Latin America's BPO Boom: From Cost Center to Capability Hub with Natalia Brol

Natalia Brol analyzes Latin America's BPO surge, where AI and talent transformation redefine nearshore value beyond cost savings

The Latin American BPO industry is evolving from a simple cost-saving play into a strategic capability hub, fundamentally reshaping its value proposition and competitive landscape.

In this interview, we discuss about change with Natalia Brol, whose on-the-ground experience supports this transformative shift. She argues that the region's explosive growth is no longer just about time zones and labor arbitrage, but about delivering higher-value services like analytics and multilingual CX.

Natalia breaks down the key drivers, from the rise of new markets like Guatemala to the dual challenge of talent gaps and AI integration, and explains how foreign investment and stable regulations are crucial for turning call centers into innovation ecosystems.

Interview with Natalia Brol

How do you see the current growth trajectory of the BPO industry in Latin America?

I see the region’s growth trajectory continuing upward as nearshore demand keeps accelerating. According to Grand View Research’s Latin America Customer Experience BPO Market Outlook, the industry reached about US $6.7 billion in 2024 and is projected to grow around 10 percent annually, with outbound services leading the segment.

That data matches what I’m seeing firsthand. The logos I currently support and the new outbound programs we’ve recently launched in Guatemala, confirm that nearshore appetite from U.S. clients is stronger than ever. Companies are attracted by time-zone alignment, cultural affinity, and cost efficiencies, but what’s really driving momentum now is the ability to deliver higher-value CX, analytics, and multilingual capabilities out of the region. The market has matured; it’s no longer a volume play; it’s a capability play.

Which countries are leading the region’s BPO expansion, and why?

Colombia remains the anchor, the OG of the region, with the scale, bilingual talent, and government backing to keep attracting global brands.

Guatemala has emerged as one of the most promising next-wave markets. We’re seeing consistent growth fueled by a young, bilingual labor pool, competitive costs, and political stability, which makes it attractive for U.S. clients seeking diversification beyond Colombia or Mexico.

Costa Rica and the Dominican Republic also continue to stand out thanks to their free-zone incentives, strong English proficiency, and track record in higher-value shared services. Together, these countries are positioning Latin America as the world’s preferred nearshore destination for customer experience and digital operations.

What are the main challenges BPO companies face in Latin America today? How is technology and automation impacting the region’s BPO operations?

There are two main challenges shaping the landscape: talent gaps, and productivity pressure from technology.

In the past, the issue was quantity because the workforce wasn’t growing fast enough, and English proficiency lagged behind demand. Today, it’s about quality and readiness. The work itself has evolved. As automation and AI filter out simple transactions, the remaining contacts are more complex, requiring critical thinking, analytical ability, and sales skills.

Connectivity and education gaps in smaller cities also limit scalability, though hybrid work and digital training programs are starting to close that gap.

BPO is no longer just about handling calls or back-office tasks — it’s about managing AI-enhanced ecosystems that deliver predictive insights, self-service optimization, and customer lifetime value. That means the talent also needs to rise.

A 2024 ILO–World Bank study found that roughly 5% of BPO jobs could disappear, but 26–38% will be transformed and that’s exactly what we’re seeing on the ground. The new challenge is helping corporations understand that this evolution also shifts the labor-cost equation. These are no longer two-week training programs for simple billing inquiries; we’re hiring problem solvers who can identify process failures, create solutions, and turn negative interactions into brand loyalty moments.

So the real question for Latin America is how fast we can reskill agents into analysts, account managers, and digital-CX specialists before wage inflation erodes the nearshore advantage.

What role does foreign investment and funding play in supporting BPO growth?

Foreign Direct Investment is the accelerant. Without it, you have call centers; with it, you build ecosystems of analytics hubs, finance and accounting delivery centers, HR shared services, and AI operations.

Multinational investment brings not only capital but also technology transfer, global best practices, and talent development programs that raise the overall quality and wages in the industry. That’s what moves a market from being a cost center to being a value-creation partner.

How do government regulations and labor laws influence the competitiveness of the BPO sector in the region?

They can make or break a location.

Where labor and tax frameworks are predictable, such as Costa Rica’s free zones or the Dominican Republic’s export-service incentives, the sector scales rapidly. These stable policies give investors’ confidence to expand in the long term.

But when reforms are abrupt or poorly coordinated, as we saw with Mexico’s 2021 outsourcing reform, companies immediately shift volume to markets like Colombia, Guatemala, or the Caribbean to keep costs balanced.

Ultimately, regulatory stability, digital-infrastructure investment, and workforce-training incentives are what determine whether a country can sustain BPO competitiveness in this next chapter of nearshoring.