The future of customer service outsourcing: A nearshore solution

by Andy Nguyen
customer service outsourcing1

Businesses are always looking for methods to improve customer happiness and service delivery in the ever-changing world of customer service outsourcing. In an episode of The Future Workforce Podcast, Jose Herrera, the creator of, shared insightful information about the industry’s recent changes and the reasons behind the growing popularity of nearshore outsourcing solutions. Let’s examine the main ideas raised by Herrera and investigate the causes of this change.

The challenges with traditional offshore outsourcing

For many years, businesses have outsourced their customer service activities to the Philippines. But several difficulties have forced businesses to reevaluate their choices:

  • High turnover rates:  In the Philippines, employee retention is a major challenge. High turnover rates compromise service continuity and quality since they necessitate ongoing recruiting and training expenses.
  • Cultural understanding: Good customer service requires a thorough understanding of the goods or services being provided. Cultural disparities may erect obstacles that lower the standard of care.
  • Productivity and feedback loops: In offshore environments, maintaining continuous productivity and creating efficient feedback loops might be difficult. A weak feedback system can impede performance improvement.
  • Accent barriers: Communication is the foundation of customer service. Accent difficulties might result in misunderstandings and an unsatisfactory customer experience.
  • Time zone differences: There are notable time zone differences between the US and the Philippines, which can cause coordination issues and reaction time delays that reduce service effectiveness.

The rise of nearshore outsourcing

With several advantages that solve the drawbacks of traditional offshore outsourcing, nearshore outsourcing has become a competitive alternative. Businesses in the Dominican Republic like Horatio are prime examples of the benefits of nearshoring:

  • Cultural affinity: Nearshore partners in the Americas are more culturally aligned with the US, which improves understanding and alignment with both corporate values and consumer expectations.
  • Accent neutrality: The Dominican Republic, for example, employs workers with neutral accents to improve customer experience and lower communication obstacles.
  • Time zone alignment: Being in a time zone that is comparable to or identical to that of US businesses allows for real-time cooperation and communication, which boosts productivity and responsiveness.

Enhancing communication and feedback in customer service

Herrera emphasized several important concerns, including the dearth of constructive criticism and communication in labor relations, especially in the Philippines. It’s common for staff members to feel awkward offering criticism or calling out errors made by managers, which can hinder collaboration and problem-solving.

It is crucial for team members to feel comfortable speaking up to promote a collaborative and effective work atmosphere. For managers, constructive criticism and open communication are priceless since they can result in major advancements and growth. Promoting an environment of openness and respect for one another can aid in solving problems quickly and effectively.


The landscape of customer service outsourcing is changing dramatically, and many businesses are starting to favor nearshore outsourcing. Jose Herrera’s thoughts shed light on the drawbacks of traditional offshore outsourcing and the advantages of nearshoring. Nearshore partners like Horatio are in a good position to provide exceptional customer support because they can handle problems like cultural misunderstandings, accent hurdles, and time zone disparities.

It will be essential for businesses to embrace open communication and cultivate a feedback-rich culture as they look for ways to improve their customer service operations. By taking this action, they may guarantee the empowerment, productivity, and alignment of their customer service teams with their organizational objectives.

With nearshoring providing a competitive edge in providing great service and upholding client happiness, the future of customer service outsourcing appears bright.

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