🎉 Introducing Strada Workflows.
Learn More →
Voice AI vs Offshore Call Centers in 2025: What You Need to Know
Amir Prodensky
CEO
Oct 2, 2025
10 min read
How next-gen Voice AI is reshaping customer support and when it makes more sense than outsourcing.
I still remember the first time I called my insurance provider back in 2015.
After 20 minutes on hold, I finally reached a tired-sounding agent who read from a script, asked me to repeat my policy number twice, and eventually solved my issue.
It wasn’t a bad experience, but it certainly wasn’t efficient.
Fast forward a decade, and that world feels almost unrecognizable.
Today, customer service isn’t just about rows of phone reps with headsets. It’s become a layered system of human agents, automation, and increasingly, artificial intelligence.
The big question companies face now is simple but daunting: is it time for AI to replace call center operations, or do traditional models still hold the advantage?
This isn’t just a theoretical debate. In 2025, customers expect answers in seconds, personalized interactions, and 24/7 availability.
At the same time, businesses are under pressure to cut costs, improve efficiency, and scale without ballooning their headcount.
That’s why the choice between offshore call center operations and advanced voice AI has become one of the most critical decisions for carriers, brokers, and service-driven organizations.
And that’s why, in this guide, we’ll explore how both models work, the strengths and weaknesses of each, and where the future is heading. We’ll also take a closer look at Strada, a voice AI built specifically for insurance and already trusted by leading carriers, MGAs, and brokers.
Let’s dive right into it.
What’s voice AI exactly?
Voice AI is a technology that enables computers to understand, process, and respond to spoken language.
Unlike chatbots that rely on text, it interacts with customers over the phone. It recognizes natural speech, detects intent, and delivers instant responses.
The goal is to make conversations fluid, human-like, and efficient. Common use cases include handling inbound inquiries, guiding clients through forms, and processing service requests.
Voice AI can also route calls to the right department.
In 2025, the technology has become smarter. It supports natural conversation, multilingual responses, and emotion detection. It also integrates seamlessly with AMS, CRM, policy systems – most of your insurance toolstack.
A prime example is Strada. Its phone AI agents are built specifically for the insurance front office. Unlike generic AI, Strada uses LLM models trained on insurance workflows.
These models understand terminology, claims procedures, and policy servicing. Strada can manage quote intake, FNOL, renewals, and policy updates. It provides 24/7 availability with zero hold time.
So, while voice AI promises speed, consistency, and scalability, offshore call centers still bring the human touch, flexibility, and cost advantages that many businesses rely on. Let’s take a look.
What do offshore call centers offer?
Offshore call centers have long been a cornerstone of customer support.
The traditional model involves delegating inbound and outbound calls, chat, or email handling to teams in cost-effective regions, with common hubs including the Philippines, India, and parts of Latin America. Companies choose these regions for their lower labor costs, high English proficiency, and scalable staffing options.
The strengths of this model are clear. Human agents bring empathy, cultural understanding, and nuanced judgment that AI still cannot fully replicate.
Offshore teams are also flexible. They can ramp up quickly during peak periods and adapt to seasonal demand. Many agents are trained to follow scripts, handle complex issues, and provide multichannel support.
Still, the model has limitations:
Rising costs from training, turnover, and management overhead
Time zone gaps that hurt real-time responsiveness
Inconsistent staff experience causing errors and uneven service quality
High attrition rates leading to constant retraining
Knowledge gaps that lower customer satisfaction
This is where modern alternatives stand out.
Offshore call centers rely on human staffing, but solutions like Strada offer infinitely scalable support. No engineering lift or scheduling headaches are required.
AI agents inside Strada are always available, consistent, and trained on insurance-specific workflows. They eliminate concerns around turnover or time zones. Instead, they deliver seamless support with accuracy and speed.
Still, offshore teams remain a viable choice for companies that value human judgment and empathy. Yet, some companies started to rethink call center offshore outsourcing, and here’s why.
Why are companies rethinking call center outsourcing now?
Offshore call centers once promised cost savings, but rising labor costs in 2025 are eroding those advantages. Companies now face higher training, management, and turnover expenses that reduce the predictability of budgets.
At the same time, customer expectations are evolving. Clients demand instant answers, 24/7 availability, and seamless service across channels. Slow response times or inconsistent support from human-staffed offshore teams can directly affect satisfaction and retention.
AI adoption across industries is also raising the bar. Customers now expect faster, smarter interactions, and businesses that lag behind risk losing market share. Modern AI solutions offer consistency, scale, and predictive capabilities that human teams simply can’t match without significant overhead.
Regulatory and compliance pressures add another layer of complexity. Data privacy laws, industry-specific regulations, and cybersecurity requirements make managing offshore staff riskier. Mistakes or lapses in handling sensitive information can lead to fines and reputational damage.
