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Tide in UK outsourcing turns back onshoreReuters, Monday March

By John Bowker (10/2008)

LONDON, March 10 (Reuters) - British managers who offshored call centre work and IT services to cheaper locations like India earlier in the decade are now bringing the jobs back to the UK, a trend that could reshape the outsourcing industry. The U-turn comes as customers question the quality of service offered by non-resident workers, and as data protection concerns and other issues force a re-evaluation of the economic benefit of outsourcing jobs so far from the market they serve. Martyn Hart, Chairman of the National Outsourcing Association (NOA), said Norwich Union, the life insurance arm of Britain's biggest insurance group Aviva "We've seen banks and life assurers start to do it. At the time (of mass offshoring) purveyors said they could save 40 percent on costs by going offshore. We have research that says it takes three years to get to that level," he said. Both Lloyds TSB and the UK's train route-finder National Rail Enquiries have reduced customer-contact presence in India in recent times, officials of both organisations confirmed.

"When customers ring up, they want you to be local. To give service and understand the accent. That's the pure reason why people are coming back," added Hassan Sadiq, Chief Executive of outsourcing specialist Innovation Group. He said Innovation, a former dot-com failure now specialising in services to the insurance industry, had seen "two or three" major customers in varying parts of the world reverse earlier decisions to go offshore -- although he would not name them. "If you want local, you can have local. You can mix and match," he said. In the early years of this decade, a mass of big British financial players led the run offshore.

Companies including HSBC, Europe's biggest bank, and Aviva were among corporate giants who cut tens of thousands of British jobs that way. Now, a spokeswoman for Norwich Union says it goes both ways. "We are constantly looking at the mix of work we have offshore and on," she said. IT services firms have positioned themselves to take advantage of the changing philosophy, with both British and Indian companies looking at ways to straddle both markets.

Britain's LogicaCMG, an IT services firm widely criticised by analysts for not expanding offshore when others did, is now setting up an outsourcing division in India. Its strategy is to keep so-called 'voice' services onshore, while placing internal services such as accounting and billing offshore.

Meanwhile analysts expect big-hitting Indian outsourcing companies such as Tata Consultancy Services, Wipro and Infosys Technologies to look for more opportunities in the UK, or risk losing out on the growing trend towards both on and offshore outsourcing. "What these companies have is scale, but no presence or base onshore. They need to make a customer-facing acquisition," said Landsbanki analyst Michael Donnelly. He added that LogicaCMG was known to have recently beaten one of the Indian firms to a major contract due to its presence onshore in some major European markets. "Customers are looking for the front end capability, but are looking for the price point too," new LogicaCMG CEO Andy Green said at the group's results last month. The value now seen in having a foot in both camps became apparent last summer, when French IT provider Steria bought British rival Xansa for around 472 million pounds -- a 70 percent premium to its share price the day before it said it was in talks. Xansa was the first British outsourcing company to expand into India, buying a firm called IIS in 1997. It is now in the forefront of a trend towards a mix of offshore and onshore outsourcing work. (Additional reporting by Sumeet Chatterjee in Bangalore; Editing by Andrew Callus)

Source

Just returning your call... to the UK

By Denise Winterman
BBC News Magazine  

A consumer backlash against foreign call centres has led some companies to return operations to the UK. After all the talk of lower costs, where did it all go wrong?
"Hello, it's my car." ''Your cat, sir?." "No, my hatchback." "Your bad back, sir?" "No my car, it's a hatchback." "Your cat has a bad back, sir?" "Arghhhhhh!"

Dealing with call centres has always been one of the great irritations of trying to contact your bank, insurer - almost any service provider. But since many have relocated abroad, it ranks right up there with the weather and house prices as one of the most popular collective national moans.

Just 4% of people have had a good experience when dealing with a call centre, according to a recent survey by YouGov. Over half of those asked said their biggest gripe was having to contact call centres outside the UK and more than a third admitted to shouting and swearing at agents because they got so frustrated.

