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The latest industry insights & news from CCSI, Specialists in Establishing Contact Centers in Mexico for Debt Collection, Customer Service, Sales, BPO and more.

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Offshore Vs. Nearshore: Which Call Center Solution is Best for You? + Infographic

Offshore vs. Nearshore

Outsourcing your call center will give you access to excellent advantages that will allow you to keep growing your business. Still, it is true that with these benefits, there are also some risks to consider.

That's why it is essential to know your options and choose the right outsourcing call center solution for your company. Here we'll compare Offshore vs. Nearshore call center services, but first, in order to understand them clearer, let's define them.

 

Offshore Outsourcing


Offshore Outsourcing is the process where a company hires a third-party provider geographically located outside the country, where it is currently operating to perform a business function. The main offshore advantages are cost reduction and access to a large talent pool.


Prominent players of offshore call center services are the Philippines and India.

 

Nearshore Outsourcing


Similar to offshore, Nearshore Outsourcing is the process where a company hires a third party to perform a business function, but the big difference is that the Nearshore outsourcing provider is geographically near the country where the business is operating. The significant Nearshore advantages are its proximity to the U.S. and the cultural alignment.


Popular Nearshore destinations for call center outsourcing are Mexico and Jamaica.

 

What's best for my business?


To help you answer this question, let's compare Offshore and Nearshore in the following criteria:

 

Cost


Offshore

As we mentioned before, the most significant advantage of an offshore solution is the cost saving. Offshore call center pricing can be up to 50-70% less compared with U.S. average contact center costs. The volume of seats and the low labor costs allow them to offer that cost advantage.

 

Nearshore

Nearshore call center pricing is around 40-60% lower than U.S. operations, just about 10-30% higher than offshore pricing. The cost advantage in workforce and infrastructure allows Nearshore companies to offer globally competitive prices.

 

  

Accessibility


Offshore

As we mentioned in its definition, Offshore is farther from the U.S. A flight from main cities in the United States to offshore destinations like the Philippines can take 15-20 hours, depending on the stops. The average travel cost can be around $1,500-$2,500 USD.

Real-time interaction is limited unless you have a night shift because of the time zone, which can differ from 10-16 hours.

 

Nearshore

The purpose of a Nearshore destination is to have proximity to the U.S. It can take 1-5 hours by plane to go to most Nearshore locations, with an average travel cost of 400 USD. You can be at your Nearshore center the same day.

Its proximity and the time zone alignment, which can vary from 0-3 hours, allows you to have real-time interaction with your nearshore team almost all the time.

 

  

Cultural Alignment


Offshore

The culture in countries that are far apart can be significantly different, some regions may have some historical and global characteristics that can help to understand U.S. culture, but when you outsource customer service operations offshore, it's almost essential to provide the call center agents cultural training to help them empathize and build rapport with customers.

You will find plenty of English speakers at Offshore locations even though they might not have an American accent and probably won't understand some slang or American references. Again, training is crucial to help them better assist your customers.

 

Nearshore

Since Nearshore locations are nearer to the U.S., there are cultural similarities and American influences from the media content they consume, such as TV, music, and social media. Call Center agents in these regions know how to build rapport and empathize for a great customer experience. In some areas, like Mexico, they can communicate clearly with American customers and Hispanics.

There is a large pool of people with excellent English skills; many are accustomed to American accents and cultural nuances, and you can find bilingual English/Spanish agents in some Nearshore countries.

 

  

Workforce Management


Offshore

In offshore locations, you need to really trust your management team and have a well-developed training program for your outsourcing operation. Management and collaboration are limited due to the time zone and distance. You need to give flexibility and empowerment to your offshore team. You can train your supervisor or send an essential element of your team to train your team when needed.

 

Nearshore

You can manage and collaborate with your nearshore team easily. You can visit your contact center operation when you feel required without spending a lot of money and time. You create a stronger relationship with your team and with your contact center outsourcing partners.

  

   

Process / Business Activity


Offshore

If you opt for an offshore outsourcing provider, it's recommended to have a well-explained and easy-to-follow the process since you might not have complete control of the operation. It is better to outsource non-core business functions or look for vendors with experience in the processes you have in your contact center. For example, offshore software development and customer support are typically outsourced in these countries.

 

Nearshore

With Nearshore, you can outsource almost any process you require. You don't need to worry about having complicated processes because you can still have control of the operation with constant communication and site visits. You can adjust the process when required and update your team promptly.

Additionally, the cultural alignment allows Nearshore call center agents to understand better some terminology or situations your customer might encounter with your business. Nearshore call centers can easily manage business functions related to financial services such as Debt Collection and Loan Servicing.

 

 

If Offshore or Nearshore is best for your company is a question that you and your team need to answer, the insights we provide you here can give you a better guide to your decision.

For instance, if you are looking for a low-cost service to outsource a non-core easy-to-follow process where you do not require a lot of control and minimum training, an Offshore call center solution will probably be a better fit for your need.

However, if you want to reduce costs for your call center expansion, your process is more complicated, so you would like to maintain complete control, adjust, train, and improve it constantly, and customer success is your priority, it is definitely better to choose a Nearshore contact center that matches your company culture.

   

 

 

Call Center Services International (CCSI) offers Nearshore contact center services in Mexico for U.S. companies. We become a satellite facility of your existing operation, providing you the great advantages of a Nearshore outsourcing service, such as cultural alignment, cost savings, and more.


CCSI's model will give you complete control of your Nearshore operation and, this way, we guarantee that you will have the same or even better results as your U.S. operation. Contact us now to know more.

CHECK OUT OUR STUDY: Best Outsourcing Location

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