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Checking In on the Mexican Call Center Industry

Checking In on the Mexican Call Center IndustryIn recent years, Mexico has experienced significant BPO industry growth, largely due to its close proximity and strong economic ties with the United States. While both countries’ economies have softened post-pandemic, Mexico’s BPO sector has witnessed several positive developments as the country quickly recovers.

As American companies seek cost-effective alternatives to in-house support, Mexico emerges as a standout choice with several advantages over other nearshore or offshore options. Notably, the country’s booming technology sector, particularly in the realm of generative AI, makes it an appealing destination for outsourcing.

Outsource Consultants delves into the key changes seen in Mexico over the last three years, helping you prepare for your perfect Mexican call center partner.

US Companies Expanding Close to Home

After the disastrous supply chain complications of 2022, many companies are beginning to bring support closer to their US market. The reality of manufacturing goods so far from home meant that disruptions cause irreparable harm to certain American industries. In response to these unprecedented difficulties, US companies began eyeing Mexico as a viable resource. In fact, in 2021, Mexico was the number one trading partner in terms of trade value to the U.S.

The changing of geography didn’t only affect manufacturing. An impact was also seen in the BPO industry. Rising costs of labor and an uncertain economy caused many American companies to look for alternatives to in-house support and IT roles. The convenience of location and cultural affinity offered by call centers made the country a prime destination for any business looking to shake things up without looking across the pond for BPO options.

Even US businesses that previously outsourced to Mexican call centers are finding that the region offers more opportunities than it used to, as the country expands its service offerings to technical roles.

A Growing Hub for Technology Support

With a new generation of tech-savvy Mexican employees and a need to up-scale digital infrastructure due to the pandemic, Mexico has become a hub for technology. As nations worldwide have been intensifying their digital initiatives, Mexico has taken this trend to the next level, even hosting generative AI companies within its borders in the past year.

The recent infrastructural and educational advancements by the Mexican government have led to a notable increase in access to resources and tools for skill expansion. Demonstrating a firm commitment to addressing the shortage of technology talent, the government established 120 specialized technology universities with tuition-free programs between 2006 and 2012. These initiatives aim to empower individuals with the necessary knowledge and expertise to thrive in the technology sector.

Top BPO Industry Cities

The call center industry has flourished in several cities across Mexico, with Mexico City and Tijuana leading the way. These cities stand out due to their substantial populations and diverse urban environments.

With a large and skilled workforce, call center agents in Mexico City and Tijuana possess the necessary expertise to deliver exceptional customer service, which includes proficiency in English and essential certifications. Tijuana, in particular, benefits from its proximity to the U.S. border, resulting in a higher affinity for American culture among its workforce.

Moreover, both Mexico City and Tijuana serve as prominent educational centers in the country, attracting young and well-educated individuals seeking employment opportunities. This highly skilled talent pool has played a vital role in driving the success of the call center industry in these cities.

A Shifting Exchange Rate and Inflation

During 2021 and 2022, a significant challenge facing the region as the peso strengthened more than 15% versus the dollar. On top of the rising exchange rates, Mexico saw overall inflation rates hike to nearly 8% in 2022, increasing labor wages and leading to higher BPO rates. Although these new prices are likely permanent, the country has seen six months of softening inflation as it nears a more manageable 5% rate.

American buyers should also be aware of Cost of Living Adjustments in Mexican call centers. It’s essential to understand that these adjustments are not limited to Mexico alone. The cost of living is on the rise globally, affecting wage structures for companies worldwide. As organizations contemplate entering into new agreements with Mexican BPOs, being mindful of these changing economic conditions becomes crucial to effectively managing expectations.

Find A High-Quality, Customer Driven Mexican BPO Partner

Despite some recent pricing increases, Mexico continues to be an attractive choice for companies seeking to move their support services and customer care outside of the United States while staying relatively close to home. This mutually beneficial arrangement allows businesses to tap into Mexico’s skilled workforce that has a strong understanding of US culture and the strengthening economic ties between the two neighboring nations.

If you are looking for a Mexican BPO partner with unparalleled customer service skills, contact our expert advisors for a no-charge consultation.