Where in the World Are Outsourcers Going?

Jamaica is also becoming a significant presence in contact center outsourcing discussions, and the government has recently started offering incentives for call center and other outsourcing companies, with a $480,000 plan to help small providers scale up operations and create higher-skilled jobs for young professionals in the country. The plan also encourages local companies to employ cutting-edge technology tools and keep abreast of changes and trends from around the globe.

Developed as part of the Compete Caribbean Partnership Facility (CCPF) program, the Jamaican initiative is largely funded by the Inter-American Development Bank along with the U.K. Department for International Development, the Canadian government, and the Caribbean Development Bank. The CCPF program is more than four years old. In 2015, Jamaica used it to construct a 200-seat facility in Montego Bay for a leading outsourcer.

PHILIPPINES A POPULAR OFFSHORE DESTINATION

Further away, the Asian island nation of the Philippines has become the top offshore contact center location. In fact, the top seven offshore expansions or new contact center constructions in 2019 were in the Philippines, according to Site Selection Group. Of those, the largest were expansions for Alorica, 9,000 seats, and iQor, 5,000 seats, and new sites for Telus International, 5,000 seats, and Dito Telecommunity, 4,000 seats.

In 2016, the Philippines accounted for 12.7 percent of total worldwide outsourcing revenue, a figure that is expected to grow to 15.5 percent by 2022, according to Site Selection Group’s data.

“The growth of these back-office operations in the Philippines is creating new challenges for companies trying to attract the best talent, reduce employee attrition, and control labor costs,” the firm reports, also citing recent changes to the Philippine Economic Zone Authority (PEZA), a government agency tasked with promoting investments, providing assistance and grant incentives to companies opening facilities in selected areas throughout the country.

Outside of the Philippines, India was the next favorite offshore location for offshore contact center jobs, according to the Site Selection Group. Eastern Europe was also gaining in popularity. Egypt, which had been popular for several years, has declined given several years of political, social, and economic upheaval.

OVERSEAS CONCERNS

But no matter where in the world they’re located, foreign contact centers are not without their negatives. Among them, ROI Solutions identifies these:

• Decreased control: Offshore call centers are harder to visit, so U.S. companies might not have as much control over what is happening at the call center or who is being hired to handle calls on their behalf.

• Security: Onshore call centers are easier to regulate and secure than offshore call centers. An offshore call center might not follow the same security protocols, which could increase the likelihood of data breaches or thefts.

Language is also a prevalent concern with foreign facilities. “People want [agents] to be able to understand them,” Bala says. Petruk agrees, noting that companies want better first-call resolution rates, so they want highly technical agents who can speak the native language.

That has driven some of the movement of call centers to U.S. locations, though most companies still operate some significant offshore and nearshore operations, according to Bala. “Those with the greatest diversity will tend to do the best.”

Petruk adds that many nearshore and offshore centers now have language training programs to address many of the previous issues.

They are also addressing other skills challenges, focusing some of their recruitment efforts on those with the technical skills needed to support companies in high-tech industries, according to Saenger.

Bala also expects contact center agents worldwide to become more skilled over the next few years, resulting in higher wages.

Several factors are involved in higher costs. Minimum wages in the United States and many overseas locations are going up, and the higher skill sets agents need today will command higher wages for everyone, experts contend.

“The cost differential is closing for the most part,” Sanger says, urging companies to take caution when selecting contact center locations, no matter the region they choose.

“The most import thing at the end of the day is how effective you make the agents and if they have the tools they need. You have to see how well agents are at handling product problems. Poor CX affects the top and the bottom lines,” he states. 

Phillip Britt is a freelance writer based in the Chicago area. He can be reached at spenterprises@wowway.