Frost & Sullivan, a growth partnership company, recently released a report titled: “Mexico and Central America and the Caribbean Contact Center Outsourcing Services Markets.” In it, Frost & Sullivan’s Information & Communication Technologies Industry Analyst, Sebastian Menutti, claims that the Caribbean and Central America are poised to grow outsourcing services “due to their cultural affinity with the country and the availability of a qualified workforce with a neutral accent.”
While the telecom industry is the main vertical availing contact center outsourcing services in Central America and the Caribbean, banking, financial services, and insurance are the key industries driving the demand in Mexico.
The report also says the contact center outsourcing services market in Mexico, Central America, and the Caribbean experienced significantly higher growth than the Latin American market as a whole in 2013. These markets earned $3.02 billion in 2013, the report said.
Growth is predicted this year with Frost & Sullivan saying the sector will continue to witness strong expansion as Mexican contact center outsourcing service providers generate revenues from domestic business and their Central American and Caribbean counterparts focus on nearshoring to the United States (US).
Frost & Sullivan estimates outsourcing service provision to reach $5.07 billion in 2020. The report says the Central American and Caribbean contact center outsourcing services markets are also gaining pace due to the existence of free-trade zones that offer exemptions from sales taxes, equipment import taxes, and exporting fees to providers who generate a minimum percentage of their revenue from exports.
“Central American and Caribbean contact center outsourcing service providers are boosting revenues by distributing traffic depending on the competitive advantage each country possesses,” noted Menutti.
“Accordingly, transactional traffic is placed in low-cost locations, back-office activities are conducted in cost-effective destinations with a high standard of education, and traditional voice services for US clients are provided from key cities in Latin America.”