Cesar CantuThe abduction and grueling assassination of a group of call center agents in Mexico has put the country under the international spotlight once more, reviving the conversation around Mexico’s high levels of insecurity and its faulty implementation of rule of law.
Eight call center agents (six men; two women) disappeared in mid-May in the municipality of Zapopan, in Jalisco, one of Mexico’s largest, most developed states. What remained of the abducted workers was found in early June by local authorities, among human remains contained within 45 plastic bags uncovered in a ravine in the outer limits of the municipality.
Though the story shocked national and international audiences, Mexico is no stranger to call center agents being abducted and/or killed. Human rights activists warned that call center workers have been disappearing in the country since 2017, at least.
The human remains found in the 45 bags recovered by the Mexican authorities belonged to call center workers who went missing in May. #CGTNAmerica pic.twitter.com/Oh5rrRx6gb
— CGTN (@CGTNOfficial) June 7, 2023
Mexican and US authorities –who joined the search for the disappeared agents– believe that the abductees were somehow involved in criminal activities by drug cartels in the region. It is known that the Jalisco cartel –which operates in Zapopan, Guadalajara and other cities within the state of Jalisco– runs a scheme of timeshare frauds which uses call center workers as points of contact to scam mostly American citizens.
Few details have been uncovered about the case, aside from the identities of the abducted agents and that of the —now arrested— tenant who rented one of the buildings where they worked. Most local media reports that dive into the case have the twists and turns of a crime thriller, pointing to potential connections with political figures at a municipal and state level.
Given Mexico’s reputation as a hotbed of violence, corruption and organized crime, one would expect businesses to be packing their bags and stampeding away from the country. Nevertheless, Mexico remains one of the Nearshore’s top stars when it comes to foreign investment, thanks in great part to its advantageous geographical location and a strong, long-standing trade relationship with the US.
Can the same favourable case be made for Mexico’s CX outsourcing industry in the face of the recent call center abductions?
What You Should Know
No mention has been made of the company or companies linked to the call centers where the eight abductees worked, if there was any connection to begin with.
The lack of names in local media outlets and official statements has led to believe that the call centers themselves were either clandestine operations or very, very small businesses created as a front for illegal activity.
These sorts of operations aren’t uncommon in the country. In late June, 64 persons were detained for running an extortion racket from a call center in the State of Mexico. Earlier that month, police shut down another call center, this one located in Mexico City’s industrial zone. In late March, Mexico City police raided a building in the south side of the metropolis, where another center was set up for extortion and fraud.
No company names were given in the aforementioned cases. In fact, both local media and authorities referred to the call centers as “outlaw” or “fake”.
Policías de la #SSC, en coordinación con @FiscaliaCDMX, @SEDENAmx y @GN_MEXICO_, ejecutaron 10 órdenes de cateo y detuvieron a 15 personas posiblemente vinculadas con extorsión, fraude y distribución de droga. https://t.co/qZ9WDzZalE pic.twitter.com/dZ01Ohlzea
— SSC CDMX (@SSC_CDMX) June 8, 2023
While there are still details to be uncovered in the case of the Zapopan abductees, the fact that no company names have made it into the light points to these businesses being very small or outright nonexistent. There have yet to be reports of facilities from big or even mid-sized CX providers being used in Mexico for criminal activity.
Which is not to say that there is no business infrastructure behind fraudulent call centers. In early march, the US Office of Foreign Assets Control (OFAC) sanctioned eight Mexican companies involved in a timeshare fraud scheme that targeted American citizens. A month later, 19 other businesses were added to the list.
None of these businesses, however, were either well known or related to the CX industry. The list of sanctioned entities includes enterprises involved in real estate, construction, travel, “business support” and even beauty salons.
Should You Worry?
The way the Zapopan case has been framed in most media outlets could lead foreign observers to believe that all call center workers in Jalisco are at risk of being abducted and/or killed.
While the case has yet to be solved, the main hypothesis —pushed by Mexican and US authorities— is that the call centers were operated by or linked in some way to the Jalisco cartel. Police speculate that the eight victims were killed after they tried to quit.
If that’s the case, those who are most endangered work for these particular businesses (either very small or clandestine), not at well-established CX providers.
“I haven’t seen at the moment any company that has decided not to enter the country due to insecurity”—Eduardo Ordóñez, political risk analyst and consultant
The case isn’t any less tragic, though. Like in many other Nearshore countries, in Mexico, call centers represent an important source of employment for young people with little job experience or no college degree.
Given that higher-education coverage in Mexico sits under 45% of the population, the younger and less fortunate in the country tend to perceive customer service as either a gateway into the labor market or an odd job that will help them get through a rough financial patch while they find a more promising opportunity.
A Thorny Rose
Even when Mexican cities frequently rank among the most dangerous in the world, the country is one of the Nearshore’s superstar performers when it comes to attracting foreign investment. Mexico is the second largest recipient of FDI in Latin America, accounting for around 23% of the total drawn by the whole region, according to UN data. Only Brazil (33%) has better numbers. Globally, Mexico ranks 11th for FDI attraction.
From manufacturing, to transport and agriculture, foreign companies of all sorts have taken a cautious yet relentless approach to doing business in Mexico, even when operating in some of the country’s most dangerous locations. They know what they’re getting into, but they keep on because the prospects for business are too good.
“These things will happen anywhere. It’s only a matter of following protocols to mitigate risk”—Jesus Hoyos, Chief Strategist and Founder of Solvis Consulting
CX is no exception. Providers know that the terrain might be dangerous, but most refuse to run away.
“These things will happen anywhere. It’s only a matter of following protocols to mitigate risk,” commented Jesus Hoyos, Chief Strategist and Founder of Solvis Consulting. “We shouldn’t panic. Instead, we must stick to common sense and the proper protocols”.
As part of his career in CX, Hoyos experienced the rougher parts of Mexico and Colombia during the 90’s. Back then, he pointed out, providers and clients offered security guidelines to follow, including the use of the company’s transport service, sticking to recommended restaurants and touristic sites, among other things.
For companies afraid of having their own facilities used for criminal acts, Hoyos recommended extra attention be paid to site selection and recruitment processes, plus a strong investment in internal, anti-fraud security infrastructure, something that big BPO players have taken to heart.
“I haven’t seen at the moment any company that has decided not to enter the country due to insecurity,” said Eduardo Ordóñez, a political risk analyst and consultant from Mexico. “What happens is that they can end up spending up to 6% of their profits on security measures. But they keep operating and making profits.”
Mexico’s long-standing history as a destination for CX outsourcing shows that, even when the terrain gets hot, investors adapt to the weather.
That’s not to say that Mexico can let criminality run rampant without consequence. Hair-raising headlines still shock international investors, and the country’s reputation as a hotbed of criminal activity remains as the blackest mark in its business resume.
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