Patricia Hewitt, the trade and industry secretary, ordered the study last December in response to increasing concern about job losses. The study's aim was to look at issues affecting UK call centres and to respond to global pressures such as jobs being "off-shored" or moved to countries where labour is cheap, such as India.
According to the report, employment in call centres will exceed 1m in three years. The sector will take on an additional 200,000 workers by 2007, taking the total workforce to four times that of India, the main rival for British call centres, it said.
The report also claimed that since 1995, the industry had grown by 250%.
Hewitt said the report showed that the UK had a vibrant call centre sector that was forecast to grow. She claimed that the UK needs to position itself according to its strengths.
"Others are unbeatable on cost, but we are unbeatable on quality" she said.
The Department of Trade and Industry said that it backed recommendations that require companies to consult before shifting jobs abroad.
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