Here’s a quick comparison of challenges versus AI-driven alternatives like Strada:
Challenge | Traditional offshore call center | Voice AI (Strada) |
Cost | Rising wages, training, and turnover | More cost-effective than human agents, predictable ROI |
Availability | Limited by shifts, time zones | 24/7 availability, 85% of calls answered automatically |
Scalability | Ramp-up requires hiring and onboarding | Infinitely scalable with no engineering lift |
Compliance | Staff training and monitoring required | Built-in compliance features, insurance-specific AI models |
Customer experience | Variable quality, potential wait times | Zero hold time, instant responses, multilingual support |
Strada addresses the twin challenges of cost and availability. Its AI agents operate nearly round-the-clock, automatically handling 85% of calls. Proven insurance use cases, such as renewals, FNOL claims, and policy servicing, accelerate ROI and reduce reliance on offshore staff.
Carriers, MGAs, and brokers can scale without managing large teams or worrying about attrition, all while maintaining high-quality, compliant service.
For many insurers, these shifts make traditional call center outsourcing less attractive. Rising costs, customer expectations, regulatory demands, and AI alternatives are prompting companies to rethink how they deliver front-office support. The goal is clear: faster, smarter, and more reliable service at lower cost.
And, speaking about “lower cost,” is voice AI actually cheaper?
How does voice AI compare on cost?
When evaluating AI replacing call centers, it’s essential to look beyond the sticker price. Cost is not just about upfront investment, it’s about the total cost of ownership over time.
Upfront investment vs long-term savings
Traditional offshore call centers often seem cheaper initially, but hidden costs add up: training, onboarding, quality monitoring, and attrition management.
By contrast, voice AI platforms like Strada require minimal setup. Once deployed, they operate continuously without additional labor costs.
Scalability and pay-per-use pricing
Voice AI scales instantly. You don’t need to hire extra staff for peak periods or deal with scheduling headaches.
Strada offers intelligent retries and Caller ID for renewals and customer outreach, maximizing connection rates while maintaining predictable costs.
Hidden costs of offshore setups
Consider what goes into running a human call center offshore:
Training → continuous instruction for new hires.
Attrition → frequent turnover means hiring and retraining.
Quality monitoring → supervisors must review calls to maintain service standards.
Time zones & coverage gaps → staffing across shifts adds cost and complexity.
Let's talk about a real-world example. Strada is 4x more cost-effective compared to human agents, answering 85% of calls automatically, so you never miss a call.
Its automated scheduling and intelligent retries boost customer contact without adding extra staff, and 24/7 availability eliminates overtime costs while expanding service hours.
So, by comparing total cost of ownership, the picture becomes clear: offshore call centers carry ongoing human-related expenses and operational risks. Voice AI, like Strada, provides predictable pricing, scalable service, and higher efficiency.
But beyond cost savings and staffing flexibility, the real test of offshore call centers is how they shape the customer experience.
What about customer experience?
Customer experience is where the voice AI vs offshore call centers debate really comes to life.
Traditional offshore call centers rely on human agents who can show empathy, read tone, and adapt to cultural nuances. That human touch is valuable, especially for sensitive situations.
But there’s a trade-off: wait times, inconsistent responses, and limited hours can frustrate clients, especially when they expect instant answers.
Voice AI changes that equation. By integrating directly with CRMs, policy systems, and knowledge bases, AI can personalize every interaction.
It remembers client history, recommends next steps, and provides consistent, accurate answers instantly. Strada, for example, turns its knowledge base into actionable answers, handles SMS and email interactions, schedules appointments, and transfers clients to human agents when needed, creating a seamless hybrid experience.
Hybrid models combine the best of both worlds. AI handles high-volume, repetitive tasks, while humans focus on complex or sensitive conversations.
This approach ensures clients never wait on hold, service remains accurate, and employees spend more time adding value rather than repeating information.
Here’s a quick table showing how AI and offshore call centers handle common customer experience challenges:
CX aspect | Voice AI (Strada) | Offshore сall сenters |
Wait times | Instant, 24/7 | Often long; dependent on staffing |
Personalization | Data-driven, CRM integrated | Limited by agent memory and scripts |
Accuracy / consistency | High; built for insurance-specific workflows | Varies by agent and training |
Empathy / cultural context | Escalates to humans when needed | High; human judgment |
Task flexibility | Handles SMS, email, scheduling, transfers | Primarily voice; limited multi-channel |
Scalability | Infinite, no extra hires | Limited by staffing |
Of course, delivering a good experience is only part of the story—security and data protection are just as critical.
Is one more secure than the other?
Security is a top concern when comparing voice AI and offshore call center services.
AI systems, when designed with enterprise-grade security (like Strada), can limit human access to sensitive data and provide more consistent compliance. Offshore call centers, on the other hand, rely on multiple agents in various locations, which can increase risk of data exposure and compliance gaps.
Regulations in 2025 covering data privacy, cross-border transfers, and AI accountability make it critical for insurers to choose a partner that enforces strict protections. Customers expect transparency, so trustworthiness and secure handling of personal data are essential.
