What is an offshore call center?

Definition of the word Offshore:

The term Offshore comes from English and literally means “at sea”. It was first used to designate offshore oil rigs.

In the context of a service enterprise, such as a call center, the term offshore is used to designate a legal entity established in a different country of the country where the activity is carried out. For example, a call center in Tunis or Morocco or Madagascar operates with customers in France but depends on Tunisian legislation.

Why relocate?

Offshore is not to be confused with relocation, even though the two terms generally go together, Offshore concerns the legal side, offshoring the production side, it is the transfer of jobs and activity to another country.

The purpose of this setup is to optimize the tax side (exemption from taxes, VAT …) and minimize production costs (lower wages, rents …).

So, an offshore call center, whether in Tunisia, Morocco or Madagascar, is a legal entity that can be either resident (Tunisian capital) or non-resident (foreign capital in foreign currency), and that operates for the account of foreign customers with a target who is also abroad.

The client in question has made a relocation if he has transferred an already existing business locally within his company to another country, if it is not the case, it is just to call an external provider .

The technical and financial framework today, and especially the habits of the contractors, make it practically no difference between calling on a service provider 1 km away or 5000 km away. pass away with video conferencing, remote access, real-time reporting, live listening etc …

Applying an Offshore structure divides the production costs by two or three, gives access to more tax benefits, allows access to a highly qualified workforce. This profile of employees in France, Canada, Switzerland or Belgium, to mention only the French-speaking countries, would not necessarily be excited by the call center profession in their countries.

So in practice, a call center in France or Belgium employs at least 50% of foreigners who come from the Maghreb countries (Tunis, Morocco, Algeria) or from African countries (Madagascar, Gabon, Congo …). Calling an offshore call center for this type of activity becomes obvious for European contractors.

Which country for an offshore Call Center?

Large companies are relocating more and more their telephone business to offshore call centers, this trend is not likely to pass.

The motivation is above all financial, in addition to exemptions and tax benefits granted, the cost of labor remains a determining factor since it allows savings of 30 to 40% on production costs.

The historical destinations of the call centers are the Maghreb countries: Tunisia, Morocco, Algeria.

The great advantages of these 3 countries lie first in their geographical proximity to Europe (notably France: 2 hours of Paris planes), but also in their cultural proximity (French is the second language in these three countries ).

Other emerging countries are competing more and more with these three destinations, which are Mauritius and Madagascar, and which allow a more drastic reduction in costs, which often compensates for lower quality. Check out this video for more clarification

Offshore Call Center in Tunisia:

22,000 people are employed by the sector in more than 360 Tunisia call centers.

A high unemployment rate among tertiary graduates makes it easy to find qualified labor available and trilingual (French and Arabic of course, and a third language often taught in high school).

A teleoperator in Tunisia receives between 200 and 250 € net per month, this can go up to 500 or 600 euros for a manager.

Offshore Call Center in Morocco

Morocco has had the lion’s share of the call center outsourcing market, with one in two offshore call centers located in Morocco.

Yet this destination is the most expensive, whether in terms of rent or labor.

An operator in a call center Morocco costs between 400 and 500 € excluding payroll taxes and withholding taxes, much higher than that of a call center Tunisia.

Added to this is the shortage of manpower, which prevents a revision of these wages and which becomes a serious obstacle for the sector.

Offshore Call Center in Mauritius

It is a destination that interests more and more large companies to set up their offshore call center. The workforce is smiling and warm, easy to manage and quite fluent in French.

Telecom infrastructure is improving and the country’s fiber optic coverage is progressing.

Salaries are higher than those charged by a call center Tunisia but remain in the average of Call Center Offshore, about 350 € net.

Offshore Call Center in Madagascar

Madagascar is the rising destination for its Offshore platform.

The country is equipped with fiber optics like Mauritius. The workforce is available and quite skilled.

Malagasy speak French fluently enough without much emphasis compared to neighboring countries.

A call center in a call center Madagascar is around 200 € net, which makes it competitive with other destinations.

To summarize, Tunisia and Madagascar seem to be today the best destinations to set up an offshore call center, with a slight advantage for Tunisia for its proximity the best accent of spoken French.

But many other criteria come into play for the choice of the location of the platform, including the tax that we will try to detail in a separate article.

By Ryan Author At CallCriteria.Com, A Place where we cover many topics like Call Center QA, QA For Call Center And QA Call Center https://callcriteria.com/