Telemarketing & Call Centres in Canada Industry Market Research Report Now Available from IBISWorld

Share Article

Rising regulation, increased wage costs and falling demand have all hurt industry profit margins during the past five years, but improvements in communications technology and an increased focus on efficiency will marginally increase industry profit in the future. For these reasons, industry research firm IBISWorld has added a report on the Telemarketing and Call Centres industry to its growing industry report collection.

News Image
Revenue will continue to decline as businesses offshore their call centre operations

In the five years to 2013, IBISWorld estimates that revenue for the Telemarketing and Call Centres industry will decline at an average rate of 3.0% per year, including a decline of 0.9% in 2013 to $2.5 billion. The industry experienced strong growth during the late 1990s through the mid-2000s. The industry thrived as US companies looked to Canadian call centre operators to provide outsourced customer service at a fraction of the wage costs companies would need to pay US workers. Unfortunately for Canadian call centres, the rising value of commodities has driven the value of the Canadian dollar to parity with the US dollar, says IBISWorld industry analyst Kevin Culbert. Growth across the mining sector has also caused wages to rise, forcing industry employers wage their wages to retain staff. As such, the cost advantage that Canadian call centres once offered to US companies is no longer in place. Furthermore, some companies have offshored their Canadian operations to overseas locations that have a high English proficiency but lower wage costs. As a result of these factors, industry operators have reduced the size of their Canadian operations. Major player Convergys, for example, closed its Winnipeg call centre in late 2009 and reduced its employee headcount by 500 people.

The industry has also had to contend with a changing regulatory landscape. In September 2008, the Radio-television and Telecommunications Commission (CRTC) implemented the National Do Not Call List (NDNCL). Rising regulation, increased wage costs and falling demand have all hurt industry profit margins during the past five years, continue Culbert. Declining profit and offshoring have caused some industry operators to be acquired or leave the industry altogether. Consequently, IBISWorld estimates the number of firms operating in the Telemarketing and Call Centres industry to decline at an average rate of 1.8% to 796 companies in the five years to 2013.

The industry has a low level of market share concentration. Its largest operators are Teleperformance SA and Convergys Corporation in 2013. Among companies with employees, 53.1% have a workforce of fewer than 20 people, while only 20.1% employ 100 people or more. Concentration has remained relatively steady over the past five years, and will likely remain fragmented and maintain its low concentration over the next five years. In the five years to 2018, the industry will suffer from the continued movement of call centre operations back to the United States. In spite of falling revenue, improvements in communications technology and an increased focus on efficiency are expected to marginally increase industry profit. For more information, visit IBISWorld’s Telemarketing and Call Centres in Canada industry report page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189

IBISWorld industry Report Key Topics

This industry employs personnel to answer phone calls and relay messages to clients. Companies also provide telemarketing services on a contract or fee basis. Telemarketers use phones or e-mail to promote clients’ products or services, take orders, solicit contributions or provide information on behalf of clients. Call centres provide phone-based service and assistance to customers of clients. Firms in this industry do not own the product or provide the service that they represent.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & 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 Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US and Canadian industry. 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 Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Gavin Smith
Visit website