Strada provides a secure alternative with SOC 2 Type 2 compliance and robust privacy protocols. Key protections include:
Data isolation → separating client data to prevent cross-access
Training data privacy → ensuring sensitive information isn’t reused inappropriately
LLM privacy → protecting AI-generated outputs and underlying models
Regular penetration testing → identifying and resolving vulnerabilities proactively
Additionally, Strada offers a dedicated forward-deployed team for enterprise security support, giving insurers confidence that sensitive information is monitored and safeguarded 24/7.
In comparison, offshore call center services must carefully manage agent access, train staff continuously, and maintain strict adherence to local and international regulations, an approach that can be effective but is more vulnerable to human error and turnover.
With AI solutions like Strada, insurers gain a predictable, secure, and auditable environment, reducing the risk associated with dispersed offshore teams while maintaining compliance and trust.
With both customer experience and security on the line, the real challenge becomes deciding which model fits your business best.
How do businesses decide what’s best?
Choosing between voice AI and offshore call center services depends on several practical factors. First, consider your company’s size, budget, and service volume. Large volumes may benefit from scalable AI, while smaller operations might rely on flexible offshore teams.
Next, think about your industry and regulatory requirements. Finance, healthcare, and insurance all have strict data protection rules, making AI solutions with enterprise-grade compliance appealing. Customer demographics matter too; some markets value instant, 24/7 responses, while others prioritize human empathy and cultural familiarity.
Voice AI shines in repetitive, time-sensitive tasks that require speed, accuracy, and scale. Humans excel at handling complex, emotional, or judgment-heavy interactions. For insurance specifically, Strada was built for carriers, MGAs, and brokers, supporting quote intake, FNOL claims, renewals, and policy servicing with zero hold time.
This demonstrates how AI can handle high-volume, revenue-driving tasks while humans focus on high-value work.
Here’s a simple framework for deciding:
High volume, repetitive tasks → Voice AI
Complex, judgment-heavy interactions → Offshore or in-house agents
Regulated data → AI with SOC 2 compliance
Customer preference for human touch → Hybrid approach
Ultimately, businesses should match the solution to their operational needs, customer expectations, and compliance requirements. For insurers looking to scale front-office calls, reduce wait times, and maintain quality, exploring voice AI is a practical next step.
Is AI replacing call centers?
Not long ago, customer service meant endless hold music, scripted responses, and the hope you’d eventually reach the right person. Then came offshore call centers, opening the door to scale and affordability.
Now, voice AI is rewriting the playbook again: faster, always-on, and built to handle the repetitive tasks humans shouldn’t have to.
The truth is, there’s no one-size-fits-all. Offshore teams bring empathy and cultural context; AI brings scalability, instant response, and zero wait times. The smartest companies won’t choose one or the other. They’ll design a hybrid model where each plays to its strengths.
That’s exactly where Strada fits in. Built for insurance, it scales without extra headcount, runs 24/7, and surfaces insights your team can act on. Think of it as the teammate who never sleeps, freeing your people to handle the conversations that truly matter.
If you’re ready to see how purpose-built voice AI can transform your front-office operations, book a demo and see how Strada helps carriers, brokers, and MGAs turn every call into revenue, with no hold music required.
Table of Contents
Carriers, MGAs, and brokers scale revenue-driving phone calls with Strada's conversational AI platform.
Start scaling with voice AI agents today
Join innovative carriers and MGAs transforming their calls with Strada.
Voice AI vs Offshore Call Centers in 2025: What You Need to Know
Amir Prodensky
CEO
Oct 2, 2025
10 min read
How next-gen Voice AI is reshaping customer support and when it makes more sense than outsourcing.
I still remember the first time I called my insurance provider back in 2015.
After 20 minutes on hold, I finally reached a tired-sounding agent who read from a script, asked me to repeat my policy number twice, and eventually solved my issue.
It wasn’t a bad experience, but it certainly wasn’t efficient.
Fast forward a decade, and that world feels almost unrecognizable.
Today, customer service isn’t just about rows of phone reps with headsets. It’s become a layered system of human agents, automation, and increasingly, artificial intelligence.
The big question companies face now is simple but daunting: is it time for AI to replace call center operations, or do traditional models still hold the advantage?
This isn’t just a theoretical debate. In 2025, customers expect answers in seconds, personalized interactions, and 24/7 availability.
At the same time, businesses are under pressure to cut costs, improve efficiency, and scale without ballooning their headcount.
That’s why the choice between offshore call center operations and advanced voice AI has become one of the most critical decisions for carriers, brokers, and service-driven organizations.
And that’s why, in this guide, we’ll explore how both models work, the strengths and weaknesses of each, and where the future is heading. We’ll also take a closer look at Strada, a voice AI built specifically for insurance and already trusted by leading carriers, MGAs, and brokers.
Let’s dive right into it.
What’s voice AI exactly?
Voice AI is a technology that enables computers to understand, process, and respond to spoken language.
Unlike chatbots that rely on text, it interacts with customers over the phone. It recognizes natural speech, detects intent, and delivers instant responses.
