North of Expectations: Your Guide to Contact Center Nearshoring in Canada

U.S. firms are under more pressure than ever to provide quick, high-quality customer service as customer expectations rise and operating budgets get tighter. AI solutions and lower cost offshoring are two strategies that typically come to mind. But both options have their limitations and far too often quality, convenience, cultural compatibility, and security are compromised.

That's why more businesses in the U.S. are looking to Canada. Your northern neighbor offers a unique mix of economic, geographic, and cultural benefits, as well as a large pool of talented workers that are truly bilingual (English and French).

Let’s look at why Canada is the best-kept secret in contact center nearshoring, especially for U.S.-based businesses that want to save money, protect their brand, and improve the customer experience.

Why Nearshore to Canada?

1. Cost Saving without Sacrificing Quality:

The U.S. dollar (USD) is usually valued 30–35% more than the Canadian dollar (CAD) as of mid-2025. This means that U.S. businesses gain more value for each dollar they spend on salaries, real estate, and infrastructure without sacrificing quality.

2. A Multilingual Advantage:

Canada is officially bilingual with French-language support available in virtually every province, not just in Quebec. This is a big benefit for businesses that need to reach the 8 million French-speaking customers in North America. In Canada, bilingual agents speak both official languages fluently. As such, they can provide seamless service regardless of language preference, without the cost and hassle of managing separate language teams or sending French assistance to Europe or Africa. And while real-time automated French translation is an option, at this point, AI fails to capture the unique subtleties and idioms of Quebecois French.

It’s not just the availability of French language agents that are a benefit. Canada is recognized as the most multicultural Western country in the world. This is due to its long history of immigration and its official policy of multiculturalism. As such, European, African, and Asian language skills can be found in abundance in Canada.

3. Data Protection and Security:

Canada has rigorous data privacy laws similar to those in the U.S. such as PIPEDA (Personal Information Protection and Electronic Documents Act). Canada's cybersecurity standards, modern telecommunications infrastructure, and low corruption index make it a safe and stable place for sensitive customer data and mission-critical operations.

4. Political and Economic Stability:

Canada is known for being one of the most politically and economically stable countries in the world. It consistently scores well on worldwide measures of the rule of law, economic freedom, and openness of institutions. It is a low-risk place to do business, unlike many offshore locations that may be affected by political unrest, economic instability, or changes in regulations that are difficult to forecast.

5. Cultural Fit:

Cultural alignment is important for keeping customers engaged. Contact center agents that understand idioms, regional norms, and social trends are better able to address problems swiftly and with empathy. Canadian contact center agents and U.S. consumers have much in common when it comes to culture, such as watching the same media, following the same sports, and using the same business etiquette. This means fewer misunderstandings, quicker problem solving, and happier customers. Cultural alignment also cuts down on training requirements and language localization, which saves time and money during aggressive ramp periods.

6. Time Zone and Geographic Proximity to the U.S.:

The time zone difference is one of the challenges with offshoring. When your headquarters is asleep and your agents are working, or the other way around, it can be hard to manage, slow down decision-making, and create communication issues.  Canada covers all four major US time zones: Eastern, Central, Mountain, and Pacific. If your main office is in New York, Chicago, Dallas, or San Francisco, you can choose a Canadian contact center partner that works with your business hours. Real-time collaboration is easy, whether you're working on a team, analyzing data, or managing an escalation.

Also, Canada's location makes it easier and less expensive to visit sites, provide training sessions, and conduct audits. In many circumstances, it's faster to travel to Canadian cities than to other portions of the U.S.

7. Educated Workforce:

Canada has one of the best-educated populations in the world. Almost 60% of working-age adults have a degree from a college or university, according to Statistics Canada – the highest percentage among G7 countries. This high level of education makes the workforce not only articulate and professional, but also able to handle more complicated and valuable contacts, such B2B technical assistance, healthcare questions, and financial services support.

8. Business Continuity and Disaster Recovery:

Canada's varied geography and reliable infrastructure act as a natural barrier against climate-related problems. Unlike many tropical offshore locations, Canada is not likely to be hit by hurricanes, earthquakes, or other natural disasters. Canadian contact centers have backup power, fiber-optic connections, and disaster recovery plans in place to give U.S. organizations that need 24/7 service continuity even more peace of mind.

