The Global Impact of the Keep Call Centers in America Act: Risks and Strategic Shifts in Offshore and Nearshore Outsourcing

As global location strategies continue to evolve, legislation from major economies can send shockwaves through the offshore and nearshore business process outsourcing (BPO) markets. One such development is the proposed U.S. Keep Call Centers in America Act of 2025. While initial commentary focused heavily on the Philippines, the implications are far-reaching, potentially impacting millions of jobs across India, Latin America, Africa, and other sourcing destinations. With over 5 million call center jobs estimated globally across offshore and nearshore markets, this legislation may catalyze a shift in how and where customer service operations are delivered.

This blog provides an updated perspective on the proposed legislation, assesses its potential global impact, and outlines the strategic implications for companies, providers, and policymakers.

The Legislation: A Quick Overview 

The Keep Call Centers in America Act of 2025 (S. 2495) aims to restrict or disincentivize U.S. companies from offshoring customer service operations. Key provisions include:

• A mandatory 120-day notice to the Department of Labor before offshoring call center jobs
• A public “Do Not Reward” list for companies that outsource more than 30% of customer service roles offshore
• Restrictions on access to federal grants and contracts for listed companies
• Requirements for offshore agents to disclose their location to U.S. consumers and transfer calls to U.S.-based agents upon request

Although the bill is not yet law, its intent and bipartisan backing signal a policy environment that could reshape outsourcing strategies.

Sizing the Global Call Center Market 

The global contact center outsourcing market is valued at approximately $113 billion and is expected to grow to nearly $199 billion by 2032. Key offshore and nearshore hubs employ millions:

• Philippines: ~1.5 million workers
• India: ~1.3 million workers
• Latin America (e.g., Mexico, Colombia, Costa Rica): ~1.5 million combined
• Africa (e.g., Egypt, South Africa, Kenya): ~1 million workers

Collectively, these regions support U.S. customer service functions at scale, making them highly exposed to policy shifts.

Regional Exposure and Strategic Risks

Philippines

As a dominant voice in BPO locations serving primarily U.S. clients, the Philippines is particularly vulnerable. An estimated 70% of its BPO revenue comes from U.S. contracts. If the bill passes, Philippines-based providers may face reduced volume or demands to relocate services.

India

While India has diversified into higher-value, non-voice services, a significant portion of its BPO workforce continues to handle customer service. India could also see a contraction in traditional voice services, even as knowledge-based work remains more insulated.

Latin America and the Caribbean

Countries like Mexico, Colombia, and Costa Rica may actually benefit from the legislation due to their geographic and cultural proximity to the U.S. If U.S. companies reduce offshore operations, nearshore providers may see increased demand.

Africa and Emerging Markets

Markets such as South Africa, Egypt, and Kenya have been experiencing rapid growth in the BPO sector. However, infrastructure and brand maturity may limit their ability to absorb redirected volume, especially under tighter compliance requirements from U.S. clients.

Strategic Implications

For In-house Contact Center Leadership

• Diversify risk: Relying solely on offshore delivery is now a regulatory risk. Blended models across onshore, nearshore, and offshore can hedge that exposure.
• Move up the value chain: Shift from low-value voice work to complex, multichannel, and AI-supported CX models.
• Re-evaluate vendors: Compliance and risk mitigation should become core evaluation criteria in vendor selection.

For BPO Providers

• Geographic diversification: Expand delivery capabilities across regions to offer contingency and compliance flexibility.
• Service evolution: Invest in automation, analytics, and digital transformation to reduce reliance on headcount-based voice delivery.
• Client partnerships: Collaborate with clients on transition plans, policy monitoring, and solution design.

For Policymakers in Sourcing Countries

• Tax and labor flexibility: Adapt regulations to support remote and hybrid delivery models while maintaining competitiveness.
• Upskilling and education: Shift workforce development toward high-complexity, digital, and multilingual services.
• Client diversification: Reduce over-reliance on the U.S. by expanding into markets in Europe, the Middle East, and the Asia-Pacific region.

Outlook: Threat or Catalyst? 

While the Keep Call Centers in America Act is not yet enacted, it represents a strategic inflection point for the global outsourcing industry. It’s not just a threat to the traditional offshore voice model, but a wake-up call for transformation. Countries and providers who can pivot toward higher-value services, digital capabilities, and diversified client portfolios will not only weather potential disruption but also emerge stronger.

This legislation may mark the beginning of a new era in customer service outsourcing—one that prizes flexibility, compliance, and strategic value over volume and labor cost alone.

Conclusion 

The future of global call center outsourcing is being reshaped by policy, technology, and evolving client expectations. While the Philippines is at the forefront of the current debate, its impact is truly global. Nearshore and offshore destinations alike must prepare for a landscape where resilience, adaptability, and value creation become the new pillars of competitiveness.

As the global location strategies evolve, the winners will be those who see disruption not just as a threat, but as an opportunity for reinvention.