The goal is to make conversations fluid, human-like, and efficient. Common use cases include handling inbound inquiries, guiding clients through forms, and processing service requests.
Voice AI can also route calls to the right department.
In 2025, the technology has become smarter. It supports natural conversation, multilingual responses, and emotion detection. It also integrates seamlessly with AMS, CRM, policy systems – most of your insurance toolstack.
A prime example is Strada. Its phone AI agents are built specifically for the insurance front office. Unlike generic AI, Strada uses LLM models trained on insurance workflows.
These models understand terminology, claims procedures, and policy servicing. Strada can manage quote intake, FNOL, renewals, and policy updates. It provides 24/7 availability with zero hold time.
So, while voice AI promises speed, consistency, and scalability, offshore call centers still bring the human touch, flexibility, and cost advantages that many businesses rely on. Let’s take a look.
What do offshore call centers offer?
Offshore call centers have long been a cornerstone of customer support.
The traditional model involves delegating inbound and outbound calls, chat, or email handling to teams in cost-effective regions, with common hubs including the Philippines, India, and parts of Latin America. Companies choose these regions for their lower labor costs, high English proficiency, and scalable staffing options.
The strengths of this model are clear. Human agents bring empathy, cultural understanding, and nuanced judgment that AI still cannot fully replicate.
Offshore teams are also flexible. They can ramp up quickly during peak periods and adapt to seasonal demand. Many agents are trained to follow scripts, handle complex issues, and provide multichannel support.
Still, the model has limitations:
Rising costs from training, turnover, and management overhead
Time zone gaps that hurt real-time responsiveness
Inconsistent staff experience causing errors and uneven service quality
High attrition rates leading to constant retraining
Knowledge gaps that lower customer satisfaction
This is where modern alternatives stand out.
Offshore call centers rely on human staffing, but solutions like Strada offer infinitely scalable support. No engineering lift or scheduling headaches are required.
AI agents inside Strada are always available, consistent, and trained on insurance-specific workflows. They eliminate concerns around turnover or time zones. Instead, they deliver seamless support with accuracy and speed.
Still, offshore teams remain a viable choice for companies that value human judgment and empathy. Yet, some companies started to rethink call center offshore outsourcing, and here’s why.
Why are companies rethinking call center outsourcing now?
Offshore call centers once promised cost savings, but rising labor costs in 2025 are eroding those advantages. Companies now face higher training, management, and turnover expenses that reduce the predictability of budgets.
At the same time, customer expectations are evolving. Clients demand instant answers, 24/7 availability, and seamless service across channels. Slow response times or inconsistent support from human-staffed offshore teams can directly affect satisfaction and retention.
AI adoption across industries is also raising the bar. Customers now expect faster, smarter interactions, and businesses that lag behind risk losing market share. Modern AI solutions offer consistency, scale, and predictive capabilities that human teams simply can’t match without significant overhead.
Regulatory and compliance pressures add another layer of complexity. Data privacy laws, industry-specific regulations, and cybersecurity requirements make managing offshore staff riskier. Mistakes or lapses in handling sensitive information can lead to fines and reputational damage.
Here’s a quick comparison of challenges versus AI-driven alternatives like Strada:
Challenge | Traditional offshore call center | Voice AI (Strada) |
Cost | Rising wages, training, and turnover | More cost-effective than human agents, predictable ROI |
Availability | Limited by shifts, time zones | 24/7 availability, 85% of calls answered automatically |
Scalability | Ramp-up requires hiring and onboarding | Infinitely scalable with no engineering lift |
Compliance | Staff training and monitoring required | Built-in compliance features, insurance-specific AI models |
Customer experience | Variable quality, potential wait times | Zero hold time, instant responses, multilingual support |
Strada addresses the twin challenges of cost and availability. Its AI agents operate nearly round-the-clock, automatically handling 85% of calls. Proven insurance use cases, such as renewals, FNOL claims, and policy servicing, accelerate ROI and reduce reliance on offshore staff.
Carriers, MGAs, and brokers can scale without managing large teams or worrying about attrition, all while maintaining high-quality, compliant service.
For many insurers, these shifts make traditional call center outsourcing less attractive. Rising costs, customer expectations, regulatory demands, and AI alternatives are prompting companies to rethink how they deliver front-office support. The goal is clear: faster, smarter, and more reliable service at lower cost.
And, speaking about “lower cost,” is voice AI actually cheaper?
How does voice AI compare on cost?
When evaluating AI replacing call centers, it’s essential to look beyond the sticker price. Cost is not just about upfront investment, it’s about the total cost of ownership over time.
Upfront investment vs long-term savings
Traditional offshore call centers often seem cheaper initially, but hidden costs add up: training, onboarding, quality monitoring, and attrition management.
By contrast, voice AI platforms like Strada require minimal setup. Once deployed, they operate continuously without additional labor costs.
Scalability and pay-per-use pricing
Voice AI scales instantly. You don’t need to hire extra staff for peak periods or deal with scheduling headaches.
Strada offers intelligent retries and Caller ID for renewals and customer outreach, maximizing connection rates while maintaining predictable costs.
