Threats to UK Call Centre Business

Author: CCa2z

Date: 14th October 2004

The traditional players UK & US face some real threats and concerns and must move to improve costs and standards.  Failure to do so would be negligence on their part. 

The threats and concerns in particular:

  • Reducing the inward investment opportunities.
  • Real threat of outsourcing to Asia, particularly India, which has a large pool of low cost, well educated English-speaking labour. 
  • GE Capital's call centre in Delhi now serves customers of at least 20 well known UK store cards including; Debenhams, House of Fraser, Laura Ashley and Burtons.
  • Despite the fact that the UK has over 37% of all European call centre agent positions, it has only 26% of the outsourced positions (Datamonitor).The staff attrition costs UK call centres estimates of £1.1bn a year.
  • The UK will continue to make the call centre agent role only a 'temporary' assignment and thus induce recurring attrition costs.
  • The costs of absenteeism to the industry are enormous, around £220m.
  • Cost of repeat calls and rework to the industry is unquantified but likely to be enormous.  Most people today have made a 'repeat' call to a call centre because the original action was either not completed or erroneously so.
  • The UK may face a danger of staff avoiding the industry due to the working conditions and environment.
  • The UK could face supervisory skill shortages currently faced by the teaching profession.
  • Up to 40% cheaper staff costs in Asia.

 


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