According to the research firm Ovum, outsourcing firms are cautious of expanding by next year given perceived risks and low demand from major markets.

"Companies that provide offshore contact center services face a tough battle to win new business over coming years, as demand in major markets is low,"

Ovum said in a statement, citing a poll of leading North American, European and Australian firms. In 2 years time, only 2% of the firms polled would consider offshoring while 10% of the firms plan on doing so in 25 to 36 months but 80%, said that they had no plans to offshore their contact centers. Ovum analyst Peter Ryan stated that these figures will make other companies to worry because they earn in providing offshore to contact center services. They are hoping to win new business based on their ability to reduce costs for clients. There are four key issues in these struggles: the quality of interaction between agents and customers, stability of the offshore location, pressure in keeping business within the domestic country and fears over data safety. Low costs must be maintained which led to India and South America established contact center locations.

According to Joyce Virata, Business Process Association of the Philippines (BPAP) Executive Director, they know that the growth of contact center services will slow but the global market will still remain larger than what providers can supply.  Growth will be fastest in non-voice BPO (business process outsourcing) and IT (information technology) and in industry-specific services where Philippines has competitive advantages like banking, financial services, insurance, health care, IT and creative services. The BPAP anticipates that the local outsourcing industry will earn $11 billion this year. Revenues totalled $9 billion last year. This will continue to grow by at least 20% in 2012. [via bworldonline.com]