A Cloud Contact Center is an enterprise hosted on the internet server that provides services like handling all the inbound & outbound communications through making calls, interacting with the customers through social media, emails, voice, etc. The cloud computing market in the Latin American region has grown in the historical period due to the flexibility, scalability, & low setup costs of cloud contact centers, coupled with the swift shift of organizations towards the cloud. Cloud Contact Centers allow companies to interact with customers via email, voice, social media, etc., through web access.
The Latin America Cloud Contact Center Market is projected to grow at around 25.82% CAGR during the forecast period, i.e., 2022-27. The continuous market growth across Latin America is primarily due to the increasing reliance of Small & Medium Enterprises (SMEs) on adopting effective strategies for client handling both for redressing queries and customer acquisition & marketing-based activities.
People around Brazil and other Latin American countries, such as Chile & Argentina, have also witnessed a surge in spam calls by various companies regarding their different marketing activities. It, in turn, has led IT & telecom operators to adopt an all-new approach for optimizing client handling strategies. This mounting need to channelize the various resources of organizations efficiently has helped the Cloud Contact Center Market expand across Latin America during 2017-20.
|Study Period||Historical Data: 2017-20|
|Base Year: 2021|
|Forecast Period: 2022-27|
|Countries Covered||Brazil, Mexico, Argentina, Chile|
|Key Companies Profiled||8x8 Inc., Five9 Inc., Cisco Systems Inc., Genesys Telecommunications Laboratories, Inc., Oracle Corporation, New Voice Media, Connect First Inc., Aspect Software Inc., 3C Logic Inc., Avaya Brasil Ltda., Dedalus Global|
|Unit Denominations||USD Million/Billion|
Key Trends in the Latin America Cloud Contact Center Market
The transformation of cloud contact centers from single-channel to multi-channel models for managing inbound calls, emails, web inquiries, & chats is the most prominent factor driving the Latin America Cloud Contact Center Market. Nowadays, businesses across Latin America are increasingly adopting Social Media, Mobile, Analytics, & Cloud (SMAC) technologies or Omni-channel models to yield better results. These technologies/models use hosted cloud-based contact center software to handle customer interactions with multiple channels. Furthermore, the technology offers easy & quick deployment without affecting the overall operational costs while extending the agility of their business operations by managing the rapidly changing consumer preferences through multiple channels. Moreover, the region is also witnessing significant developments in Omni-channel cloud centers. For instance:
These initiatives by companies working in prominent industry verticals across Latin America are expected to contribute immensely to the growth of the Cloud Contact Center Market in the forthcoming years.
Impact of Covid-19 on the Latin America Cloud Contact Center Market
With the Covid-19 pandemic in 2020, enterprises across Latin America increasingly adopted remote working models to safeguard employee wellbeing & maintain operational efficiency. It, in turn, surged the demand for cloud-based solutions & services that pose various advantages like system reliability, flexibility, scalability, & reduced operational costs. These aspects significantly contributed to the burgeoning demand for cloud contact centers across the region amidst the crisis. Moreover, the widespread effects of the pandemic have enabled businesses to continue work-from-home practices, which is a crucial aspect that would further augment the market growth in the years to come.
By Organization Size:
Of both, Large Enterprises are projected to dominate the market during 2022-27 since they are often the early adopters of advanced technologies supported by their revenue capabilities and large customer base. The mounting adoption of virtualization technology and the Internet of Things (IoT) in these enterprises have significantly contributed to increased cyber risks and the boom in network downtime costs. It has surged an urgent need for efficient cloud contact centers in these enterprises. Furthermore, advantages like better scalability & flexibility, pay-per-user subscription, and personalized customer experiences of cloud contact centers are other crucial aspects driving the market across Large Enterprises.
On the other hand, Small and Medium-Sized Enterprises (SMEs) companies held a significant share of the Cloud Contact Center Market in Latin America during 2017-20, owing primarily to the extensive presence of SMEs functioning in Latin America. The region is also experiencing a rise in the number of startups in BSFI, IT management sectors, etc. Furthermore, SMEs are very prone to cyber fraud, owing to the availability of limited resources, IT personnel, and budgets. Hence, the adoption of cloud contact centers has become a necessity for these organizations to minimize the risk of data & asset losses. Furthermore, SME's in the banking industry often carry extra pressure to protect the sensitive data of consumers and comply with the Payment Card Industry Data Security Standard (PCI DSS). As a result, the demand for advanced cloud contact centers to enhance customer experience and safeguard institutional assets across SMEs is soaring significantly.
