Traditionally, the Canadian/US exchange rate has favored the American client. Recently this has changed due to the rising value of the Canadian dollar. Many people have asked me why U.S. clients are continuing to choose Canadian and other near-shore options for outsourcing? The answer is that Canada can still offer a few key advantages:
- Lower turnover. Comparing records on Statistics Canada and the U.S. Department of Labor sites, we can see that in spite of the healthy Canadian economy the U.S. still maintain an average lower unemployment rate then Canada, which leads to lower turnover of employees. This creates more stability of staff translating to better consistency in service quality.
- Better Education. When choosing an outsourcer, you are choosing their agents to speak with your contacts and represent your organizations. Canada statistically has a more highly educated workforce. According to a study done a few year ago by The Urban Institute, about 8% more of the Canadian workforce have obtained at least a high-school diploma.
- Pricing. Yes, that’s right, we’re still generally less expensive up here. How? According to jobfutures.ca it’s a generally higher standard of living at a lower wage. In the U.S. the national mean hourly wage for contact centers is $11.63, where as the average in Canada is only $10.60.
Outsourcing to near-shore centers has always worked well due to geographical proximities and cultural similarities. Canada has been the near-shore leader for over a decade now and there's more than one reason for that. If you’re considering outsourcing, I recommend calling on a few Canadian companies and let them give you their best shot.
I think you’ll be impressed.
-Jeff Fettes
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