Why Is India the Next Hotspot for CCaaS Vendors?

India is rapidly emerging as a pivotal market for Contact Center as a Service (CCaaS) vendors

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Why Is India the Next Hotspot for CCaaS Vendors - CX Today News
Contact CentreInsights

Published: June 5, 2024

Susie Harrison

The Indian call center market – also known for being a Business Process Outsourcing (BPO) hub – is a key player globally, having experienced significant growth over recent years, particularly with the service provider community. This has been driven by factors including India having:

  • A large, young, qualified population, with strong English and other language skills
  • A skilled workforce
  • Government support for the industry
  • Relatively low labor costs compared to developed countries

Revenue in the BPO market is expected to show an annual growth rate (CAGR 2024-2029) of 8.76%, resulting in a market volume of US$10.94bn by 2029, according to Statisa.

Some of the key trends in this market include:

  1. Shift from voice to non-voice services: There is a growing demand for non-voice services such as email support, chat support, and social media support. These sit alongside the continued importance of voice support.
  2. Focus on automation: Call centers are increasingly adopting automation technologies such as chatbots and artificial intelligence (AI) to improve efficiency and reduce costs.
  3. Omnichannel customer service: Companies are seeking to provide seamless customer service across all channels – including phone, email, chat, and social media.
  4. Security and data privacy: There is a widespread increase in focus on security and data privacy in the call center industry as data breaches become more common.

With the benefits that expansion into India clearly brings, it is no surprise that leading players including Bright Pattern, Cisco, RingCentral, and others have made the move. The global CCaaS market is projected to reach $10.8 billion by 2028, and India’s domestic market is poised for substantial growth – estimated at Rs. 8,000 crore.

Bright Pattern is entering the fray, having recently had their new entity in India approved. The company’s CEO Michael McCloskey told CX Today that the process for American enterprises to set up in the subcontinent is not always easy. He noted that it took 5-6 months for approval – so it’s not necessarily a quick, easy move to make. The government tries to support technological expansion, however, with PM Modi’s Digital India campaign aiming to promote inclusive growth in electronic services, products, manufacturing, and job opportunities.

Bright Pattern now has a facility there and is recruiting to the business, McCloskey stated. He added that the company will be largely working with partners, although companies like large e-commerce operations may want to deal with Bright Pattern directly. He cited the benefits that an established company like his can bring to the market and how these improved tools may help both domestic and multinational companies. Bright Pattern will offer businesses access to its AI-powered omnichannel contact center platform including interaction analytics, intent analysis, quality management, auto scoring, Agent Assist, and WFM.

India’s rapid digital transformation, focus on customer experience, technological adeptness, cost advantages, and supportive government policies make it an attractive market for CCaaS vendors. As businesses in India continue to prioritize efficient and innovative customer service solutions, the demand for CCaaS is expected to grow, solidifying India’s position as the next hotspot for CCaaS vendors. McCloskey underlined his excitement at the venture, stating:

This is a key breakthrough for us as we are committed to delivering advanced AI technologies to an ever-growing market that heavily utilizes contact center software for customers all over the world. With a market of over $25B and more than 1.3 million call center agents, this represents an enormous opportunity for Bright Pattern.

Read more about Bright Pattern’s move to India here.


Brands mentioned in this article.


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