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Top 25 Largest Nearshore Call Centers Announcements

by King White & Brett Bayduss, on Jul 16, 2014 9:57:00 AM

The Latin America/Caribbean Region (LACA) has become one of the hottest nearshore call center destinations in the past several years. All the major outsourcers continue scrambling to plant their CallCenter_53822974flag in various locations as they seek to launch their nearshore solution in a country that has the optimal balance of labor availability, labor costs, and business climate. To understand who is going where Site Selection Group has identified 25 of the largest nearshore call center projects announced over the past several years.

Rapid Growth Creating New Challenges

The growth of the region is creating new challenges for companies as the markets are maturing. The three biggest areas of risk are wage inflation, employee attrition, and applicant flow. Most of the markets are seeing wages increase by 7 to 10% per year on top of a base wage of between US$2 per hour to US$4 per hour, depending on where you locate. The wage increases are needed to maintain applicant flow that will keep the centers staffed with qualified agents. Meanwhile, employee attrition rates continue to increase as more companies enter the market and make it more competitive for qualified labor.

The 25 Largest Call Center Projects in Latin America & Caribbean Region

After reviewing Site Selection Group’s monthly call center absorption over the past 3 years, there were 25 project announcements identified that had the greatest impact on the call center industry in the LACA region. The following table provides a summary of those projects:

The 25 Largest Call Center Projects in Latin America & Caribbean Region
 
Company # of
Jobs
Location
Type Year
UST Global 10,000 Leon, Mexico New Site 2013
Qualfon 6,000 Georgetown, Guyana Expansion 2013
Teleperformance 2,500 Santo Domingo, Dominican Republic New Site 2013
Aegis 2,000 Lima, Peru New Site 2012
Convergys 2,000 Bogota, Columbia New Site 2011
Allied Global 2,000 Guatemala City, Guatemala New Site 2013
Allied Global 1,400 San Pedro Sula, Honduras Expansion 2013
Teleperformance 1,000 Puebla, Mexico New Site 2014
APAC 800 Montevideo, Uruguay New Site 2011
Convergys 700 San Jose, Costa Rica Expansion 2014
Qualfon 600 Mexico City, Mexico New Site 2013
Transcom 550 Cali, Columbia New Site 2013
Island Outsourcers 535 Freeport, Bahamas Expansion 2014
Elephant Group 531 Montego Bay, Jamaica Expansion 2014
C3 500 Guatemala City, Guatemala Expansion 2014
The Results Companies 500 Heredia, Costa Rica New Site 2014
Island Outsourcers 500 Freeport, Grand Bahamas New Site 2013
Fullgram International 400 Kingston, Jamaica New Site 2014
Scotiabank 400 Trinidad & Tobago New Site 2013
Blackhawk Networks 375 San Salvador, El Salvador New Site 2014
Convergys 300 San Pedro Sula, Honduras Expansion 2014
Stream 300 San Pedro Sula, Honduras New Site 2013
Stream 300 San Pedro Sula, Honduras New Site 2013
iQor 300 Panama City, Panama New Site 2014
Callzilla 300 Bogota, Columbia New Site 2014

Conclusions

The demand for nearshore call center capacity is continuing to increase as companies seek an alternative solution to offshore locations like the Philippines and India. It is critical that companies utilize advanced labor analytics in the LACA region to help them avoid selecting a saturated nearshore location. Understanding where other companies have located provides a great way to evaluate which LACA cities may have the greatest demand for labor.

 

Download our Call Center Saturation Whitepaper

 

Topics:Call CenterEconomic IncentivesEconomic Development

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