CRM Outsourcing Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 15.74 Billion |
| Market Size (2029) | USD 20.76 Billion |
| CAGR (2024 - 2029) | 5.74 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
CRM Outsourcing Market Analysis
The CRM Outsourcing Market size is estimated at USD 15.74 billion in 2024, and is expected to reach USD 20.76 billion by 2029, growing at a CAGR of 5.74% during the forecast period (2024-2029).
One of the primary factors of CRM outsourcing is cost savings. By outsourcing CRM processes, businesses can avoid the costs associated with employing and training full-time employees and maintaining technology infrastructure. Outsourcing CRM operations to a specialized service provider can provide companies access to the latest technology and expertise in the field. This can enhance the quality of customer service and increase sales.
- Outsourcing CRM processes can allow businesses to focus on their core competencies and strategic purposes while leaving the day-to-day tasks of CRM to a specialized service provider. Outsourcing allows companies to quickly and efficiently scale up or down their CRM processes depending on company needs, which can be particularly beneficial for companies that experience seasonal fluctuations in demand.
- The increasing trend toward globalization has created a need for businesses to provide consistent consumer service across multiple territories and time zones. Outsourcing CRM processes to a technical service provider can enable companies to meet this need. Many businesses must comply with industry-specific regulations related to data privacy and security.
- Artificial intelligence (AI) in customer relationship management is poised to be one of the prominent catalysts of intelligent CRM's growth over the next few years, supported by analytics, machine learning, and business intelligence. Enterprises will focus on adding such emerging technologies that enable more effective customer experiences. At the stack level, AI will be increasingly used for particular purposes. Natural Language Processing (NLP) toward friction reduction. This will be utilized at the front end of the marketing and customer service processes.
- With digital transformation becoming a mandate in various regions, stronger customer engagement is being emphasized by public-serving agencies/organizations. Further, government and public sector organizations recognize the importance of citizens' experience through CRM outsourcing and are devoting resources to improve it.
- This focus on areas that enable foresight to identify events and forces that can place demands and create opportunities for the government, agility to adjust to changes affecting operations, customers, and border ecosystem, and resilience to withstand and recover disruptions is increasing the need for CRM in the region.
- Implementing a CRM system involves significant steps, as it allows the use of appropriate information technologies to coordinate marketing, sales, activities, and services and enhance the customer experience. Therefore, the challenges of CRM could considerably vary, from the inability to adapt to the current needs of the enterprise, the wrong choice of the tool, technological barriers, and the unskilful process of implementing the system in the enterprise. The lack of sufficient support from the vendor staff of the existing CRM integration methods will substantially burden the company. Due to this, it may consume hours of productive work time for the team without possible outcomes.
CRM Outsourcing Market Trends
Marketing Automation is Expected to Hold Significant Share of the Market
- Marketing automation is a technology that lets users target customers with personalized campaigns by leveraging data. CRM marketing automation software enables us to streamline marketing activities, run effective campaigns, increase consumer engagement, and drive high profits. CRM lets a user segment customers based on their requirements, region, lead source, and level of responsiveness towards the organization. Using segmentation, an organization can send tailor-made campaigns to fit the audience and assign sales representatives with the right specializations for the job.
- CRM integration for marketing automation allows transferring lead information seamlessly between marketing and sales. Moreover, it enables sending the right information to prospects at the right time, coupled with marketing funnel automation. Emails are also a major communication channel with potential leads. Integrating CRM with marketing automation enables testing email content, creating email templates that match brand identity, previewing emails across platforms and devices, and doing advanced email reporting.
- The adoption of marketing automation software has been increasing in the region as there has been a shift to digital omnichannel marketing compared to traditional marketing. According to the CMO Survey by American Marketing Association and Duke University (n=356), recently B2B product marketers in the United States suggested that their spending on traditional advertising was expected to decline by 0.61% in the following year. In comparison, digital marketing spending was projected to increase by 14.32%.
- It is expected that marketers will start integrating multiple solutions into a single place. Multiple vendors have started offering ecosystems and integration help. For example, Cireson shared its experience with the shortcomings of using a workaround for its CRM marketing automation integration.
- Specifically, the company had to implement two third-party tools to pass data between its marketing automation platform (HubSpot) and its CRM system (SugarCRM). As a result, the marketing team had to perform multiple tasks manually, which decreased overall productivity and led to several data leaks. Additionally, using third-party tools to do the integration work added to the overall costs, which lowered ROI even further. To manage these challenges effectively, remember that independent software providers have a huge presence.
- According to HubSpot, In a survey of marketers worldwide in March 2023, 84 percent of respondents believed that aligning web content with search intent is the top way to utilize artificial intelligence (AI) and marketing automation effectively.
