May 2003

By James Beatty, NCS International

Not only is Buffalo, New York noted as the birthplace of one of the major food groups, the Buffalo Wing, it also has distinguished itself as a premier location for call centers and customer support office operations. I had the distinct pleasure of sampling all of these treats during my visit. The tour was arranged and coordinated courtesy of Buffalo Niagara Enterprise, the economic development organization which actually serves the bi-national region comprised of eight counties of western New York State and the Niagara Peninsula of Ontario, Canada.

Colleges And Universities
There are over 100,000 full-time students attending 30 colleges and universities in the region with approximately 20,000 graduates annually. 

Labor Force
The labor force of the area is approximately 750,000. The age group distribution as a percentage of population shows that 19.6 percent of the regional population is between the ages of 20 and 34 and 28.2 percent is between the ages of 35 and 54. 

The average commute time in the area is 20 minutes.

Call Center Overview
There are 16,685 people employed at 45 customer contact centers and back-office operations in the Buffalo area according to a recent study of operations in the area with 50 or more employees. This means that 2.2 percent of the labor force is employed in this sector. With increased specialization by call center type and function with wages to match, the area should easily absorb an additional 10,000 call center workers.

There is currently a concentration of financial services and collection agencies in the area. The companies, their location, type of operation and number of employees are listed in Table 1. 

Wages
The average customer service job pays $10 to $12 per hour with the published average for the area at $10.08 to $10.92 per hour. Generally, a competitive benefits package is also provided, making the overall compensation package for an agent quite attractive. According to an area wage and salary survey published in 2000, customer service manager salaries range from $28,496 to $94,000, with an average annual salary of $43,807.

Skill Levels
Customer service. Most operations hire high school graduates with related experience for their customer service staffs. According to the employers, they are seeing good candidates for their customer service positions. The individuals possess good computer, keyboarding and team-work skills.

Information technology. Area operations are hiring four-year college graduates from the local labor market. Companies with leading edge operating software are able to attract individuals with competitive IT skills.

General support functions. Employers are successfully recruiting and hiring from the local labor pool with ample supply.

Attrition Rates
Attrition rates among customer service operations range from less than 10 percent all the way up to 25 percent, with the majority of attrition due to spouse relocation, life stage issues and promotion. Employers are satisfied with the worker loyalty and strong work ethic. It's worth noting that these attrition rates are among the lowest in the country.

Real Estate 
There is a total of 8.5 million square feet of class A and B space in the area. Vacancies in class A range from 7.5 percent in the suburban market to 12.5 percent in the central business district. Vacancies in class B range from 8.6 percent in the suburban market to 18.5 percent in the central business district. Lease rates for class A are in the $20 range, and class B rates are in the $15 to $16 range.

Telecommunications Infrastructure
Buffalo is regarded as one of the top 25 wired cities in the United States and boasts of more than 106,000 miles of fiber optic cable installed in the area with 12 major fiber optic trunk lines crossing the U.S. - Canada border. According to a Massachusetts Institute of Technology (MIT) study, Buffalo ranks 22nd in Internet capacity.

Touring And Visiting
I was able to meet with several call center executives in the area, as well as tour a few operations. I was impressed with the employers' assessment of their ability to recruit and retain talent at their respective operations. I met with some companies who were, in fact, increasing headcount by several hundred as we met. I was equally impressed with the employers' commitment to providing a nurturing work place, demonstrated by not only the compensation packages provided, but also by key amenities. These benefits include higher education classes being conducted on site, with workers encouraged to attend for personal and professional development. This, I believe, will become more commonplace in the call center workplace as companies accept and embrace the fact that the well-trained and empowered call center agent is the competitive difference.

Buffalo-Niagara region has quite a bit to offer the professional contact center. I encourage you to learn more about the area by visiting their Web site www.buffaloniagara.org. Please do not hesitate to contact me at [email protected] or [email protected], and remember to visit www.callcentersites.net, the official site for the latest information on call center and back-office locations.

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

[ Return To The May 2003 Table Of Contents ]