Procurement Market Intelligence Report
Telephone Answering Services
Sourcing Guide & Market Intelligence
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Telephone Answering Services Global Overview
Definition
Summary
Telephone answering service providers screen incoming calls for buyers. Suppliers then either transfer calls back to the buyer or take messages to pass on to the buyer via e-mail, text message or proprietary software. Typical buyers include hospitals, retailers, government agencies and insurance providers. Suppliers include telephone answering service specialists and general BPO providers.
This Report Includes:
- Phone Screening Services
- Call Transferring
- Automated Messaging
Not in this Report:
- Telemarketing Services
- Technical Support Services
Global Telephone Answering Services Procurement Trends
Discover the top international trends affecting procurement in the global Telephone Answering Services market.
Warning Trends
The European Union’s Artificial Intelligence (AI) Act enters into force
- In August 2024, the European Union (EU) began enforcing its new regulation on artificial intelligence. Although EU legislation, the act will have a major effect on global technological companies operating in the AI space, similar to the General Data Protection regulation.
- The legislation aims to apply a risk-based framework to AI regulation, meaning different AI applications will be treated differently. The law applies a general ban for “unacceptable” uses, such as social scoring and predictive policing.
- For general-purpose AI models, companies will be required to comply with EU copyright law and intellectual property provisions, carry out regular testing, issue transparency disclosures, and implement adequate cybersecurity protections. For “high-risk” AI applications, such as autonomous vehicles, medical devices, financial services, and biometric identification systems, companies must meet stricter requirements in terms of risk-mitigation systems, documentation, human oversight, and cybersecurity.
- Companies that breach the AI Act may face fines ranging from 7.5 million euros or 1.5% of global annual revenues to 35.0 million euros or 7.0% of global annual revenues, whichever amount is higher.
- While the blanket ban on unacceptable systems entered into force in February 2025, most of the obligations do not take effect for a full year. In August 2025, requirements for general-purpose AI will come into effect, and in August 2026, obligations for high-risk AI systems will be enforced.
Global Telephone Answering Services Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1 India | 17,085 |
| #2 China | 5,265 |
| #3 Europe | 4,715 |
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Geography Drilldown - US
Average Cost of Telephone Answering Services
United States
2026 Market Pricing$0.50 to $X.XX
per minuteAverage Price
Prices in the Telephone Answering Services market range from $0.50 to $X.XX, depending on Hours of Operation, Nature of Responsibilities and Call Volume. For example, lower prices are associated with Business hours only ($0.50 to $1.75 per minute), whereas higher prices are associated with 24/7 service ($1.25 to $4.25 per minute).
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Telephone Answering Services Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Telephone Answering Services market, prices in the US have grown 1.1% from 2022 to 2025. Subscribers can access price trend forecasts, price driver projections and forward-looking cost structure data. Learn more
United States (2022-2025)
United States (2025-2028)
Compound Annual Growth Rate
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Price trend forecasts are available to subscribers, along with price driver projections and forward-looking cost structure data.
Cost Analysis - Total Cost of Ownership for Telephone Answering Services
Total cost of ownership is Low in the Telephone Answering Services market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs.
Negotiated Before
Implementation
Installation
Billed During
Annual Fees
Buyer Power in Procurement Negotiations
In 2026, buyer power amounts to 0.5 in the United States. Buyer power is most positively impacted by Recent Developments. It is most negatively impacted by Recent Price Volatility. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
Buyer power forecasts: your glimpse into the future
Develop strategies for the upcoming year and identify unforeseen opportunities for buying now
- Actionable "Buy Now" and "Buy Later" insights
- Near-real-time updates to current and forecast Buyer Power Scores
- Methodology and weightings for Buyer Power Score Components
Supply Chain Risk
The average level of supply chain risk is assessed as Low, which has a positive impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Telemarketing & Call Centers
- Computer Wholesalers
- Office Stationary Wholesalers
2nd
Tier Suppliers
- Telecommunication Networking Equipment Manufacturers
- Computer Manufacturers
- Software Publishers
- Office Stationary Manufacturers
Biggest Telephone Answering Services Suppliers in the US by Revenue
The largest Telephone Answering Services vendors by revenue in the US are A-Cti Answerconnect Inc., AnswerNet Inc. and HVAC Answering Service, Inc. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| Td Synnex Corporation | Global | FREMONT, CA | >10,000 | 5-10 | ||||
| Stericycle, Inc. | Global | BANNOCKBURN, IL | >10,000 | < 5 | ||||
| Intrado Inc. | Global | Omaha, NE | 1,001-10,000 | < 5 | ||||
| Qualfon Data Services Group LLC | National | Highland Park, MI | 1,001-10,000 | < 5 | ||||
| A-Cti Answerconnect Inc. | National | Portland, OR | 25-50 | < 5 | ||||
| AnswerNet Inc. | International | Willow Grove, PA | 501-1,000 | < 5 | ||||
| HVAC Answering Service, Inc. | National | King of Prussia, PA | 25-50 | < 5 | ||||
| TDKP Limited | Global | UK | 501-1,000 | < 5 | ||||
| WSOL LLC | International | Dallas, TX | 101-250 | < 5 | ||||
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Profit Analysis
The average profit margin across vendors in the Telephone Answering Services market is 4.2% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Wages. The cost trend for this component is falling, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
Telephone answering service suppliers rely on few critical upstream inputs, contributing to a low overall supply chain risk. Thus, telephone answering service suppliers are unlikely to encounter substantial input price spikes that they must absorb or pass on to their buyers in the form of higher prices.
