Introduction
 
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.
 

 
Scope
 
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
 
Market overview of key regional and national trends
 
Strategic recommendations on how best to manage offshore contact center costs over the long term
 
Highlights
 
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
 

 
Reasons to Purchase
 
Understand the current state of costs in major offshore markets
 
Learn about cost trends within key emerging and mature economies
 
Identify developing offshore destinations to broaden the scope of offerings

TABLE OF CONTENTS
 
CHAPTER 1 INTRODUCTION 10
 
What 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 13
 
Introduction 13
 
Telephony and technology 13
 
Salaries and benefits 13
 
Property Costs 14
 
Exchange rate and taxation costs 14
 
CHAPTER 4 BRAZIL 16
 
Introduction 16
 
Telephony and technology costs 16
 
Salaries and benefits 16
 
Property costs 17
 
Exchange rate and taxation costs 17
 
CHAPTER 5 CANADA 19
 
Introduction 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 25
 
Introduction 25
 
Telephony and technology 25
 
Salaries and benefits 25
 
Property costs 26
 
Exchange rate and taxation costs 26
 
CHAPTER 8 HONG KONG 28
 
Introduction 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 34
 
Introduction 34
 
Technology and telephony 34
 
Salaries and benefits 34
 
Property costs 35
 
Exchange rate and taxation costs 35
 
CHAPTER 11 MALAYSIA 37
 
Introduction 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 43
 
Introduction 43
 
Telephony and technology 43
 
Salaries and benefits 43
 
Property cost 44
 
Exchange rate and taxation costs 44
 
CHAPTER 14 POLAND 46
 
Introduction 46
 
Telephony and technology 46
 
Salaries and benefits 46
 
Property costs 47
 
Exchange rate and taxation costs 47
 
CHAPTER 15 SINGAPORE 48
 
Introduction 48
 
Telephony and technology costs 48
 
Salaries and benefits 48
 
Property costs 49
 
Exchange rate and taxation cost 49
 
CHAPTER 16 SOUTH AFRICA 51
 
Introduction 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 55
 
CHAPTER 18 APPENDIX 56
 
Future readings 56
 
SPP writing team 56
 
How to contact experts in your industry 57
 

 

 
LIST OF TABLES
 
Table 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 3: Argentinean contact center wages, 2005 14
 
Table 4: Brazilian contact center wages, 2005 17
 
Table 5: Canadian contact center salaries, 2005 20
 
Table 6: Chilean contact center wages, 2005 23
 
Table 7: Egyptian contact center wages, 2005 26
 
Table 8: Hong Kong contact center wages, 2005 29
 
Table 9: Hungarian contact center wages, 2005 32
 
Table 10: Indian contact center wages, 2005 35
 
Table 11: Malaysian contact center wages, 2005 38
 
Table 12: Mexican contact center wages, 2005 41
 
Table 13: Philippine contact center wages, 2005 44
 
Table 14: Polish contact center wages, 2005 47
 
Table 15: Singapore contact center wages, 2005 49
 
Table 16: 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