Brazil BPO and contact center outsourcing market dips 5% to $5.19 bn in 2013

Brazil business process outsourcing (BPO) and contact center outsourcing services market dipped 5.1 percent to $5.19 billion in 2013, said Frost & Sullivan.

The decrease in revenue growth was due to the exit of Tellus and Vidax as well as reduced performance of some important companies.

Frost & Sullivan said in its report — Brazilian BPO and Contact Center Outsourcing Services Market 2014 – the market will grow to $7.34 billion in 2018.

Over the next five years, the revenue share of inbound services is expected to decline, making room for BPO and back-office services, areas which companies are increasingly looking to outsource so as to improve customer service and experience.

“Outsourcing companies have marginally widened their portfolio to meet the unique needs of verticals such as utilities and energy, retail and consumer goods, and insurance, which have witnessed an increase in revenue share,” said Frost & Sullivan Information & Communication Technologies Industry Analyst Maiara Paula Munhoz.

This trend, along with the start of BPO operations by new companies including Konecta and Acticall, shows that the Brazilian BPO and contact center outsourcing services market has space for more competition.


Main problem in the Brazilian BPO market is availability of limited workforce and high competitiveness among outsourcing companies.

Frost & Sullivan suggests that Brazilian outsourcing companies should invest in their agents in terms of salary, training, career development, and other benefits to improve the employee experience, lower turnover rates, increase productivity and enhance the customer experience.

In addition, BPOs should open headquarters in the northeastern and southern parts of Brazil owing to the availability of a low-cost workforce, less competition, and reduced churn rates.