Here, the solution segment grabbed a substantial share in the Latin America Cloud Contact Center Market during 2017-20, and the same trend is likely to be followed in the coming years. Various Cloud Contact Center solutions, such as ACD (Automatic Call Distribution), IVR (Interactive Voice Response), & APO (Agent Performance Optimization), have witnessed the maximum demand on account of their mounting usage to efficiently & cost-effectively automate client calls, with reduced waiting time and negligible burden on the available workforce. ACD is adopted highly across various companies in the Latin American region to allocate the excessive call loads from customers to the available agents.
With the increasing inclination of business firms toward modern cross-channel support with an effortless customer & experience, the Cloud Contact Center Market is likely to grow manifold across Latin America in the coming years. It is even more valid for Brazil, which observed the rapid adoption of various cloud-based contact center solutions amidst the Covid-19 pandemic in 2020.
Based on the Geography, the Latin America Cloud Contact Center market expands across:
With the increasing adoption of Cloud Contact Services to maximize the available workforce and reduce the wastage of resources on customer queries & promotional activities, the Cloud Contact Services Market has witnessed significant expansion in Brazil during 2017-20.
According to call blocking service provider Truecaller, the number of spam calls to customers in Brazil has grown more than double, from 21 to 46 between 2017 & 2019. It has been a key reason for customer dissatisfaction and has compelled companies to adopt Cloud Contact Center services to reduce the issues related to spam calls.
Many Cloud Contact Services providers across the Latin American region have launched their Cloud Services in Brazil. They are extending partnerships to tap profitable opportunities with the expansion of the Financial & IT services sector. For instance:
Cloud-native contact center solutions have been a key source of companies with personal infrastructure for the functioning & storage and using the public cloud-based framework during peak demand times. Brazil is an emerging market and has witnessed continuous growth in the demand for Hybrid Cloud Contact Centers, which, in turn, is anticipated to further increase during 2022-27.
Recent Developments by Leading Companies:
Cisco Systems Inc.
Key Driver: Burgeoning Reliance of Companies on Online Platforms to Provide Enhanced Customer Experiences
The number of customers using social media platforms has grown exponentially in the Latin American region since people have become increasingly vocal about services & customer handling by the companies. With the increasing need to digitalize & enhance customer handling and cater to different client requirements, companies are shifting their focus from traditional client handling portals like calling & messaging to online social media platforms for not only helping customers in resolving their queries but also connecting with them for promotional activities. Furthermore, Cloud deployment offers business firms to host their contact centers at third-party sites, which eliminates the need for hardware infrastructure and helps reduce the overall infrastructure costs significantly. It, in turn, would further boost the revenue of the Latin America Cloud Contact Center Market in the years to come.
Growth Restraint: Lack of Skilled Professionals to Operate Cloud Contact Centers
With the growing digitalization and rapid adoption of work from home policies, data protection & security are at a higher risk of cyber-attacks that may lead to data thefts like IPs, sensitive company/firm information, and physical assets, such as machines or equipment malfunctioning, among many others. Cybersecurity has become a key concern among service providers as important information can be stolen by malicious viruses in computer systems, resulting in significant losses to the industrial units. It, in turn, can lead to disruption in the flow of information due to increased dependence on Web-based data interchange. Hence, growing concerns regarding cyber Attacks may affect the adoption of cloud-based contact centers and restrain the overall market growth in the coming years.
Key Questions Answered in the Market Research Report:
Market Outlook, Segmentation, and Statistics
Frequently Asked Questions
A. The Latin America Cloud Contact Center Market is projected to grow at a CAGR of around 25.82% during 2022-27.
A. The significant demand for Cloud Contact Center Solutions is anticipated to emerge as an area of lucrative opportunities for the leading players in the Latin America Cloud Contact Center Market during 2022-27.
A. The rising adoption of technologies like Artificial Intelligence, Machine Learning, and Predictive analysis tools among various firms in their business operations to gain insights for monitoring & improving key service metrics is projected to provide a remunerative growth opportunity to the Latin America Cloud Contact Center Market during 2022-27.
A. The growing adoption of Cloud Contact Centres among organizations due to their flexibility, low setup costs, incredible scalability, etc., to drive the Latin America Cloud Contact Centre Market during 2022-27.