Executive Summary (English)

Executive Summary (English)

ECCBP se réserve le droit de modifier, sans avis préalable, toute information contenue dans le présent document. La reproduction, totale ou partielle, de ce document sans l'accord préalable et écrit de ECCBP, est interdite. Tout manquement à ce qui précède constituerait une contrefaçon, sanctionnée par la législation en vigueur. Seuls ECCBP et ses sponsors possèdent un droit exclusif d'utilisation du présent document. Marques déposées : Toutes les marques citées dans le présent document sont déposées par leur société respective. ECCBP www.eccbp.be Copyright ECCBP 2013 - Tous droits réservés. Photographies Tous droits réservés Designed by Holy-Dis www.holydis.com

1. Executive Summary English The 2012 European Contact Center Benchmark has the ambition to purvey the European Contact Center market with its first comprehensive overview. This report is the first large scale European study of contact center market structure/organization across the different countries in Europe. Covering 30 countries in Europe, this survey provides a detailed account of the similarities and differences in structure and practices across widely diverse national contexts and cultures. 1.1. Mission Statement and Scope Create value for individual companies and contact center sector through the realisation of a reliable, up-to-date, independent, comprehensive benchmark of the contact center industry in Europe www.eccbp.be This undertaking is only possible with the full support and assistance of our sponsors and of the European Confederation and its national associations. The dramatic growth of the contact center industry is a world-wide phenomenon, fuelled by advances in information technologies and the precipitous decline in the costs of voice and data transmission over the last two decades. As part of this global industry, contact centers in Europe have experienced spectacular growth in the last ten years. Our findings suggest that the contact center sector has emerged with a fairly common growth path, mainly different in time, but with much similarities in evolution process and steps. We do observe a substantial convergence of the more mature markets over roughly the last 5 years, and strong growth for countries and sectors catching up It serves a broad range of customers in all industry sectors and offers a wide range of services from very simple to quite complex. It is an important source of employment and new job creation everywhere. The mobility of contact center operations has led many to view this sector as a paradigmatic case of the globalization of service work. And we find that the contact center sector looks quite similar across countries in terms of its markets, service offerings, and organizational features. But beyond these similarities, we find that contact center workplaces take on the character of their own countries and regions, based on distinct laws, customs, institutions, and norms. The globalization of call center activities has a remarkably national face. Our summary highlights the similarities among countries, as well as the differences between them. 2013 3

1.2. Key Findings 3.4 mio jobs, 1% of active population in Europe 2.4 mio positions Over 35.000 contact centers Contact Center industry grows at 4.7 % per annum, recession free 20% outsourcing 75% inbound activity The coverage of over 30 countries of the European continent provides a patchwork of, often incompatible, data sets and substantial blanks in each of the underlying figures or estimates. The compilation of all the available information, both public and private, and the subsequent gap reduction and filling in on the blanks is the initial stage of the project. The figures reported here are the result of a first normalisation effort relating the available figures to a common understanding and nomenclature. The definition of the market is wrought with difficulties, as different definitions abound. The traditional technical definition, whereby a contact center is defined by its distinctive technical characteristics, still holds strong in mainly newer CC-countries. This more restrictive identification, historically privileged by outfit-suppliers, gives a combined total of at least 2.4 million seats or positions. The organizational definition, requiring a clearly identified organizational entity to qualify as a contact center, covers the mid-field of the definitions, whereas the most mature, functional CC definition with its focus on the services delivered rather than the technical or organizational underpinnings is at the vanguard of this field. Each of the definitions can double up with a capping, typically requiring a minimum size (e.g. 10 positions or jobs) to qualify as a contact center. These thresholds leave a substantial pool of potential growth untapped and unrecorded and by the same token, put a drag on the reported growth figures. Market size is not only a question of positions but also, and mainly of employment and revenue. The economic weight in revenue of the sector will be near impossible to gauge as the major part of the business is done in-house without specific reporting on the revenue or business value of the contact center activities. The importance of the sector in the labour market on the other hand is easier to substantiate: the 3.4 mio jobs in the sector account for nearly 1% of the active population in Europe, or even 1.6% if we compare to tertiary employment instead of the total labour market. United Kingdom is by far the biggest CC market in Europe, followed by the other big countries. Ireland, the Netherlands and Belgium punch above their relative economic weight as they show a bigger CC penetration. 2013 4

