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| MP74092 |
| MAPS CALL CENTRES: UK APRIL 2002 |
| Overview |
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This report covers: Call Centres in Europe, Automatic Call Distributor, ACD, Call Centre Agents, Calling Line Identification, CLI, Call Logging, Call Management Applications, Call Screening, Computer Telephone Integration, CTI, Direct Dial Inward, DDI, Display Screen Equipment, DSE, DTI, Electronic Performance Monitoring, FTSE, Full Automation, Integrated ACD, Intelligent Queuing, Screen Pop, Voice and Data Transfer, Voice over internet protocol, WAP, Voice processing systems
Companies covered include: IMS Group, RSL Com UK,The Merchants, Group, Acxiom Corporation, The Merchants' Group, Sitel UK,7c Ltd, Ant Marketing, Brann Worldwide, Broadsystem, CPM InTelMark, Excell Multimedia, Harte-Hanks, iSky Europe, MM Group, MM Group, The Telemarketing Company, Serco Group, Ventura Customer Service Management, Vertex Data Science, Blue Pumpkin Software, Nice Systems, Citel Technologies, Davox Corporation, Mitel, Cincom Systems, The DTS Group, Plantronics,
| Executive Summary | 1 |
| 1. Introduction | 3 |
| The Topic | 3 |
| Objectives | 3 |
| Methodology | 3 |
| Original Research | 3 |
| Problem in the Research Process | 3 |
| Definition | 4 |
| 2. Strategic Overview | 5 |
| Call Centres More than Double in 5 years | 5 |
| Table 1: Number of Call Centres in the UK, 1995-2000 | 5 |
| Figure 1: Number of Call Centres in the UK, 1995-2000 | 6 |
| Approaching 400,000 Workstations | 6 |
| 3. Industry Structure | 8 |
| its Smaller than you think | 8 |
| Table 2: Call Centres in the UK by Number of Workstations ( percent), 1998 and 2000 | 8 |
| Figure 2: Call Centres in the UK by Number of Workstations ( percent), 1998 and 2000 | 9 |
| Figure 3: Small Call Centres in the UK by Number ofWorkstations ( percent), 2000 | 10 |
| Table 3: Small Call Centres in the UK by Number of Workstations (number of centres and percent), 2000 | 10 |
| Figure 4: Larger Call Centres in the UK by Number of Workstations, 2000 | 11 |
| Table 4: Larger Call Centres in the UK by Number of Workstations number of centres and percent), 2000 | 11 |
| More than a million workers | 12 |
| Table 5: Number of Workstations in Call Centres in the UK, 2000 | 12 |
| Figure 5: Number of Workstations in Call Centres in the UK, 2000 | 13 |
| Figure 6: Number of Workstations in UK Call Centres (000), 1995-20 | 14 |
| Table 6: Number of Workstations in UK Call Centres (000 and percent), 1995-2000 | 14 |
| Set up costs not falling | 15 |
| Table 7: Call Centres Profile by Industry Sector ( percent),1998 and 2000 | 15 |
| Lots of Jobs, but Little Promotion | 16 |
| Table 8: Lowest and Highest Basic Pay of Customer Service Representatives in England and Scotland (£ per year), 1997 | 16 |
| Helpful Public Finance | 17 |
| From Costs to revenue | 17 |
| Limits on Cold Calling, but Electronic Contracts areOK | 18 |
| 4. Call Centre Trends | 20 |
| Automotive | 20 |
| Kwik-Fit | 20 |
| Financial services | 20 |
| Barclaycard | 20 |
| Barclays | 20 |
| Britannic Assurance | 21 |
| Legal services | 21 |
| Accident Line | 21 |
| Public Sector | 22 |
| NHS Direct | 22 |
| Remote Shopping | 23 |
| DIAL | 23 |
| GUS | 23 |
| QVC | 24 |
| Telecommunications Services | 24 |
| Conduit | 24 |
| Travel and Tourism | 25 |
| Thomas Cook | 25 |
| Thomson Travel | 25 |
| 5. Call Centre Suppliers | 26 |
| Convergys Leads the Outsource Specialists | 26 |
| Table 9: Leading Specialist Call Centre Outsourcing and Telemarketing Companies, 1999 | 26 |
| Table 10: Specialist Call Centre Outsourcing and Telemarketing Companies: Ranked by Turnover per Employee and Annual Staff Churn, 1999 | 29 |
| BT leads advertising | 30 |
| Table 11: Major Advertisers of Business Telecommunications Services and Equipment (£000), 2000 | 31 |
| Outsourcing and Telemarketing Specialists | 32 |
| Acxiom | 32 |
| Advanced Telecom | 32 |
| Brann Worldwide | 32 |
| Broadsystem | 33 |
| Convergys | 34 |
| Direct Dialog | 34 |
| Excell Multimedia | 34 |