Asia Pacific is Expected to Observer a Significant Growth
- CRM outsourcing software is one of the fastest-growing enterprise software categories in the Asia Pacific region. Enterprises are focusing on intelligent and integrated CRM solutions with capabilities for analytics. Both small businesses and large enterprises in the region seek to adopt CRM solutions. Customer satisfaction is placed at the top of sales metrics. The need for CRM systems to evolve with great precision and support the early adopters and the newer ones with predictive analytics is increasing. According to SelectHub, around 59% of the customers, out of 254, stated that companies knowing more about them from past interactions improve their customer experience.
- The Udyam registration platform registered 12,201,448 MSMEs as of November 25, 2022, according to data from the Ministry of Micro, Small, and Medium Enterprises, replacing the previous procedure of registering for a Udyog Aadhaar Memorandum. Microbusinesses made up 11,735,117 (96.17%) of all registered businesses, while small companies made up 426,864 (3.49%) and midsized businesses made up 39,467 (0.32%). Such a huge number of SMEs in India would create an opportunity for the CRM outsourcing players to develop new solutions to capture that market share.
- Healthcare facilities in the region are burdened with increasing expenses, such as administrative costs that drive up healthcare costs. Besides, the ability to use advanced technologies, such as automation, AI, and machine learning services in healthcare facilities, has spurred their integration into the sector. Tools such as these that help reduce administrative costs create an even greater need for healthcare outsourcing CRM in the region.
- Singapore is considered the medical and healthcare hub of the Asia-Pacific region and offers the region's best healthcare system. The Joint Commission International (JCI) has accredited over 23 hospitals and healthcare facilities in Singapore. Due to its high-quality medical system, over 350,000 patients visit Singapore to avail healthcare services each year. Such market potential will likely drive market growth during the forecast period.
- Analytical tools are being used on social media platforms as consumers are actively purchasing from these platforms, which are gaining traction in the region. According to Indonesia's Ministry of Finance, about 68% of all e-commerce transactions were done via social media during the pandemic. Hence, enterprises operating in the BFSI sector in the region are eager to adopt CRM solutions to enhance their customer engagement. For instance, the Bank of Singapore announced its plans to deploy AI-powered analytics from SAS to improve compliance, customer service, and the performance of its sales teams.
- Nearly every CRM provider has APIs, some more scalable and mature than others. Cloud platform companies that dominate the CRM landscape have enterprise-grade APIs that showcase the future of this aspect of the CRM technology roadmap industry-wide. APIs are poised to become increasingly customer-centric in the coming years. These APIs will have a considerable focus on orchestrating a wide assortment of data-rich applications, databases, and record systems. Cloud platforms are enabling APIs to become more customer-centric by providing scalable, reliable integration technologies and frameworks.
CRM Outsourcing Industry Overview
The global CRM outsourcing market is moderately consolidated with the presence of several players like IBM Corporation, Atos SE, Capgemini, Cognizant Technologies pvt ltd, Dell Technologies Inc., HCL Technologies Ltd, etc. The companies continuously invest in strategic partnerships and product developments to gain substantial market share. Some of the recent developments in the market are:
In August 2023, Arvato CRM Solutions partnered with KYP.ai to expand its AI and robotic process automation (RPA) capabilities. This strategic collaboration is set to enhance intelligent automation, offering clients more avenues for digital transformation. The partnership has introduced Arvato's Discovery Engine (ADE), fueled by KYP.ai's platform. ADE can pinpoint automation opportunities, potential savings, and utilization gaps, effectively transforming customer service by aligning people and processes.
In May 2023, Salesforce, the global player in CRM, announced plans to team with Accenture to accelerate the deployment of generative AI for CRM. The organizations intend to launch a hub for generative AI that provides businesses with the technology and knowledge they need to scale Einstein GPT Salesforce's generative AI for CRM, helping increase employee productivity and transform customer experiences. The powerful combination of Salesforce and Accenture's AI, industry knowledge, and connected consumer experience aims to provide businesses across every industry with strategies and technologies that effectively harness generative AI.
CRM Outsourcing Market Leaders
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IBM Corporation
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Atos SE
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Capgemini
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Cognizant technologies pvt ltd
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Dell Technologies Inc.
*Disclaimer: Major Players sorted in no particular order
CRM Outsourcing Market News
- June 2023: VBA announced its partnership with MPX to offer a solution for high-touch communications by integrating the HealthLinq portal with VBASoftware and VBAGateway for a seamless payer experience. The integration with VBASoftware provides enrollment, claims, authorizations, and other necessary data to support member and provider communications with no file feeds to manage. The integration with VBAGateway provides access to the HealthLinq portal through the VBAGateway Administrator portal and automatically displays digital copies of communications.
