http://www.silicon.com/management/itdirector/0,39024673,39117722,00.htm
Nationwide snubs Indian call centres in favour of UK
January 12 2004
by Andy McCue
Is this the beginning of the backlash?
The Indian offshoring backlash has begun, with major 'British and
proud of it' financial institutions declaring they won't move call
centres abroad.
Nationwide, which is seen as a technology innovator in banking
circles, is one of the first to nail its colours to the mast, with CEO
Philip Williamson claiming there are too many risks associated with
moving call centres to offshore locations such as India.
Williamson said the company will instead invest in its UK call centre
operations because of its ties to local communities, the service they
can offer and concerns over offshore data protection for consumers.
"Nationwide is a mutual with strong links to the communities in which
we operate, and we have no plans to desert these local communities in
favour of overseas call centres," he said in a statement. "Call
centres abroad may suit some of our competitors, but they are not the
right option for Nationwide and we are aware of some commentators'
concerns that some countries may not have the same level of data
protection for consumers that exists in the UK."
Nationwide will open a new call centre in Sheffield, along with
investment in the major refurbishment of existing call centres in
Swindon and Northampton, which employ around 800 people.
In an interview with the FT, Northern Rock COO David Baker said his
organisation's ties to the community are more than just
sentimentality.
"For us, the cost savings of moving to India would be relatively
modest compared with the risk of not being able to control these
operations," he told the paper.
Back in December, Steve Morrell, principal analyst at ContactBabel,
warned of a customer backlash against firms who move jobs to India
resulting in a trend of 'British and proud of it' companies trying to
take advantage.
He said that the moves by Nationwide and Northern Rock are the first
signs that this backlash has begun.
"This is the first of many. There is plenty of political capital to be
gained as there is a big groundswell of public opinion, and Nationwide
is gambling on this," he told silicon.com. "It will be interesting to
see over the next year how these 'British and proud of it' companies
will do compared to the likes of Lloyds TSB."
Recent research by ContactBabel showed that while Indian call centre
agents work faster than their UK peers, UK workers deal with 25 per
cent more calls each hour and resolve 17 per cent more first time.
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