A lot of people did view the overseas call centres as taking British jobs and didn't like it

Claudia Hathway, Call Centre Focus
The issue has now become such a national bugbear some companies are using their UK-only call centre policy as a marketing tool. Natwest's latest advertising campaign guarantees that customers speak to people in Barnsley or Cardiff, rather than Bombay or Calcutta.

In recent months a number of big British firms have announced they are bringing call centres back to the UK, including Powergen. Esure announced it was doing the same this week, with boss Peter Wood reportedly suggesting the trend for outsourcing is doomed.

So why are call centres coming home? Short-sighted planning is behind the U-turn, says Claudia Hathway, editor of Call Centre Focus (CCF) magazine.

Poor expectations

"Many companies just didn't think the move through," she says. "It was all driven by cost, not the customer. But what's the point of saving money when a poor phone call is the first-hand experience of the quality of service. If it is a bad experience, people are not going to buy."

Some also didn't realise the cost of updating the telephone infrastructure in countries like India and relocating managers from the UK to oversee the operation.

But is there something a bit more unsavoury playing a part in customer dissatisfaction?

IN THE UK
There are 5,700+ call centres
Employing 581,000 people
This is expected to rise to 647,000 in 2007
A call centre manager earns about £26,000
Starting salaries are about £11,000
SOURCE: CCA

"Some people definitely had a certain mindset and decided the call was going to be bad before they'd even dialled the number," says Adrian Web from Esure, which says it took the original decision to outsource because it could not recruit enough staff in the UK - not because of money.

"When we listened back to calls people had complained about often they were fine. Some people wanted the member of staff to fail because they were in India. I don't know why that should be, but when customers start voting with their feet you have to respond. You cannot fight against what the customer wants."

People's complaints might have initially been fuelled by a bit of xenophobia, but it is now about the service they are receiving, says Ms Hathway.

"Initially a lot of people did view the overseas call centres as taking British jobs and didn't like it, but the fact they often do not get a good service is the issue now."

False economy

Some companies have stuck to a UK-only policy from the start, like over-50s holiday and insurance company Saga. It says it could save 65p on the cost of an average call if it outsourced, but its customers want to speak to someone who can easily understand them.

"The oldest person who has insurance with us is 103, they don't want to struggle to be understood on the telephone," says Saga's Paul Green.

"Taking call centres out of the UK might look like a good option if you are a short-sighted accountant with your nose stuck up against a spreadsheet. We have always taken the broader view - we could save money but at the expense of service."

Men make up 44% of call centre staff
Dissatisfaction with foreign call centres has now reached a point where the millions that companies spend on their image is money down the drain, say experts. If service is not up to scratch no amount of fancy advertisements will entice the customer back.

"A brand's success is about the relationship between the consumer and the company," says branding expert Jonathan Gabay. "Anything that takes it apart, like a third party, makes that relationship less intimate. People ring a call centre and want to talk to someone who they can relate to, who they feel understands their problems."

But having call centres in the UK is no guarantee of customer satisfaction, and it's risky using the fact to differentiate yourself from competitors, like Natwest is doing.

"If people still can't get through it doesn't matter if the person they are hanging on for is in the UK or India," says Mr Gabay. "It's not where you are but what you know that matters."

Perks of job

But it hasn't all been a disaster. While call centres abroad may have made you want to tear your hair out, the situation has driven a long-overdue debate about the industry, says CCA chief executive, Anne Marie Forsyth.

TOP FIVE UK CENTRE HOTSPOTS
South East 1,516
West Midlands 605
North West 599
London 519
Yorkshire 438
SOURCE: CCA

"It has made companies look more closely at what they are doing.

"There has been criticism that managers didn't understand how call centres work, they thought it was all about answering as many calls as possible. They didn't understand agents were the frontline of contact for their companies and the focus should be on quality."

Not all companies think the move was a mistake, things have just needed fine tuning. Norwich Union recently hit the headlines for reportedly doing a U-turn on foreign call centres, but says it has not shut its operation in India.

