Call centre growth slows as jobs move overseas

LONDON – The increase in call centre employment is slowing in the UK because companies are outsourcing to countries offering cheaper labour. However, more than 1m Britons are set to work in the sector by 2007, according to a recent study.

A report by industry expert ContactBabel found the UK contact centre industry employs almost 850,000 people and this is set to increase by 150,000 over the next three years.

The north-east was found to rely on the industry the most, with 4.63% of jobs in the region being in contact centres. This compares with a UK average of 2.99%.

The report found the telecoms and utilities sectors would experience a slight decline -- with a net loss of around 5,000 jobs over the next three years -- mostly as a result of jobs moving to India where costs are lower.

However, the IT, retail and outsourcing and public sectors are all set for strong growth.

Steve Morrell, the principal analyst at ContactBabel, said: "The UK contact centre industry continues to grow but at a lower rate than in recent years, driven by the expansion of existing operations rather than the opening of new centres – most companies who would benefit from having a contact centre already have one."

He added: "Offshoring will become an accepted part of the customer service mix for some businesses, especially those with many thousands of contact centre workers. A likely scenario is that most companies will keep the majority of their contact work in the UK."

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