| InTelMark | 35 |
| The Merchants Group | 35 |
| MM Group | 35 |
| Sitel Europe | 36 |
| The Telemarketing Company | 36 |
| Thus | 37 |
| Ventura | 37 |
| Equipment Suppliers | 38 |
| Blue Pumpkin | 38 |
| Business Systems | 38 |
| Citel Technologies | 38 |
| Davox | 38 |
| DTS | 38 |
| Genesys | 38 |
| IMA | 39 |
| Mitel | 39 |
| Nice Systems | 39 |
| Royalblue Technologies | 39 |
| Training ladder develops | 40 |
| 6. An International Perspective | 41 |
| England increases its dominance | 41 |
| Table 12: Call Centres in Europe, 1997-2000 | 41 |
| Figure 7: Call Centres in Europe, 1997-2000 | 42 |
| The lure of India . and china | 42 |
| 7. PEST Analysis | 44 |
| Politics | 44 |
| Spreading the Work About | 44 |
| Why Not the Outer Hebrides? | 44 |
| Table 13: Locations of Call Centres in the UK ( percent of members of the Call Centre Association), 1998 | 45 |
| Too Much to Do | 46 |
| Flexible Working | 46 |
| Technology | 47 |
| Technology to Make Customers Mad | 47 |
| Web Integration | 47 |
| Web Tears | 48 |
| 8. Consumer Dynamics | 49 |
| Introduction | 49 |
| Call Centres Fail to Win Public Approval | 49 |
| Call Centres Dont Help Customers | 49 |
| Table 14: Call Centres An Improvement Over Contacting a Local Branch | 51 |
| Crumbs of Comfort for Call Centres | 52 |
| Table 15: Call Centres Remote and Too Impersonal? | 53 |
| Frustrated customers | 54 |
| Table 16: Call Centres Efficient for Whom? | 56 |
| Young Callers Happier to Talk to Strangers | 57 |
| Chronicles of Wasted Time | 57 |
| Table 17: Call Centres Problems of Unfamiliar Voices and Wasted Time | 58 |
| Is the Internet Preferable? | 59 |
| Doubts Over Call Centre Jobs | 59 |
| Table 18: Call Centres Internet and Employment Attractions | 60 |
| Orders Enquiries and Complaints | 61 |
| Table 19: Call Centres Orders, Enquiries and Complaints | 62 |
| Table 20: Call Centres Overall Satisfaction | 64 |
| Building Barriers | 65 |
| 9. The Future | 66 |
| Ethos Must Change to Customer Care | 66 |
| Where are the Workers? | 67 |
| Outsourcing: the Telecoms Hotel | 68 |
| Bypassing the Telephone | 69 |
| Fraud slows online commerce | 71 |
| Probable peak by 2004 | 72 |
| Table 21: Forecasts for the Future of Call Centres in the UK, 2000-2006 | 73 |
| Figure 8: Forecasts for the Future of Call Centres in the UK, 2000-2006 | 74 |
| Conclusion | 75 |
| 10. Sources | 76 |
| Glossary of Terms | 86 |
| Specific Definitions | 86 |
| A, B, C1, C2, D, E | 86 |
| Agent | 86 |
| APR | 86 |
| Automatic Call Distributor (ACD) | 86 |
| Auto to Manual | 86 |
| Call Blending | 86 |
| Call Centre | 86 |
| Call Centre Agent | 86 |
| Call Data Recording | 87 |
| Calling Line Identification (CLI) | 87 |
| Call Logging | 87 |
| Call Management Applications | 87 |
| Call Monitoring/Taping | 87 |
| Call Screening | 87 |
| Computer Telephone Integration (CTI) | 87 |
| Direct Dial Inward (DDI) | 87 |
| Display Screen Equipment (DSE) | 87 |
| DTI | 87 |
| Electronic Performance Monitoring (EPM) | 87 |
| Fax Back | 88 |
| FTSE | 88 |
| Full Automation | 88 |
| GDP | 88 |
| Integrated ACD/Database Reporting | 88 |
| Intelligent Queuing | 88 |
| Intelligent Software Agents | 88 |
| Interactive Voice Response (IVR) | 88 |
| Load Balancing | 88 |
| Manual to Auto | 88 |
| NHS | 88 |
| NOP | 89 |
| OPEC | 89 |
| Overflow Handling | 89 |
| Private Automatic Branch Exchange (PABX) | 89 |
| RPI | 89 |
| Screen Pop | 89 |
| Speech Recognition | 89 |
| VAT | 89 |
| Voice and Data Transfer | 89 |
| Voice Mail | 89 |
| Voice Over Internet Protocol (VoIP) | 89 |
| Voice Processing Systems (VPS) | 90 |
| WAP | 90 |
| A-Z of Definitions | 90 |
| Above-the-Line or Main Media Expenditure | 90 |
| Annual Growth Rate | 90 |
| Below-the-Line Advertising | 90 |
| Cif | 90 |
| Constant Prices | 90 |
| Current Prices | 90 |
| Fob | 91 |
| Forecasts | 91 |
| MSP | 91 |
| Real | 91 |
| RSP | 91 |
| About the Sources Used | 91 |
| ACNielsen MMS | 91 |
| Prodcom | 92 |
| NOP | 92 |
| Trade Association Data | 93 |
| Trade Sources | 93 |
| Key Note Research | 94 |
| The Range of Reports | 95 |
