UK call centres expected to grow

UK call centres are set to hire 200,000 workers over three years

Call centres in the UK are set to recruit an extra 200,000 workers over the next three years, according to an official report.

The Department of Trade and Industry report showed that the sector was "healthy" and would employ four times as many workers as India by 2007.

It also predicted that the drive would take employment levels to over a million.

The industry has grown by 250% in the UK since 1995, said the study.

The research was commissioned by the Department of Trade and Industry in response to concerns about jobs being lost to other countries like India.

Quality of service

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

Workers' skills needed further improvement, particularly in communication and customer service.

Despite perceptions of high turnover, workers spent an average of two years and eight months in a call centre, the research found.

It urged firms to consult with unions and customers before switching call centre work abroad.

This report shows that we have a vibrant call centre industry in the UK Patricia Hewitt

Evidence suggests that there were a large number of hidden and "poorly understood" costs associated with sending work offshore, such as relocating senior management and customer discontent.

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."

Ms Hewitt believes call centres had made it easier to book holidays or buy train tickets.

But she admitted it could be frustrating being put on hold for ages.

Missed the point

David Fleming, national officer of Amicus, said the report had "missed the point", adding: "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."

It showed that the typical call centre worker was female, in her mid to late 20s, with pay ranging from £12,000 for new starters to £27,000 for managers.

The report also claimed that UK consumers had a negative attitude towards offshoring and a "significant minority" had moved or planned to move their custom away from firms which had switched work overseas.

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