Emerging Geographies Create Opportunities & Challenges for BPOs in 2024

by Michael Replogle, on Apr 16, 2024 8:00:00 AM

Emerging nearshore and offshore markets have become crucial geographies in the global economy, significantly influencing the landscape of business process outsourcing (BPO) and contact center industries. As we move into 2024, these regions present immense opportunities and notable challenges for the BPO industry. This blog explores these facets, drawing attention to how companies can navigate this evolving terrain.

Opportunities in emerging nearshore and offshore geographies for BPO


1. Cost Efficiency

Emerging markets offer a cost-effective solution for businesses looking to outsource. Lower operational and labor costs in countries such as India, the Philippines and parts of Latin America and Africa, can significantly reduce expenses for companies in developed nations, enhancing profitability and competitiveness.

2. Talent Pool

Emerging markets are home to a large, young and progressively skilled labor force adept in many languages and technological skills. This advantageous demographic provides a significant benefit to the BPO industry, which requires a varied array of skills to serve clients worldwide. Egypt and Morocco are two African countries that have emerged as great low-cost options for supporting numerous European languages.    

3. Digital Transformation

Many BPOs operating in emerging geographies are at the forefront of digital adoption and innovation, making them ideal partners for companies looking to leverage digital services. From cloud computing to artificial intelligence, BPO firms in these regions are equipped to offer sophisticated services beyond traditional contact centers.

4. Accessibility and Scalability

Collaborating with BPO providers can unlock access to emerging countries, potentially easing the process of entering and expanding within these rapidly growing areas. Countries like South Africa have become an increasingly viable option for scalable, low-cost solutions but can be difficult to enter due to distance from the U.S.

Four Challenges facing emerging geographies for BPO


1. Political and Economic Instability

Emerging countries are often susceptible to political and economic fluctuations, potentially posing risks to operations and investments. Companies must navigate these uncertainties carefully, employing risk-mitigation strategies to safeguard their interests.

2. Infrastructure and Regulatory Hurdles

Even with progress, certain emerging countries continue to trail in terms of high-quality, reliable infrastructure and grapple with intricate regulatory landscapes. Such challenges can affect the effectiveness and growth potential of BPO operations, underscoring the need for careful strategic planning and the formation of local partnerships.

3. Cultural and Communication Barriers

Effective communication is crucial in the contact center industry. Differences in culture, language nuances and business practices can lead to misunderstandings and inefficiencies. Overcoming these barriers requires comprehensive training and a deep understanding of the client’s business culture.

4. Data Security and Privacy Concerns

As BPO involves handling sensitive information, data security is paramount. Emerging countries must adhere to international standards and regulations like the General Data Protection Regulation (GDPR), requiring significant investment in cybersecurity measures and protocols.

Navigating the future

To capitalize on the opportunities and overcome the challenges in emerging markets, BPO providers and their clients need to adopt a strategic approach that includes the following four actions:

1. Execute Due Diligence and Risk Management

Conduct thorough site selection research and implement robust risk management practices to mitigate potential political, economic and operational risks.

2. Invest in Training and Technology

Prioritize the development of local talent and invest in technology to enhance service offerings, ensuring competitiveness in the global market.

3. Build Strong Local Partnerships

Engage and work with local government agencies and businesses to handle regulations, understand cultural differences and connect with local markets.

4. Emphasize Data Security

Adhere to international data protection standards and invest in cybersecurity to build trust with clients and protect sensitive information.


In 2024, emerging nearshore and offshore locations offer a vibrant and evolving environment for the BPO industry, filled with significant opportunities as well as tough challenges. By adopting a balanced and informed strategy, companies can leverage these markets for growth while ensuring resilience against potential obstacles. Although navigating emerging markets comes with challenges, a carefully planned approach can benefit the BPO industry considerably.

Topics:Call Center



Blog Posts →


News →


Success Stories →