Union Leader Challenges Call Centre Companies to Reconsider Offshoring Plans

Strategic Insights -

Union leader Roger Lyons recently challenged call centre companies to demonstrate the business case for switching work to overseas countries, including India. This follows a decision by Norwich Union to axe 170 jobs in Sheffield, with some jobs being outsourced to India. Lyons argues that companies moving call centre jobs abroad may ultimately harm their own ability to trade successfully. He points to union and academic research highlighting hidden business costs caused by issues such as high staff turnover and power problems in overseas call centres. Lyons' comments echo a conference held by Port@I, a leading call centre provider, which warned that companies shipping their business overseas could face losing public confidence.

Key Takeaways:

  • Union leader Roger Lyons has challenged call centre companies to demonstrate the business case for offshoring jobs to overseas countries.
  • Norwich Union recently announced plans to axe 170 jobs in Sheffield, with some jobs being outsourced to India.
  • 90 jobs at Norwich Union's Sheffield offices are being transferred to India, with 80 jobs being axed as part of an internal reorganisation.
  • Amicus, the union, described the decision as "deplorable" and has consistently criticized the outsourcing of jobs to India.
  • Union and academic research has detailed the hidden business costs of offshoring, including high staff turnover and power problems in overseas call centres.
  • Companies such as Legal & General, Alliance and Leicester, and the Co-op have studied the economics of offshoring and chosen to remain in the UK.
  • The Port@I conference highlighted concerns that companies shipping their business overseas may lose public confidence.

Statistics:

  • 170 jobs are being axed in Sheffield by Norwich Union, with some being transferred to India.
  • 90 jobs at Norwich Union's Sheffield offices are being sent to India.
  • 80 jobs are being axed as part of an internal reorganisation.
  • 37% of jobs lost at Norwich Union are being relocated to India (No official source, estimate based on provided numbers).
  • According to a Port@I conference, some 12 companies have chosen to remain in the UK despite offshoring being considered.

Sources:

  • The Independent (online edition)
  • The Grocer (online edition)
  • Amicus (press release)