Nearshore keeps growing at a yearly growth rate of approximately 6.7% (Frost & Sullivan, 2017). There are more and more U.S. companies looking into Nearshore locations to outsource their contact center or software development operations.

In 2015 it was estimated that 20%-30% of U.S. call traffic was being sent to Nearshore delivery sites (Frost & Sullivan). You can imagine how much that percentage has increased by now, and when you analyze see the obvious Nearshore advantages you can see why: cultural alignment,  bilingual capability, proficient English skills, short travel distance, and cost saving. But, what are other real reasons Contact Center CEOs are moving to Nearshore locations for their business needs, concerns, and priorities? Let’s dive into them.

Offshore Is Not Performing Well

This is probably the number one reason we hear from our clients and prospects. There was a time where many U.S. companies moved their contact center operations to offshore locations to reduce cost, but with the time they realized they weren’t really saving money. High travel expenses, customer complaints, underperforming agents, these were signs to stop and look for other options. Here is when many CEOs turn to look at nearshore because most of the time nearshore performs better than offshore because of its bilingual capability and cultural alignment, as well as the control it provides thanks to proximity, as we always mention.

Redundancy

Don’t put all your eggs in one basket! CEOs know this. When we talk about redundancy, this includes having different locations to support your in-house operation if it ever had a problem. It can be costly to open another location in the U.S. or Onshore. Nearshore represents a big opportunity for CEOs because they find a cost-effective solution, with minimum out-of-pocket investment, that remains close to their main operation.

Agent Retention Rates

U.S. contact center retention rates are a problem for many CEOs and several Nearshore locations are known for of having a low turnover rate. This is mainly because of the contact center career path and opportunities their offer. It’s also more cost-efficient for U.S. companies to incentivize their Nearshore agents because the cost of products and services is lower in these countries. It’s not surprising why CEOs like this opportunity.

Strong Government Support And Favorable Economic Situation

Thanks to the fast growth of Nearshore companies, governments have decided to help this industry sector and, in several cases, incentivize U.S. companies to invest in their countries, which is very favorable. There is also support in the educational sector. You can find many English and customer service related classes and courses, and there are also evening high-school programs, so working people can continue their education. On the other hand, the economic situation it is also favorable. First, the economic stability of this country. Then, the stable exchange rate that favors U.S. companies.

Blue-Chip Companies Are Nearshoring

In many cases, big companies mark the trends in the market. They are like role models for the majority of CEOs. They have the opportunity to try things before any of us without risking too much, and these companies decide to invest in Nearshore. Now we can see that it’s working for them and can also work for you too, and in many cases, you need to follow this trend too to stay competitive.

Have you given thought to any of these factors before? Tell us what piqued your interest about Nearshore.

Call Center Services International helps you establish a high-performing yet cost-effective Nearshore Contact Center in Mexico. If you are interested in Nearshore, contact us to discover more about its advantages and the success of our clients during our 10 years of experience! Contact Us.

Sources:

Frost & Sullivan Nearshore is All Grown Up Hot BPO Delivery Destinations

Frost & Sullivan Analysis of the Latin American Contact Center Outsourcing Services Market, Forecast to 2022