Telemarketing Call Center Industry

Introduction

Around the world, telemarketing industry is considered as the most dynamic and profit oriented sector that offer diverse services to distant customers. Over the years, this sector has attained immense acknowledgement through its rapid success across different nations. The companies operating in this sector answer phone calls and convey messages to customer and clients they also offer telemarketing services. Through telephone, they may provide information to customers, take orders for clients, solicit contributions or promote a customer's products or services. Telemarketing companies never possess ownership of the product or provide the service that they offer. The principal operations of this industry are Contract telemarketing & Telephone answering services. The key products and services offered in this industry are:

Telemarketing

Customer service and technical support

Fundraising

Debt collection

Other

This industry will be analyzed on the basis of the following factors and characteristics:

Market size (sales)

Sales growth rate

Stage of the life cycle (of the industry)

Types of products sold

Scope of rivalry

Key competitors in the industry

External/Industry Analysis

Market size (sales)

The current market size or revenue of the telemarketing industry is $18.4bn. Over the past five years, economic gloom and overseas outsourcing have hurt demand for US-based telemarketing companies. A fall in retail and business-to- business (B2B) sales has caused call volumes to decrease. More importantly, many companies are off shoring their call centers, causing the US market's revenue to further decline (American Teleservices Association).

Sales growth rate

In the five years to 2011, industry revenue will decrease at an average annualized rate of 0.4% to $18.4 billion. In 2011, industry revenue is expected to increase 0.7% from 2010. Sluggish growth is expected through 2016, as clients continue to wait for sustained signs of recovery before extending contracts with third-party service providers. In the five years to 2016, the industry is projected to grow 1.4% annually to $19.7 billion (American Teleservices Association).

Stage of the life cycle

This industry's domestic component is now in the decline phase of its life cycle. This is largely because changes in IT and telecommunications technology allow more services to be outsourced. Another factor that has contributed to decline is increased regulation, such as the Do Not Call registry. The industry has also experienced consolidation among its operators, which has also led the industry to the declining phase.

Types of products sold

The major products and services in this industry are:

Telemarketing

Customer service and technical support

Fundraising

Debt collection

Other

The products and services offered to the customer are somehow different in nature; this is because the purpose and the objective of the products and services offered to the customer are comparatively distinct. Call centers have been used to help client firms increase revenue by making calls to prospective businesses and households.The industry also provides customer service and technical support. A large portion of this segment's derived revenue is related to answering calls and relaying messages to clients. The industry also provides technical support, primarily to companies in the IT and telecommunications industries. However, technical support has largely been outsourced to countries with a well-educated workforce and relatively low wage costs, such as ...