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Thomas Carroll Ltd - Outsourcing can seriously damage the health of your business

A study by Thomas Carroll (Brokers) Limited of 1,000 of its corporate clients found that nearly 100% rejected the concept of overseas call centres.

Ninety-seven per cent of respondents viewed the increasing use of overseas call centres as a negative business development.

Paul Gardner, the group's marketing director, said, "This research verifies the anecdotal evidence we have received from customer feedback in recent years. However, the strength of feeling surprised
us.

"This is a massive thumbs down from Welsh businesses and I would expect businesses further afield largely to share these views."

Mr Gardner, whose Caerphilly- based firm posted a £19m premium turnover in 2004, questioned how long insurers and brokers could ignore such strong feelings against overseas call centres.

He said, "The debate over the rush to outsource to India and beyond is too often limited to whether the driver is purely cost-saving, or ready access to an educated workforce. Whatever the reason is, the
real debate should be whether the sector can continue to ignore customer sentiment."

Thomas, Carroll made a strategic decision not to outsource any of its claims handling, Mr Gardner said, "This may add some cost to the Thomas, Carroll model but our clients are continuing to respond through their orders and loyalty."

One respondent to their survey said, "If [Thomas, Carroll] set up or use a call centre you will lose my business immediately."

Mr Gardner said, "It challenges those companies who do not plan to use overseas call centres to market this fact more confidently."

A Department of Trade and Industry study found, at the end of 2003, the contact centre industry directly employed 790,000 people.Spending on centre technology was around £200m.

It found the "typical contact centre worker is female and in her mid-to-late 20s". Salaries accounted for more than 72% of a typical UK contact centre's operating costs, compared to 59% in an Indian operation.

Last week Lloyds TSB said its staff would no longer read from scripts when talking to customers. It followed research showing six out of 10 people thought the use of scripts led to staff failing to answer questions properly, while 55% said they thought it meant the employee didn't listen to their question.
In India, one of the major controversies surrounding call centres concerns the safety of staff, many of whom work at night to fit in with the needs of international clients.

21st January 2006

January 2006 - Thomas Carroll Ltd - Outsourcing can seriously damage the health of your business