Five Things that May Affect the Global Call Center Industry in 2025

The global call center industry has historically experienced cycles of growth and contraction, driven by various economic, technological, and geopolitical factors. As we approach 2025, several key factors have contributed to a slowdown in the opening of new call centers, both for business process outsourcers (BPOs) and in-house operations. This blog explores these influences and speculates on potential changes in the coming years.

1. Economic Influence: The Sluggish US Economy

The current slowdown in the U.S. economy is impacting consumer spending and general corporate growth, reminiscent of the effects seen in past recessions. However, the current economic downturn is milder compared to the recessions of 2008 and 2001. These past economic dips significantly impacted business operations and spending but eventually led to recovery phases. A similar rebound could be on the horizon as economic cycles tend to correct over time.

2. Political Uncertainty: US Elections

Election cycles in the U.S. often introduce a degree of uncertainty that can temporarily stall decision-making in business investments, including the call center industry. Despite common perceptions, historical data shows little correlation between election outcomes and stock market performance, indicating that election-related uncertainties might be more of a psychological barrier than a direct economic disruptor.

3. Technological Disruption: The AI Buzz

Artificial Intelligence (AI) has sparked significant discourse about the future of call center jobs. While some fear AI could replace human agents, the technology is more likely to augment human capabilities in the call center sector. AI tools in call centers enhance customer service by aiding in training, task resolution, and even providing voice neutralization - which could bolster the growth of offshore operations in regions like India and the Philippines.

4. Changing Workplace Dynamics: Work from Home Impact

The remote and hybrid work models have significantly altered call center site selection. The demand for large, traditional call center spaces has waned, replaced by a preference for smaller, high-quality office spaces. This shift reflects broader trends in workplace dynamics, where the quality of the work environment is becoming a priority. Future trends in return-to-office (RTO) policies, potentially spurred by cybersecurity concerns, could further influence this aspect.

5. Economic Pressures: Rising US Labor Costs

Post-COVID, the spike in U.S. labor costs has posed challenges for onshore call center growth. However, as nearshore and offshore labor costs begin to rise more rapidly, the cost differential is narrowing, which might eventually make onshore options more appealing again, especially if U.S. labor costs stabilize.

Conclusion

Looking ahead to 2025, several factors could significantly influence the call center industry’s growth trajectory. With potential shifts in U.S. interest rates, a cooling of the AI buzz, employer pressures to return to office, and stabilization of labor costs, the industry could see a resurgence in growth. Once the U.S. elections are behind us, reducing political uncertainty, companies may feel more confident in making strategic decisions regarding their call center operations. At Site Selection Group, our team of experts is well-equipped to help businesses navigate these changes by identifying optimal onshore, nearshore, and offshore geographies and facilities for call center operations and connecting them with top-tier BPO service providers.