August 14, 2015
While Atlantic City We can certainly attest that call centers in the United States are beginning to consider staying in the country rather than reshoring, while Canada is taking a new approach when it comes to finding a low-cost location. Canada considers itself a nearshore option for American companies looking to locate somewhere other than the United States.
The Philippines is typically the first place companies in the United States turn to when they want to set up operations outside their home country. Still, Canada was once considered a low-cost haven for these types of companies, and it seems as though it is starting to gain momentum again. At the same time, Near Shore Americas points out that this is still the early stages of the comeback and no one can be sure that the Canadian comeback is in full swing.
If Canada can make a comeback, it would indeed be quite impressive. A recent survey found that the percentage of Canada’s third-party workstations serving customers in the United States has fallen to just 13 percent; it stood at 50 percent just a decade ago.
The main reason the number went down—and could go up again—is the behavior of the Canadian dollar. Over the past year, the value of the Canadian dollar had been rising, but it is now falling again, making Canada an attractive destination once more. While a recession, such as the one Canada is currently experiencing, is generally not good news, it could actually be a positive for U.S. companies looking to expand into Canada. A recession means that more people are looking for jobs and would be more likely to take an entry-level call center position. In short, Canada’s struggles could benefit U.S. companies. In the long run, that could also be a major positive for the Great White North as it attempts to recover from an economic downturn.
Edited by Dominick Sorrentino