Hidden costs of offshore setups
Consider what goes into running a human call center offshore:
Training → continuous instruction for new hires.
Attrition → frequent turnover means hiring and retraining.
Quality monitoring → supervisors must review calls to maintain service standards.
Time zones & coverage gaps → staffing across shifts adds cost and complexity.
Let's talk about a real-world example. Strada is 4x more cost-effective compared to human agents, answering 85% of calls automatically, so you never miss a call.
Its automated scheduling and intelligent retries boost customer contact without adding extra staff, and 24/7 availability eliminates overtime costs while expanding service hours.
So, by comparing total cost of ownership, the picture becomes clear: offshore call centers carry ongoing human-related expenses and operational risks. Voice AI, like Strada, provides predictable pricing, scalable service, and higher efficiency.
But beyond cost savings and staffing flexibility, the real test of offshore call centers is how they shape the customer experience.
What about customer experience?
Customer experience is where the voice AI vs offshore call centers debate really comes to life.
Traditional offshore call centers rely on human agents who can show empathy, read tone, and adapt to cultural nuances. That human touch is valuable, especially for sensitive situations.
But there’s a trade-off: wait times, inconsistent responses, and limited hours can frustrate clients, especially when they expect instant answers.
Voice AI changes that equation. By integrating directly with CRMs, policy systems, and knowledge bases, AI can personalize every interaction.
It remembers client history, recommends next steps, and provides consistent, accurate answers instantly. Strada, for example, turns its knowledge base into actionable answers, handles SMS and email interactions, schedules appointments, and transfers clients to human agents when needed, creating a seamless hybrid experience.
Hybrid models combine the best of both worlds. AI handles high-volume, repetitive tasks, while humans focus on complex or sensitive conversations.
This approach ensures clients never wait on hold, service remains accurate, and employees spend more time adding value rather than repeating information.
Here’s a quick table showing how AI and offshore call centers handle common customer experience challenges:
CX aspect | Voice AI (Strada) | Offshore сall сenters |
Wait times | Instant, 24/7 | Often long; dependent on staffing |
Personalization | Data-driven, CRM integrated | Limited by agent memory and scripts |
Accuracy / consistency | High; built for insurance-specific workflows | Varies by agent and training |
Empathy / cultural context | Escalates to humans when needed | High; human judgment |
Task flexibility | Handles SMS, email, scheduling, transfers | Primarily voice; limited multi-channel |
Scalability | Infinite, no extra hires | Limited by staffing |
Of course, delivering a good experience is only part of the story—security and data protection are just as critical.
Is one more secure than the other?
Security is a top concern when comparing voice AI and offshore call center services.
AI systems, when designed with enterprise-grade security (like Strada), can limit human access to sensitive data and provide more consistent compliance. Offshore call centers, on the other hand, rely on multiple agents in various locations, which can increase risk of data exposure and compliance gaps.
Regulations in 2025 covering data privacy, cross-border transfers, and AI accountability make it critical for insurers to choose a partner that enforces strict protections. Customers expect transparency, so trustworthiness and secure handling of personal data are essential.
Strada provides a secure alternative with SOC 2 Type 2 compliance and robust privacy protocols. Key protections include:
Data isolation → separating client data to prevent cross-access
Training data privacy → ensuring sensitive information isn’t reused inappropriately
LLM privacy → protecting AI-generated outputs and underlying models
Regular penetration testing → identifying and resolving vulnerabilities proactively
Additionally, Strada offers a dedicated forward-deployed team for enterprise security support, giving insurers confidence that sensitive information is monitored and safeguarded 24/7.
In comparison, offshore call center services must carefully manage agent access, train staff continuously, and maintain strict adherence to local and international regulations, an approach that can be effective but is more vulnerable to human error and turnover.
With AI solutions like Strada, insurers gain a predictable, secure, and auditable environment, reducing the risk associated with dispersed offshore teams while maintaining compliance and trust.
With both customer experience and security on the line, the real challenge becomes deciding which model fits your business best.
How do businesses decide what’s best?
Choosing between voice AI and offshore call center services depends on several practical factors. First, consider your company’s size, budget, and service volume. Large volumes may benefit from scalable AI, while smaller operations might rely on flexible offshore teams.
Next, think about your industry and regulatory requirements. Finance, healthcare, and insurance all have strict data protection rules, making AI solutions with enterprise-grade compliance appealing. Customer demographics matter too; some markets value instant, 24/7 responses, while others prioritize human empathy and cultural familiarity.
Voice AI shines in repetitive, time-sensitive tasks that require speed, accuracy, and scale. Humans excel at handling complex, emotional, or judgment-heavy interactions. For insurance specifically, Strada was built for carriers, MGAs, and brokers, supporting quote intake, FNOL claims, renewals, and policy servicing with zero hold time.
This demonstrates how AI can handle high-volume, revenue-driving tasks while humans focus on high-value work.