"We have just moved certain calls back to the UK, like household claims," says a spokeswoman. "Feedback showed us these calls were better handled by staff in this country as customers making a claim were often anxious."

Foreign staff taught how to chat with Brits
Its Indian call centres now deal with things such as changing the address on a policy. Customer satisfaction levels are roughly the same for centres in the UK and in other countries, she says.

The overseas adventure has also benefited some call centre staff in the UK. As centres were first being shifted abroad, much was made of the "battery farm" atmosphere at some British call centres. Aware that happy workers tend to provide better service, the likes of Kwik Fit Insurance Services sought to improve conditions, and its workers now have a on-site hairdresser, trained masseur, beauty therapist, as well as yoga classes, a spacious garden, coffee shop and a chill-out room. They even have of a "minister of fun".

Has it worked? Yes - the centre ranked number 15 on the Sunday Times' list of the best employers in 2005. Productivity has increased and customer satisfaction has reaching 98%. Everyone's a winner.

Watch out for a report from a call centre in India next month as part of BBC business writer Steve Schifferes' globalisation series.

Source BBC

09-Jul-2007 0870 change could trigger “numbers stampede”, says industry analyst
 
Call centres could be faced with a stampede following Ofcom’s changes to the charging structure for 0870 numbers as the race begins to ditch the costly numbers and find cheaper alternatives. Those companies that make snap decisions could end up with numbers from unreliable providers, causing them major problems in the future, says Mediahawk, the response monitoring and analysis company.

Ofcom announced that calls to 0870 numbers must be charged at no more than the cost of a call made to a geographic number, and that all rebates made for the use of these numbers should cease. This decision means that 0870 numbers — previously viewed as a substantial revenue stream for many companies — will now become a cost, with charges of up to £0.03 per minute being imposed on the calls received by the owners of the numbers. The change is due to take effect in February 2008.

Harry Bott, director of Mediahawk, said: “Companies with high incoming call volumes who depend on 0870 numbers are in for a shock. Income from the numbers will disappear and will be replaced by considerable costs”. But he warns against getting the first range of numbers that come to hand. “There are businesses set up ready to cash in on the stampede for alternative numbers. Some of those won’t be around in a year’s time whilst others will put up their prices or have dubious and unreliable telecommunications arrangements behind them,” he says. “It’s a decision that needs careful consideration.”

In the meantime, Ofcom will, this autumn, be introducing 03 numbers. These are ‘UK-wide’ numbers to be used by public service organisations, charities and companies that want a national presence, but who do not wish to make an additional charge to consumers for contacting them. The cost of calling them will be the same as calls to normal landline (geographic) number starting 01 and 02.

Neil Sherring, chief executive of Windsor Telecom, a phone number provider, said: “The introduction of 03 numbers will enable public bodies and private companies to restore public confidence in calling them and create a clear understanding of call charges. As there will be no revenue sharing on 03 numbers they are therefore likely to be perceived as being more ethical and customer friendly.”

Source: CCF

02-Jul-2007 No business benefit to offshoring, says Compass
 
A new study by Compass Management Consulting has revealed that UK financial services companies are undermining customer relationships and failing to save money by sending UK call centre jobs overseas. Analysis of onshore and offshore environments claims that rises in personnel costs of up to 15 per cent per annum in countries such as India are reducing the price advantages of offshore call centres. < /p>

Furthermore, language difficulties can also lower productivity and lead to calls lasting up to twice as long as home-based operations. In Compass studies, listening or understanding failures occur in an average of four per cent of calls in onshore call centres; for offshore call centres, the figure rises to 18 per cent. Each one of these failures can elongate the call by 39 per cent to 105 per cent beyond the average due to misunderstandings and lack of clarity and these longer call times mean that many offshore call centres are far less productive than onshore operations when measured in business terms such as sales closed and accounts opened.

“It is not enough to simply off-load problem operations and inefficient processes to other countries in the hope they will improve. The key issue is to what extent savings are real, sustainable and continue to enhance the consumer experience. In too many cases, service quality is being compromised by an offshoring decision that fails to deliver the level of savings anticipated,” said Simon Scarrott, head of business development and marketing at Compass.
 