Table 1 Country Top 10 by Employment The sector keeps growing structurally at an annual pace of 4.7 % in employment and 4% in positions. Table 2 Country Top 10 by # Contact Centers 2013 5

1.3. European Market Overview This European average, albeit weight adjusted, masks the huge difference between countries and growth perspectives. One of the key achievements so far is to be able to provide a market overview on two quantitative axis, rather than the previous, subjective maturity appreciation as the axis to offset growth against. The overview below displays the growth rate, expressed in employment, corrected for the overall employment growth of the country concerned so as to represent the degree to which the contact center industry of a given country grows faster (or slower) than the overall employment growth. Graph 1 European Market Overview Whereas the newer CC countries, mainly in Eastern and Southern Europe, report expansive growth, another set of countries seem to be in sync with the overall conjuncture of their country, with growth stabilising or flattening out. It is our understanding that the more mature markets, with up to 3.7% of the active population employed in our industry, are more subject to conjuncture influences; as contact center activities have been implemented in nearly every sector and business line, the overall momentum slows down and gets in line with the general economic indicators of the (home) country). Table 3 Category key ratios 2013 6

1.4. Country Clusters Table 4 Cluster key ratios We do observe marked differences between the regional clusters identified. Western Europe and Scandinavia show us an image of a fairly mature market, with sizeable parts of the active population working in the contact center industry, with a limited growth rate and outsourcing proportion. Central Europe and Southern Europe seem to have some similarities, and could be considered as part of a second wave of spreading of the contact center industry. The proportion of the active population is lower than 1 % but higher than the newer clusters, growth rates are higher than for Western Europe, and both outsourcing and outbound ratios are comparable. Eastern Europe shows the particularities of frontier territory, with lower percentage of active population and overall strong growth rates. As these countries show a less homogeneous picture, as is to be expected of a newer, frothy market, we do prefer to present them in 3 subsections: the Baltics, with an established outsourcing community and big centers serving well abroad their market; North Eastern parts, dominated by the Russian and Ukrainian developments, and the South Eastern parts, where Turkey leads the pack. Graph 2 European Contact Center Spreading 2013 7

1.5. Additional Data The available data report at least 35.000 contact centers, with an average size of 74 positions. 1/5 Contact center activities are reported to be outsourced, with an outsourcing employment pool of over 600.000. The ratio outsourcing: in-house tends to drop in line with the overall maturity of a market, as outsourcing is regularly one of the first implementations of professional contact center activities. But this observation is subject to caution as in growing markets, quite often in-house contact centers are poorly identified in the available datasets, thereby inflating the outsourcing figures. Inbound activities are reported to account for 75.8% of activities, weight adjusted. From a human resources point of view, the preliminary findings give us the following data (averages, not weight adjusted): 72 % of the individuals employed are Female Average age is 25-30 years (mathematical average at 27.25 y.) 55% tends to have a Full Time contract Absenteeism and churn are reported at an average 6% and 20 % respectively Supervisory ratio tends to be on average 1:13 Table 5 Additional Data Selected HR Ratios 2013 8

The data compilation will be kept up to date, with an additional effort of further gap reduction and normalization, accessible online www.eccbp.be. 1.6. Growth Perspectives 2022 The overall growth perspectives for the entire market for the following decade can safely be projected at 5 %, with an additional 1.5 mio people employed in the sector by 2022. The growth is spread un-evenly over the different clusters, and is driven by the following trends: Eastern Europe strong growth >10% Central Europe steady growth > 5% Southern Europe potential +8% per annum o Crisis could drive faster move to remote customer interactions, E.g. density of retail banking in Spain and tendency to replace branch offices by contact center service delivery Western & Northern Europe 1-2 % above GDP Growth, mainly fuelled by on-going tertiarisation & de-materialisation and further integration front & back office activities In general, with a stronger growth drive from inbound activities, in-house contact centers and B2C, Business-to-Consumer, activities. Graph 3 Growth Projections 2022 2013 9

