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Call Center Site Selection Guide to the Latin America & Caribbean Region

by King White, on Mar 21, 2022 4:45:32 PM

In the last two years over 65,000 jobs at 87 call center sites have been announced across the Latin America & Caribbean Region (LACA). This unprecedented growth is clearly a sign of the geographic shift the call center industry is going through as companies are selecting nearshore markets for expansion over the U.S. and offshore locations such as the Philippines. This growth has made the site selection process more challenging as cities become oversaturated with competition, driving up wages and attrition rates. To help you understand the nearshore options to consider, Site Selection Group has provided a summary of the region to help guide you in the site selection process.

What is the LACA region?

There is often confusion on the definition of the LACA region. The technical definition of Latin America is the portion of the Americas comprising countries and regions where Romance languages—languages that derived from Latin—such as Spanish, Portuguese, and French are predominantly spoken. This is a combination of Mexico (technically in North America), Central America, and South America.

The Caribbean consists of all islands in the Caribbean Seas. Obviously, one of the challenges of islands is the geographic and population limitations which often makes scalability difficult. As a result, some of the larger islands are the most popular for call center locations with the Dominican Republic and Jamaica being great examples.

Which countries have a more mature call center industry?

It can be very difficult expanding into a new country that doesn’t have an established call center industry to source management and trained agents. As a result, it becomes a balancing act of finding a location that has some direct labor competition but isn’t too saturated. The amount of growth in the region has made the site selection process more complex and risky as companies seek that balance.

Site selection guide to the LACA Region

The following table summarizes the typical targets with their maturity and cost profile. This data can help guide you as you consider your options.

Country Market Maturity Cost Ranking Region
Argentina Mature Moderate South America
Bahamas Emerging High Caribbean
Barbados Emerging Moderate Caribbean
Belize Mature Moderate Central America
Brazil Mature Low-Moderate South America
Chile Mature Low-Moderate South America
Colombia Mature Moderate South America
Costa Rica Mature Moderate-High Central America
Dominica Emerging Moderate Caribbean
Dominican Republic Mature Low Caribbean
El Salvador Mature Moderate Central America
Grenada Emerging Moderate Caribbean
Guatemala Mature Moderate Central America
Guyana Growth Low-Moderate South America
Honduras Mature Low-Moderate Central America
Jamaica Mature Low-Moderate Caribbean
Mexico Mature Moderate North America
Nicaragua Growth Low-Moderate Central America
Panama Mature Moderate-High Central America
Peru Growth Low South America
Puerto Rico Mature High Caribbean
Saint Lucia Emerging Moderate Caribbean
St. Vincent & Grenadines Emerging Moderate Caribbean
Trinidad and Tobago Growth Low-Moderate South America
Uruguay Mature Moderate-High South America

 

Conclusions

The growth in the LACA region has been incredible to watch. It has become true staple geography for a call center presence as companies continue to diversify their footprint. The ability of nearshore locations to handle the long-term growth of the call center industry will probably be the single biggest challenge faced by the region as markets become oversaturated.

Topics:Call CenterSite Selection

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