Working for Job Security and Quality Customer Service in The U.S. Contact Center Industry Why We Need the Call Center Worker and Consumer Protection Act Customer contact is a major industry 57,000 contact centers in U.S. 4,000 large centers (150 or more agent positions) Large centers employ about one-half of agents 86% of centers are “in-house” (not subcontracted) 4.7 million U.S. contact center workers 3.7% of the total U.S. workforce Customer service rep is largest occupational title in centers 2.2 million CSR jobs in 2010 (45% of call center jobs) 7th largest occupational title in the U.S. 2 3rd largest projected growth in the number of jobs with an expected increase of 400,000 jobs (18%) from 2008 to 2018 Sources: U.S. National Report: Global Call Center Survey, www.globalcallcenter.org; BLS, Occupational Employment Statistics, May 2009, www.bls.gov/oes/oes_dl.htm Competition drives goals and strategies Business Goals: 3 Strategies to Achieve Goals: Retain customers One Stop Shop – for sales, service and billing Reduce costs Web Self-Serve – for sales, tech support Increase revenue Interactive Voice Response Outsourcing/Offshoring In-House, outsourced, and offshore centers In-house centers: Still the overwhelming majority of the industry Call center industry revenues: $250 billion/year $200 billion in-house; $50 billion outsourced 80% of US centers are in-house Leading outsource and off-shore companies 4 Convergys Corp. Teleperformance Sitel Worldwide TeleTech Holdings, Inc. Sykes Enterprises, Inc. APAC Customer Services, Inc Source: CFI Group: Contact Center Satisfaction Index 2010 Call centers rebuild third world economies Top two offshoring destinations are Philippines, India 350,000 – 400,000 call center workers in Philippines Growing at 50,000 jobs per year; estimated 30-35% annual growth rate Bills itself as 5th largest English speaking country and “inexpensive” labor 330,000 call center workers in India Estimated 10-15% annual growth rate Indian call centers beginning to sub-outsource to yet other countries to take advantage of lower labor costs Markets “low cost of manpower” and government support of the industry Foreign centers lack security measures common in the U.S. Expensive and difficult to run background checks on foreign call center workers Bank account and sensitive data more susceptible to theft and fraud Overseas call centers not subject to data breach notification laws Indian government carved out call center companies from compliance with data privacy laws Customer satisfaction in US vs. offshore centers Customer satisfaction in US centers is 25% higher than off-shore centers 7 Source: CFI Group: Contact Center Satisfaction Index, 2010. What We’re Doing to Secure Jobs and Quality Service in the Call Center Industry 8 Bargaining Job security, improved working conditions, wage and benefits Customer Service Committee sharing strategies and solutions Organizing Telecom: T-Mobile Airlines: Piedmont, American & American Eagle Outsourcers: ACS/Xerox What We’re Doing to Secure Jobs and Quality Service in the Call Center Industry Legislative Action: The United States Call Center Worker and Consumer Protection Act (HR 3596) Introduced by Representative Tim Bishop Creates “bad actor” list of U.S companies that send jobs overseas Requires disclosure of call center location to U.S. consumers Provides right to have call transferred to U.S.based agent.