Global competition for call centres

Call centres, the employment success story of the nineties, could be under threat from the growth of digital services, according to a survey by economic consultancy Business Strategies.

200,000 people are currently employed at over 7,000 call centres in the UK, with the number of jobs expected to rise to over 250,000 in the next few years. However, the long-term growth of the internet and digital TV has the potential to make computer telephonists redundant, says the report into the call centre's future.

There is also the risk of global competition damaging the UK's competitive edge. "Since the privatisation of the telecoms industry, increased competition has seen a reduction in the relative cost of international calls," say the researchers.

"There is evidence that this may lead to call centre operations being moved abroad in search of lower labour and property costs. British Airways has already set up a call centre in Bombay."

Many companies now offer online helpdesk facilities, and with the continuing meteoric growth of internet usage, greater automation and customers being allowed to carry out tasks themselves (for example, payments, account queries and management), the result could well be a decline in the need for call centres over the next decade.

Gary Cutlack