Nearshore vs. Offshore Customer Care: A Strategic Choice for Your Business

Nearshore vs. Offshore Customer Care: A Strategic Choice for Your Business

In the ever-evolving world of outsourcing customer care, it’s important to consider the geographic location of your service provider. Traditionally, offshore destinations like India and the Philippines have been the go-to choices, given their significant share of the outsourcing industry. However, the landscape is changing, with a new wave of nearshore locations, particularly in Latin America (LATAM), emerging as the preferred choice for numerous U.S. businesses seeking to outsource customer care.

Offshore outsourcing gained prominence in the 1990s as a cost-saving and efficiency-boosting strategy, but it wasn’t without its drawbacks. One of the primary concerns was the diminishing customer experience due to language and cultural barriers. Many LATAM countries seized this opportunity to develop their customer care industry, and today, there is no shortage of nearshore locations that are not only linguistically but also culturally aligned with U.S. consumers.

At XperiSource, we have embraced nearshore delivery to complement our domestic operations for several compelling reasons:

1. Cultural Alignment: Language proficiency is undoubtedly important, but it only goes so far in providing a positive customer experience. While offshore locations have English-speaking agents, cultural differences can lead to confusion and frustration. Nearshore agents, particularly those close to the U.S. border, are fully immersed in American culture and can interact with customers more effectively. Accenture’s research supports this, showing that 75 percent of customers prefer representatives who understand cultural context, not just the language.
2. Proximity: Offshore call centers can be a full day or more away and can be costly to visit, making site visits and quality checks challenging. In contrast, nearshore locations are easily accessible, allowing for quick visits to meet with location management, ensure standards are met, and make necessary adjustments. The time zones in nearshore locations are similar to the U.S., facilitating regular phone or virtual meetings.
3. Availability of Bilingual Agents: With 15% of U.S. households primarily speaking Spanish, offering bilingual customer support is essential. However, less than 1% of people in India and the Philippines speak Spanish. Nearshore locations are better equipped to provide a seamless bilingual experience.
4. Talent Pool: Nearshore markets boast a vast network of skilled labor, while offshore locations have faced hiring and retention challenges in recent years. Mexico, where our nearshore location is based, is home to nearly 200,000 call center workers who are educated and eager to work. This helps us address the attrition issues that have long plagued our industry.
5. Cost: While offshore locations may offer cost savings, nearshore locations can still provide up to 50% savings for U.S. businesses. When you consider reduced travel costs, higher agent retention, and increased Customer Satisfaction (CSAT) scores, nearshore locations offer substantial value.
6. Compliance: There have been ongoing issues with cybersecurity and regulatory compliance in several offshore locations. For example, in late 2022, the U.S. Agency for International Development (USAID) warned about cybersecurity gaps in the Philippines, which could affect its BPO market share in the U.S. Nearshore locations, by being closer and culturally aligned, can often provide a more secure and compliant environment.

In summary, the choice between nearshore and offshore customer care is more than just a geographic decision. It’s a strategic move that can significantly impact your customer experience, operational efficiency, and overall business success. If you’re looking for a balanced approach to customer care that reduces costs without sacrificing quality, contact me today at louis.ochoa@xperisource.com.  We are  committed to providing nearshore solutions that offer the best of both worlds, ensuring a seamless and culturally aligned customer experience.