FCC votes to make call centers great again

The Federal Communications Commission has voted to bring offshored contact centers operated for US organizations back to the US, to protect American jobs, crack down on illegal robocalls, and improve data security. 

FCC Chair Brendan Carr said: “Americans get frustrated when they call a US business and end up connecting with a call centre located abroad. Too often, foreign call centres have meant confusing service, delayed support, and even security risks. In many cases, scammers get trained at legitimate call centers and either access your data illegally or take their training to a foreign robocall operation. It is time for this offshoring to end. American consumers deserve call centers that speak proficient English, provide clear answers, and are based here at home, not halfway around the world.”

The FCC first proposed the move on 4 March with the vote taking place on 26 March. The FCC now requires agents to be proficient in American Standard English, while organizations must impose limits on call volume from overseas call centers and allow consumers to request to transfer calls to a US-based ​contact center. 

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How many contact center jobs are there in the US?

The FCC’s own data shows almost 70 percent of US companies outsource at least one department to offshore contact centers. Offshoring has always been popular, but data published by CX Network shows that in 2023 contact center industry growth shifted away from the US market and towards nearshore and offshore regions. This shift was driven by companies seeking to reduce costs amidst a sluggish US economy and higher operating expenses onshore.

In the US in 2023, job creation in the contact center industry declined by 47.2 percent, resulting in only 26 new projects and an estimated 9,247 jobs created.

In contrast, India created the highest number of jobs globally within this industry at around 98,520 jobs, approximately 63,000 more when compared to the previous year.

When it comes to salaries, it’s easy to see why offshoring is so popular. North America has the highest contact center salaries of any market, with salaries in the US and Canada averaging $38,200 to $41,400.

Why AI has changed the dynamics 

In line with the political atmosphere in the US at present, the FCC has pressed ahead with its plans under the guise of creating and protecting American jobs but appears unaware of the increased overheads organizations now face and the cost savings that can be achieved by replacing human agents with AI and automation. 

Rick Ruth, senior director of carrier relations and regulatory of CTM told CX Network organizations are more likely to take a hybrid approach, rather than over all job onshore, particularly if customers have the option to request support from US-based human agents. 

“You may see some increase in US-based roles, especially for more complex or higher-trust interactions. But at the same time, there’s a strong incentive for companies to expand the use of automation, self-service, and voice AI for more routine or initial interactions,” he said. 

“What we tend to see in practice is a layered or hybrid model – automation handles intake and triage, and then more complex or sensitive calls are routed to the appropriate agents. And a lot of that can build on existing routing and compliance processes rather than requiring a complete shift.”

In a press statement, customer communications provider AnswerConnect also told the FCC its proposal will “unintentionally accelerate the adoption of AI-powered customer service rather than creating more jobs. This has been shown to lead to negative customer service experiences”. It also said it had made a formal submission to the US regulator. 

CEO Natalie Ruiz said: “Instead of bringing customer service jobs back to the US, the rules will likely accelerate a massive shift toward AI-dominant customer service. And that's not what consumers want.”

AnswerConnect recently conducted a survey of 6,000 consumers in partnership with research firm OnePoll and the results highlight the demand for human agents to remain central to service. As many as 83 percent of consumers said they prefer speaking with a real person rather than AI and one in three said they would hang up if they reached an AI system.

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