Chile’s Senate weighs ban on offshore call center outsourcing
- Chile’s Senate Economy Committee is reviewing a ban on offshore call center subcontracting.
- Chile’s call center sector accounts for more than 30,000 jobs.
- Between 60% and 70% of call center workers in Chile are women.
- The deadline for amendments to the bill was extended to Nov. 2.
VALPARAISO, CHILE — Chile’s Senate is weighing a bill that would ban companies from subcontracting call center services that operate outside the country, a measure meant to protect a sector of more than 30,000 jobs. Workers and the industry agree the jobs matter, but they split on how to keep them at home.
A bill now in the Senate
The Senate Economy Committee heard from unions and the BPO industry association at its second session on the bill, which is in its second legislative stage, the Senate said in an Oct. 14 update. The measure would prohibit subcontracting teleoperator services that operate outside national territory.
The Chamber of Deputies approved the bill and sent it to the Senate in May, despite a negative report from its own Economy Committee, according to the chamber. As passed, it would fine companies that subcontract such services 1,000 unidades de fomento (about $42,000).
Its author, Deputy Gonzalo Winter, has criticized the use of call centers abroad for spam and scams, and says the bill would also foster local employment. The bill’s text cites a growing trend toward international subcontracting of close to 41%, mainly to countries such as Peru and Colombia.
Workers want the jobs kept home
Speakers told the committee the sector accounts for more than 30,000 jobs in Chile and that between 60% and 70% of its workers are women. Carmen Miranda, representing the Central de Trabajadores de Chile, said one goal is to stop services meant for Chilean users from being contracted abroad while improving conditions for phone operators.
The committee also discussed the offshoring of services linked to public agencies, citing the phone service of Fonasa. Worker representatives were especially concerned about call centers that handle personal or sensitive data, particularly clinical records.
Industry warns of uneven costs
Florencia Urenda, president of trade group BPO Chile A.G., said member companies operate to sector standards and keep formal contracts. She said firms operating in Chile face unequal competition because differing regulations lead to higher costs, and pointed to the United States, Uruguay and Italy as countries with rules that favor local contact center employment.
The committee still has to hear from the Cámara Nacional de Comercio, and it extended the deadline for amendments to the bill to Nov. 2.
For companies serving Chilean consumers from nearshore outsourcing hubs, the bill would turn a cost decision into a compliance question. Buyers routing call center work for Chilean customers through other countries should map which contracts could be caught, follow the amendments due Nov. 2, and compare providers on the top BPO companies worldwide list.
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