The U.K. call center industry is still set to see strong growth over the next few years, despite hype about the impact of offshoring, according to new research.
A report by analyst firm ContactBabel predicts a gain of more than 150,000 jobs over the next three years, bringing the total U.K. call center work force to more than 1 million--though that does represent a drop in the growth rate of recent years. U.K. call centers currently employ 850,000 people.
The growth, however, will not be across all sectors. Offshoring -the shipping of jobs overseas--will hit the finance, telecommunications and utilities sectors, where there will actually be a decline, with a net loss of 5,000 jobs. But contact centers in IT, retail, outsourcing and the public sector are set for strong growth, according to the report.
Steve Morell, principal analyst at ContactBabel, said in the report: "In the long term, offshoring will become an accepted part of the customer service mix for some businesses, especially those with many thousands of contact center workers. The most likely scenario is that most companies will keep the majority of their contact center work within the U.K."
CNET News
Wednesday, June 24, 2009
Tuesday, June 9, 2009
Why Outsource Call Center Services to India
Recent market analysis indicate that outsourcing is increasingly becoming the option of preference worldwide . Although in house Call Centers represent the majority of Call Center is the most common option today. Outsourced service provider may facilitate anything from a single project to an entire operation for a client and in turn provide services to that client's end-customers. Market analysis shows that the one year growth is almost 25% for outsource solutions vs. 5% for in-house solutions over the next five years.
Offshoring brings substantial benefits to the global economy and the lion's share will likely go to the US economy, research by McKinsey Global Institute. "Off shoring creates wealth for US companies and consumers and therefore for the US as a whole," it adds. Of the $1.12 to $1.14 value potential to the US from $1 of spend off-shored to India, 58 cents comes from savings accrued to US investors and customers and 5 cents from import of US goods and services by providers in India. "Economic Times edition- September 11, 2003".
Tremendous Potential
In today's highly competitive world, companies are looking to outsource much of the work that needs to be done, but have little success with it. Global companies such as Dell and British Airways have found out that India, with its inherent strengths, has a strategic advantage while setting up Call Centers. Successful companies like GE and Amex saw the tremendous opportunity in India due to its vast technological base and have set up their own call centers to handle customer requests.
Well educated Professionals
India has a large pool of student population with very excellent English speaking and communication skills. With thousands of universities where English is the first language, India can never be short of an English speaking population. The entire world is aware of the fact that India has produced the maximum number of software professionals. Therefore, recruiting highly skilled professionals for a Call Center can be very easily done in India.
Low Attrition Rates
A Contact Center job is a long term approach for agents in India, unlike the United States, where a Contact Center job is often perceived as a part time job, done to fill in the gaps of employment opportunities. Therefore, the attrition rates in India are much lower than the United States. This helps Indian call centers to invest all their resources in the agents, as they are confident of low labor turnover. This also saves time and resources on training new recruits, which in turn allows the Centers to focus on improving client processes.
Excellent Quality and Service at Low Price
Due to the cheap and highly skilled labor, it turns out to be very reasonable to outsource Call Center operations and back office processing to India. The average price of a Contact Center agent in United States is almost $ 2000 where as that of an agent from India is just over $200. Therefore, the cost savings account to almost 40% of the costs incurred otherwise. Highly liberal Government policies on Call Center operations The government has declared a tax holiday for Call Center Companies.
Offshoring brings substantial benefits to the global economy and the lion's share will likely go to the US economy, research by McKinsey Global Institute. "Off shoring creates wealth for US companies and consumers and therefore for the US as a whole," it adds. Of the $1.12 to $1.14 value potential to the US from $1 of spend off-shored to India, 58 cents comes from savings accrued to US investors and customers and 5 cents from import of US goods and services by providers in India. "Economic Times edition- September 11, 2003".
Tremendous Potential
In today's highly competitive world, companies are looking to outsource much of the work that needs to be done, but have little success with it. Global companies such as Dell and British Airways have found out that India, with its inherent strengths, has a strategic advantage while setting up Call Centers. Successful companies like GE and Amex saw the tremendous opportunity in India due to its vast technological base and have set up their own call centers to handle customer requests.
Well educated Professionals
India has a large pool of student population with very excellent English speaking and communication skills. With thousands of universities where English is the first language, India can never be short of an English speaking population. The entire world is aware of the fact that India has produced the maximum number of software professionals. Therefore, recruiting highly skilled professionals for a Call Center can be very easily done in India.
Low Attrition Rates
A Contact Center job is a long term approach for agents in India, unlike the United States, where a Contact Center job is often perceived as a part time job, done to fill in the gaps of employment opportunities. Therefore, the attrition rates in India are much lower than the United States. This helps Indian call centers to invest all their resources in the agents, as they are confident of low labor turnover. This also saves time and resources on training new recruits, which in turn allows the Centers to focus on improving client processes.
Excellent Quality and Service at Low Price
Due to the cheap and highly skilled labor, it turns out to be very reasonable to outsource Call Center operations and back office processing to India. The average price of a Contact Center agent in United States is almost $ 2000 where as that of an agent from India is just over $200. Therefore, the cost savings account to almost 40% of the costs incurred otherwise. Highly liberal Government policies on Call Center operations The government has declared a tax holiday for Call Center Companies.
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