Site Selection Group's 2023 Global Call Center Location Trend Report

As companies seek to optimize their call center footprint, it is important to understand how evaluating historical growth trends can help to develop onshore, nearshore and offshore location strategies. In 2022, Site Selection Group identified 195 new and expanding call center announcements that created 126,435 jobs as well as 19 call center announcements involving 4,477 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 our Global Call Center Location Trend Report 2023.

24.4% Increase in Global Job Creation

The call center industry continued to expand in 2022 with growth shifting from the U.S. and Philippines to nearshore and emerging offshore regions as companies attempt to realign their footprints to minimize their risks of being too heavily concentrated in specific countries. U.S. job creation plummeted by 51.6% to only 43 projects creating an estimated 36,196 jobs primarily due to challenging labor conditions. The Latin America and Caribbean (LACA) region was the second most active region with 55 projects creating an estimated 25,235 jobs. Africa was one of the fast-growing, emerging offshore geographies with 18 projects creating 19,297 jobs. The following table summarizes the growth of call centers across the world:

51.6% Decrease in U.S. Job Creation

Difficult labor market conditions and wage inflation created significant challenges for the call center industry in the United States. Site Selection Group estimates that 43 call center employers opened new facilities and expanded existing facilities in the United States. These companies announced the creation of only 17,503 jobs, which was a 51.6% decrease from 2021. The Southwest and Midwest accounted for over 74% of these jobs generally due to more attractive labor conditions, lower operating costs, and the availability of economic incentives. For detailed U.S. location trend data, download the Global Call Center Location Trend Report 2023.

55 Projects Announced in LACA Region

The LACA region's job creation declined slightly in 2022 but remains one of the most active and popular regions. The region was the second hottest global region due to labor availability, bilingual skills, low wage costs and accessibility to the United States. The region had 55 projects announced creating an estimated 25,235 jobs. Some of the most active countries were Colombia, Jamaica and Mexico. For detailed nearshore location trend data, download the Global Call Center Location Trend Report 2023.

Africa Emerges as one of the Fastest-Growing Offshore Geographies

Offshore regions continue to be extremely attractive due to their low-cost advantage. However, many companies have recently found themselves over-weighted in countries like India and the Philippines, pushing growth to scalable, emerging offshore countries like Africa. As a result, Africa attracted over 18 call center projects that will create an estimated 19,297 jobs. For detailed offshore location trend data, download the Global Call Center Location Trend Report 2023.

Conclusions

The impact of remote work, wage inflation and economic conditions created significant challenges for the U.S. call center industry in 2023. Key offshore regions such as the Philippines had their own issues due to companies seeking to diversify geographically to nearshore and emerging offshore locations. As a result, it has become increasingly important to evaluate site selection factors such as labor availability, labor cost, geopolitical risks, infrastructure, economic incentives and real estate conditions before you select a location. To help you develop a call center location strategy aligned with your goals and objectives, download the Global Call Center Location Trend Report 2023 or contact one of our global call center site selection experts to find the optimal location for you.