Is It A Car Accident Or A Car Crash? Is It Nearshoring or Outsourcing?
A crash is defined as “move or cause to move with force, speed, and sudden loud noise.” Or “collide violently with an obstacle or another vehicle.” Accident is defined as “an event that happens by chance or that is without apparent or deliberate cause.”
So is it a car accident or a car crash? Well if your a lawyer you probably have one opinion and if your a normal consumer you have another opinion. If you been involved in one then you likely call it one or the other but what is it? Its’ the same in the call center industry as some companies want to call it this or that yet no matter what it is near shoring. It can be BPO, partnerships, contingency work or many other names but it is near shore labor that is being sold. So what does nearshore mean? Let me explain.
To nearshore means to take advantage of labor rates in nearby countries. For the USA and Canada this means South America, Mexico and the Caribbean. Mexico has been a choice for people looking for high densities of Spanish speaking consumers and Jamaica has emerged as the primary English speaking country intrenched in near shore services. Both countries have been able to provide labor for $12-18 USD hourly for customer service, debt collection and tech support. And Fortune 500 companies have been using those locations since the 80’s.
So let’s talk about the types of services offered and how they are performed and structured.
BPO or business process Outsourcing is a popular name for the nearshore services provided by large multinational companies like Xerox, Teleperformance, Sutherland Global and many others. The BPO services they perform are put into two categories, inbound and outbound call centers. Inbound call centers handle projects like airline reservations, technical support, patient billing questions and customer service. Outbound programs handle things such as sales, billing and debt collection, political polling and many more. In most BPO situations the client has little control over the staff.
Partnering is another way business is done and thats when the island provider is basic allowing the client to come use the labor to perform their business processes. This requires the client to be very involved in the work and supervision of that work but allows the client to take advantage of the reduced labor rates and not have the risk of unknown costs in a foreign country. The provider takes the risk of extra costs as the client pays a flat fee to access the labor and call center owned by the provider. This method is used for many types of work form debt collection to data processing. Insurance coding, order taking, billing, sales, patient scheduling and many other things have been done in this manner.
Contingency is another model where the client gives the work to the provider and only gets paid on work completed, sold or money collected. Mainly this is sales or debt collection work but includes projects like insurance enrollments and upsells to existing customers.
Also there are hybrids for the methods listed above and many other methods to set up the projects but the bottom line is do you want to take advantage of near shore labor rates then is near shoring.
Ring& Respect is the premier call center for nearshore operation from the USA and CA. We have built our business on Respect and it will shine thru to you and your consumers. If you want to have your consumers respected on every call give is a Ring and see the Respect.
