Power cuts in Britain prompt transfer of jobs to India

Thursday, 13 November 2003, 20:30 IST
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LONDON: One reason cited for moving the National Rail Enquiries to Bangalore is power cuts in Britain. Up to 600 jobs are expected to be moved to the Indian city where a pilot scheme involving 10 call centre workers is already functioning. Chris Scoggins, chief executive of the inquiry service, said he expected to save up to £25 million over five years by shifting half the existing workforce offshore -- but he claimed the decision was not primarily about money. Giving evidence to the transport select committee, Scoggins said he believed the move would lead to improved quality and reliability, with more accurate information provided to callers. He refused to accept that cost cutting was the main factor behind the change, saying: "It is a combination of factors. On reliability, we have had 10 power blackouts this year." Four companies are bidding for a five-year contract to answer the rail inquiries line, which is the most heavily used telephone number in Britain. The bidders, which include BT, Serco and FirstGroup, all intend to move a proportion of the existing 1,200-strong call centre jobs abroad. Scoggins said the board of train operators that runs the service had decided to limit the move to a maximum of 50 percent to avoid the risk of "putting all our eggs in one basket". Brian Donohoe, the Labour MP for Cunninghame South, suggested to Scoggins that workers in India could expect to earn around £2,800 a year, compared to £12,000 at call centres in his constituency. Scoggins acknowledged that wage differentials were "high" and admitted that the service would not require its contractors to recognise Indian unions. Richard Rosser, general secretary of the Transport Salaried Staff Association, told MPs that the job losses would predominantly hit young -- mostly female -- workers, many of whom choose part-time call centre work as they are parents. The inquiry service's existing call centres are in Cardiff, Derby, Newcastle and Plymouth. Rosser said cutbacks would hit "parts of the country which usually feel the first effects of any economic downturn", including areas where public funds have been pumped into job creation. The committee heard that call centres in Britain employ some 750,000 people, while around 5,000 staff at Indian centres deal with the British public. Anne Marie Forsyth, chief executive of the Call Centre Association, told MPs that while Indian staff was well trained and worked in good facilities, there were often misunderstandings because of cultural differences and accents. She said Indian centres dealt well with routine inquiries but struggled with "conversational" inquiries.
Source: IANS
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