The US boasts the world’s largest call center industry, but other countries like India and the Philippines are significant players. This article compares the size of these markets, examining factors that influence location decisions for companies seeking call center services.
US Call Center Dominance
The US call center sector employs a staggering number of workers. Site Selection Group data reveals over 7,400 call centers with 50+ employees, totaling an estimated 2,343,990 workers. Including smaller centers and work-from-home agents, this figure likely swells to 3.3-3.4 million.
Texas and Florida lead in call center employment, followed by Arizona and Georgia.
Philippines: The Offshore King
The Philippines has surpassed India as the top offshore destination for voice-based call center services. Boasting an estimated 1.3-1.5 million agents, the industry contributes roughly 10% to the country’s GDP. Major corporations like Amazon and Google have established operations in the Philippines, driving expansion into secondary cities beyond Manila.
India: A Shift to IT Services
While India was a pioneering force in offshore call centers, quality concerns for voice services led to a transition towards IT, shared services, and transaction processing. Although the broader back-office sector employs around 3.1 million, voice-related call center jobs number between 1.1 and 1.3 million, placing India second to the Philippines in this specific area.
Latin America: A Rising Nearshore Contender
Latin America, with over 800,000 call center agents, offers a compelling nearshore alternative for US companies seeking bilingual capabilities and proximity. The region’s diverse landscape, encompassing approximately 33 countries, presents unique site selection considerations.
Market Disruptions and Site Selection
Several factors can disrupt call center market growth and influence location decisions:
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Political Instability: Political climates in countries like the Philippines, Nicaragua, and Honduras can impact operational stability.
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Government Legislation: Policies like anti-outsourcing measures or changes to tax incentives can alter a location’s attractiveness.
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Currency Fluctuations: Unstable currencies in countries like Canada, Argentina, Brazil, and the Philippines introduce financial risks.
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Unionization: The presence of unions can significantly affect labor costs and operational flexibility.
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Emerging Industries: New sectors, such as online gaming, can create competition for labor in certain markets.
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Wage Inflation: High wage inflation, common in nearshore and offshore locations, can erode cost advantages.
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Technology: Automation and AI are poised to transform the industry, potentially impacting call volumes and job security.
Conclusion
The US, India, the Philippines, and Latin America all play crucial roles in the global call center landscape. The distribution of call center jobs will continue to shift in response to economic fluctuations, corporate strategies, and disruptive forces. Companies must carefully evaluate these factors when making location decisions to ensure access to a qualified workforce at a competitive cost.
