The Calm Before the Next Wave: Uncertainty and Opportunity in the Global Contact Center Industry

After several years of rapid expansion and aggressive outsourcing activity, the global contact center industry is showing signs of a slowdown. Inflationary pressures, stagnant economic growth, artificial intelligence, and corporate cost containment are forcing companies to pause, reassess, and reevaluate their global footprints. For the first time in years, we’re seeing a lull in large outsourcing announcements and fewer net new site expansions.

But beneath that pause lies opportunity. Smart operators are using this moment to rethink how and where they operate—optimizing portfolios, improving vendor alignment, and preparing for the next cycle of demand.

The State of the Market

The contact center sector has always been cyclical, but 2025 feels different. Several trends are converging:

• Economic Uncertainty: Slower global growth, persistent inflation, and cautious consumer spending are putting pressure on corporate budgets and service demand.
• Stalled Expansion: Many BPOs have hit the brakes on nearshore and offshore expansion, waiting for greater economic clarity before committing capital.
• Shifting Client Priorities: Enterprise clients are pushing vendors for efficiency, automation, and cost transparency, not just headcount scalability.
• Labor Market Volatility: Wage inflation in traditional markets, such as the Philippines, Colombia, and South Africa, has narrowed the cost advantages compared to emerging markets.
• Technology Integration: AI continues to augment, not replace, human talent—forcing operators to strike a balance between automation and workforce agility.

This combination of macroeconomic uncertainty and operational transformation has created an environment of strategic hesitation, yet also presents strategic opportunities.

The Strategic Pause: Rethinking Location Strategy

For outsourcing firms and in-house contact center operators, this lull presents an opportunity to recalibrate. Many are asking:

• Are our existing sites in the most cost-effective labor markets?
• Are we overexposed to a single geography or vendor?
• What emerging markets can provide sustainable growth over the next decade?

Forward-thinking companies are investing in data-driven location strategies to answer these questions before the market rebounds. Instead of chasing short-term cost savings, they’re focusing on long-term workforce sustainability, geopolitical stability, and incentive potential.

Emerging Market Shifts

We’re beginning to see subtle shifts in where global players are directing their attention:

• Africa Rising: Kenya and Egypt are emerging as stable, English-speaking alternatives with strong talent pipelines.
• Latin America Diversifies: Beyond traditional hubs like Colombia and Costa Rica, new entrants such as Peru are gaining traction.
• Asia Repositions: The Philippines remains dominant, but India has reemerged for non-voice work and AI accent-neutralized voice work.
• U.S. Nearshore Rebalancing: Demand for bilingual labor continues to grow, continuing interest in Central America and the Caribbean.

Each of these markets presents its own labor, cost, and risk profile—but all share one thing in common: they’re preparing for the next cycle of outsourcing demand.

What is Next?

At Site Selection Group, we see this slowdown as a strategic inflection point. When growth resumes—and it will—the winners will be those who’ve used this time to align their footprint and technology strategies.

By combining global market analytics with real-time labor intelligence, we help clients evaluate where to invest next and how to future-proof their contact center footprints. Whether optimizing existing portfolios or scouting new geographies, the goal is straightforward: build resilience today to capture opportunities tomorrow.

Conclusion

The contact center industry may be catching its breath, but the fundamentals that drive global outsourcing remain strong. The next wave of expansion will favor companies that act strategically, not reactively. Economic headwinds may have created a pause, but smart operators are already planning their next move.