If you’re now convinced that north is the right direction for your business, let’s look at what’s involved in setting up a contact center in Canada.

Step 1: Define your operating model

You have two main choices:

Hire a Canadian-based contact center provider: This is a great option for businesses that want to grow quickly with little upfront cost. You pay for results, and the provider handles hiring, training, technology, and infrastructure. Note that while many global contact center outsourcing providers offer Canadian locations, this is not the same as being a Canadian-owned provider. If part of your objective is to service the Quebec market, look for an outsourcing partner that offers services from that province. Business operations in Quebec are subject to very different tax reporting and labor laws.

Start your own captive contact center: This option is preferable for businesses that want to have full control over brand experience, compliance, and data handling. However, this option requires much more planning and investment up front. To start a business in Canada, you have to follow both federal and provincial rules. Here are the main legal issues to think about:

Registering a Business:

  • Depending on where you plan to do business, U.S. companies can incorporate at the federal or provincial level. Note that businesses planning to operate in Quebec require registration with the Registraire des entreprises (REQ) and must obtain a Quebec enterprise number (NEQ).

  • Obtain a business number from the Canada Revenue Agency (CRA) so you can handle payroll, GST/HST, and corporate taxes. Note that Quebec has its own tax regime separate from the Canadian federal system and businesses must file separate tax returns with both the Canada Revenue Agency (CRA) and Revenu Quebec. An incorporated company must file T2 return with the CRA and a CO-17 return with Revenu Quebec.

Laws About Work:

  • Different provinces have different rules about work, such as the minimum wage, hours of work, and vacation time.

  • Learn about contracts of employment, rules for ending a job, and health and safety at work.

  • Look for help and incentives. The Canadian Federal government and many provinces offer tax breaks, grants, and training money to encourage U.S. companies to locate there. For example, the Canada Job Grant helps pay for many of the training costs associated with new employees. Programs for regional economic development vary by province, but they usually include wage subsidies, discounts on real estate, or money for equipment and infrastructure.

Step 2: Choose the Location

Every part of Canada has its own benefits. For example:

  • Laval and Sherbrooke, Quebec are great for bilingual English-French support and are known to offer a strong tech infrastructure as well as business development incentives. The minimum wage in Quebec is $16.10 CDN (approx. $11.75 USD) per hour.

  • Toronto, Ontario is Canada's financial center with a large, diverse pool of workers and multilingual skills. The minimum wage in Ontario is $17.60 CDN (approx. $12.85 USD) per hour.

  • Moncton, New Brunswick offers a highly skilled, bilingual workforce and strong government support for business services. The minimum wage in New Brunswick is $15.65 CDN (approx. $11.43 USD) per hour.

  • Nanaimo, British Columbia is a great choice for covering the West Coast time zone and being close to tech talent. The minimum wage in BC is $17.85 CDN (approx. $13.03 USD) per hour.

In addition to competitive wage rates in Canada, employers also benefit from significantly lower health insurance costs for employees compared to the US, as healthcare is publicly funded. 

Other Considerations

While Canada offers many advantages in terms of workforce skill, bilingual ability, solid infrastructure, stability, and lower cost, there are potential pitfalls to be aware of.

  • Competition for skilled talent in large cities such as Toronto could raise costs. Rural and mid-sized cities often have a better mix of talent and cost.

  • Healthcare and benefits are handled much differently in Canada than in the U.S.

  • Business registration, taxation and associated reporting is also much different in Canada.

  • Quebec labor laws, taxation, and revenue reporting is different from the rest of Canada.

Despite these considerations, Canada still remains the perfect nearshore alternative for U.S. enterprises. And when US companies outsource to a contact center provider based in Quebec, Canada, any downside completely disappears.

Are you ready to find out what nearshoring to Canada could mean for your business?

Contact NQX today to set up a planning session and get a personalized cost comparison.

About the Author

Chris Courneya is NQX’ Senior Vice President, Business Development and Client Operations since May 2024. Chris has a track-record of driving organizational growth among some of the largest CX providers – including HGS, Transcom and FoundEver (formally Sitel), and has helped many premium organizations create the right CX partnerships both in Canada and beyond. With 22 years of experience and in-depth knowledge of the Business Process Outsourcing and Management landscape, Chris has a unique understanding of business trends and needs regarding CX operations.