Chapter 3: Market Assessment

The Caribbean Nearshore market continues to be accessed and selected by U.S corporations in their search for offshore locations. The region provides companies with savings ranging between 30 to 40%. Major differences exist between the different segments of the market, and U.S companies need to pay attention to the advantages offered by the different segments to optimize their site and vendor selection process.

Compared with the Offshore and Continental Nearshore market the Caribbean Nearshore market appears to possess major advantages. When attention is paid to direct cost the region out performs or matches the competition. However, when indirect costs are considered the region's competitors are only Canada and Ireland. Caribbean Nearshore has a clear labor arbitrage advantage over both locations.

In developing the contact center industry the region faces a number of challenges. These include the need for competitive T1 rates, expansion of contact center office capacity, deepening operational efficiency and reorienting EDAs to be more adaptivists.