The Keep Call Centers in America Act: A Turning Point for Call Center Outsourcing & Site Selection?

On July 30, 2025, the U.S. Senate introduced a new piece of legislation titled the Keep Call Centers in America Act, designed to regulate where and how companies operate their customer service operations. This follows a decade after a similar bill was introduced in 2015 but ultimately failed to pass. With growing concerns around data privacy, AI usage, and domestic job creation, this new iteration arrives at a critical time in both the global economy and U.S. labor market.

The implications for the call center industry are profound. As a leader in global call center site selection, Site Selection Group (SSG) sees this as a potential inflection point for reshoring trends, particularly for companies evaluating both in-house and outsourced call center models.

Overview of the proposed legislation

The 2025 Keep Call Centers in America Act aims to increase transparency and accountability among companies that offshore customer service operations. Key provisions include:

• Mandatory disclosure of call center agent location to U.S. consumers.
• Consumer's right to request transfer to a U.S.-based agent.
• Creation of a public registry of companies that offshore call center operations.
• Potential penalties in the form of reduced access to federal grants, loans, and contracts.
• Early discussions also include potential oversight of AI deployment in customer service functions.

This framework mirrors many of the provisions introduced in the 2015 version of the bill (H.R. 321), which did not gain traction due to strong opposition from the business community and a more laissez-faire regulatory environment.

Why this time might be different

Unlike in 2015, the current legislative environment is more favorable to reshoring and domestic investment. The manufacturing sector has already seen bipartisan support for incentives to bring production back to the U.S. The renewed focus on data security, AI governance, and economic resilience in the wake of the COVID-19 pandemic has shifted the tone in Washington.

In addition, public sentiment has grown increasingly wary of opaque customer service experiences and perceived declines in service quality when support is offshored. The rise of generative AI introduces a new layer of complexity, particularly as businesses seek to utilize AI to replace or augment offshore agents.

Challenges in the U.S. labor market

One of the biggest challenges this legislation presents is the limited availability of qualified customer service talent in many U.S. markets. Unemployment rates remain low, and competition for entry-level workers is fierce. According to the Bureau of Labor Statistics, the unemployment rate for office and administrative support roles was just 2.9% as of June 2025.

Wage expectations have also risen. In many Tier 1 U.S. cities, the average hourly wage for call center roles now exceeds $20 per hour. These conditions create upward pressure on operating costs, which could affect the feasibility of reshoring for many companies unless they identify more cost-effective Tier 2 or Tier 3 metro areas.

Site Selection Group's strategic insight

Site Selection Group continues to advise companies with captive in-house call centers and leading BPO providers on how to optimize their contact center footprint in light of evolving legislative and labor market conditions. With deep experience across North America, LATAM, EMEA, and APAC, SSG helps clients:

• Evaluate domestic vs. offshore location strategies
• Identify labor markets with sustainable talent pipelines
• Balance automation, AI, and human capital in service delivery
• Navigate government incentives and compliance risks

Whether it's reshoring an in-house operation or selecting a U.S.-based outsourcer, the right location strategy is now more critical than ever.

Parallels to manufacturing reshoring

This legislation could be viewed as the customer service equivalent of the manufacturing reshoring movement. Both are driven by:

• Supply chain reliability
• National security concerns
• Job creation incentives
• Regulatory scrutiny on offshore operations

However, call centers face unique challenges that manufacturing does not, particularly in terms of labor availability and the speed of deployment. Unlike factories, which require long timelines and significant capital investment, customer service operations can move relatively quickly, but only if the workforce is in place to support them.

Conclusion

The Keep Call Centers in America Act could be a watershed moment for the customer service industry. While the bill’s final form and likelihood of passage remain to be seen, its very introduction signals a shift in political and public attitudes toward offshoring and AI in customer service.

Companies would be wise to prepare contingency plans now. That means reassessing site selection strategies, revalidating labor market assumptions, and engaging partners like Site Selection Group to stay ahead of regulatory and market-driven changes.

For more insights on this topic, explore our library of research and location intelligence at www.siteselectiongroup.com.