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Madagascar Call Center Outsourcing

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About the Call Center Industry in Madagascar

Madagascar, the 5th largest island in the world, has risen in status as an outsourcing destination for international businesses. In addition to low-cost labor, Madagascar also has the highest internet speed in Africa, boosting the local BPO industry. 

Many global companies, especially those from French-speaking countries, have planted roots on the francophone island. Madagascar often competes with Morocco and Senegal in attracting BPO clients with its well-educated workforce and diverse language skills.

Why do companies outsource call center operations to Madagascar?

Labor Pool

  • Young, dynamic workforce
  • Multilingual speakers with English as a second language
  • Low-cost salaries average $130 USD a month
  • 50% cheaper than labor in rival Morocco

Business Climate

  • Over 240 BPO companies are now operating in the country
  • Good for both Anglophones and Francophones
  • The country now operates under constitutional law
  • Workers equipped with a calm demeanor and mild accents for good client relations

Infrastructure

  • Digitally connected to the continent by way of the 10,000-kilometer East African Submarine Cable System
  • Fastest internet speed in Africa
  • Faster internet than many developed countries like Spain and the U.K.
  • Calm and accommodating customer service

Country

  • 5th largest island in the world
  • Rich in natural resources
  • Economics have grown annually in the past five years
  • 2019 presidential election brought political stability and constitutional order

US Companies With a Presence in Madagascar

Google
Deloitte
Amazon
IBM
Unicef
Peace Corps
Fidelity Investments
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Statistics About Madagascar

Population

28.5 million

Youth Unemployment Rate (ages 15-34)

3.12% unemployment, 71% of unemployed are youth

GDP

$14 billion USD

Working Age Population (15-64)

13.8 million

Business Language(s)

French

Call Center Industry Growth Rate

Expected CAGR of 5% from 2020-2027

Statistics About Madagascar

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Frequently Asked Questions

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Why do famous brands outsource their customer service to Madagascar?

While the workforce is very inexpensive, it is also well educated and highly skilled. English is a second language, while French is the first. The country's island status does not isolate it from other countries. Thanks to ICT infrastructures, it is easy to connect with someone in Madagascar through various methods - internet video, calls, email, etc. Local client representatives also possess a very mild accent, so they are easy to understand on the phone.

Where are most call centers in Madagascar located?

Most call centers in this island nation are based in the capital, Antananarivo.

What is a call center agent’s salary in Madagascar?

A Madagascar call center is staffed with highly educated customer service representatives. These representatives make an average monthly salary of $130 USD. Even this rate is triple the amount of the country’s minimum wage.

By comparison, the average monthly salary for a comparable American worker can be nearly $4,000. By outsourcing to this growing island nation, an American company could save well over 70% on its labor costs. Since workers are already educated and known for having pleasant customer service skills, training costs are minimal as well.

What are the advantages of outsourcing call center services to Madagascar?

By outsourcing to Madagascar, not only do companies have a foothold in a developing nation, but also closer access to other African tech hubs, such as Rwanda and Senegal. The country’s well-connected high-speed internet system alleviates any potential communication concerns.

The last election helped to stabilize the country. Political stability will make foreign companies feel at ease.

Lastly, many workers are skilled in two or more languages, with English often being second to French. 

How do I start a call center in Madagascar?

Starting a call center in Madagascar (or another outsource location in our extensive network) starts with a needs analysis to develop a deep understanding of your business and scope your company’s outsourced requirements.

TDS Global Solutions works with you to customize an RFP specific to your business, match you to best-fit contact centers, and facilitate selection, coordination, and contract negotiations.

Finding the right location for your call center and then carrying it all the way to execution causes companies undue strain when forced to do it on their own. TDSGS streamlines this entire process from start to finish and with little to no fees involved for our advisory services.


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