employees, such as using agents who telecommute rather than maintaining a large call center.


Teleservices-related legislation, such as do-not-call lists and tighter rules on the collection of personal information, also will present challenges, the study said. For more information about the study, go to www.frost.com.


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