The Increasing Demand for Nearshore and Onshore Contact Center Support
- Christa Heibel
- 1 July 2020
As the competition in marketplaces rises, having great customer service can be the factor that sets a business apart from its competitors. Companies in the United States have routinely outsourced customer service to offshore call centers in order to reduce costs. However, due to the increased competition with other companies and the demand for efficient omni-channel customer service experiences, we are seeing an increase in the use of nearshore and onshore contact center support. Below, we examine this trend and take a look at the benefits of nearshore and onshore contact center solutions.
The Shift to More Nearshore and Onshore Support
A report by Capstone Headwaters regarding business process outsourcing & contact centers notes that although offshore outsourcing has traditionally gone to India and the Philippines, outsourcing to the Caribbean (LACA) and Latin American has recently increased:
“Saturation and maturity in markets such as the Philippines have promoted migration towards nearshore locations, evidenced by the 53% growth in contact center employment in LACA from 2017 to 2018, according to Site Selection Group. The number of employees added in LACA surpassed contact center labor growth in India by nearly 6,900 workers.
Strength in the growing nearshore market is supported by a vast network of skilled labor, as Mexico alone is home to nearly 170,000 contact center workers in the country’s $1.32 billion Contact Center BPO market, according to CustomerServ. As geographic proximity gains increased favorability, nearshore locations are poised to capture further outsourced demand.”
The Increased Focus on the Customer Journey
Having a pleasant and efficient customer journey has become increasingly important to customers. It has also become essential to companies for remaining competitive since it increases customer loyalty and retention as well as profits. But offshore call centers often don’t have all the necessary elements needed for high-level customer support, such as omni-channel support, or agents who can speak English at the native level. On the other hand, nearshore and onshore contact centers are better equipped to enhance the customer journey.
The Benefits of Nearshore and Onshore Contact Centers
There are some key benefits to using nearshore and onshore contact center support:
- Nearshore Contact Centers
Some of the benefits of using nearshore contact centers include closer language and cultural fit than using offshore contact centers. They also have less expensive labor costs than onshore contact centers. In addition, nearshore contact centers are closer and don’t require as much travel as their offshore counterparts.
- Onshore Contact Centers
With onshore contact centers, language and cultural fit are non-issues. This helps with solving customer problems more quickly and creates more positive customer service interactions. This ultimately helps with brand reputation, customer satisfaction, and company profits. With onshore contact centers, there is also more control of the operations; it is easier to travel and train agents and ensure that rules are followed and standards are met, such as the ones for security.
When deciding whether to use offshore, nearshore, on onshore contact center support, make sure to balance costs with the customer experience.
CH Consulting Group provides unparalleled expertise in the Contact Center and Customer Experience (CX) verticals. We have a nationwide team of industry veterans that can assist you to achieve exponential growth, manage change, and generate profit. For a comprehensive CX assessment and strategic plan customized for your unique business needs, connect with us here today.