The FCC Just Put Offshore Contact Centers on Notice

Why This Matters More Than Legislation, and Why It Will Drive a Costly Reshoring Wave

For the better part of the last year, policymakers have been circling the offshore contact center model and raising concerns around data security, customer experience, and the surge in foreign-based robocalls.

Most of that noise has come from Congress.

This time, it’s different.

The Federal Communications Commission (FCC) has now stepped in with a Notice of Proposed Rulemaking (NPRM) that directly targets offshore contact center operations. And unlike legislation, the FCC has the authority and the track record to move from proposal to enforcement relatively quickly.

This is no longer a “watch list” issue. It’s an operational risk.

Why the FCC Carries More Weight Than Congress

Legislation is slow, political, and often diluted before it becomes actionable.

The FCC operates differently.

Leveraging existing frameworks like the Telephone Consumer Protection Act (TCPA), the FCC can interpret, expand, and enforce regulations within its jurisdiction without waiting on Congress to act.

That means timelines compress. And more importantly, compliance becomes mandatory, not optional. For companies relying heavily on offshore customer support, this is the first real signal that the model could face structural constraints.

What’s Actually Being Proposed

The FCC’s proposal is framed around consumer protection, but the implications and potential restrictions run much deeper and include the following:

• Limits on offshore call volume
• Mandatory disclosure and onshore transfer rights
• Forced onshoring of sensitive interactions
• Language and cultural requirements
• Financial penalties for offshore-originated robocalls

The Economic Reality: This Will Materially Increase Costs

Offshore contact centers exist for one primary reason: cost efficiency. When companies are forced to rebalance toward higher-cost U.S. labor, add compliance layers, and maintain hybrid operating models, the economics change quickly.

Expect:

• Higher labor costs
• Increased infrastructure duplication
• BPO contract repricing

These costs will ultimately be passed on to consumers through higher prices or reduced service levels.

Site Selection Implications: It’s Not Just Buildings Anymore

Companies now have three levers:

1. Physical contact centers
2. Work-from-home (WFH)
3. Agentic AI

WFH becomes the fastest path to compliance, should the FCC proposal be implemented in its current or a modified form, allowing rapid deployment of U.S.-based labor without long-term real estate commitments.

At the same time, AI adoption will accelerate rapidly as companies look to offset rising labor costs.

The New Delivery Model

Each of these three delivery models has benefits: AI handles high-volume interactions, WFH provides flexible domestic capacity, and physical centers manage complex and sensitive work.

If the FCC proposal moves forward,  it could result in a fundamental shift in how companies approach real estate, labor, and technology. And because of that, contact center operators should be watching this rulemaking process very closely. Once published in the Federal Register, the clock on a comment period will begin. 

Bottom Line

The FCC is not proposing to eliminate offshore, but it is seeking to force a structural shift toward onshoring. Companies that act early will have options. Those who wait will face higher costs and fewer choices. 

What Companies Should Do

As the proposal enters the comment period, it’s not too early for companies to plan for potential impacts. We recommend the following:  

• Audit delivery models
• Identify compliance risks
• Stress-test BPO contracts
• Evaluate U.S. labor and real estate strategies

Ultimately, the proposed rule may be modified, rejected, or adopted. Continue to watch the SSG blog and website for additional updates to find out how this proposed sweeping new rule might affect your offshore contact center operations.