Call to equip call centres

A number of companies have moved centres to India

Scotland's call centres must be equipped to compete with the current trend of outsourcing business to India, according to experts.

Research carried out by two leading Scottish economists has found that 56,000 people in Scotland are currently employed in the industry at 290 call centres.

In a report for the Scottish Economic Policy Network, Drs Philip Taylor and Peter Bain assessed the potential threat the trend poses to Scotland's economy but found there had only been a "marginal effect" so far.

According to their report, entitled Call Centres in Scotland and Outsourced Competition from India, 10,000 more people were employed in the industry between 2000 and 2003.

The authors said this was contrary to the prevailing view that jobs were being lost from Scotland as a result of outsourcing.

However, 52% of call centres believe that employment could be affected to some degree by the continued job drain to India.

The popularity of call centres in Scotland was due to a readily available, skilled workforce, the report said.

'Unable to compete'

The authors said that 22 companies moved some services to India in order to save money and increase profits, where there are few trade union and health and safety laws.

It was also noted that in the last three years 36 call centres closed in Scotland, due mainly to the crisis in the telecommunications industry.

The report stated: "To date, outsourcing to India has had only the most marginal effect on "lost" contact centre jobs."

It called on government or public bodies to do more to help companies fight off the competition from India.

"The most common response is the request for financial assistance, whether for training, technology improvements or other purposes," the report added.

"Others feel that the government should promote a more positive image for the industry or conduct research to assess the threat from India.

"Underlying the many responses is the view that since Scottish contact centres might not be able to compete with India on costs, the government should concentrate on developing more complex and skilled work in Scotland.

"Others think the government should ensure that health and safety standards are applied in overseas call centres and that data protection issues are pursued."