PUBLISHER: The Insight Partners | PRODUCT CODE: 1591414
PUBLISHER: The Insight Partners | PRODUCT CODE: 1591414
The Europe customer care BPO market size was valued at US$ 23.36 billion in 2023 and is expected to reach US$ 42.65 billion by 2031; it is estimated to record a CAGR of 7.6% from 2023 to 2031.
The Europe customer care BPO market is segmented into six major countries-Germany, France, UK, Italy, Spain, and rest of Europe. UK dominated the market in 2023, followed by Germany and France, respectively. The UK is one of the most developed and significant economies in Europe. As per the UK Office of National Statistics (ONS), HHFCE in the country increased by 3.9% in Q2 of 2023 compared to Q2 of 2021. The major growth contributions were from tourism, transport, housing, water, electricity, and gas and other fuels. Such factors are expected to strongly promote the country's demand for customer care services. Moreover, digitalization and technology adoption in corporate and private sectors is growing steadily in the UK. As per the Confederation of British Industry (CBI), the skilled labor shortage primarily drives technology adoption in the UK. CBI also states that startups and scaleups are the keystones of the UK tech sector and employ more than 1.6 million people. Such growth in digitalization also promotes the demand for technical support services, promoting the growth of the customer care BPO industry. Capgemini SE, Capita PLC, and Infosys Ltd are among the country's prominent customer care BPO service providers.
In addition, Germany is also witnessing various growth-related activities from leading customer care BPO market players. For instance, in January 2023, freenet AG signed a seven-year contract extension with Capita PLC for providing customer services support to the company's over 8 million customers. Similarly, in December 2022, Webhelp acquired the fashion brand H&M's Nuremberg customer service center, which had 500 employees. Webhelp is a leading global CX BPO player that employs over 100,000 employees across 60 countries. The acquisition was aimed at strengthening Webhelp's presence in Germany by bringing in the 500 employees of H&M customer care under the company's representation and further intensifying the close collaboration with H&M.
On the basis of end-users, the European customer care BPO market is divided into BFSI, IT and telecommunication, manufacturing, retail and E-commerce, healthcare and pharmaceutical, travel and hospitality, media and communication, automotive, public sector and utilities, and others. The IT and telecommunication segment dominated the market for enterprise size in 2023 owing to rise in demand for customer care BPO in the sector. The rising competition in this industry is leading to an increase in the cost of customer acquisition. Therefore, several telecommunication organizations cannot afford in-house customer care services, which is leading to the rise in outsourcing of these services.
Telecommunication is an important sector for every country and requires seamless management and support to serve both existing and new users. By leveraging the power of outsourcing customer care BPO services, telecommunications companies can ensure uninterrupted service delivery without overwhelming their internal teams. Moreover, according to the European Union, the EU has set two goals for the digitalization of businesses by 2030: over 90% of SMEs should attain at least a basic level of digital intensity and ~75% of EU companies should use cloud computing services. Such a rise in digitalization across various sectors in Europe is expected to fuel the demand for BPO services, which, in turn, is expected to boost the market growth in the coming years.
Teleperformance SE, Foundever, Concentrix Corporation, Stroer X GmbH, regiocom SE, Bosch Service Solutions GmbH, gevekom GmbH, KiKxxl GmbH, Telus International, Walter Services GmbH, INDECA Business GmbH, Mplus Group, Transcom, Rhenus Group, getaline GmbH, Capita plc, Euroanswer, MCI, LC, Infosys Limited, and TTEC are among the key Europe customer care BPO market players that are profiled in this market study.
The overall Europe customer care BPO market size has been derived using both primary and secondary sources. Exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the Europe customer care BPO market size. The process also helps obtain an overview and forecast of the market with respect to all the market segments. Also, multiple primary interviews have been conducted with industry participants to validate the data and gain analytical insights. This process includes industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the Europe customer care BPO market.