1.7. Acknowledgments The overall contribution of this vibrant sector, both in activity and in employment, calls for a more reliable set of data, be it for policy making or for business decisions on investment or localization. The on-going effort is managed and supported by: www.eccbp.be The European Contact Center Benchmark is a joint venture between Areia Consultoria S.L. (Spain) and Call Communications (Belgium), with the support in 2012 of ASC (Germany), Orange Business Services (France), Holy-Dis (France), Randstad (Netherlands), Altitude Software (Portugal), T-Group (Belgium), Competence Call Center (Austria). For 2013, we are grateful for the renewed support of Competence Call Center, Altitude Software, Orange Business Services and Holy-Dis, and welcome Genesys (Sweden), Ebos (Belgium) and Plantronics (UK) in our steering committee. The initiative is endorsed by ECCCO, the European Confederation of Contact Center Organisations. 2013 10

METHODOLOGY 1. Methodology English When Call Communications and Areia outlined the scope for this study, its primary objective has been from the outset see mission statement above - to create value to the industry by compiling existing datasets into a general framework of normalised definitions, rather than to rely on extrapolations of data based on population or GDP. This approach entails a 3-step process: 1. Initial phase consisting of data collection, with 4 major sources of information National surveys and benchmarks realised by different professional organisations, accessed mainly via the endorsement of ECCCO, the association of European Contact Center Organisations, and complemented with similar datasets from other organisations unaffiliated to ECCCO Studies and surveys conducted by different multinational companies, sponsoring the European Benchmark ; their presence in different territories covered by the benchmark provides them, and us, with a detailed, often more analytical view and comparison across country borders Academic research realised by a score of European universities, and made available through direct and indirect contact with lead researchers and their colleagues in Europe Existing documentation, publication and literature 2. In the second stage of the process, the comprehensive set of data collected was analysed in full detail. It goes beyond saying that this is one of the most important tasks and achievements of this endeavour. The review of the data, both on definitions used, on validity, by its sheer volume and inherent inconsistency across territories and stakeholders required confrontation of multiple sources, in depth review with some of the authors of data sets, and some detailed analysis in multiple countries. During this part of the study, the added value of the approach was confirmed, as it clearly illustrates the limitation of more general, commercial extrapolations. The bottom up approach, albeit with existing data, surfaces apparent contradictions and deviations in classification, definition and methodology of data that seem similar at first glance. 2013 30

3. The third and final part obviously is the publication and dissemination of the information, turning knowledgeable data in actionable know how. In agreement with the sponsors of the study, the authors have confirmed the decision not to commercialise the results, to maintain and assert its validity and independence. The Steering Committee and its members are responsible for the dissemination and promotion of the main findings, amongst others by way of this report and a dedicated website www.eccbp.eu. The authors, in conjunction with the Steering Committee, present at all 4 winds of Europe general or detailed results of this study during industry events. These presentations allow a direct feedback loop between the European Benchmark and local industry bodies and organisations. 2. Méthodologie Français L objectif premier de cette étude a été clairement de ne pas recréer quelque chose d existant et d apporter une valeur ajoutée réelle à l analyse du marché européen des centres de contacts. Pour ce faire, Call Communications et Areia ont développé une méthodologie propre basée non pas sur l extrapolation de données et de concepts mais sur une analyse réelle et complète des différents pays listés dans cette étude. Pour ce faire, une méthodologie adéquate, simple et limpide a été développée en trois points : 1. Une première étape consiste essentiellement en la collecte de données. Pour ce faire, les chercheurs ont essentiellement travaillé sur base de quatre sources principales d informations : Les études nationales effectuées par les associations professionnelles des différents pays analysés, ceci avec le support des membres d ECCCO, l association professionnelle européenne des centres de contacts Les études menées par différentes multinationales sponsorisant l étude, lesquelles de par leur présence importante sur différents territoires disposent d une vue analytique complète des marchés nationaux Les études réalisées par différentes universités à travers l Europe, ceci au travers de contacts établis par les chercheurs avec d autres collègues en Europe La documentation et la littérature scientifique existante 2. Une seconde étape a consisté, une fois les données collectées, à analyser l ensemble des informations de façon complète et détaillée. Il s agit sans nul doute d une des étapes les plus importantes de l étude, tant le volume de l information fut important et détaillé. Pour ce faire les chercheurs ont dû, à plusieurs reprises, confronter certaines données pour en déterminer l extrême exactitude, se déplacer dans les pays concernés pour en comprendre l ordonnancement et la classification et finalement les valider. A ce niveau, et c est ce qui distingue totalement cette étude des autres travaux existants, les chercheurs ont multiplié les vérifications scientifiques et la justesse des informations pour éviter de travailler dans l extrapolation des données, des tailles et importances des différents marchés. 2013 31

