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Small but Strategic: The Value of Outsourcing Destinations Like Belize  

February 27, 2025

Is a country’s size no longer relevant? As we move from the age of simple transactions to more sophisticated, high-value customer engagements, will mass outsourcing to large, offshore destinations no longer make sense? Artificial intelligence (AI) is already assuming a larger role in contact center operations, and as outsourcing transitions from a numbers game, companies may prefer to choose small but strategic destinations closer to home, ones that can offer adaptability, cost-effectiveness, and the specialized skills needed for higher value tasks. This is where nearshore locations like Belize can hold immense value and should not be underestimated.  

The Era of AI-Assisted Interactions 

AI is already changing the very nature of contact centers, making large offshore facilities served by human agents not as necessary as they were a decade ago. One in six contact centers already deploy some form of GenAI in their operations and more than half plan to do so within a year. These tools are already being used to assist with customer authentication, information summarization and can even provide follow-up recommendations. Many contact center interactions can even be partially or fully automated through Conversational AI. In fact, Gartner predicts that one in 10 interactions will be fully AI-automated by 2026, reducing agent labor costs by $80 billion.  

The Shift to Higher-Value Outsourcing 

What will this mean for human-to-human interactions? Of course, there will always be a need for human connection. But, once AI assumes responsibility for many basic customer support functions, we will likely see a rapid evolution from high-volume, human-led interactions, to one where the average agent may serve fewer interactions, but higher value ones. These are tasks that will require more complex reasoning, resolutions, or relationship-building, such as sales. In this case, brands won’t be as focused on the number of seats. Instead, they will seek an outsourcing partner who can seamlessly integrate AI into their operations, while simultaneously being able to either source or upskill existing human workforces with the specialized skills needed to serve these higher-value engagements.  

The Rise of Specialized Talent Pools 

In the evolution towards roles that require higher and more specialized education, the defining advantage for larger countries, which usually involves access to massive workforces or talent pools, will also shift. Once AI can handle interaction volumes on a larger scale, human teams will likely evolve into groups of specialists, reserved for complex tasks, such as those requiring advanced analysis, nuanced interpretation, or human connection. At this point, it may not be the biggest but the most strategic nearshore locations that hold distinct advantages for businesses, especially if they are seeking cost-effective, efficient, and agile service providers who can adapt to fluctuations in consumer demand.  

The Case for Belize 

When the focus is on high-value customer engagements, this is when small but strategic destinations, like Belize, can outperform many larger, offshore locations.

Belize was already recognized by Nearshore Americas as one of the Top Ten BPO Value Destinations, known for its ‘accent-neutral’ English fluency, friendly business environment, and quality service. It boasts staffing costs 60-80% lower than U.S. locations and attrition rates of 10%-25%, which is half of industry averages.  

The country is also a prime strategic location in which to source specialized skills that can support information technology outsourcing (ITO) and knowledge process outsourcing (KPO). Belizeans are young, adaptable, highly educated, and digitally-savvy. The literacy rate is the highest in Latin America, with close to 10,000 students enrolled in tertiary level institutions each year.

The Belizean government is committed to carving out a globally competitive position in the digital services sector, launching its Global Digital Services Investment Policy and Strategy, aimed at moving beyond traditional contact center services into higher-tier, specialized ones. 

Additionally, Belize's proximity to the U.S. and alignment with American business culture offers partnership advantages, more conducive to outsourcing digital support, along with core business functions, such as IT. The country is only a 2 - 4-hour flight from most U.S. cities, and is aligned with U.S. Standard Central Time. This means operational teams can collaborate more closely versus those at long distances, something which is essential when outsourcing complex business functions that require connecting in real-time. 

Small But Strategic Nearshore Destinations 

All these factors allow smaller countries like Belize to “punch above their weight” compared to popular offshore locations such as the Philippines or India. Though offshore countries with larger populations may offer the numbers, their advantages begin to dissipate once we enter the age of the streamlined contact center. As AI assumes many basic support functions, companies may want to reevaluate the strategic advantages of smaller nearshore destinations that deliver high quality, high value, and high knowledge services at competitive costs.  

Interested in Belize? Learn about our cutting-edge, 800-capacity facility in Belize City.

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