The GCC contact center industry is expected to register a single-digit growth rate from 2008 to 2013, despite the negative impact of the global economic downturn, according to a study conducted by Madar Research in conjunction with marketing communications consultancy Orient Planet. The study revealed that contact center installed base or sites in the region will increase by around 7.4 percent annually, bringing about 280 new installations by end 2013 or about 56 new contact center installations per year. Furthermore, aggregate operational spending by contact centers will also increase by approximately 8.1 percent annually to reach around $768.3 million by end of 2013, up from $527.3 million in 2008. Contact center has been defined as a centralized department in an enterprise from which all customer contacts are managed with computer automation using various communication channels, including over the phone, e-mail, SMS, web forum, chat or video. The moderate growth forecast of the contact center industry within the next five years comes after a period of outstanding growth from 2003 to 2008, the nascent years of the industry in the GCC in terms of contact center installations wherein the installed base achieved a compounded average growth rate of 14.2 percent annually. The number of seats per contact center witnessed a phenomenal 18.2 percent growth annually during the same period. Abdul Kader Kamli, president & research director of Madar Research Group, said: “At a time when the global economic downturn has affected the growth trajectory of other sectors, the GCC contact center industry is expected to maintain a decent growth rate within the next five years. The government, services, healthcare and even the telecom sectors will act as the engine for growth as these industries have remained relatively unaffected by the global downturn and will be more inclined to adopt innovative technology solutions. Moreover, we will see a shift in the adoption trend for contact center solutions towards small to medium sized companies, who are expected to pick up the pace in a bid to stay competitive against large, multinational companies that usually employ dozens and sometimes hundreds of contact center agents.” Nidal Abou Zaki, managing director, Orient Planet, said: “The GCC remains an important catalyst for the Middle East contact center industry because of the region's strategic advantages and long-term potential. The UAE, in particular, is expected to carry the banner for the region because of its advanced ready-built contact center facilities such as the Dubai Outsource Zone, the country's ideal geographical location between Europe and Asia, and its multi-lingual population. As businesses focus on improving customer loyalty and satisfaction as part of their strategies to offset the effects of the economic downturn, contact centers will play an important role in achieving these strategic objectives and helping companies maintain their competitiveness.” With contact center seats and agents projected to grow at a compounded average rate of 5.6 percent and 6.1 percent, respectively, the industry will see additional 4,800 contact center seats and 5,900 agents between 2008 and 2013. However, between 2009 and 2010, there is also a possibility that the number of contact centers and contact center agents in the GCC will reduce due to contact centers closing down or laying off employees to boost their liquidity. Such contraction will not likely touch five percent per year, even in a worst-case scenario. This period will also see the average number of seats per contact center shrink from nearly 26 to 23.5, indicating that the adoption trend for contact center solutions will shift towards small to medium sized companies, most of whom will not require more than 25 seats. However, the number of agents per contact center agents will exhibit a reverse trend (increase in number) as more companies will tend to keep their contact centers open longer than their official working hours, perhaps even extending to operate a customer service operation that is open 24/7. The report noted that the regional contact center sector will bank on mature industries such as telecom, government and finance, as well as companies in other industries that take a long-shot view of the future to spur the industry's long-term growth. These sectors will be less inundated by the economic slowdown and therefore will continue to invest in business solutions to retain existing customers, if not lure new ones. The contact center industry is strongly positioned to leverage such potential because as a solution, contact centers - whether in-house or outsourced - are viewed as a viable option for establishments that rely on intensive customer interaction. Moreover, the intra-GCC nature of contact center transactions could soften the impact of the global economic crisis, particularly on the region's outsourcing contact center industry, unlike in countries that are highly dependent on US-based accounts. For instance, about 90 percent and 65 percent of outsourcing businesses in the Philippines and India, respectively, depend on large US based-accounts like IBM and Accenture.