Source: CCF

26-Jun-07 Firms need to "repatriate" call centres
UK's financial services companies could be losing money and harming customer relations by moving their call centre operations offshore, according to a new report by Compass Management Consulting.

The firm analysed onshore and offshore environments and found that poor perceptions of customer service and rises in personnel costs of up to 15 percent a year in certain countries reduce the advantages of moving their call centre jobs offshore.

In addition, language problems – more prevalent in offshore call centres – could lead to longer call times with customers, lowering productivity, explained Compass’ head of business development, Simon Scarrott.

"It's fairly simple macroeconomics, coming together with productivity issues, which says the business model around business process outsourcing is flawed in some areas," Scarrott added. "A high percentage of companies, especially financial services, believe in the hype that offshoring is the swiftest and most painless route to cost savings."

Firms could also benefit from improved consumer brand perspective if they moved call centres back onshore, but many fail to do so because of the perceived risk of repatriation, said Scarrott.

"It's on the agenda but few people know how to do it and are cognisant of how to mitigate the risks," Scarrott explained. "There's an immaturity in modelling and scenario planning and there is also an insufficient amount of this being done."

Source: Orchid Consulting

Research shows that call centres shouldn´t be stereotyped

Over the past decade, call centres have experienced phenomenal growth in virtually every country around the world. They are of strategic importance to firms and a vital source of new jobs in advanced and industrializing economies. However, call centres pose significant challenges to managers to provide quality service in a cost-effective way, and there is much concern about the quality of jobs and the effects of working in call centres on employees.

The research carried is part of the Global Call Centre Project, the first international comparative study of call centres. Researchers at the University´s Institute of Work Psychology examined human resource and management practices in 17 countries.

They found that while turnover is a major problem for call centre managers, it was not the case across all countries. Rates of employee turnover are considerably lower in continental Europe, while in the UK, US and India it remained high.

The quality of jobs also varies considerably among call centres, with many call centres providing high quality jobs, but with the majority of agents working in low quality jobs. Call centres in countries with coordinated economies, for example Germany, France and Spain, tend to have better quality of jobs than those in liberal market economies – reflecting on the differences in labour market institutions. Subcontractors provide worse employment conditions with lower wages, lower quality jobs and less job security.

Dr David Holman, from the University of Sheffield´s Institute of Work Psychology, said: "The call centre industry is diverse and call centres can be good places to work. But a key issue is to improve job quality and training across the industry as a whole in order to make the call centre industry more sustainable. This improvement must be led by organisations and supported by government institutions, educational institutions and employee representative bodies".
Notes for Editors: The findings are from the `The Global Call Centre Report: International Perspectives on Management and Employment´.

The Institute of Work Psychology was established by the University of Sheffield in 1994. Staffed by research scientists and support staff, and with a large group of postgraduate students, the Institute is dedicated to conducting applied research in work settings, in both the public and private sectors.

Source: Sheffield University

Fear over India call centre fraud
 
Amicus predicts 200,000 jobs will relocate from UK by 2008
Better safeguards are needed to protect the personal data of British consumers held by call centres in India, MEPs have warned.
The Amicus union group of Labour MEPs is challenging the European Commission to prevent unauthorised access to details when they are processed abroad. 

The action follows reports criminals have tried to get hold of data. 

But British companies which outsource to India say they have adequate security in place to prevent fraud. 

Organised gangs 

The Evening Standard newspaper reported that organised gangs had offered a year in wages to call centre staff in return for access to UK credit card details.
And US credit card giant Capital One pulled out of India after unauthorised credit levels were offered by call centres.
MEPs are tabling a motion on Monday at the Employment and Social Affairs Committee calling for an investigation into the issue.
Bill Miller, MEP for Scotland, who is backing the motion, says action needs to be taken before attempts to get credit card details become more widespread.
It is only a matter of time before a serious crime is committed, which ruins the reputation of the British financial services industry 

David Fleming, Amicus national secretary for finance  

"It is a worrying consequence of the trend towards outsourcing," he said.
Mr Miller says countries such as France are suffering from the same problem, and there are concerns that call centres in other parts of Asia are being targeted.
The concern comes at a time when an increasing number of call centre and business service jobs are being relocated out of the UK. 

