by King White, on Feb 7, 2024 8:00:00 AM
As companies seek to optimize their call center footprint of in-house and outsourced operations, understanding historic growth trends can help to develop onshore, nearshore and offshore location strategies. In 2023, Site Selection Group identified 156 new and expanding call center announcements that created 180,176 jobs as well as 35 call center announcements involving 7,142 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 their latest Global Call Center Location Trends Report.
Global call center job creation increased by 32.1%
The call center industry expanded in 2023 with growth shifting from the U.S. to nearshore and offshore regions as companies sought to reduce costs due to the sluggish U.S. economy and higher cost of operating onshore. U.S. job creation plummeted by 47.2% to only 26 projects creating an estimated 9,247 jobs. India incurred the highest growth with almost 100,000 jobs announced. The Philippines was the second most active region with 34 projects creating an estimated 36,629 jobs. The Latin America and Caribbean (LACA) region was one of the fastest-growing, emerging offshore geographies with 37 projects creating 17,925 jobs. The following table summarizes the growth of call centers across the world:
Region |
# of Jobs Created |
# of Sites Opened or Expanded |
| India | 98,520 | 15 |
| Philippines | 36,629 | 34 |
| LACA | 17,925 | 37 |
| Africa | 10,050 | 14 |
| USA | 9,247 | 26 |
| Asia-Pacific | 2,680 | 9 |
| Western Europe | 2,620 | 13 |
| Canada | 1500 | 2 |
| Eastern Europe | 1,005 | 5 |
| Middle East | None | None |
Total |
180,176 |
155 |
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.
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U.S. call center job creation decreased by 47.2%
High wages and a sluggish U.S. economy created significant challenges for the call center industry in the United States. Site Selection Group estimates that only 26 call center employers opened new facilities or expanded existing facilities in the United States. These companies announced the creation of only 9,247 jobs, which was a 47.2% decrease from 2022. The Southeast accounted for over 46% of these jobs — generally due to more attractive labor conditions, lower operating costs and the availability of economic incentives. Major announcements were made by T-Mobile, Wells Fargo, Peckman and Fidelity Investments. For detailed U.S. location trend data, download the 2024 Global Call Center Location Trends Report.
Nearshore Latin America and the Caribbean announce 37 projects
The LACA region's job creation declined slightly in 2023 but remains one of the most active and popular regions due to labor availability, bilingual skills, low wage costs and accessibility to the United States. The region had 37 projects announced creating an estimated 17,925 jobs. Some of the most active countries were Jamaica, Colombia and Belize. Ibex Global, itel BPO, Teleperformance, and Transparent BPO were many of the companies that announced expansion in the region. For detailed nearshore location trend data, download the 2024 Global Call Center Location Trends Report.
Offshore regions faced significant challenges due to COVID-19 lockdowns
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, which pushed growth to scalable, emerging offshore countries like Africa. As a result, Africa attracted over 14 call center projects that will create an estimated 10,050 jobs. Some of the biggest announcements in offshore markets were by Teleperformance, VXI Global Solutions, Wells Fargo and JPMorgan Chase. For detailed offshore location trend data, download the 2024 Global Call Center Location Trends Report.
Conclusions
Whether you are seeking to expand with a facilities-based or remote workforce 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 with your goals and objectives, download the 2024 Global Call Center Location Trends Report or contact one of our global call center site selection experts to find the optimal location for you.
