Enterprises with large-scale offshore customer service operations should pay close attention to an upcoming regulatory proceeding that could materially impact customer service cost structures, sourcing strategies, and service delivery models. Even for organizations where this has not historically been a priority, the potential changes could require meaningful adjustments to how contact center infrastructure is designed, staffed, and managed.
The Federal Communications Commission (FCC) is expected to launch a formal rulemaking process at its March 26 Open Meeting, which will consider broad rules aimed at reducing reliance on offshore contact centers, re-shoring certain contact center operations, and increasing oversight of customer service interactions. This will be the latest phase in a long-running regulatory effort under the Telephone Consumer Protection Act (TCPA), which has governed how companies communicate with customers since 1991. We’re here to help if you think your company might benefit from active participation in this rulemaking.
What the FCC Is Proposing
- Limits on offshore contact center usage. The FCC is proposing to cap how much of a company’s customer service activity can be handled outside the U.S.
- Restrictions on sensitive transactions. Certain interactions, like those involving financial data, account details, or personal information, may be required to be handled only from the U.S.
- New requirements for offshore operations. If offshore centers are used, they may need to:
- Meet stricter English and Spanish proficiency standards
- Inform customers at the start of each call that the agent is overseas
- Offer customers the option to transfer to a U.S.-based agent
- Expansion beyond voice calls. The FCC is also exploring applying these rules to:
- Text messaging
- Email support
- Web-based customer interactions
- Financial penalties and disincentives. The agency is considering mechanisms like tariffs or bonding requirements to make offshoring more costly.
Why This Matters for Enterprise Procurement
If adopted, these rules could have significant cost and operational implications for enterprises. Organizations may face increased labor and infrastructure expenses if work shifts back onshore, along with the need to rethink vendor strategies and global sourcing models. In addition, new compliance requirements could emerge across multiple customer interaction channels, potentially requiring companies to redesign existing customer experience workflows. Even requirements that seem minor, such as mandatory disclosures or call transfer options, can have a measurable impact by increasing call durations, staffing needs, and the overall cost per interaction.
What’s Driving the Proposal
The FCC’s rationale for the proposal is rooted in several concerns, including rising consumer frustration with offshore contact centers, communication challenges due to language barriers, and broader issues related to data security and national security. As part of the rulemaking process, the FCC is actively seeking data and stakeholder input to either validate or challenge these assumptions before moving forward.
What Companies Should Do Next
There’s no immediate action required before March 26. However, once the NPRM is released, companies should consider whether to engage in the rulemaking process.
Participating in the process gives companies a chance to influence the final rules—particularly important given the potential impact on cost, compliance, and sourcing strategy. Whether you are considering submitting comments directly or through an industry coalition or ad hoc group, DICTA has the deep regulatory experience to guide you through the process; our lawyers have participated in TCPA rulemaking proceedings since their inception in the early ’90s.
This is an early-stage regulatory proposal, but it has the potential to significantly reshape how large enterprises design and operate customer service functions. Contact us if you’d like to discuss this issue.