Call Centres in the UK Industry Market Research Report now updated by IBISWorld

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Up until 2009-10, call centres were in terrific shape, recording consistent double-digit revenue growth, which attracted several new entrants to the industry. However, the economic downturn dramatically changed the operating environment: industry demand collapsed, sending revenue into a dramatic downward spiral. IBISWorld forecasts that there will be no real return to the industry peak figures reached in 2008-09, as the value of call centres is progressively being shifted to more automated processes, online platforms, or even to social networking sites. The industry will be subject to a degree of volatility in total revenue over the coming five years. For these reasons, industry research firm IBISWorld has updated its report on the Call Centres in the UK industry.

IBISWorld Market Research

IBISWorld Market Research

Offshore competitors are providing tough competition so operators must focus on specialist services to generate revenue.

Up until 2009-10, the call centre industry was in terrific shape, recording consistent double-digit revenue growth, which attracted a number of new entrants to the industry. However, according to IBISWorld industry analyst Nick Sallmann, “the economic downturn dramatically changed the operating environment: industry demand collapsed, sending revenue into a dramatic downward spiral”. With consideration given to both the highs and lows experienced over the past five years, the result is average growth. Demand from the corporate sector remained strong right across the past five years, as there was an increased focus on customer relations.

Despite the underlying demand, industry profitability suffered as a result of a growing competitive threat from offshore operations. Offshore contact centres operate in developing regions, such as India, which benefit from significantly lower labour costs. This enables them to offer a similar level of service at drastically reduced rates in comparison with domestic operators. Sallmann added, “as a result, clients have looked to offshore operators when outsourcing contact centre services, which has had a negative effect on industry demand and also profitability”. IBISWorld analysis concludes that the industry margin bottomed out in 2009-10. This year, profitability has strengthened somewhat. Revenue is expected to fall marginally in 2012-13.

The Call Centre industry has a low level of market share concentration. Even though the industry is dominated by in-house contact centres outsourcing operations to contact centre specialists is a growing trend. Major companies include MM Teleperformance, Convergys CMG UK, LBM Direct Marketing and Sitel UK. IBISWorld forecasts that there will be no real return to the industry peak figures reached in 2008-09, as the value of call centres is progressively being shifted to more automated processes, online platforms, or even to social networking sites. The industry will be subject to a degree of volatility in total revenue over the coming five years.

For more information on the Call Centre industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.

IBISWorld Industry Report Key Topics

Industry participants operate as a telecommunications intermediary between consumers and individual clients. Call centre operations involve inbound and outbound telecommunication services that improve client relations.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalisation & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on many UK industries. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in London, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.co.uk or call (020) 3008 6568.

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Gavin Smith
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