Site Selection Trends: Locating Call Centers in Latin America & the Caribbean

In today’s globalized world, companies are constantly seeking opportunities to optimize their call center operations and reduce costs through the implementation of site selection strategies for their in-house and outsourced operations. One effective strategy that has gained significant attention is utilizing a nearshore location strategy by entering the rapidly expanding Latin America and Caribbean (LACA) region. The LACA region covers over 20 countries with each country offering a variation of talent pool, infrastructure and strategic advantages. In this blog post, we will explore the reasons why locating your call center to the LACA region may be a logical location strategy for your company.

Skilled and educated workforce in most countries

The availability and quality of labor is the most critical site selection factor. LACA boasts a highly skilled and educated workforce in most countries; however, there are many countries that lag behind others. As a result, getting access to quality labor market data is very important when trying to evaluate labor conditions. Many of these countries have invested heavily in educational programs that emphasize technology, engineering and languages. This has resulted in a pool of talented professionals who are well-equipped to handle complex customer queries and provide superior service. Conversely, there are some countries that continue to struggle with possessing workforce development initiatives to support the long-term labor demands the call center industry.

Language and cultural affinity

LACA is home to a large population of English, Spanish and Portuguese speakers, making it an ideal choice for companies catering to customers in the Americas and Europe. By locating your call center operations in a LACA country, you can tap into bilingual locations in Latin America as well as some English-speaking countries in the Caribbean such as Jamaica. In addition, many of the LACA countries share cultural similarities with their counterparts in North and South America, allowing for better rapport and understanding between agents and customers.

Cost savings of about 50% over U.S. and Western Europe

One of the primary reasons why businesses consider relocating their call centers to the LACA region is the significant cost savings it offers. Compared to established offshore destinations, such as India or the Philippines, the cost of labor in LACA countries is slightly higher but is still less than 50% of the cost of an agent in the U.S. or Western Europe. The billable rates of a call center business process outsourcing provider (BPO) will typically range between $12 to $18 within the region which is significantly less than the $30+ rates in the U.S.

Large presence of BPO service providers 

There is a wide variety of small, mid-sized and large BPO providers spread throughout LACA. The region has become much more competitive as the region became extremely popular after the COVID pandemic. Many of the larger BPOs such as Alorica, Teleperformance, Concentrix, IBEX Global, TaskUs, and Foundever (formerly Sitel and Sykes) have large campuses spread across the region. Some mid-sized players such as The Office Gurus, Glowtouch, Acquire BPO, Nearsol, Pronto BPO, ContactPoint 360, Transparent BPO and others are strategically located in key markets. The entire region is starting to become much more saturated, so it is more critical than ever to carefully evaluate the labor market before committing.      

Proximity and time zone advantage

LACA’s geographical proximity to North America makes it an attractive destination for companies. With shorter travel distances, on-site visits and training sessions become more convenient. Additionally, LACA time zones often overlap with major U.S. markets, allowing for seamless, 24/7 customer support without the need for night shifts or complicated scheduling arrangements.

Stable infrastructure and technological advancements

Most LACA countries have made substantial investments in building and improving their telecommunications and IT infrastructure. Major cities in LACA also have reliable internet connectivity and a favorable business environment. This ensures that your call center operations run smoothly and efficiently, with minimal downtime and disruptions. Work from home has also become very successful in some key markets such as Colombia, Guatemala and Jamaica.

Conclusion

Expanding your call center footprint to LACA presents numerous advantages, including language proficiency, cultural affinity, a skilled workforce, cost-effectiveness, proximity to major markets, stable infrastructure and government support. By leveraging these benefits, you can enhance your customer service capabilities, reduce costs and unlock new growth opportunities. As you consider whether to expand and diversify your footprint, exploring the LACA region as a call center destination may be a strategic move that propels your organization toward success in the global marketplace.