Offshore outsourcing is basically a call center solution being chosen mostly by US companies at the moment, with the Philippines and India being top choices as sites for offshore outsourcing call centers due to the key factors of adequate infrastructure and political stability.
The Philippines is expected to top India eventually though because of certain elements lacking in Indian call centers such as grasp of foreign languages (the most basic language being English, followed by French, German, and Spanish not necessarily in that order); and number of satisfactory agents produced per year.
Due to market maturity plus need for quality infrastructure, offshore outsourcing call centers will probably be located in the major cities of the host countries to prevent incurring risks.
However, the increase in offshore call centers is not necessarily a productive development because margins become smaller and consolidation becomes more likely. Certain vendors may even be pressured into downsizing or shutting down completely.
This means that Western companies that have formed or are forming partnerships with domestic firms in the host country for the offshore outsourcing business may find their domestic partners bellying up eventually due to their inability to produce the desired outcome of the partnership.
Any Western companies that attempt to seek the alternative route of putting up their own wholly-owned offshore outsourcing companies may also encounter stiff resistance from rich and entrenched families and local companies that aim to pressure their government into enforcing the local laws on foreign ownership of companies. This means the Western companies may have to renew their search for countries with a more liberal approach to foreign ownership of companies.