Call centres choose Britain over India


by Rumbold
4th July, 2011 at 9:31 am    

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






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  1. jamal — on 4th July, 2011 at 10:45 am  

    it inevitable the cost of wages,rent, land etc in India are going to rise.

    although this story is great I don’t think it is completely positive for britain, because companies will always look for cheaper options. This will lead to bidding war between countries who offer english speaking staff and low overhead costs.

  2. Kismet Hardy — on 4th July, 2011 at 2:17 pm  

    It’s a good thing. Just like caricaturing the Indian accent came back into fashion briefly with all the irritaing cries of ‘London Lite’ and ‘London Paper’ ringing in the streets, I reckon there’ll be less casual racism as fucked-off people get off from an exhasparating phone call and don’t blame the bleeding foreigner on the other end of the line for their pains

  3. Neha — on 9th July, 2011 at 7:29 pm  

    India has been growing economically with its own strengths, policies, and mostly our own luck. It was advantageous that we had cheap labour and growing economy with a weak Rupee. This is bound to change at any time. Our response to this should be more hardwork, sicerity, integrity, ingenuinity, and to be able to provide the same quality of work as available internationaly. The new Generation must be cautioned here- not to run after cheap gimmicks, but go after true knowlege and skill which alone can see them through the future challenges.

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