Here’s a simple framework for deciding:
High volume, repetitive tasks → Voice AI
Complex, judgment-heavy interactions → Offshore or in-house agents
Regulated data → AI with SOC 2 compliance
Customer preference for human touch → Hybrid approach
Ultimately, businesses should match the solution to their operational needs, customer expectations, and compliance requirements. For insurers looking to scale front-office calls, reduce wait times, and maintain quality, exploring voice AI is a practical next step.
Is AI replacing call centers?
Not long ago, customer service meant endless hold music, scripted responses, and the hope you’d eventually reach the right person. Then came offshore call centers, opening the door to scale and affordability.
Now, voice AI is rewriting the playbook again: faster, always-on, and built to handle the repetitive tasks humans shouldn’t have to.
The truth is, there’s no one-size-fits-all. Offshore teams bring empathy and cultural context; AI brings scalability, instant response, and zero wait times. The smartest companies won’t choose one or the other. They’ll design a hybrid model where each plays to its strengths.
That’s exactly where Strada fits in. Built for insurance, it scales without extra headcount, runs 24/7, and surfaces insights your team can act on. Think of it as the teammate who never sleeps, freeing your people to handle the conversations that truly matter.
If you’re ready to see how purpose-built voice AI can transform your front-office operations, book a demo and see how Strada helps carriers, brokers, and MGAs turn every call into revenue, with no hold music required.
Table of Contents
Carriers, MGAs, and brokers scale revenue-driving phone calls with Strada's conversational AI platform.
Start scaling with voice AI agents today
Join innovative carriers and MGAs transforming their calls with Strada.
Voice AI vs Offshore Call Centers in 2025: What You Need to Know
Amir Prodensky
CEO
Oct 2, 2025
10 min read
How next-gen Voice AI is reshaping customer support and when it makes more sense than outsourcing.
I still remember the first time I called my insurance provider back in 2015.
After 20 minutes on hold, I finally reached a tired-sounding agent who read from a script, asked me to repeat my policy number twice, and eventually solved my issue.
It wasn’t a bad experience, but it certainly wasn’t efficient.
Fast forward a decade, and that world feels almost unrecognizable.
Today, customer service isn’t just about rows of phone reps with headsets. It’s become a layered system of human agents, automation, and increasingly, artificial intelligence.
The big question companies face now is simple but daunting: is it time for AI to replace call center operations, or do traditional models still hold the advantage?
This isn’t just a theoretical debate. In 2025, customers expect answers in seconds, personalized interactions, and 24/7 availability.
At the same time, businesses are under pressure to cut costs, improve efficiency, and scale without ballooning their headcount.
That’s why the choice between offshore call center operations and advanced voice AI has become one of the most critical decisions for carriers, brokers, and service-driven organizations.
And that’s why, in this guide, we’ll explore how both models work, the strengths and weaknesses of each, and where the future is heading. We’ll also take a closer look at Strada, a voice AI built specifically for insurance and already trusted by leading carriers, MGAs, and brokers.
Let’s dive right into it.
What’s voice AI exactly?
Voice AI is a technology that enables computers to understand, process, and respond to spoken language.
Unlike chatbots that rely on text, it interacts with customers over the phone. It recognizes natural speech, detects intent, and delivers instant responses.
The goal is to make conversations fluid, human-like, and efficient. Common use cases include handling inbound inquiries, guiding clients through forms, and processing service requests.
Voice AI can also route calls to the right department.
In 2025, the technology has become smarter. It supports natural conversation, multilingual responses, and emotion detection. It also integrates seamlessly with AMS, CRM, policy systems – most of your insurance toolstack.
A prime example is Strada. Its phone AI agents are built specifically for the insurance front office. Unlike generic AI, Strada uses LLM models trained on insurance workflows.
These models understand terminology, claims procedures, and policy servicing. Strada can manage quote intake, FNOL, renewals, and policy updates. It provides 24/7 availability with zero hold time.
So, while voice AI promises speed, consistency, and scalability, offshore call centers still bring the human touch, flexibility, and cost advantages that many businesses rely on. Let’s take a look.
What do offshore call centers offer?
Offshore call centers have long been a cornerstone of customer support.
The traditional model involves delegating inbound and outbound calls, chat, or email handling to teams in cost-effective regions, with common hubs including the Philippines, India, and parts of Latin America. Companies choose these regions for their lower labor costs, high English proficiency, and scalable staffing options.
The strengths of this model are clear. Human agents bring empathy, cultural understanding, and nuanced judgment that AI still cannot fully replicate.
Offshore teams are also flexible. They can ramp up quickly during peak periods and adapt to seasonal demand. Many agents are trained to follow scripts, handle complex issues, and provide multichannel support.
Still, the model has limitations:
Rising costs from training, turnover, and management overhead
Time zone gaps that hurt real-time responsiveness
Inconsistent staff experience causing errors and uneven service quality
High attrition rates leading to constant retraining
Knowledge gaps that lower customer satisfaction
This is where modern alternatives stand out.
