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Domestic vs. Offshore Call Center

Domestic vs. Offshore Call Centers: Which Is the Right One for Your Business


Choosing between domestic and offshore call centers involves weighing the benefits that come with each kind. Domestic centers offer familiarity and accessibility but at a higher price, while offshore centers provide cost savings but may face language and cultural differences. They present businesses with distinct options for customer service outsourcing. Let’s delve into details about each one.

What Is a Domestic Call Center?

Domestic or onshore call centers are outsourced call centers located in the country where the business is serving. They do not have to be located in the same time zone. The “onshore” part implies that while they do not work in-house, they work in the same nation as you. In other words, it is located domestically rather than offshore or in another country. 

Benefits of Domestic Call Centers

There are a few reasons that companies decide to outsource at home and don’t look further. Let’s see what those reasons are. 

Minimal language barriers

There are fewer language barriers in onshore call centers because of the culture they share with their customers. Both customers and phone service providers are highly likely to speak the same native language, and this applies to both oral and written communication.

Ease of management

It is easier to outsource work to others in your own country. It comes with other advantages, such as paying quick visits in person, providing in-person training, and managing your outsourced teams. Management-wise, you do not have many physical barriers. 

Better data security

Security breaches are a common issue. Running an onshore company makes it easier to protect it from potential breaches since you’re familiar with your country’s data standards and regulations. Additionally, you’ll know better what security measures and technologies work best for your information security. 

Timely communication

Customers or partners in the same time zone as you can respond faster to your instructions and messages, which saves time overall in your interaction journey. Different time zones are not a deal breaker, but they can cause delays and confusion. 

Supporting your local economy

We know from companies and experience that many people prefer products made in their own country. Most importantly, you are supporting your local economy. This gives you a point in your company image overall and a boost of confidence by contributing to your own country. 

Disadvantages of Domestic Call Centers

One of the main disadvantages could be that domestic call centers cost more than all other fonts. This is mainly because, in most cases, you need to have office space, which comes with the cost of technology, equipment, and working space. For some companies, it is justifiable.

What Is an Offshore Call Center?

An offshore call center is located in a different country from the given business. Unlike domestic call centers, which operate within the country, offshore call centers are typically situated abroad, generally quite far from the country of business. For example, a company in the US can have an offshore call center in the Philippines.

Advantages of Offshoring

One of the most well-known benefits of offshoring is that it costs less. However, other benefits make offshoring practical.

Bilingual services

Customer representatives in offshore call centers are usually able to speak two to three languages. This is very good for the company since offshore call centers mostly operate in many parts of the world.

Wide range of services

Since offshore call centers cost less than onshore call centers, companies can hire them to offer more services. For example, if a company hires an onshore call center to answer its calls during business hours, it can hire an offshore company to answer calls 24/7.

Increased brand awareness 

If your brand recognition is low in offshore locations, offshore call centers can help. By using offshore or nearshore outsourcing, people will become aware of your brand, and you can expand globally.

What Is a Nearshore Call Center?

Besides offshore call centers, there are also nearshore and home-shore call centers. Nearshore call centers refer to outsourced call centers located in a different country but nearby from where the business is operating. 

Some Benefits of Nearshoring

Nearshore call centers are also more cost-effective than onshore centers. Another benefit is that many agents may know more than one language, making it easier to connect and spread to different countries. 

Some of The Drawbacks of Nearshoring

Still, some small language barriers and cultural confusion might be present due to its proximity. There can be fewer options for vendors and human resources, limited to specific geographic areas. 

What Is a Homeshore Call Center?

Homeshore call centers are outsourced call centers where call agents work virtually or remotely. The call center agents are located wherever the business center is, and there is no centralized call center office. 

Benefits and Drawbacks of Homeshoring

The most significant benefit of homeshoring is that you are able to hire within your own country. Infrastructure costs are much lower with agents working remotely. There is also much more flexibility. On the flip side, there are challenges to a remote workforce. Call center management should be prepared to train virtual agents and handle setbacks that come with a remote work culture. 

Nevertheless, working remotely is very attractive to a lot of employees, and this widens your pool of applicants. A few drawbacks of the remote workforce of homeshoring include the difficulty of developing your staff since remote work is isolating. There are also potential security issues. 

Onshore vs. Offshore, Nearshore & Homeshore

While both onshore and home-shore call centers provide superior customer service, onshore call models are typically more expensive. Home-shore call centers can help reduce costs while maintaining onshore support. 

Nearshore and offshore call centers are more cost-effective but can increase the amount of language and cultural barriers that might impede service, slow down handling time, and decrease customer satisfaction. Nearshore call centers provide a balance of cultural familiarity alongside more cost-effective rates. 

Onshore and home shore call centers can be a better option if you are looking for advanced 

technology and reporting an omnichannel approach. However, if you are looking to provide consistent support but have a limited budget, offshore call centers are your best bet. In the meantime, offshore centers can be highly competitive for large companies that need a significant level of support at scale. 

Customer support is an excellent investment for your business growth, regardless of the model you choose, especially to create positive customer experience. 

Finally, Which Call Center Type Should You Choose?

The call center you choose should be based on your business needs, and of course, your budget. If cost is your primary concern, an offshore call center is your go-to option. But if you are looking for high-quality customer service, onshore would be a suitable choice. Consider what is important to you: profits, global reach, or corporate social responsibility. 

Prepare yourself to be responsible for fighting geographical boundaries and language barriers. At first sight, onshore outsourcing has more advantages than offshoring. Still, ultimately, it’s up to you to decide what your business is capable of.