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UK contact centres up there with world's priciest

Centres ring up a fortune

Tags: contact centre, offshoring, outsourcing

By Nick Heath

Published: 20 June 2008 09:28 BST

The UK is one of the most expensive places in the world to run an onshore contact centre.

It ranks alongside the Netherlands and France for costing the most in terms of wages, benefits, technology, property, mark-up and other expenses.

The country costs are being inflated by the lack of well-qualified contact centre staff, something common across Western Europe and the US, according to market analysts Datamonitor.

Profit margins are being eroded by this inability to hold onto high calibre staff, with costs also passed onto clients, making it hard for the country to remain competitive.

Canada remains the most expensive offshore contact centre destination, while Colombia, the Philippines and India remain the lowest cost.

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Attrition remains a global problem, with agents being tempted away by the plethora of opportunities in other industries in India and Mexico and centres poaching agents off each in other in the crowded Philippine market.

The report says that this level of "staff churn" needs to be stabilised to keep costs steady.

Peter Ryan, head of contact centre outsourcing analysis at Datamonitor, said in a statement: "This can be done by outlining a career path for contact centre agents at the outset of their recruitment, and accentuated by frequent feedback sessions.

"In addition, providing wage rates that are fair and reflective of the market is also important, as well as benefits that will derive long-term value for the agent."

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