'Major failing' 

Amicus has predicted that 200,000 jobs will be exported by 2008, which will mean every banking and personal finance customer will be forced to allow their details out of the UK.
And a recent report by accountants Ernst & Young warned that "given the volume of offshoring that is going on and the risks attached, there will be a major regulatory failing within five years".
The Data Protection Act requires only that companies maintain their server within EU boundaries despite the fact data is being processed thousands of miles away. 

Capital One has pulled out of India over unauthorised credit problems 

David Fleming, Amicus national secretary for finance, said: "Offshoring is an accident waiting to happen. 

"It is only a matter of time before a serious crime is committed, which ruins the reputation of the British financial services industry.
'Closely monitored' British companies which outsource work to India say they have comprehensive checks in place to prevent fraud. 

The UK insurance group Aviva, which owns Norwich Union, says its outsourced operations in India are closely monitored, and fully comply with data protection requirements. 

"We have rigorous anti-fraud processes in place across Norwich Union to prevent fraud," said spokeswoman Liz Kennett.
HSBC says it only uses its own staff in India, and does not outsource the third parties. 

"We are confident that all staff, whether here or in India, exercise the same levels of confidentiality and customer protection," said an HSBC spokeswoman.  

Source: BBC

Only a consumer backlash can halt call centre offshoring because UK can't compete on cost, says government report

By Andy McCue

Published: Thursday 6 May 2004

A consumer backlash is the only thing that will prevent UK firms moving call centres to offshore locations, such as India and South Africa, according to a report commissioned by the Department of Trade and Industry (DTI).

The UK call centre industry will employ over one million people by 2007 - four times as many as India - but that growth rate is slowing dramatically and the DTI warns that more investment needs to be made in 'soft' communication and customer service skills to compete with offshoring.

But a consumer backlash is identified as the key factor in determining whether UK firms continue to outsource call centre functions offshore. "Put simply, if UK consumers abandoned businesses which offshored customer care, then there would be no way that offshoring could be successful," the report said.

Yet two-thirds of people in a study cited in the DTI report do not mind where their calls were handled as long as they are done properly. And despite the negative reactions of many people, only 37 per cent of UK customers have knowingly dealt with an offshore contact centre. The report claims around 30 big UK-based firms have outsourced some 50,000 jobs to India to date, although it points out that jobs being outsourced overseas does not necessarily equate to jobs being lost in the UK.

The report also puts into perspective the size of the Indian market – the country only currently employs around 92,000 contact centre agents.

"There is a common misconception that jobs created in offshore locations equate to jobs lost (or at least, not created) in the UK. This is not necessarily the case: it is certainly possible to open a contact centre in an offshore location to provide a new service (e.g. to sell a low-price product proactively) which would not be economic to attempt within the UK," the report said.

The report also paints a detailed picture of the state of the UK call centre industry. The typical contact centre worker is female and in her mid-to-late twenties and average length of tenure is just under three years. Annual salaries for new agents start at around £12,000 - £13,000, compared to £1,500 in India.

The UK's main competitive advantage currently lies in providing high-level call centre sales and marketing work while countries such as India are able to offer operating cost savings of 30 to 40 per cent on the low-value repetitive commodity services. But the report warns that the UK industry cannot be complacent and needs to train staff to keep hold of high value services.

Patricia Hewitt, secretary of state for trade and industry, said in a statement: "We do need to position ourselves according to our strengths. Others are unbeatable on cost, but we are unbeatable on quality. The best British call centres are the best in the world, offering high value businesses, high skill professionals, but we need to bring the quality of the rest up to that of the best."

