UK call centres still booming despite offshoring threat

The UK call centre industry is still showing strong growth despite the threat from offshoring, but problems still remain with high staff turnover rates.

The Pay and Conditions in Call Centres 2004 survey of 107 organisations - employing 92,000 call centre staff - by Incomes Data Services found that 58 per cent of firms said employment had risen in the past year, compared to 51 per cent in 2003.

A "clear majority" of those with more than 500 staff said they expect the workforce to grow this year, especially those in financial services, telecoms, utilities and the public sector.

Pay conditions have also improved with the average customer advisor salary up 3.5 per cent to £15,000, slightly above the inflation rate. The average starting pay is also up 4.7 per cent.

Despite this, however, two-thirds of organisations are still reporting problems in keeping call centre staff. One in four staff left last year on average, with the average length of stay being two years.

Sarah Miller, assistant editor at IDS, said in the report: "These findings show that, despite all the worries about work being moved to India, the call centre sector is very much alive in the UK."

The IDS report is the latest to claim the impact of offshoring is overstated. Earlier this year a survey by ContactBabel claimed most call centre jobs will remain in the UK.