Datamonitor: Swine Flu Outbreak Could Have Negative Impact on Mexican Call Center Outsourcing Industry

Although there’s some indication that the recent global outbreak of swine flu might not pose as much of a threat as previously was believed, companies operating call centers in Mexico are nevertheless facing a dilemma in terms of getting agents to show up for their shifts.


The concerns of the agents are obvious: They are worried about working in tight, cramped quarters with other agents who might be sick. The Mexican government has already issued restrictions on gatherings in public places, and has closed public schools, colleges and other institutions to counter the spread of the disease, which in turn has increased people’s fears about being in close proximity with others.

Datamonitor analyst Peter Ryan is of the view that the outbreak of this virus, combined with the ongoing border violence, could have a negative impact on the Mexican contact center outsourcing sector.

“The recent outbreak of the virus commonly known as swine flu should be cause for concern among contact center outsourcers based in Mexico looking to grow their business from the U.S. and abroad, should the spread of the disease not slow in the immediate future,” Ryan, head of offshoring and outsourcing analysis at Datamonitor, said in a release. “With Mexico seen as the global epicenter of this illness and its capital city currently in the midst of a five-day shutdown, the potential damage in the near-to-medium term could be very serious.”

Ryan also believes that the current swine flu outbreak in Mexico, should it get worse, could slow the growth of the industry there. He points out that companies are reluctant to send people to Mexico due to the threat -- and this makes it difficult for them to carry on business with Mexico-based call center outsourcers. Some of these U.S. companies, he said, may decide to move their call center operations elsewhere due to the health-related fears. (However it should also be pointed out that the disease is still spreading here in the U.S. as well.)

As Ryan points out, the concerns over swine flu only exacerbate the problems previously created by the ongoing border violence due to conflicts between the Mexican drug cartels. Earlier this year, Datamonitor predicted that the escalating violence along the border would significantly reduce the country’s ability to attract new business from U.S. companies.

Still, Datamonitor maintains that Mexico, given its cost effectiveness, remains an excellent option for U.S. firms looking for a large, bilingual or Spanish-speaking labor pool and a diverse choice of urban centers.

While the contact center outsourcing industry in Mexico might be negatively impacted by these recent events, the outbreak of swine flu may come as a boon to companies offering conferencing services. As companies continue to restrict business travel due to the outbreak of the virus, not to mention the fact that they were already trimming their travel budgets anyway, the need for audio, Web and video conferencing services will only increase, as companies seek out new ways to carry out “live” communications and improve collaboration without having to actually travel.