The study was carried out by an industry consortium comprising CM Insight, the Call Centre Association and research firm Contactbabel.

Source: Silicon.com

Scottish Care at Home (SCAH) Conference 2007

On April 20th 2007, First Call attended the inaugural Scottish Care At Home conference in Glasgow. The conference consisted of over 280 delegates & 14 exhibitors. Various speakers attended the conference including M.S.P’s from all the major political parties. First Call’s Parent Group, Nestor Healthcare Group, the largest supplier of Healthcare and Social care in the UK, showcased three of their business units from the group, First Call being one of them.

First Call Business Communications has over 40 years of experience within the social and healthcare community, providing essential call management solutions. For more information on First Call's Telephone Answering and messaging services, call 0500 567 500 and speak to a member of the sales team who will tell you about First Call free set-up offer.

Aberdeen Recruitment Fair 18th/19th April 2007

First Call continues its recruitment programme by attending the recent Aberdeen recruitment fair held at the Douglas Hotel, Market Street, Aberdeen.

First Call enjoyed a successful and busy couple of days meeting and providing information to hundreds of people looking to change and boost their careers with candidates applying for both full and part time positions. The success of the recruitment fair reflected on First Call’s commitment to maintaining the highest quality levels of staff, staff with expertise to deliver a bespoke service to our clients.

If you are interested in applying for both full and part time available positions within First Call, please call 0500 567 500 today!

Lone Worker assisted by First Call

Recently one of First Call's clients who use the Lone Worker Messaging and Answering Service, had a member of staff out in the field. Upon arriving at their place of work the staff member called in and reported that they had arrived safely and would be approx one hour on-site. First Call's operator updated the system and advised that they would await the staff member's next checkin, in one hour.

During the time of the call, the member of staff was leaving their vehicle and lost their footing falling to the ground and injured themself. First Call's quick thinking operator instructed another First Call operator to call emergency services and advised of the location whilst keeping the member of staff talking by asking a sequence of critical questions. Due to the calm, quick professionalism of the First Call operator, emergency services arrived quickly on the scene and took over the medical situation. The injured staff member later called into the office and delivered flowers for the operator who dealt with his call.

If you have staff working in the field give us a call to discuss your Lone Worker Answering and Messaging needs. Call 0500 567 500 to arrange a free set-up today!

Offshoring

According to research, the number of people employed by the call centre industry grew by 5.5% last year, dispelling worries about offshoring. Contact Babel's report, 'UK Contact Centres in 2006: The State of the Industry', found that 52,000 call centre jobs were created last year, taking the total workforce to nearly 900,000.  The report also predicts that the industry will employ more than 1m people by the end of 2007.

Steve Morrell, principal analyst at Contact Babel, said: "The UK contact centre industry continues to grow at a healthy and sustainable rate, driven by the expansion of existing operations, rather than the opening of new contact centres."Morrell also pointed out that the industry is confounding predictions about its vulnerability not just to offshoring but also to the rise of the internet retailing.

According to Morrell, retail websites are increasingly supplying telephone support for customers, meaning that by 2008 the retail sector will overtake the financial sector as the number one user of call contact centres. Morrell states, "Clever retailers have expanded their telephone support to take care of customers who may have questions that are not fully answered on the company's website,".

If you are looking to provide inbound call support for your online retail customers give us a call to discuss your Overflow Telephone Answering and Messaging needs. Call 0500 567 500 to arrange a free set-up today!

CALL CENTRES RETURN TO UK
By Damien Fletcher And Sara Wallis 16/02/2007
Daily Mirror

JUST four per cent of us have had a good experience dealing with a foreign call centre, according to a new survey. Well we can't believe the figure's that high!

We spend an age trying to get through, and when we do we can end up tearing our hair out in frustration.

According to the YouGov poll, the biggest complaint is having to speak to a foreign operator.

But if you've ever despaired of getting an account balance or reporting a TV fault to someone on the other side of the world, there is good news.

The call centres are coming home.

This week, esure said it was scrapping foreign call centres.

