Site Selection Group Releases 2022 Global Call Center Location Trend Report
by King White, on Feb 22, 2022 1:59:49 PM
As companies seek to optimize their call center footprint between facilities-based and work-from-home, understanding historic growth trends can help to develop onshore, nearshore, and offshore location strategies. In 2021, Site Selection Group identified 232 new and expanding call center announcements that created 101,623 jobs as well as 13 call center announcements involving 3,851 jobs at call centers that were downsizing or closing their facilities. By analyzing this data, Site Selection Group has identified regional location trends that are summarized in the 2022 Global Call Center Location Trends Report.
Global call center industry job creation decreased by 36%
The call center industry quickly shifted most employees from facilities-based to work-from-home in onshore, nearshore, and offshore geographies. Despite the impact of the COVID-19 pandemic, the United States led overall job creation with 102 projects announced with 36,196 jobs, which was a decrease of 48.2% over 2020. The Latin America and Caribbean region was the second most active region with 45 projects creating an estimated 29,250 jobs, which was a 21.4% decrease over the previous year. The following table summarizes the growth of call centers across the world:
Region | # Jobs Created | # Sites Opened or Expanded |
USA | 36,196 | 102 |
LACA | 29,250 | 45 |
Africa | 11,600 | 12 |
Western Europe | 8,544 | 27 |
India | 5,600 | 9 |
Asia-Pacific | 3,448 | 7 |
Philippines | 3,410 | 8 |
Eastern Europe | 1,480 | 10 |
Asia Pacific | 945 | 5 |
Canada | 650 | 5 |
Middle East | 500 | 2 |
Grand Total | 101,623 | 232 |
Note: Site Selection Group data was gathered from press releases and government agencies. Data is representative of market trends and in-depth country due diligence for all activity.
US call center market expanded by 36,000 jobs
Difficult labor market conditions created significant challenges for the call center industry in the United States. Site Selection Group estimates that 102 call center employers opened new facilities, expanded existing facilities, or expanded through work-from-home hiring within the United States. These companies announced the creation of only 36,196 jobs, which was a 48.2% decrease from 2020. The Southeast and Southwest accounted for over 64% of these jobs generally due to more attractive labor conditions, lower operating costs, and availability of economic incentives. For detailed U.S. location trend data, download the 2022 Global Call Center Location Trends Report.
Nearshore Latin America and Caribbean region had 21% growth
The Latin America and Caribbean (LACA) region had explosive growth in 2020 which continued into 2021 while the Philippines and India incurred significant challenges from the COVID-19 pandemic. The LACA region was the hottest global region due to labor availability, bilingual skills, low wage costs, and accessibility to the United States. The region had 45 projects announced creating an estimated 29,250 jobs. Some of the most active countries were Belize, Colombia, Costa Rica, Dominican Republic, and Jamaica. For detailed nearshore location trend data, download the 2022 Global Call Center Location Trends Report.
Offshore regions faced significant challenges due to COVID-19 lockdowns
The primary offshore markets in India and the Philippines were hit hard by the COVID-19 pandemic lockdowns. The overall saturation of the markets combined with infrastructure challenges to enable work-from-home created even more challenges. The Philippines job creation was less than 3,500 jobs as a result. South Africa was one of the most active alternative offshore countries that gained momentum. For detailed offshore location trend data, download the 2022 Global Call Center Location Trends Report.
Conclusions
Call center location strategies have become far more complicated in a post-COVID-19 world as companies have more flexibility than ever on where to locate due to the work-from-home model. Whether you are seeking to expand with a facilities-based or work-from-home solution, it is critical to evaluate site selection factors such as labor availability, labor cost, geopolitical risks, infrastructure, economic incentives, and real estate conditions. To help you develop a call center location strategy aligned to your goals and objectives, download the 2022 Global Call Center Location Trends Report or contact one of our global call center site selection experts to find the optimal location for you.