In the UK, around 3.2 million calls are made every day to call centres or, as they are increasingly termed, contact centres. Around two workers in every 100 have jobs in such centres, which means that approximately 575,000 people work in contact centres.
Outsourcing companies account for around 10 percent to 15 percent of staff employed in the UK's call centres, and this sector of the call-centre business has been growing at between 15 percent and 20 percent a year. Call-centre outsourcing businesses have developed from four main origins: telecommunications companies; communications systems and software businesses; telemarketing specialists; and large companies' in-house call centres, serving markets as diverse as utilities and retailing.
The two largest UK-based outsourcers come from this fourth strand: Vertex Data Science Ltd and Ventura Customer Service Management Ltd. For the purposes of this report, Key Note commissioned an exclusive NOP survey to discover people's attitudes towards call centres, and to see how these have changed since a similar survey was conducted in November 2000.
The 2002 survey found that more people believe call centres waste time, and that the number of people opposed to automated response systems has risen since 2000. Surprisingly, the number of people preferring to contact organisations via the Internet than by telephone fell during the period, albeit by only one percentage point. Only one socio-demographic group - the AB social grade - witnessed a significant increase in preference for the Internet.
The results of the NOP survey make disappointing reading for the organisations that run and use call centres, especially because the public are more critical of these centres in 2002 than they were in 2000. This is despite companies' considerable investments in equipment to integrate communication channels, and to give call-centre staff access to databases of information about customers.
Key Note expects call-centre numbers in the UK to flatten out from 2004. Staff numbers should plateau, too, easing back from a summit in 2004. Key Note's forecasts are affected by customers' preference for speaking to real people locally, and by the following trends: to relocate centres to low-wage regions (such as India); to automate telephone contacts not requiring human intervention; and to make more efficient use of each workstation. In addition, the national rollout of broadband services by 2005 should raise considerably the proportion of automated contacts via the Internet.
High-added-value services, such as expert advice lines, have a good chance of remaining in the UK. These depend on highly motivated and knowledgeable staff, an increasing number of whom will probably work in dispersed or virtual centres. Staff will devote more effort to retaining existing customers, and will increasingly seek to recreate the friendly ambience of a good local branch.
However, an increasing amount of routine work is expected to be relocated off shore. This trend will build steadily until around 2006/2007, and then develop more rapidly. By 2012, a quarter of all current call-centre jobs in the UK - around 150,000 positions - could relocate to Asia. The main destination is likely to be India, but there will also be expansion in neighbouring countries with considerable English-speaking populations. Relocation saves companies between 40 percent and 60 percent of the costs they incur in the UK.
The trend to locate call centres in India shows that advanced economies cannot automatically rely on services to keep them afloat now that manufacturing has migrated to low-wage nations. Services are also moving to where the costs of acceptable standards of provision are lower. However, the disparity between companies' and customers' perceptions of 'acceptable standards' is an important but unquantifiable factor certain to affect the structure and location of call centres in the coming decade.
Text © 2002 MAPS
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© 2002 www.the-list.co.uk Ariadne
Last updated by Amanda Porteous 2002