Call Center Absorption Report Released by Site Selection Group

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Leading call center site selection consultant releases report tracking call center openings and call center closures confirming high demand in the United States and Philippines.

Site Selection Group, a leading call center site selection consultancy (http://www.siteselectiongroup.com), released its annual Call Center Absorption Report tracking the opening and closing of call center facilities across the world. "Our research enables our customers to track regional call center location trends to enable them to grow in strategic call center labor markets across the world," stated King R. White, President and Founder of Site Selection Group. During 2007, the research identified the announced creation of 166,749 call center jobs at 319 facilities that opened or expanded. Conversely, approximately 41,240 call center jobs were displaced at 103 facilities that closed or downsized.

The following graph identifies the call center jobs created and displaced on a monthly basis throughout 2007:

Call Center Job Creation & Displacement by Month

(To view graph see attached file)

The United States led in announced new jobs with over 40% of global market share which equates to almost 65,000 jobs while the Philippines came in second with approximately 46,000 jobs created or 28% market share. Fidelity Investments, Convergys, T-Mobile, AT&T and Alorica made major announcements driving the growth in the United States. The Philippines incurred a record setting growth year due to very large projects announced by Accenture, APAC, eTelecare, Teleperformance, TeleTech and HSBC. Latin America came in a strong third with over 22% market share led by large outsourcers such as Attento and TeleTech. Near- and off-shore "hot spots" like Canada and India saw a significant drop in job creation due to key issues such poor English proficiency in India and increasing currency valuation in Canada.

The following graph identifies the market share of various regions of the world based on announced jobs:

Job Creation by Geographic Region

(To view graph see attached file)

Overall, the global call center market saw record setting job creation that has been steadily rising over the last several years as compared to Site Selection Group's previous call center absorption reports. The following trends were identified from the results of this research and call center market trends impacting global job creation:

  • The United States continues to see significant growth due to stabilized economy, consumer desire for domestically provided call center services, and weak currency valuation. Wages range from US$8.00 to US$12.00 per hour depending on the community labor conditions and job function.

*The Philippines has clearly become the dominant, offshore location for English speaking call center services due to the Americanized culture. Political risks, escalating wage rates, increasing employee attrition, strengthening currency and labor market scalability will need to be closely monitored in the near term. Wage rates have increased to US$2.50 to US$3.50 per hour.

  • Latin America is the leading emerging market for Spanish and bilingual support; however, key markets are becoming saturated which will increase pressure on wage rates and attrition rates. Market wages vary from country to country with typical wages ranging between US$3.50 to US$4.50 per hour.
  • India continues to lose significant market share for voice related work due to accent neutrality problems, escalating wages and increasing employee attrition. Wages have increased to US$2.00 to US$3.00 per hour depending on location.
  • Canada will continue to see slow growth due to currency exchange valuation which have made operating a center in Canada more expensive than the United States in most markets. Entry level wages have adjusted to US$10.00 to US$12.00 per hour due to exchange rates.
  • Europe will continue to see migration of call volume lower cost, multi-lingual markets in Eastern Europe, India, Middle East and Africa.

For additional information on absorption report, call center labor markets and call center facilities, contact King R. White or visit http://www.siteselectiongroup.com.

About Site Selection Group, LLC
Site Selection Group, headquartered in Dallas, Texas, is a full-service, location advisory firm delivering comprehensive global site selection services for office and industrial projects such as call centers, back-office, business processing, headquarters, R&D, distribution centers and manufacturing operations. The company has become a leader in call center site selection with the completion of over 500 call center location studies for leading corporations across the world.

Site Selection Group is located at 1700 Pacific Ave., Suite 2200, Dallas, Texas, 75201, (214) 271-0582. For more information, please visit http://www.siteselectiongroup.com.

For media inquiries, contact:
King R. White
President
Site Selection Group, LLC
(214) 271-0582
http://www.siteselectiongroup.com

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