This is good news, and a consequence of rising costs in India, China and other places, as workers get paid more in those countries:
New Call Telecom, which competes with BT and Sky to offer home telephone services, broadband and low-cost international calls, is opening a call centre in Lancashire after being attracted by low commercial rents and cheap labour costs…
[The chief executive] said: ‘We did a cost and service analysis of returning home and there was an absolute parity between what we are paying for a third-party call centre in India and here in the UK.’ Mr Eastwood will employ 25 staff at rented premises in Burnley.
It also reflects non-wage issues too:
He says using British staff will also cut costs in the average amount of time taken to deal with customer inquiries. ‘The average handling time in the UK is three minutes. But if you go out to India, you need to add another minute unless it’s a very efficient operation, so that means we can actually reduce the headcount with the saving. In India in the past decade, as call centres have grown, real-estate prices have gone up massively, while salaries have also crept up.’
New Call will pay £4 a square foot for space in Burnley, which Mr Eastwood says is similar to that in Bombay and New Delhi.
As emerging market economies get richer, setting up businesses in places like the UK will become more attractive. Already companies from places like India are buying up companies in the UK, and thus employing tens of thousands of people.
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Filed in: Economics,Economy,India