Average vendor risk in the telephone answering service market is moderate as vendors face a high degree of competition. Buyers will face an average level of risk when contracting with potential vendors compared to other markets.
Market share concentration for telephone answering services is low, resulting in a highly competitive market as no one supplier controls a substantial market share. The competitive pressure keeps vendors from raising prices drastically, thereby boosting buyer power.
The United States is a net importer of computers, as it imports more computers than it exports. As suppliers do not regularly update computer inventory, this should have minimal impact of supplier operations.
Supplier Information
Td Synnex Corporation
Td Synnex Corporation is a public company operating globally in the information, professional, scientific and technical services and administration, business support and waste management services sectors. The company's offerings include graphics & video accelerator cards, optical character recognition systems,... Subscribe to learn more
A-Cti Answerconnect Inc.
A-Cti Answerconnect Inc. is a private company operating nationally in the administration, business support and waste management services sector. The company's offerings include telephone answering services. Founded in 2002, the company is currently headquartered in Portland, Oregon, United States of America... Subscribe to learn more
AmeriCall Int'l Inc.
AmeriCall Int'l Inc. is a private company operating globally in the administration, business support and waste management services sector. The company's offerings include telephone answering services. Founded in 1938, the company is currently headquartered in Tacoma, Washington, United States of America with... Subscribe to learn more
AnswerNet Inc.
AnswerNet Inc. is a private company operating internationally in the administration, business support and waste management services sector. The company's offerings include telephone answering services. Founded in 1998, the company is currently headquartered in Willow Grove, Pennsylvania, United States of Subscribe to learn more
HVAC Answering Service, Inc.
HVAC Answering Service, Inc. is a private company operating nationally in the administration, business support and waste management services sector. The company's offerings include telephone answering services and call center services. Founded in 1985, the company is currently headquartered in King of Prussia,... Subscribe to learn more
Intrado Inc.
Intrado Inc. is a private company operating globally in the information and administration, business support and waste management services sectors. The company's offerings include virtual trade show software, videoconferencing software, telephone answering services, call center services and press release Subscribe to learn more
Qualfon Data Services Group LLC
Qualfon Data Services Group LLC is a private company operating nationally in the administration, business support and waste management services sector. The company's offerings include telephone answering services. Founded in 1995, the company is currently headquartered in Highland Park, Michigan, United States... Subscribe to learn more
Stericycle, Inc.
Stericycle, Inc. is a public company operating globally in the administration, business support and waste management services sector. The company's offerings include hazardous waste disposal services, medical waste disposal services, waste incineration services, telephone answering services and document destruction... Subscribe to learn more
TDKP Limited
TDKP Limited is a private company operating globally in the administration, business support and waste management services sector. The company's offerings include telephone answering services. Founded in 2000, the company is currently headquartered in Wrexham, Wales, United Kingdom with an estimated 750 employees.... Subscribe to learn more
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Procurement Management KPIs for the Telephone Answering Services Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Average Response Time and Customer Satisfaction (CSAT). Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Availability and Responsiveness and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Average Response Time |
|
Total number of tickets opened Total time to response for tickets |
An average response time, or the average time it takes for the agent to answer a call, is a critical indicator of performance for telephone answering service providers. If the average response time is very long, customers will not want to sit on the phone and wait for representatives to answer. Buyers should place emphasis on this indicator in particular, as this will give the most insight into how satisfied their customers are with the call center's service. |
| Customer Satisfaction (CSAT) |
|
Number of customer reviews Number of positive customer reviews |
Customer satisfaction is critical in telephone answering services as these calls reflect entirely on the buyer. A low customer satisfaction score indicates that the supplier is not providing high-quality service. A high customer satisfaction score can indicate that customers have been satisfied with the service that they have received on the call, which reflects well on buyers. |
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Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Experience and Expertise
What is your previous experience working within our industry?
How comparable is our product or service to those of your other clients?
Staff Turnover
What is your average turnover rate for employees?
What incentives do you offer your employees to reduce the likelihood of turnover?
Quality Control
What safeguards have you established to ensure quality in your services?
What type of training do you provide your employees?
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Telephone Answering Services RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should describe their organization, including their line of work, number of employees, location(s) and organizational structure.
Buyers should describe the purpose of the telephone answering services.
Statement Of Need
Buyers should detail the responsibilities of the telephone answering service needed (e.g. taking calls, answering technical questions, relaying messages).
Buyers should include the number of hours per day that they will require service.
Project Budget
If one exists, buyers should specify the maximum budget for services.
Buyers should request detailed cost breakdowns for the various types of services requested.
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Our Reports include:
- Opportunity assessment
- Market dynamics
- Recent developments
- Positive and warning trends
- Buyer power levers
- Price environment and market pricing
- Geographic wage rates
- Global market updates
- Total cost of ownership
- Cost structure benchmarks and analysis
- Supply chain and vendors
- Global supplier breakdown
- Market share concentration
- Regulation and business requirements
- Vendor management and KPIs
- Sourcing strategy guidance