Offshore call centers rely on human staffing, but solutions like Strada offer infinitely scalable support. No engineering lift or scheduling headaches are required.
AI agents inside Strada are always available, consistent, and trained on insurance-specific workflows. They eliminate concerns around turnover or time zones. Instead, they deliver seamless support with accuracy and speed.
Still, offshore teams remain a viable choice for companies that value human judgment and empathy. Yet, some companies started to rethink call center offshore outsourcing, and here’s why.
Why are companies rethinking call center outsourcing now?
Offshore call centers once promised cost savings, but rising labor costs in 2025 are eroding those advantages. Companies now face higher training, management, and turnover expenses that reduce the predictability of budgets.
At the same time, customer expectations are evolving. Clients demand instant answers, 24/7 availability, and seamless service across channels. Slow response times or inconsistent support from human-staffed offshore teams can directly affect satisfaction and retention.
AI adoption across industries is also raising the bar. Customers now expect faster, smarter interactions, and businesses that lag behind risk losing market share. Modern AI solutions offer consistency, scale, and predictive capabilities that human teams simply can’t match without significant overhead.
Regulatory and compliance pressures add another layer of complexity. Data privacy laws, industry-specific regulations, and cybersecurity requirements make managing offshore staff riskier. Mistakes or lapses in handling sensitive information can lead to fines and reputational damage.
Here’s a quick comparison of challenges versus AI-driven alternatives like Strada:
Challenge | Traditional offshore call center | Voice AI (Strada) |
Cost | Rising wages, training, and turnover | More cost-effective than human agents, predictable ROI |
Availability | Limited by shifts, time zones | 24/7 availability, 85% of calls answered automatically |
Scalability | Ramp-up requires hiring and onboarding | Infinitely scalable with no engineering lift |
Compliance | Staff training and monitoring required | Built-in compliance features, insurance-specific AI models |
Customer experience | Variable quality, potential wait times | Zero hold time, instant responses, multilingual support |
Strada addresses the twin challenges of cost and availability. Its AI agents operate nearly round-the-clock, automatically handling 85% of calls. Proven insurance use cases, such as renewals, FNOL claims, and policy servicing, accelerate ROI and reduce reliance on offshore staff.
Carriers, MGAs, and brokers can scale without managing large teams or worrying about attrition, all while maintaining high-quality, compliant service.
For many insurers, these shifts make traditional call center outsourcing less attractive. Rising costs, customer expectations, regulatory demands, and AI alternatives are prompting companies to rethink how they deliver front-office support. The goal is clear: faster, smarter, and more reliable service at lower cost.
And, speaking about “lower cost,” is voice AI actually cheaper?
How does voice AI compare on cost?
When evaluating AI replacing call centers, it’s essential to look beyond the sticker price. Cost is not just about upfront investment, it’s about the total cost of ownership over time.
Upfront investment vs long-term savings
Traditional offshore call centers often seem cheaper initially, but hidden costs add up: training, onboarding, quality monitoring, and attrition management.
By contrast, voice AI platforms like Strada require minimal setup. Once deployed, they operate continuously without additional labor costs.
Scalability and pay-per-use pricing
Voice AI scales instantly. You don’t need to hire extra staff for peak periods or deal with scheduling headaches.
Strada offers intelligent retries and Caller ID for renewals and customer outreach, maximizing connection rates while maintaining predictable costs.
Hidden costs of offshore setups
Consider what goes into running a human call center offshore:
Training → continuous instruction for new hires.
Attrition → frequent turnover means hiring and retraining.
Quality monitoring → supervisors must review calls to maintain service standards.
Time zones & coverage gaps → staffing across shifts adds cost and complexity.
Let's talk about a real-world example. Strada is 4x more cost-effective compared to human agents, answering 85% of calls automatically, so you never miss a call.
Its automated scheduling and intelligent retries boost customer contact without adding extra staff, and 24/7 availability eliminates overtime costs while expanding service hours.
So, by comparing total cost of ownership, the picture becomes clear: offshore call centers carry ongoing human-related expenses and operational risks. Voice AI, like Strada, provides predictable pricing, scalable service, and higher efficiency.
But beyond cost savings and staffing flexibility, the real test of offshore call centers is how they shape the customer experience.
What about customer experience?
Customer experience is where the voice AI vs offshore call centers debate really comes to life.
Traditional offshore call centers rely on human agents who can show empathy, read tone, and adapt to cultural nuances. That human touch is valuable, especially for sensitive situations.
But there’s a trade-off: wait times, inconsistent responses, and limited hours can frustrate clients, especially when they expect instant answers.
Voice AI changes that equation. By integrating directly with CRMs, policy systems, and knowledge bases, AI can personalize every interaction.
It remembers client history, recommends next steps, and provides consistent, accurate answers instantly. Strada, for example, turns its knowledge base into actionable answers, handles SMS and email interactions, schedules appointments, and transfers clients to human agents when needed, creating a seamless hybrid experience.
Hybrid models combine the best of both worlds. AI handles high-volume, repetitive tasks, while humans focus on complex or sensitive conversations.
