Offshore investors focus on the savings made by moving operations abroad but hidden costs and other risks can complicate this decision. This report compares and contrasts traditional and emerging offshore and nearshore locations.
Contact center costs in Argentina, Brazil, Canada, Chile, Hong Kong, Hungary, India, Malaysia, Mexico, Philippines, Poland, Singapore and South Africa
Average cost allocation for taxes, foreign exchange, benefits and telecommunications & technology
Strategic recommendations on how best to manage offshore contact center costs over the long term
Chile is the lowest priced offshore contact center market, followed by Argentina and Brazil
Canada and South Africa are among the most expensive offshore contact center destinations, due to commercial affinity with the US and UK, as well as excellent English language skills
Key costs for contact center investors to consider include exchange rates and property, both of which can be volatile in many growing offshore economies
CHAPTER 1 INTRODUCTION 10What is this report about? 10
Who is the target reader? 10
CHAPTER 2 MARKET CONTEXT 11
Introduction 11
Offshore contact centers - prices and costs 11
CHAPTER 3 ARGENTINA 13Introduction 13
Telephony and technology 13
Salaries and benefits 13
Property Costs 14
Exchange rate and taxation costs 14
CHAPTER 4 BRAZIL 16Introduction 16
Telephony and technology costs 16
Salaries and benefits 16
Property costs 17
Exchange rate and taxation costs 17
CHAPTER 5 CANADA 19Introduction 19
Telephony and technology 19
Salaries and benefits 19
Property costs 20
Exchange rate costs 20
CHAPTER 6 CHILE 22
Introduction 22
Telephony an technology 22
Salaries 22
Property costs 23
Exchange rate and taxation costs 23
CHAPTER 7 EGYPT 25Introduction 25
Telephony and technology 25
Salaries and benefits 25
Property costs 26
Exchange rate and taxation costs 26
CHAPTER 8 HONG KONG 28Introduction 28
Technology and telephony costs 28
Salaries and benefits 28
Property cost 29
Exchange rate and taxation costs 29
CHAPTER 9 HUNGARY 31
Introduction 31
Telephony and technology costs 31
Salaries and benefits 31
Property cost 32
Exchange rate and taxation costs 32
CHAPTER 10 INDIA 34Introduction 34
Technology and telephony 34
Salaries and benefits 34
Property costs 35
Exchange rate and taxation costs 35
CHAPTER 11 MALAYSIA 37Introduction 37
Telephony and technology costs 37
Salaries and benefits 37
Property 38
Exchange rate and taxation costs 38
CHAPTER 12 MEXICO 40
Introduction 40
Telphony and technology costs 40
Salaries and benefits 40
Property costs 41
Exchange rate and taxation costs 41
CHAPTER 13 PHILIPPINES 43Introduction 43
Telephony and technology 43
Salaries and benefits 43
Property cost 44
Exchange rate and taxation costs 44
CHAPTER 14 POLAND 46Introduction 46
Telephony and technology 46
Salaries and benefits 46
Property costs 47
Exchange rate and taxation costs 47
CHAPTER 15 SINGAPORE 48Introduction 48
Telephony and technology costs 48
Salaries and benefits 48
Property costs 49
Exchange rate and taxation cost 49
CHAPTER 16 SOUTH AFRICA 51Introduction 51
Telephony and technology 51
Salaries and benefits 51
Property costs 52
Exchange rate and taxation costs 52
CHAPTER 17 STRATEGIC RECOMMENDATIONS 54
Introduction 54
1. Analyze cost elements most critical to offshore 54
2. Take appropriate action to lower costs 54
3. Seek diversification opportunities
55CHAPTER 18 APPENDIX 56Future readings 56
SPP writing team 56
How to contact experts in your industry 57
List of TablesTable 1: Offshore contact center costs, 2005 11
Table 2: Offshore contact center costs, 2005 (Cont'd) 12
Table 3: Offshore contact center fully-loaded price for inbound voice-based agent, 2005 ($US) 12
Table 4: Argentinean contact center wages, 2005 14
Table 5: Brazilian contact center wages, 2005 17
Table 6: Canadian contact center salaries, 2005 20
Table 7: Chilean contact center wages, 2005 23
Table 8: Egyptian contact center wages, 2005 26
Table 9: Hong Kong contact center wages, 2005 29
Table 10: Hungarian contact center wages, 2005 32
Table 11: Indian contact center wages, 2005 35
Table 12: Malaysian contact center wages, 2005 38
Table 13: Mexican contact center wages, 2005 41
Table 14: Philippine contact center wages, 2005 44
Table 15: Polish contact center wages, 2005 47
Table 16: Singapore contact center wages, 2005 49
Table 17: South African Contact center wages, 2005 52
List of Figures
Figure 1: Argentinean / US exchange rates, 2001 - 2005 15
Figure 2: Brazilian / US exchange rates, 2001 - 2005 18
Figure 3: Canadian / US exchange rates, 2001 - 2005 21
Figure 4: Chilean / US exchange rates, 2001 - 2005 24
Figure 5: Egyptian / US exchange rates, 2001 - 2005 27
Figure 6: Hong Kong / US exchange rates, 2001 - 2005 30
Figure 7: Euro / US exchange rates, 2001 - 2005 33
Figure 8: Indian / US exchange rates, 2001 - 2005 36
Figure 9: Malaysian / US exchange rates, 2001 - 2005 39
Figure 10: Mexican / US exchange rates, 2001 - 2005 42
Figure 11: Philippine / US exchange rates, 2001 - 2005 45
Figure 12: Singapore / US exchange rates, 2001 - 2005 50
Figure 13: South African / US exchange rates, 2001 - 2005 53