Latin American Contact Center Market Heats up

Ann All

A burgeoning Hispanic population in the U.S. has created a strong demand for Spanish-speaking contact center agents. Many American companies find such agents in Mexico.


While Mexico's close proximity and attractive labor costs are strong selling points, some companies are also starting to consider other Latin American alternatives, according to a destinationCRM.com article. Chile, Costa Rica, Argentina and Panama are among the options, says Peter Ryan, head of contact center outsourcing for Datamonitor.


Such evaluations are more a sign of growing interest in Latin American than any dissatisfaction with Mexico, says Ryan. Diversification also helps protect companies from the kinds of talent shortages and steep salary increases that resulted from India's overheated market.


Ryan says some Latin American countries, such as Colombia, must battle inaccurate perceptions about political instability and organized crime. He says:

There are so many advantageous reasons [that companies looking to outsource their contact centers] want to look at Colombia, but the first thing someone not familiar with the country thinks is drug cartels, rebels, public-security issues, and kidnappings of Western business people.

While Mexico will remain a "mainstay" of nearshore outsourcing, says Ryan, he does expect to see more companies adding operations in locales like Argentina and Chile.


Another option for American companies with Spanish-speaking customers, according to the article, is blingual home-based agents in the U.S. Among the advantages of home-based agents are the ability to draw from a broader talent pool than is possible with traditional contact centers, as I blogged back in October.


Mexico, in the meantime, is working to position itself as a destination for higher-value outsourcing work. Felipe Calderon became the first Mexican president in 22 years to visit India, when he journeyed to Bangalore in late 2007 to promote closer business relations between the two countries. Two of India's outsourcing giants, Wipro and Infosys, have opened software development centers in Monterrey.

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Add Comment      Leave a comment on this blog post
Mar 17, 2008 11:59 AM Guillermina Cabello Guillermina Cabello  says:
Actually the Mexican Government is so mmitted to the initiative that this year it has 60 million USD in grants to promote companies to invest in the country.Te state of Jalisco is a huge hub and companies such as TCS and Perot Systems have opened operations there also.Information regarding the country benefits can be found at www.mexico-it.com Reply
Mar 17, 2008 5:53 PM Vittorio Dall'Omo Vittorio Dall'Omo  says:
Why Dominican Republic was not considered as a near shore good option for spanish / bilingual work? Reply
Mar 29, 2008 9:00 AM Michelle Michelle  says:
TCS is a flop, if they open in Mexico is obvious to take advantage of what they dont have in their own country: infrastructure, order and US as neighbour. I hope Mexican government dont trust these people from TCS because they go on business visa (exempt of taxes) send their people to steal the job of the host country, in this case, Mexico and they dont promote healthy competition to the market. They are used just to put their people, they dont give any benefit to the local employees. Similar cases are UK (where around 3000 people are indians, Finland where out of 200 only 4 people are local finnish employees, Germany which also workforce is indian only. In this last case for example, they are taking out around 100 jobs from germans in order to position 100 indians for their Nokia Siemens network, not to forget that TCS does not have any premises and they just take advantage of NSN offices. So, as a conclusion, i hope Mexican government and public, private companies dont trust this monster of 100,000. Any person who has gone and lived in India would understand it. Reply
Sep 8, 2008 6:26 PM On Demand Contact Center On Demand Contact Center  says:
I Like UCN's on demand contact center solutions. http://www.ucn.net Reply
Jul 31, 2009 4:33 PM Jessica Jessica  says:

Latin America is booming with call centers right now. Why? Same time zone, cheaper prices, easily integrated western culture, etc etc. In Buenos Aires, there is a huge amount of people from all over the world for many different reasons - but they all share one thing in common, they need a job! Call centers attract them because often they can speak to clients / customers in their own language. Companies like ww.5CA.com are owned by people from the netherlands but headquartered in Buenos Aires.

Sep 29, 2009 4:59 PM Anna Anna  says: in response to Jessica

In addition to this the well educated population and a highly developed telecoms infrastructure, makes Buenos Aires the latest hot spot for setting up a call center.


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