Offshore

Offshore is a term typically used to describe the outsourcing of call centre work to another country to access cheaper labour rates.

Why does that matter?

Labour accounts for approximately 70% of the running costs for a call centre so by accessing cheaper salaries offshore, it has a large impact on the overall cost structure.

Common offshore call centre locations used by Australian businesses

For Australia, typical offshore locations include the Philippines, Fiji and South Africa.

Pros and Cons of using an offshore call centre

I’ve always been a big believer in saying no one sends their contact centre offshore to improve the customer experience.

The primary motivation is nearly always to save costs.

And save money you will.

Depending on the location, you could save up to 70% off the running costs of a similar size operation in Australia.

The question a business needs to decide is whether saving costs at one end (cheaper call centre costs) is going to cost you more money at the other end (customers leaving).

With the rapid progression of Artificial Intelligence, many of the low-value transactions, typically the mainstay of offshore call centres, can now be automated.

And with the Australian Dollar’s value declining against many of the major currencies, the value proposition is certainly not what it used to be.

However, lower costs to run your contact centre offshore can allow you to employ more call centre agents (which can reduce wait times for busy centres) or open longer hours (which can improve the ability for customers to contact your business) so like all things, there are a number of factors to consider if sending your call centre work overseas is a good thing for your business.

Recommended next steps

• If you’d like to learn more about the pros and cons of using overseas call centres we’ve got lots of expert articles
• If you’d like to engage an offshore call centre you’ll find a complete list of suppliers on the free CX Directory where you can search by country and experience or find an experienced consultant who can help.

Back to CX Glossary Index Page