Companies now advertise UK-only call centre policies 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?
Companies now advertise UK-only call centre policies 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!"
"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.
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.
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
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.
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 and the AA.
In recent months a number of big British firms have announced they are bringing call centres back to the UK, including Powergen and the AA.
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?
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.
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."
"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.
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.
Poor expectations
But is there something a bit more unsavoury playing a part in customer dissatisfaction?
But is there something a bit more unsavoury playing a part in customer dissatisfaction?
IN THE UK There are 5,700+ call centresEmploying 581,000 peopleThis is expected to rise to 647,000 in 2007A call centre manager earns about £26,000Starting salaries are about £11,000SOURCE: CCA
IN THE UK There are 5,700+ call centresEmploying 581,000 peopleThis is expected to rise to 647,000 in 2007A call centre manager earns about £26,000Starting salaries are about £11,000SOURCE: 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.
"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."
"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.
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."
"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
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.
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.
"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."
"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 staffDissatisfaction 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.
Men make up 44% of call centre staffDissatisfaction 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."
"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.
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."
"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
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.
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.
WHERE ARE THEY IN UK? South East 1,516West Midlands 605North West 599London 519Yorkshire 438SOURCE: CCA "It has made companies look more closely at what they are doing.
WHERE ARE THEY IN UK? South East 1,516West Midlands 605North West 599London 519Yorkshire 438SOURCE: 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."
"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.
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."
"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."
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.
Foreign staff taught how to chat with BritsIts 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".
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.
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.
Watch out for a report from a call centre in India next month as part of BBC business writer Steve Schifferes' globalisation series.
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