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June 11, 2007

Report Reveals Surprising Insight into Global Contact Center Industry

By Susan J. Campbell, TMCnet Contributing Editor

When considering the controversy that surrounds the contact center industry and the locations that many organizations select based on cost savings, diversification and so on, the first assumption for many Americans to make is that the majority of contact centers are located in Asia. After all, we deal with so many accents when talking on the phone with agents and the shipment of jobs overseas is in the headlines almost on a daily basis.

 
However, The Global Call Center Report: International Perspectives on Management and Employment, representing new research in this field, has found that the great majority of contact centers serving U.S. customers are actually operated in America, not Asia. The study also found that most contact centers in all countries, except India, serve their own domestic markets and consumers.
 
According to the report, there really is no common global face to contact centers as they tend to take on the character of their respective countries and regions based on the local laws, customs and norms. More than 60 percent of all contact centers are in-house operations where they serve the firm’s own customers. Outsourcers account for only 30 percent of all centers. Contact centers emerge as flat organizations, with managers making up only 12 percent of all employees.
 
Surprisingly, most contact centers are relatively new and emerged at roughly the same time across the globe, covering the last 5-10 years. The report also revealed that in-house contact centers across all countries have lower turnover rates and higher quality jobs. Additionally, more women opt for a contact center job as 71 percent of the worldwide workforce is female.

Although the aforementioned similarities were found across the globe, there were also substantial differences. Only 22 percent of contact centers throughout the world recruit degree holders. However, this is still considered a relatively high proportion for what is considered to be a low-skill job. In France and India, it is a different story as 60 percent of contact center employees are degree holders. In most European countries, less than 10 percent of the contact center employee base has a degree.
Part-time or temporary work is often considered a norm in the contact center industry. Such work arrangements are maximized in countries like Austria, Denmark, France, Germany, Israel, Netherlands, etc. India paints a much different picture as 100 percent of the workforce is full-time. Employees in South Korea contact center industry must be willing to work as temporary as such an arrangement accounts for 60 percent of employees. The same is true for 50 percent of employees in Spain.

The report provides the conclusion that heavy reliance on a cost focused model creates low quality jobs and breeds customer dissatisfaction and employee turnover. As this sector grows in size and importance, employers as well as public policy makers, will have to take into consideration the changes that need to be made in order to ensure the sustainability of the industry in addition to its influence in the development of the global economy.

Want to learn more about contact centers? Then be sure to check out TMCnet’s White Paper Library, which provides a selection of in-depth information on relevant topics affecting the IP Communications industry. The library offers white papers, case studies and other documents which are free to registered users. The papers are authored by industry leaders, who, in turn, receive qualified sales leads from interested parties. Check here for the latest in CRM information.
 
Susan J. Campbell is a contributing editor for TMC (News - Alert) and has also written for eastbiz.com. To see more of her articles, please visit Susan J. Campbell’s columnist page.
 
 

(source: http://callcenterinfo.tmcnet.com/analysis/articles/7482-report-reveals-surprising-insight-into-global-contact-center.htm)

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