Latin America: an offshoring power?

Published: 11 Sep 2007

By Kristin Crispin, Industry Manager, Enterprise Communications, Latin America

A great deal of noise has been about of offshoring customer care on global basis. Cost savings, multilingual capabilities and business diversity have made it much more attractive for outsourcers and clients alike as the international economy becomes much more integrated. It has also become a hot topic in many developing markets; this is principally due to the fact that offshoring can benefit countries both in terms of technology development as well as employment creation, aspects that can be lacking in the local economies.

While other countries like India and the Philippines took center stage in this movement, slowly but surely Latin America has assumed an important place in the offshoring trend. The region is now becoming increasingly more attractive for the Spanish services, especially as US-based companies develop specific strategies towards local hispanic consumers. Thus outsourcers can differentiate themselves by becoming a full service provider and offering their clients both English and Spanish speaking customer care solutions. Moreover, local governments have gone out of their way to attract in-house and outsourced facilities to their countries, as increased foreign investment and job employment directly benefit the development of their market.

A US based multinational made the venture in customer care outsourcing early on and reaped initial benefits in terms of cost and efficiency. However the backlash towards poor client service became so strong it was forced to migrate its call centers to the home market.

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