06/05/2004

DTI report says call centres to create 200,000 jobs

Call centres in the UK are set to increase further according to a new report which predicts that an extra 200,000 workers will be recruited in the industry over the next three years.

The Department of Trade And Industry report showed that the industry was “healthy” and had grown by 250% since 1995.

The report was commissioned by the Department of Trade and Industry in response to growing concerns that call centre jobs were being lost "offshore" to other countries such as India.

The report, which has been criticised by unions for being “flawed”, found that the quality of service in UK call centres was high, but the perceptions of the industry could be improved.

The report highlighted the fact that workers’ skills needed further improvement, particularly in the areas of communication and customer service.

The study also found that, in spite of perceptions of high turnover, workers spent an average of two years and eight months working in a call centre and it urged firms to consult with unions and customers before moving call centre work abroad.

Commenting on 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.”

The report also claimed that UK consumers had a negative attitude towards ‘offshoring’ and a “significant minority” had moved or planned to switch their custom away from firms, which had shifted work overseas.

David Fleming, national officer of Amicus, said the report had “missed the point”, saying: “Offshoring is not just about call centres, the vast bulk of the 15,000 jobs offshored last year were things like accounting, human resources and IT.”

The research found that moving work to India saved up to 40% in operating costs, mainly because pay was only 10-15% of UK wages.

(KmcA)

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