How Big is the Call Center in the USA as Compared to India-based Call Center Industry

As this has many advantages, such as increased efficiency and productivity, it is no wonder that the USA leads in call center employees by a significant margin.

The call center in the USA industry is enormous - employing 1,200,000 people. It's also one of the most profitable industries in America. However, as new outsourcing sources like India (and others) have emerged, call centers are evolving and becoming less American-centric. In this article, we break down the numbers to better understand how massive this industry is in America and how it compares to the rest of the world.

What is the call center Industry?

The call center industry is a type of business that provides customer service and support to customers over the phone. Businesses often use call centers to handle customer inquiries, complaints, and orders. There are two categories of call centers: inbound and outbound. Inbound call centers handle customer calls that come into the center, while outbound call centers make calls to customers.

The call center industry has increased as businesses have outsourced their customer service and support operations to call centers to save money. As a result, the industry has the potential to expand and grow in the coming years.

History & growth of the industry

The American call center industry has been increasing since the early 1970s. Today, over 30,000 call centers in the USA are operational, employing around 3 million people. Moreover, the industry has the potential to continue to grow in the coming years.

The vast majority of the call center in the USA operate in a few states, with California, Texas, and Florida home to the most significant number of call center operations. However, the industry is overgrowing in other states as well, such as Arizona and Nevada.

The American call center industry has been growing at about 5% per year for the past decade. This growth will continue in the next few years as more and more businesses outsource their customer service needs to call centers.

The Indian call center industry has also been snowballing in recent years. Today, there are over many call centers across India, employing more than 2 million people. Moreover, the industry looks set to overgrow in the coming years.

While the American call center industry is much larger than its Indian counterpart, the latter is growing much faster. As a result, some predictions suggest that the Indian call center industry will overtake the American industry within a few years.

What is the size of the US-based call center industry?

The size of the US-based call center industry is much larger than the call center in the Indian industry. In fact, according to a recently published report by Forrester, the Call center in the USA industry is currently worth $263 billion, while the India-based call center industry is only worth $13 billion. This is because the US has twice as many call centers as India, which contributes to the difference in size. Additionally, the average salary for a call center agent in the US is nearly double what it is in India.

Given these statistics, it's no surprise that the Call center in the USA industry continues to overgrow. In fact, between 2022 and 2023, the US-based call center industry is expected to grow by 4.5%, whereas the call center in the Indian industry may only grow by 2.9%. This growth is due to various reasons, including the increasing popularity of cloud-based call center solutions and the industry's rise of artificial intelligence (AI).

How does India's call center industry compare to that of the USA?

The United States call center industry employs about 2.5 million people, while the India-based call center industry employs about 3.0 million people. The two industries are comparable in size.

The quality of service provided by Indian call centers is often criticized, with American customers complaining of long wait times, difficulty understanding customer service representatives, and poor resolution rates. In general, however, the cost savings associated with outsourcing to India outweigh the drawbacks for many companies.

One significant difference between the United States and Indian call center industries is the use of home-based agents. In the United States, most call center agents work in large call centers with hundreds or even thousands of employees. In India, many call center agents work from home. This allows for a more flexible workforce and lower overhead costs for companies.

Another difference between the two industries is the types of services offered. For example, the United States call center industry tends to focus on inbound customer service. In contrast, the Indian call center industry offers a broader range of services, including outbound sales, technical support, and back-office processing.

What are some ways in which India's call center industry has been able to compete against companies based in the USA successfully?

The Indian call center industry has been able to successfully compete against a call centers in the USA for several reasons:

1. The labor cost is significantly lower in India, meaning that Indian call centers can offer much lower prices. This makes them particularly attractive to businesses looking to outsource their customer service or telemarketing needs.

2. The language barrier is not as big of an issue in India as it is in other countries; many Indian call center agents are fluent in English, which makes communication with customers from the USA much more accessible.

3. The customer service culture is influential in India, meaning that agents are typically more efficient and effective at dealing with customer queries and complaints.

Conclusion

The India-based call center industry is much larger than that of the call center in the USA. India has over 50% more call center agents than the USA, and the average salary for an Indian call center agent is only a fraction of what their American counterparts earn. Additionally, the cost of living in India is significantly lower, making it an attractive option for businesses looking to outsource their customer service needs. While some challenges are associated with business in India, such as language barriers and cultural differences, it is possible to overcome them with proper training and communication.