September 2002

BY JAMES BEATTY

Earlier this year, I launched a Web site dedicated to identifying call centers; www.callcentersites.net is an effort to provide location information on existing call centers and allow call center professionals worldwide to easily obtain information about locations. This information would be helpful as decisions are made regarding expansions. Little did I realize the scope of the task at hand. Obtaining this information has been interesting, revealing and, at times, downright challenging as not all communities, states, provinces and countries maintain these data.

Can you believe that some economic development organizations don't even know the call centers in their own communities? Sad but true.

Industry estimates are ambitious in trying to define the number of call centers in the U.S. and various international locations. As an example, Datamonitor estimated there were 74,500 centers in the U.S. alone in calendar year 2000 and predicts 79,000 by year-end 2005! Datamonitor also estimates that Canada has 8,000 call centers. According to Frost and Sullivan, there were 12,750 contact centers in Europe in 1999 with expectations of 28,000 by year-end 2006.

Fine, but where are they?

Given that the call center industry is estimated at over $600b annually, one would think that it would be tracked from an economic development standpoint as vigorously as, let's say, the automotive industry, the plastics industry or the bio-med industry, each of which are popular recruitment targets for the economic development profession. Within these industries, economic development officials can cite chapter and verse: key companies, their suppliers, employment figures, annual expenditures, capital investment, taxes paid, etc. This is great, but they can't consistently or accurately provide the same data for the call center/contact center industry.

This is not good.

Given that this industry employs thousands of people in each state, occupies millions of square feet of real estate and pays telecommunications bills in staggering amounts, why isn't this industry consistently tracked better than it is within the economic development community? Clearly some organizations do a great job, such as Utah, whose Web site proudly boasts of the great operations there, or Kansas City, Missouri, which proudly lists the successes in the area. California provides excellent details and the state of New York lists each of its more than 200 call-center-related operations. The states of North and South Dakota understand the importance of the industry that employs thousands in their rural areas. Georgia Power compiles 'The Guide to Customer & Business Service Centers in Georgia,' which is among the best documentation efforts I have seen. In Canada, Toronto and several provinces have documented well their call center industry.

This is good.

Economic development organizations on any level would do well to review these and other examples of how to track and codify the significance of this industry in their respective town, city, state, province and country. By the way, it is no coincidence that the areas that do a credible job of tracking such as the ones previously mentioned also enjoy success in attracting call center investment and employment.

Having been involved in call center site selection for almost 30 years, I have witnessed an array of call center tracking by economic development groups. Generally, the better, more organized groups have developed information that allows one to truly understand the impact and importance of call centers to their areas. I am saddened when I contact an economic development organization and they tell me they don't know how many call centers are in their area or, even worse, when I'm told, 'We don't track that information.'

This industry must be tracked, measured and documented by economic development professionals, as this is one of the few industries in a growth mode and the industry in which many communities and countries have staked a part of their economic future.

What's more, the tracking process is not that difficult.

Here is the process I recommend that economic development groups use in order to peruse, propagate, protect, preach, publicize and promote their particular area's call center proficiencies.

First, identify companies that either are call centers as their primary business or use internal call centers in the sale or support of their companies' products or services. Admittedly this is a challenge as many companies in a variety of industries use internal call or customer service centers.

Here are some tips to assist in your search. Identify the easy ones first. The finance, insurance and utility industries are a given. These industries are among the most prolific users of call centers internally and externally. Next, go to retail, travel and computer services, as these industries are also large-volume call center users. If you identify the major firms in these categories, you are well on your way. After identifying these firms, contact them and determine the number of people in their call centers and be as specific as possible. As an example, if you identify a bank, then determine the number of people in the customer service area and use those employment figures, not the employment figures for the entire bank, as this would skew the employment figures for your area, which could affect how site selectors like myself will evaluate your area's attractiveness.

There is a growing concern that if more than 2 percent of your area's workforce is employed in call center jobs, then your area may be classified as saturated and might not be considered as an ideal location for new call center jobs.

Certainly look at all industries to determine who has call centers internally, including manufacturers. Remember, the call center industry is somewhat hidden in that it does not have a discreet SIC code or NAICS code like most other industries. So remember, the call center industry is an industry imbedded within several industries, but it still needs to be quantified like any other. Please send us your findings, as we would like to share these data in future articles and to post the information on the official call center Web site, www.callcentersites.net.

When you undertake this task, you are performing a tremendous service to your community and to this exciting industry, as you will undoubtedly discover common needs, trends and concerns, which is exactly what you want to do as a concerned economic development professional.

If you have questions or comments, please don't hesitate to e-mail me at jbeattyncs@aol.com or jbeatty@callcentersites.net. Let the tracking begin!

James Beatty is president of NCS International, Inc., which specializes in corporate site selection, community analysis and marketing.

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