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Call Centres Market Assessment 2003
Key Note Publications Ltd, July 2003
Over 30% of Europe's call/contact-centre workstations are in the UK. We estimate that in 2003 there are around 385,000 workstations in the UK in call/contact centres of at least ten workstations. However, employment in call/contact centres in the UK is beginning to fall. The operation of virtual centres across national boundaries, full relocation abroad and greater efficiency through management by technology are contributing to a contraction in call/contact-centre employment in the UK.
In 2002, staff turnover averaged around 24%. Although staff turnover pushes up starter wage rates, it moderates the overall pay bill, because relatively few staff stay long enough to qualify for the higher salaries based on qualifications and experience. Moreover, turnover helps centre operators to relocate jobs overseas without declaring redundancies, instead relying on natural wastage.
India has become a world hub for call/contact centres and other business process outsourcing activities, with over 5% of the global market. Wages in India for customer-service agents are a quarter of those in the UK, but staff have equivalent skills.
US companies are choosing to locate call/contact centres in the Caribbean, and Central and Latin America. China is attracting business process outsourcing - for example, from Hsbc - and Malaysia, Singapore and the Philippines are also popular centres for call/contact-centre relocation.
Consumers in the UK are dangerously overloaded with debt. At the end of Quarter 1 2003, the total amount outstanding by individuals in the UK reached £852.53bn. Consumption is too heavily dependent on a continuing rise in property prices.
Government contracts have given a considerable boost to the development of outsourcing call/contact-centre services in the UK. The contact-centre outsourcing market will continue to expand rapidly, creating real opportunities for specialist contractors.
The public sector hopes to achieve savings by switching to contact centres serving multiple agencies, in a streamlining process that would reduce employment opportunities. For example, the Government would like to integrate communications to emergency services, such as fire and ambulance, which, although technically straightforward, would result in public-sector job losses.
Companies cannot, without great difficulty, build long-term relationships with customers if there are no face-to-face communications. Furthermore, many consumers will continue to insist on speaking to named, preferably local, staff in the organisations they contact.
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