Powergen shuts Indian call centres due to complaints

LONDON - Energy company Powergen is to close its customer call centres in India, with 450 jobs returning to the UK.

Powergen, owned by E.ON, said that it hoped to complete the move by the end of the year in order to reduce the number of customer complaints.

Powergen began using Indian call centres in 2001, like other businesses, as a way to reduce costs.

Nick Horler, managing director of Powergen, said: "When customers contact us they need to be confident that their query will be fully resolved quickly.

"Although the cost of overseas outsourcing can be low, we're simply not prepared to achieve savings at the risk or expense of customer satisfaction."

The new call centres will be based at E.ON managed offices in Bedford, Bolton, Leicester, Nottingham and Rayleigh, Essex.

A spokesman for Unison, which represents Powergen workers, said: "We have often made the point that moving jobs overseas is short-sighted and not as cost-effective as it might first appear.

"Companies that do it soon find that they lose the expertise that local people bring to the job."

Barclays, National Rail Enquiries, BT, HSBC and Tesco are among many firms that have outsourced call centres and other service jobs to India over the past five years.

Research by the Communication Workers Union found that 33 UK companies have collectively outsourced a total of 52,000 jobs abroad.

A McKinsey & Company report published in December last year calculated the value of India's outsourcing industry at $22bn, with a predicted growth of 25% by the end of the decade.

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