UK Contact Centre Industry - Offshoring

UK Government Study Key Findings: The number of contact centre agents in the UK is forecast to grow from 500,000 at the end of 2003 to almost 650,000 by Traditional UK manufacturing areas face a particular threat from off-shoring through expiring business leases and decreasing salary cost differentials. Staff accessibility, suitable buildings and a good pool of skilled, low-attrition staff are the most important factors in determining call centre location.

Key Findings: Staff attrition is at manageable levels for most UK contact centres. The need for more training is widely felt, and the contact centre industry needs to be encouraged to use skills and qualifications frameworks. UK consumers generally have a negative attitude towards offshoring, and some have moved suppliers away from organisations which provide offshore customer service.

Key Findings: The majority of calls are dealt with successfully first time by UK contact centres; a far higher proportion than is managed by Indian contact centres. Governments in offshore destinations have been keen to capitalise on the trend in offshoring and have provided tax breaks and other incentives.

Key Conclusions and Recommendations Best practice standards for contact centres need to be adopted more widely to move the UK industry up the value chain and away from unsuccessfully competing on cost. In order to move up the value chain, the existing workforce needs to improve a wide variety of skills and capabilities. Organisations should be encouraged to consider all stakeholders, customers’ employees and unions in the whole business case prior to making offshoring decisions. More research on the advantages and disadvantages of offshoring should be considered to better inform business strategies.

Resources could be provided to careers offices and schools about career pathways and opportunities within the contact centre industry. Industry and government need to work together to promote the UK contact centre industry..