“Onshoring” Leads to the Growth of Niche Industry in the U.S.

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Feb. 28, 2017

contact centerChances are, unless you need tech support or have billing questions, you probably don’t think much about contact centers. But evolving consumer and client preferences in the digital age have accelerated the growth of this niche industry in recent years. In 2016, the contact center industry grew across world markets, outpacing economic growth on a global level.

The U.S. is leading the field of high-quality products and services, and thus seeing the largest growth in contact center operations focused on high-quality offerings. The U.S. contact center industry maintained the largest share of the global market, and demonstrated steady 1.5 percent annual growth in contact center spending in 2016.

As further proof of this trend, contact center contracts are seeing a greater shift in allocation to U.S.-based employees than in previous years.

Demand for quality will continue to cement the U.S. as the predominant player in the industry. Growth of and preference for onshore operations will be prevalent for corporate users and third-party providers alike.

Third-party providers in particular are expected to see a strong increase in revenues as corporations turn to outsourcing basic business and analytics functionalities. Furthermore, merger and acquisition activity is likely to carry over from 2016 as these providers aim to grow their market share and expand into new geographies and service lines. With the growth of “onshoring” operations, acquiring companies will attempt to reduce real estate costs to offset increased labor costs by consolidating labor across fewer contact facilities.

Continued demand for technology and increasingly complex conversations with the end-user will give domestic contact centers the upper hand throughout 2017 and beyond. The contact center industry, for both in-house and third-party operations, is expected to grow for the next five years.

To learn more about the contact center industry and its impact on real estate, download JLL’s 2017 Contact Centers report.

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