Tariffs and How American Companies Are Shifting to In-House BPO

Rising tariffs are prompting American companies to reconsider their reliance on offshore Business Process Outsourcing (BPO) due to increased costs and uncertainties in global trade, leading to a growing interest in establishing in-house BPO operations. While tariffs are traditionally used to protect domestic industries and generate revenue, they have eroded the cost advantages of outsourcing by increasing operational costs and creating unpredictable market conditions. This has led businesses to explore alternatives such as onshoring and diversifying outsourcing locations to maintain control and improve data security. Despite the challenges of higher labor costs and potential skill shortages associated with onshoring, companies are increasingly turning to in-house BPO solutions, often complemented by AI technologies like those offered by Retell AI. AI solutions, such as voice agents, help manage costs, improve efficiency, and provide round-the-clock customer support, thereby making in-house BPO a more viable option in the face of tariff-driven changes.