This approach ensures clients never wait on hold, service remains accurate, and employees spend more time adding value rather than repeating information.
Here’s a quick table showing how AI and offshore call centers handle common customer experience challenges:
CX aspect | Voice AI (Strada) | Offshore сall сenters |
Wait times | Instant, 24/7 | Often long; dependent on staffing |
Personalization | Data-driven, CRM integrated | Limited by agent memory and scripts |
Accuracy / consistency | High; built for insurance-specific workflows | Varies by agent and training |
Empathy / cultural context | Escalates to humans when needed | High; human judgment |
Task flexibility | Handles SMS, email, scheduling, transfers | Primarily voice; limited multi-channel |
Scalability | Infinite, no extra hires | Limited by staffing |
Of course, delivering a good experience is only part of the story—security and data protection are just as critical.
Is one more secure than the other?
Security is a top concern when comparing voice AI and offshore call center services.
AI systems, when designed with enterprise-grade security (like Strada), can limit human access to sensitive data and provide more consistent compliance. Offshore call centers, on the other hand, rely on multiple agents in various locations, which can increase risk of data exposure and compliance gaps.
Regulations in 2025 covering data privacy, cross-border transfers, and AI accountability make it critical for insurers to choose a partner that enforces strict protections. Customers expect transparency, so trustworthiness and secure handling of personal data are essential.
Strada provides a secure alternative with SOC 2 Type 2 compliance and robust privacy protocols. Key protections include:
Data isolation → separating client data to prevent cross-access
Training data privacy → ensuring sensitive information isn’t reused inappropriately
LLM privacy → protecting AI-generated outputs and underlying models
Regular penetration testing → identifying and resolving vulnerabilities proactively
Additionally, Strada offers a dedicated forward-deployed team for enterprise security support, giving insurers confidence that sensitive information is monitored and safeguarded 24/7.
In comparison, offshore call center services must carefully manage agent access, train staff continuously, and maintain strict adherence to local and international regulations, an approach that can be effective but is more vulnerable to human error and turnover.
With AI solutions like Strada, insurers gain a predictable, secure, and auditable environment, reducing the risk associated with dispersed offshore teams while maintaining compliance and trust.
With both customer experience and security on the line, the real challenge becomes deciding which model fits your business best.
How do businesses decide what’s best?
Choosing between voice AI and offshore call center services depends on several practical factors. First, consider your company’s size, budget, and service volume. Large volumes may benefit from scalable AI, while smaller operations might rely on flexible offshore teams.
Next, think about your industry and regulatory requirements. Finance, healthcare, and insurance all have strict data protection rules, making AI solutions with enterprise-grade compliance appealing. Customer demographics matter too; some markets value instant, 24/7 responses, while others prioritize human empathy and cultural familiarity.
Voice AI shines in repetitive, time-sensitive tasks that require speed, accuracy, and scale. Humans excel at handling complex, emotional, or judgment-heavy interactions. For insurance specifically, Strada was built for carriers, MGAs, and brokers, supporting quote intake, FNOL claims, renewals, and policy servicing with zero hold time.
This demonstrates how AI can handle high-volume, revenue-driving tasks while humans focus on high-value work.
Here’s a simple framework for deciding:
High volume, repetitive tasks → Voice AI
Complex, judgment-heavy interactions → Offshore or in-house agents
Regulated data → AI with SOC 2 compliance
Customer preference for human touch → Hybrid approach
Ultimately, businesses should match the solution to their operational needs, customer expectations, and compliance requirements. For insurers looking to scale front-office calls, reduce wait times, and maintain quality, exploring voice AI is a practical next step.
Is AI replacing call centers?
Not long ago, customer service meant endless hold music, scripted responses, and the hope you’d eventually reach the right person. Then came offshore call centers, opening the door to scale and affordability.
Now, voice AI is rewriting the playbook again: faster, always-on, and built to handle the repetitive tasks humans shouldn’t have to.
The truth is, there’s no one-size-fits-all. Offshore teams bring empathy and cultural context; AI brings scalability, instant response, and zero wait times. The smartest companies won’t choose one or the other. They’ll design a hybrid model where each plays to its strengths.
That’s exactly where Strada fits in. Built for insurance, it scales without extra headcount, runs 24/7, and surfaces insights your team can act on. Think of it as the teammate who never sleeps, freeing your people to handle the conversations that truly matter.
If you’re ready to see how purpose-built voice AI can transform your front-office operations, book a demo and see how Strada helps carriers, brokers, and MGAs turn every call into revenue, with no hold music required.
Table of Contents
Carriers, MGAs, and brokers scale revenue-driving phone calls with Strada's conversational AI platform.
Start scaling with voice AI agents today
Join innovative carriers and MGAs transforming their calls with Strada.
Phone AI agents for insurance distribution
© 2025 Strada API, Inc.
Phone AI agents for insurance distribution
© 2025 Strada API, Inc.
Phone AI agents for insurance distribution
© 2025 Strada API, Inc.