DTI: UK call centre industry is 'vibrant'

The UK's call centre industry is set to gain around 200,000 jobs in the next three years, according to a report commissioned by the Department of Trade and Industry (DTI). This comes despite continuing concerns from trade unions and others that the UK call centre industry is being severely affected by out-sourcing.

'The UK Contact Centre Industry: A Study' states that the sector is healthy, and is set to employ over 1 million people by 2007, four times more than India in the same year and that the UK call centre industry has grown by almost 250 per cent since 1995.

Trade and Industry Secretary, Patricia Hewitt, announced the study on call centres in December 2003, in response to concerns about job losses and the global challenges facing the industry. Its remit was to study the issues affecting the UK call centre industry and its capability to respond to global pressures, particularly the issue of jobs being offshored.

The report's key findings are that:

• The quality of service in UK call centres is high. But the Government and industry need to work to improve perceptions of the UK industry. Various offshoring destinations have been successful in promoting their industry, notably India through NASSCOM (the Indian IT federation).
  
• The skills of the call centre workforce need further improvement - particularly 'soft skills' like communication and customer service.
  Call centres should develop existing training and qualifications, from pre-job training up to senior call centre management.
  
• Despite perceptions of high turnover, the average length of service in a call centre job is two years eight months. Schools and careers offices could be provided with resources on career paths and opportunities in the industry.
  
• Companies should consider all the implications before taking offshoring decisions. Stakeholders including their customers, employees and trade unions, should be consulted before decisions are made. UK call centres should not compete with offshore contact centres on the basis of low costs, but they can by improving quality, demonstrating a viable alternative to the inherent risks of offshoring.
  
• Evidence suggests that there are a large number of hidden and poorly understood costs associated with offshoring, such as the cost of relocating senior management, travel costs, and customer discontent.
  
• UK call centres need to continue improving the quality of their customers' experience. For many businesses, call centres are the
  main channel through which the customer deals with them - so a positive experience is vital to maintaining companies' reputations.
  
• Companies should encourage the ability of consumers to register with the Telephone Preference Service, which prevents companies from making unsolicited sales calls to boost consumer confidence.

'Vibrant industry'

Publishing the report, Secretary of State for Trade and Industry Patricia Hewitt said: "This report shows that we have a vibrant call centre industry in the UK, with some of the best customer service professionals in the world - and in fact it predicts a growth in call centre jobs.

"But we do need to position ourselves according to our strengths. Others are unbeatable on cost, but we are unbeatable on quality. The best British call centres are the best in the world, offering high value businesses, high skill professionals, but we need to bring the quality of the rest up to that of the best.

"Call centres can be incredibly quick and efficient ways of dealing with companies - for example, helping us to buy train tickets, check our bank balance, or book a holiday. All these things used to take far longer, and when they work well they make things easier for companies and their customers.

"But we've all experienced the frustration of being put on hold for ages or just not being able to reach the right person in the company. Improving the customer service and skills of our call centres are the best ways of preparing for the future."

Conflicting forecasts

Mike Havard, Managing Director of CM Insight, the customer management consultancy that led the research project, said: "For too long the UK call centre industry has been dogged by conflicting forecasts about its future. This report at last gives us a clear view and confirms that the UK can not only compete but thrive. However, there is no room for complacency. The recommendations of this report must be taken up by industry and Government alike. The time to act is now and the best way to act is to put the interests of the consumers we serve at the top of our agenda."

Supporting call centres

In addition to this study, the Government claimed it is also supporting developments in the call centre industry in other ways.

• In March 2004, the North West Development Agency gave £2.5 million to a project boosting the region's call centre industry. The project, named CallNorthWest, aims to provide the best possible infrastructure for the industry and assist companies with training employees.
  
• The DTI's Partnership Fund is also supporting a project involving Barclays, Argos, the TUC, and others, which seeks to improve processes and recruitment and reduce sickness rates in the industry.
  
• The DTI has supported the development of the CCA's Standard Framework for Best Practice, which allows organisations either to self-evaluate or be independently audited by the British Standards Institution.

Editor's note: See post below 'Amicus: Report is flawed' for the reaction from the trade union.