2022 China Customer Service BPO Industry Market Research and Analysis Report (Simple Version)

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Published: 2022-05-18

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The core business of BPO includes: DM direct mail, SMS advertising, EDM marketing, call center outsourcing, and data warehouse solutions. At present, the first four kinds of work are basically the same in China, and there are relatively few enterprise data warehouse solutions.

Market Supply Scale Analysis of China's Customer Service BPO Industry
From the perspective of industry supply, the number of call center agents in my country has reached 1.95 million by 2017, and continues to maintain rapid growth. In 2021, the number of call center agents in my country will be 3.01 million, and it will increase by about 1 million from 2017 to 2021, maintaining a compound annual growth rate of more than 11.36%. As more companies join the construction of call centers, the number of call center agents will remain Continued growth. From the point of view of the number of enterprises, the increase in the number of call center enterprises in my country is significantly smaller than that of the number of call center enterprises in China.

The customer service BPO business is one of the largest, well-growing and widely used fields in China. In 2021, the scale of China's customer service BPO market has grown from 24.4 billion yuan in 2017 to 43.1 billion yuan in 2021, with a compound annual growth rate rate remained at around 15%. With the exploration of more and deeper needs of consumers, as well as the development of mobile Internet and artificial intelligence technology, the business scope of call centers has been continuously expanded, the service content has become increasingly rich, and the demand for call centers by enterprises has continued to grow.

In the Chinese market, the core manufacturers of the customer service BPO industry include Mindray China, Beijing Honglian 95 Information Industry Co., Ltd., Shanghai Tronsi Big Universe Information Technology Service Co., Ltd., Taiying Technology, Beijing 95 Taiwei Information Co., Ltd., etc. The top five manufacturers account for about 15% of the global market. In terms of applications, the financial industry is mainly used, with a share of more than 46%, followed by the Internet and e-commerce industries.

The main application industries of the call center are: finance (including banking, insurance, securities and funds), government and public utilities (including industry and commerce, taxation, urban construction, labor security, mayor's hotline, community services, emergency systems and electricity, water and natural gas) etc.), manufacturing (including automobiles, home appliances, etc.), retail and logistics (including postal services), IT and e-commerce (including TV shopping, Internet, business travel, etc.), outsourcing and others (including tobacco, petrochemicals, media, healthcare, survey statistics, etc.).

The financial industry will remain the main segment for call centers in the next few years, but its share of the overall market continues to decline. In government, computers, home appliances, manufacturing, remote shopping and e-commerce, the growth rate of call centers will further accelerate.

The main driving factors for the development of China's customer service BPO industry

Policy Environment
The sustained, stable and healthy development of my country's economy has brought a large development space for the BPO industry. The state has successively issued many industrial support policies. The strong support in taxation and subsidies is great for the BPO industry. The positive situation provides a favorable policy environment for promoting the rapid development of the entire BPO industry. my country includes five major departments, including finance, education, people's insurance, commerce, and industry and information technology. They have given specific and clear policy support to related companies, training institutions and practitioners in the BPO industry, such as giving new BPO companies that meet relevant conditions. Policy support, financial support for BPO companies that the state has determined to support, additional wage subsidies for new BPO practitioners who meet relevant conditions, support for some BPO talent training institutions, etc.


Economic environment
From a domestic point of view, my country is in a period of economic transformation, adjusting the structure and promoting growth. The economy is gradually changing from relying on external demand to relying on domestic demand. The strong driving force of domestic demand has promoted the sustainable development of the service outsourcing industry, especially domestic ones. The financial industry and manufacturing industry are also developing towards internationalization and scale under the fierce market competition. The demand for service outsourcing in these industries is increasing, which provides opportunities for the development of BPO business. In addition, as an economy in the new era that relies on a knowledge-based management model, the BPO industry has low environmental pollution and less resource consumption.


Adequate human resources and low labor costs
The BPO industry is a knowledge-based industry with a huge demand for talents, and it also has high requirements for language skills and talent reserves. Many colleges and universities in my country train a large number of multilingual talents for the society every year, such as English, Japanese, Korean, Russian, etc., to ensure that BPO talents have high language skills and can communicate with neighboring countries without barriers. The advantages of multilingual talents have also laid a solid foundation for the development of the BPO industry. Labor costs are lower than in developed countries.


 
The main constraints for the development of China's customer service BPO industry

Talent Development
The calling industry is a talent-intensive industry, and its forward development depends on suitable talent supply. However, the lack of suitable talents has become a bottleneck for the progress and development of my country's call industry. Although our country trains countless graduates every year and has made progress in the reform of the higher education sector, problems still exist, especially in its curriculum design and teaching methods, there is still a certain gap with the relevant talents needed by enterprises. This leaves businesses with additional training costs. In fact, employee training costs can account for 5% to 20% of total operating costs. There is a shortage of mid-to-high-end professionals. In terms of personnel training, personnel training in my country's call industry generally has high costs, similar content, lack of innovation, and lack of pertinence. The foreign BPO industry developed earlier, with a large number of talents and management experience accumulated, and there are strong self-study and internal training resources in the enterprise. At present, most of the call industry personnel are recruited from the society, which is not only costly, the training period is long, but also extremely unstable. On the other hand, the call industry is in urgent need of specialized, high-quality and skilled personnel. This is an opportunity and a challenge to the colleges and universities as talent training bases.


Competition of substitutes
Although the current stage is not the middle and late stage of the development of the calling industry, the competition of alternatives in the calling industry has to be considered. Like the initial use of telephones, and now professional headphones and headsets. Initially it was answered manually, but up to now, various media forms such as IVR, SMS, MMS, Internet, and even WeChat are widely used, which not only carries more traffic, greatly improves the operation capacity, but also enriches the different types of customers. of various demands. At this stage, most enterprises are also using IVR language technology in large quantities to process some simple business, which is not only faster but also more efficient. The more difficult problems that cannot be handled by other electronic forms are transferred to manual processing. The rapid development of network multimedia enables enterprises to obtain more choices, and the competition of substitutes should not be underestimated.


Staff turnover, high mobility
The call center is one of the industries with relatively large personnel turnover. Due to the monotony of work content, repetitiveness can easily lead to people feeling boring. Faced with all kinds of customers every day, we need to deal with various business problems and emotional problems of customers, and the work pressure is too high. Over time, people lack a sense of psychological stability and feel that they have no potential for development. Many people are unwilling to waste their youth and time in simply answering the phone, which has led to the high turnover rate of call centers in my country. According to relevant statistics, the cost of recruiting and training a new employee is 4 times that of maintaining a mature employee. The frequent job-hopping of employees has brought high labor costs to enterprises. The average turnover rate of employees in the industry is over 30%, which has cast a shadow on the development of my country's customer information service industry. The high turnover rate has made many enterprises feel confused.

A comprehensive and in-depth analysis of current industry data on markets, competitors and suppliers.

In-depth research on key industry players and analysis of production and sales operations.

Objective forecasts of future trends in the industry.

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