- June 2023: Net at Work, a provider of next-generation digital operations platform (DOP) technology solutions for the mid-market, expanded its CRM offering by adding Creatio to its solutions portfolio. Creatio is a global provider of one platform to automate workflows and CRM with no code and maximum freedom. Creatio joins Net at Work's extensive portfolio of CRM solutions for small-to-medium-sized businesses (SMBs), including Salesforce, Sage, Microsoft Dynamics, and Click Dimensions.
CRM Outsourcing Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
-
4.2 Industry Attractiveness - Porter's Five Forces Analysis
- 4.2.1 Bargaining Power of Buyers
- 4.2.2 Bargaining Power of Suppliers
- 4.2.3 Threat of New Entrants
- 4.2.4 Threat of Substitutes
- 4.2.5 Intensity of Competitive Rivalry
- 4.3 Assessment of the Impact of COVID-19 on the Market
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Increasing Emphasis on Customer Engagement Among Enterprises
- 5.1.2 Increasing Adoption from SMEs, Aided by Flexible Pricing Strategies Provided by the Vendors
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5.2 Market Restrains
- 5.2.1 Operational and Implementational Challenges
6. MARKET SEGMENTATION
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6.1 By Type
- 6.1.1 Communications Management
- 6.1.2 Multi-Channel Customer Engagement
- 6.1.3 Analytic Solutions
- 6.1.4 Marketing Automation
- 6.1.5 Customer Support & Service
- 6.1.6 Other Types
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6.2 By Application
- 6.2.1 Retail
- 6.2.2 BFSI
- 6.2.3 IT and Telecom
- 6.2.4 Healthcare
- 6.2.5 Manufacturing
- 6.2.6 Other Applications
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6.3 By Geography***
- 6.3.1 North America
- 6.3.2 Europe
- 6.3.3 Asia
- 6.3.4 Australia and New Zealand
- 6.3.5 Latin America
- 6.3.6 Middle East and Africa
7. COMPETETIVE LANDSCAPE
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7.1 Company Profiles
- 7.1.1 IBM Corporation
- 7.1.2 Atos SE
- 7.1.3 Capgemini
- 7.1.4 Cognizant technologies pvt ltd
- 7.1.5 Dell Technologies Inc.
- 7.1.6 HCL Technologies Ltd
- 7.1.7 Infosys Limited
- 7.1.8 Wipro Limited
- 7.1.9 Amdocs
- 7.1.10 Concentrix
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
** Subject To AvailablityCRM Outsourcing Industry Segmentation
A firm's ability to manage its connections with clients is called customer relationship management (CRM). A CRM system can support a business in keeping track of all the interactions it has with consumers, including what was said and done, as well as what was purchased. Outsourcing customer relationship management (CRM) can provide businesses with a way to improve their customer service.
The global CRM outsourcing market is segmented by type (communications management, multi-channel customer engagement, analytic solutions, marketing automation, customer support & service, and other types), by application (retail, BFSI, IT and telecom, healthcare, manufacturing, and other applications), by geography (North America, Europe, Asia Pacific, Middle East and Africa, and Latin America).
The market sizes and forecasts are provided in terms of value USD for all the above segments.
| By Type | Communications Management |
| Multi-Channel Customer Engagement | |
| Analytic Solutions | |
| Marketing Automation | |
| Customer Support & Service | |
| Other Types | |
| By Application | Retail |
| BFSI | |
| IT and Telecom | |
| Healthcare | |
| Manufacturing | |
| Other Applications | |
| By Geography*** | North America |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Latin America | |
| Middle East and Africa |
CRM Outsourcing Market Research Faqs
How big is the CRM Outsourcing Market?
The CRM Outsourcing Market size is expected to reach USD 15.74 billion in 2024 and grow at a CAGR of 5.74% to reach USD 20.76 billion by 2029.
What is the current CRM Outsourcing Market size?
In 2024, the CRM Outsourcing Market size is expected to reach USD 15.74 billion.
Who are the key players in CRM Outsourcing Market?
IBM Corporation, Atos SE, Capgemini, Cognizant technologies pvt ltd and Dell Technologies Inc. are the major companies operating in the CRM Outsourcing Market.
Which is the fastest growing region in CRM Outsourcing Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in CRM Outsourcing Market?
In 2024, the North America accounts for the largest market share in CRM Outsourcing Market.
What years does this CRM Outsourcing Market cover, and what was the market size in 2023?
In 2023, the CRM Outsourcing Market size was estimated at USD 14.84 billion. The report covers the CRM Outsourcing Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the CRM Outsourcing Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
CRM Outsourcing Industry Report
Statistics for the 2024 CRM Outsourcing market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. CRM Outsourcing analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