3. Une troisième étape consiste dans la publication des données récoltées et de l étude. Pour ce faire, en accord avec les sponsors de l étude les chercheurs ont décidé de ne pas vendre cette étude afin d en protéger la valeur scientifique. Le soin est laissé aux membres du Steering Committee de l étude de diffuser l information et d en assurer la publicité, ceci au travers d un support écrit et d un site web dédicacé à cette étude et à ce concept (www.eccbp.eu). En outre, les chercheurs se multiplient aux 4 coins de l Europe pour, lors de différents événements organisés autour de la problématique européenne, effectuer des présentations détaillées et commentées de cette étude unique de par sa méthodologie et son contenu. 3. Methodik Deutsch Anfangs dieser Studie, haben sich beide Unternehmen, Call Communications sowie Areia, geeinigt auf einen gemeinsamen Ausgangspunkt: eine Wertschöpfung für die Contact Center Branche aufgrund einer Kompilation der vorhandenen Datasets in einen allgemeinen Rahmen der genormte Definitionen. Hiermit wurde die Unzuverlässigkeit der Extrapolationen von Daten bezüglich Bevölkerung oder BIP ausgeschlossen. Dieser Ansatz beinhaltet einen 3-Stufen-Prozess: 1. Anfangsphase bestehend aus Datensammlung, mit 4 wesentliche Informationsquellen: - Nationale Erhebungen und Benchmark Studien realisiert von verschiedenen Berufsverbänden, über die Billigung des ECCCO, der Verband der Europäischen Contact-Center-Organisationen, eingesehen und ergänzt mit ähnlichen Datasets von verschiedenen ECCCO unbeteiligte Organisationen Studien und Umfragen, realisiert von verschiedenen multinationalen Unternehmen, welche den Europäischen Benchmark ermöglichen. Ihre Präsenz in verschiedenen im Benchmark aufgezeichneten Regionen, bietet Ihnen und uns, einige detaillierte, oft weit analytische Blicke und Vergleiche über die Ländergrenzen hinweg. Akademische Forschung realisiert durch eine Gruppe von europäischen Universitäten, zur Verfügung gestellt von Akademiker und ihre Kollegen in ganz Europa. Vorhandene Dokumentation, Publikation und Literatur. 2. In der zweiten Phase des Prozesses, wurde eine umfassende Reihe von gesammelte Daten in allen Einzelheiten analysiert. Dies ist eine der wichtigsten Aufgaben und Leistungen des Projects. Die Ergänzung der Daten, bezüglich der Definitionen, die Gültigkeit, durch ihre schiere Menge und inhärente Widersprüchlichkeit über Territorien und Interessengruppen, erfordert die Vergleichung von verschiedenen Quellen, dies in gründliche Überprüfung mit einige der Autoren der Datensätzen, 2013 32

und einige detaillierte Analysen in mehreren Ländern. Während diese Phase der Studie wurde der Mehrwert des Ansatzes bestätigt, sowie es die Begrenzung der allgemeineren, kommerziellen Extrapolation deutlich zeigt. Der Bottom-up Ansatz, aufgrund der vorhandenen Daten, erläutert offensichtliche Widersprüche und Abweichungen in die Klassifikation, die Definition und die Methodik der Daten, die sich auf den ersten Blick ähnlich erscheinen. 3. Der dritte und letzte Teil ist die Veröffentlichung und Verbreitung der Informationen, wobei kenntnisreiche Daten in wertbares Wissen umgesetzt werden. Um die Gültigkeit und Unabhängigkeit der Ergebnisse zu schützen, haben die sich die Autoren, im Einvernehmen mit den Sponsoren, entschieden, die Ergebnisse nicht zu kommerzialisieren. Das Steering Committee und seine Mitglieder sind verantwortlich für die Verbreitung und Förderung der wichtigsten Ergebnisse und benutzen dazu Berichterstattungen sowohl als auch die Website www.eccbp.eu. Die Autoren nehmen Teil an verschiedenen Veranstaltungen und Messen in ganz Europa wo sie in Zusammenarbeit mit dem Steering Committee, allgemeine oder detaillierte Ergebnisse dieser Studie präsentieren. Diese Präsentationen ermöglichen eine direkte Rückkopplung zwischen den europäischen Benchmark und die lokalen Industrie-Einrichtungen und Organisationen. 2013 33