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Telecommunications are crucial determinants of call centre location
A 1999 survey of managers around the world found that suitable telecommunications infrastructure tops the list of factors looked for in the local environment when selecting a location for a new call centre. The 130 call centre managers in the survey were asked to place a list of factors in order of importance. This chart shows the major factors (those given a rating of 1 to 3) in the order in which they were cited:
Source: IES/TCA Survey of Call Centre Managers, funded by Mitel and the Gulbenkian Foundation, 1999 |
Telecommunications infrastructure is the top requirement, cited as a major factor by 53 per cent of managers, whilst telecommunications costs also play an important role, ranking third. These responses vary geographically, however: infrastructure is a non-issue for call centres in Australia and New Zealand and only moderately important in Europe. It assumes greatest importance in North America and the rest of the world (a category which included countries as diverse as Barbados, Brazil, Hong Kong, India, Malaysia, Mexico, the Philippines, Singapore and South Africa).
Many companies also look for areas of high unemployment (ranked second in importance) when seeking call centre locations. This factor is especially important in Europe but is insignificant in North America and Australasia where education levels matter more.
This suggests that strategies designed to attract call centres to underdeveloped regions as a way of creating new employment may well prove successful - but only if the telecoms environment is right.
Politicians often argue that generous tax regimes and unregulated labour markets are necessary to attract foreign direct investment, but the survey results indicate that these are negligible attractions compared with other factors, including wage levels, skills and education. Indeed, the only parts of the world where they figure at all in the survey were Australia and New Zealand.
Call centres come in many different forms, however, and it is clear that a ‘one size fits all’ strategy will not be successful. For some types of activity, wage costs are a significant factor - cited most by respondents in developing countries. However, in other cases, other requirements take precedence. Typically, managers cite a large number of different factors.
The EMERGENCE employer survey will provide much more detailed information on call centre location criteria.
Note: The full results of the IES/TCA call centre study will be published by IES in 2001.