Near-shore vs Off-shore Contact Centers: A Comparison of Mexico and the Philippines

When it comes to determining where a business should locate its contact center, there are many options available which can make the decision a challenge. For example, should the contact center be located within the United States, or is it more cost-effective to look at either a near-shore or off-shore location? Many companies choose to locate their contact center outside of the United States due to the lower wage demands that make it a much more cost-effective option. Then the question becomes, “Near-shore or Off-shore?” Here at Centris, we are partial to the near-shore contact center, but it’s important to understand the advantages and disadvantages of both. We’d like to take a closer look at this issue, particularly off-shore contact centers in the Philippines and how they compare to the near-shore contact centers in Mexico.

NEARSHORE VS OFFSHORE: MEXICO AND THE PHILIPPINES

• Close Proximity – Mexico vs. Philippines: One of the primary advantages that Mexico offers is its close proximity to the United States. In fact, Mexico is as close to the United States as one can get without being in the United States. This proximity makes traveling to the contact center site much more affordable and accessible. Traveling to the Philippines takes about 18+ hours and crosses the International Dateline making travel to this off-shore location expensive and time-consuming. A flight to Mexico can take as little as one hour from some US locations and there is little, if any, time difference.
• Accent Neutral – Mexico vs. Philippines: Another advantage that Mexico offers as a near-shore contact center is accent neutral English. Many agents working in Mexico’s near-shore contact centers have spent a considerable amount of time in the US. Some have spent the majority of their growing up years in the states and speak fluent English with no discernable accent. In fact, many customers assume they are speaking to someone in the US. This gives the near-shore contact center in Mexico a huge competitive advantage as many customers have complained that the agent’s lack of understanding or thick accent was a source of frustration when calling. To be fair, many schools in the Philippines make a point of teaching English to their students so many Filipinos are fluent in English but not accent neutral as in Mexico.
• Shared Culture – Mexico vs. Philippines: Mexico and the United States have always shared close cultural ties. Both cultures share similar religious values as well as a shared cultural experience in other ways, such as sports and entertainment. This more closely tied culture enables agents in Mexico to have a better understanding of the US customer; their pop-culture references, their latest obsessions as well as the language. However, the Philippines also enjoys a 500-year history of both Spanish and American influence in their culture and is quickly becoming more versed in US culture.
• Cost – Mexico vs. Philippines: The cost of doing business in both Mexico and the Philippines will be considerably less than doing business in the United States. The primary reason for this is the lower wage demand in both Mexico and the Philippines. The cost of living in both countries is lower than that of the US. A near-shore contact center in Mexico can save US companies anywhere from 50-70%. A contact center in the Philippines will offer slightly more savings than Mexico.
• Customer Service – Mexico vs. Philippines: Mexico and the Philippines are both very customer centric markets. The Filipino culture has a natural bend toward service, which lends itself very well to the contact center industry. However, the near-shore contact center of Mexico has the added benefit of employing so many agents who have lived in the US and therefore identify closely with the US customer. They understand how the US customer thinks and anticipate their needs as they serve them.

	Mexico	Philippines
Lower Cost than US Centers
Close Proximity to US
Accent Neutral
Bilingual in Spanish and English
Provide Service in Asian Languages
Strong Customer Service
Deeply Understands US Culture

SUMMARY

When it comes to deciding where your contact center will be located, either near-shore or off-shore, it’s obvious that both offer advantages. The key becomes determining what your business needs and how those needs can best be met.

If you have questions about how a near-shore contact center can help your business, contact us. We will provide you with an honest and clear-cut assessment of what Centris can do for your contact center needs.