Mexican outsourcing delivery could be impacted by swine flu

Courtesy: http://www.pharmaceutical-business-review.com/

Concerns over swine flu outbreaks in Mexico have led to many governments issuing warnings against non-essential travel to the country. Considering the existing worries over ongoing border violence, as well as potential agent absence, this virus could have a negative impact on the Mexican contact center outsourcing sector.

The recent outbreak of the virus commonly known as swine flu should be cause for concern among contact center outsourcers based in Mexico looking to grow their business from the US and abroad, should the spread of the disease not slow in the immediate future. With Mexico seen as the global epicenter of this illness and its capital city currently in the midst of a five-day shutdown, the potential damage in the near-to-medium term could be very serious.

To date, medical research has shown that swine flu is most commonly transmitted in areas of limited air circulation and close human proximity. For a location like Mexico, in which contact center agents frequently use public transportation to travel to and from work, it is very possible that many could choose to stay at home rather than risk contracting the virus during regular commutes. This is also the case in regard to the contact center facilities themselves, in which large numbers of individuals share common space.

In addition to concern among agents going to and from work, Datamonitor believes that the current swine flu outbreak in Mexico could also slow investment due to the health-related fears of business people from North America and beyond making them unwilling to travel into the country. With the US and Canadian governments issuing warnings against non-essential travel to Mexico, and some operators temporarily halting flights into Mexican cities, prospective investors may decide to examine other delivery locations that are perceived to be safer from a health standpoint.

The current outbreak of swine flu, furthermore, is only one of a number of challenges facing the Mexican contact center outsourcing space, the most notable of these being that of ongoing border violence. Earlier this year, Datamonitor commented on the negative impact that drug cartel wars with authorities could have on the investment climate in Mexico, in regard to attracting foreign clients. Concerns over swine flu will only exacerbate worries associated with this location, and make other offshore markets potentially more attractive to investors.

In conclusion, Datamonitor maintains that Mexico, given its cost effectiveness, remains an excellent option for US firms looking for a bilingual or Spanish-speaking, sizable labor pool from which to draw and a diverse choice of urban centers. Considering the existing challenges faced by vendors based in Mexico coupled with the current worries over swine flu, however, outsourcers based in that country are likely to find it more difficult to attract offshore investors than they have in recent years. Therefore, Datamonitor encourages outsourcers based in Mexico to consider the impact of swine flu on their operations and ongoing business development efforts, and to develop contingency plans to mitigate these risks.