The insurance firm follows Powergen and the AA, who have also said they are bringing their phone-banks back to the UK.

NatWest has based an advertising campaign around the fact that all its operators are UK-based.

It promises customers can speak to staff in Mansfield or Cardiff, rather than Mumbai or Calcutta.

And it's not just good news for consumers - our workers will benefit too with the number of people employed in British call centres expected to rise by up to 100,000 this year.

The firms are responding to their customers, and many more are set to follow.

Esure boss Peter Wood said: "The customers do not like it. If you start to damage your reputation, forget whatever trivial money you're saving."

British companies began outsourcing overseas a decade ago, mainly to India but also to Eastern Europe.

Bosses were tempted by far lower wages and overheads, and believed that welleducated staff with good English skills would be able to keep callers happy.

Operators were even given weekly briefings on EastEnders and Coronation Street plots so they could make smalltalk with callers.

And it certainly looked good on the balance sheet.

The average wage of a call centre agent in Britain is £6.73 per hour, compared to 90p per hour in India.

But despite the financial benefits, the trend is being reversed as companies pay the price for poor customer service.

Claudia Hathway, editor of Call Centre Focus magazine, says: "When companies that outsource work to places such as India told British firms that they could make huge savings on salaries, organisations were biting their hands off for them.

"But what they did not consider was that overseas call centres tend to be heavily scripted, which can be very frustrating. And there are cultural differences and language issues too.

"There's now a perception that overseas call centres are inherently bad and offer poor service. The customer just wants to get their query dealt with as quickly and efficiently as possible, and if anything gets in the way of that - whether it's an accent, cultural differ- ences, or a time delay on the telephone - that frustrates them. And that impacts badly on the brand of that company."

Anne Marie Forsyth, chief executive of the Customer Contact Association, says: "Managers didn't consider what happens at the customer level.

"Everything from sales, service and complaints are handled by these agents so it's vital firms get it right.

"There has been criticism that managers didn't understand how call centres work - they thought it was all about answering as many calls as possible.

"They didn't understand agents were the frontline of contact for their firms and the focus should be on quality."

But she said that not all overseas call centres are bad. "There's a temptation to think that they have all been a failure, but some are managing to offer a good and efficient service with welltrained staff."

Billy Hayes of the Communications Workers Union says that too many British jobs have been lost to outsourcing.

He says: "Moving jobs offshore was always based on profit.

"So moving the jobs back over to Britain is better for both workers and the public. British workers were doing a professional job and the decision to move them away on the basis of profits rather than customer service was clearly a mistake."

Some firms have always understood this and refused to outsource calls abroad from the start.

Holiday and insurance company Saga reckons diverting inquiries to India would save 65p per call, but would alienate its over-50s clientele.

"The oldest person who has insurance with us is 103 - they don't want to struggle to be understood on the phone," says Saga's Paul Green.

Branding expert Jonathan Gabay reckons the impact of overseas call centres has been devastating for some firms.

He says: "A brand's success is about the relationship between the consumer and the company. Anything that takes it apart makes that relationship less intimate.

"People want to speak to someone who understands their needs, and if they feel like that's not happening it will damage the brand's image.

"If the person they are speaking to has had inappropriate training it will be frustrating, never mind what country they are based in.

"But if they come to expect bad service from overseas call centres, and believe companies are cutting corners by using them, they will have that perception every time they get through to one and will feel like they are being conned."

He believes that scripts are the problem. He says: "Companies have been more concerned with process than people.

You can't run a brand on a scripted process, it's about whether they can trust the person to understand their needs. That's what makes customers come back again."

It's a lesson which British businesses are finally learning as they bring the call centres home.

DIAL-A-FACT

85 per cent of Britain's outsourced call centre staff are based in India

A call-centre worker in the UK typically earns £6.73 an hour. In India, pay is 90p.

THE call-centre industry in Britain is worth more than £13billion

THERE are around 5,700 call centres in Britain, with more than 550,000 employees

Source: Daily Mirror

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