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Customer care centers have been influenced by various short- and long-term factors. Recent years have seen significant revenue volatility for customer care centers because of changing economic conditions. The pandemic prompted widespread business shutdowns, dampening consumer spending and investment in customer care centers. However, rising e-commerce sales during lockdowns partially offset losses. As restrictions eased and spending rebounded, providers’ revenue soared in 2021, only to drop sharply in 2022 under the pressure of high inflation, prompting businesses to slash discretionary spending and bring services in-house. Recessionary fears because of high interest rates have kept demand subdued, although a late 2024 rate cut provided modest relief. Competition has intensified as more new and smaller providers enter the market, pushing prices and profit down, although mergers and acquisitions have let larger customer care centers expand market share. Automation has reduced labor costs, benefiting profitability, though this has been constrained by high inflation that has pushed up purchase expenses. Meanwhile, offshoring trends have continued despite legislative attempts to curb them. Overall, revenue for customer care centers in the US has inched downward at a CAGR of 0.2% over the past five years, reaching $11.6 billion in 2025. This includes a 1.6% rise in revenue in that year. Tariffs imposed by the Trump administration in early 2025 are expected to significantly disrupt customer care centers in the short term by raising consumer prices and manufacturing costs, reducing disposable income and potentially triggering a recession. During a downturn, companies may bring such services in-house or seek geographic expansion to offset slowing income, thus constraining revenue for customer care centers. However, long-term prospects remain moderately positive as productivity gains and a growing number of businesses are expected to boost consumer spending and e-commerce sales, heightening demand for providers' services. The industry will adapt through greater specialization, mostly impacting technology and financial clients. Long-term, AI could become so advanced that it may replace employees’ tasks except for the most complicated questions, potentially severely threatening revenue in the coming decades. Overall, revenue for customer care centers in the US is forecast to creep upward at a CAGR of 0.4% over the next five years, reaching $11.8 billion in 2030.
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Twitterhttps://www.ibisworld.com/about/termsofuse/https://www.ibisworld.com/about/termsofuse/
Customer care centers have been influenced by various short- and long-term factors. Recent years have seen significant revenue volatility for customer care centers because of changing economic conditions. The pandemic prompted widespread business shutdowns, dampening consumer spending and investment in customer care centers. However, rising e-commerce sales during lockdowns partially offset losses. As restrictions eased and spending rebounded, providers’ revenue soared in 2021, only to drop sharply in 2022 under the pressure of high inflation, prompting businesses to slash discretionary spending and bring services in-house. Recessionary fears because of high interest rates have kept demand subdued, although a late 2024 rate cut provided modest relief. Competition has intensified as more new and smaller providers enter the market, pushing prices and profit down, although mergers and acquisitions have let larger customer care centers expand market share. Automation has reduced labor costs, benefiting profitability, though this has been constrained by high inflation that has pushed up purchase expenses. Meanwhile, offshoring trends have continued despite legislative attempts to curb them. Overall, revenue for customer care centers in the US has inched downward at a CAGR of 0.2% over the past five years, reaching $11.6 billion in 2025. This includes a 1.6% rise in revenue in that year. Tariffs imposed by the Trump administration in early 2025 are expected to significantly disrupt customer care centers in the short term by raising consumer prices and manufacturing costs, reducing disposable income and potentially triggering a recession. During a downturn, companies may bring such services in-house or seek geographic expansion to offset slowing income, thus constraining revenue for customer care centers. However, long-term prospects remain moderately positive as productivity gains and a growing number of businesses are expected to boost consumer spending and e-commerce sales, heightening demand for providers' services. The industry will adapt through greater specialization, mostly impacting technology and financial clients. Long-term, AI could become so advanced that it may replace employees’ tasks except for the most complicated questions, potentially severely threatening revenue in the coming decades. Overall, revenue for customer care centers in the US is forecast to creep upward at a CAGR of 0.4% over the next five years, reaching $11.8 billion in 2030.