For years, customer service calls have been answered across the globe. But now, a new law is being discussed in Congress that could change all of that. The Keep Call Centers in America Act of 2025 is aimed at bringing customer service jobs back to the US, increasing transparency in business operations, and regulating the use of AI in customer service.
For business leaders in the US and international BPO (Business Process Outsourcing) companies, this law isn’t just another policy – it’s a big deal.
What’s Inside the Act?
The Act (S. 2495) is designed to make offshoring less attractive and give consumers more information about who they are talking to. It applies to companies with 50 or more employees or a workforce totaling 1,500+ aggregate hours per week.
1.) 120-Day Notice for Offshoring
Companies planning to move their call center overseas or send 30% or more of their call volume to another country must notify the Department of Labor (DOL) at least 120 days in advance.
2.) Penalty: Companies that fail to comply could face fines of up to $10,000 per day.
3.) Public List and Federal Ineligibility
- The Secretary of Labor will maintain a public list of companies that offshore their call center work.
- Five-Year Ban: Companies on this list will be ineligible for new federal grants or loans for up to five years.
- Preference for US-Based Companies: Federal agencies must prioritize US-based companies. Additionally, all federal call center work must be performed within the US.
4.) Transparency for Consumers & AI Disclosure
Starting one year after the law is passed, agents must inform consumers about their location at the start of every interaction.
Right to Transfer: If the agent is offshore, the customer can request an immediate transfer to a US-based agent.
AI Disclosure: If the customer is speaking with AI, the company must disclose it right away and offer the option to speak with a human.
Impact on Global BPOs
While this law affects the US, it also has wide-reaching effects on countries with large BPO industries. Here's how different regions may be impacted:
- Philippines: This region could face significant challenges. Approximately 70% of its BPO revenue comes from US contracts, meaning the law could lead to job losses and slow business growth.
- India: Traditional customer service jobs in India might be at risk, but non-voice services like tech support could still be less affected.
- Latin America: Due to the proximity to the US and similar culture, Latin American countries may become an attractive “nearshore” alternative for US companies, which could be positive for this region.
South Africa: Emerging markets in South Africa may find it harder to absorb the volume of work redirected from offshore call centers under tighter US regulations.
Challenges Ahead: What Business Leaders Need to Know
Although the law has strong support, there are challenges that businesses must prepare for. Here are the key concerns:
- Audit Anxiety: Many companies lack detailed records of where their call center work is done, which makes it hard to comply with the new rules.
- Operational Complexity: Companies may need to invest in new technology to enable smooth transfers from offshore agents to US-based agents.
Reputation Risk: Being added to the public “offshoring list” could harm a company’s reputation, even if they aren’t seeking federal funding.
How to Prepare: What Companies Should Do
To stay ahead of the changes, US companies and global BPOs should start planning now:
- Audit Your Vendors: Review all current BPO contracts to ensure they comply with the new regulations.
- Consider Hybrid Models: US companies can use domestic agents for initial contact (Tier 1) and keep more complex support offshore (Tier 2/3), as permitted.
- Invest in US Workers: With growing demand for domestic customer service reps, companies should start considering smaller cities in the US for cost-effective hiring.
Conclusion: The Road Ahead for U.S. Jobs and Global BPOs
The Keep Call Centers in America Act highlights the growing focus on protecting U.S. jobs, but it also underscores the evolving role of global BPOs. As regulations shift, businesses must balance compliance, cost efficiency, and service quality—making strategic outsourcing decisions more important than ever.
FAQS
1. What is the Keep Call Centers in America Act?
It is a proposed U.S. policy aimed at encouraging companies to keep call center jobs within the United States by limiting incentives for offshore outsourcing.
2. Does the Act ban offshore call centers?
No. The Act does not ban outsourcing but may reduce tax benefits or impose penalties on companies that move call center jobs overseas.
3. How does this affect global BPO companies?
Global BPOs may need to adapt by offering hybrid models, compliance support, or value-added services to remain competitive.
About Splace BPO
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