Industry Analysis & Industry Trends
Industry operators faced difficult conditions over the past five years following the financial crisis. Before 2008-09, the industry grew at a rapid pace as businesses focused on improving customer service levels. The trend of outsourcing non-core operations also benefited industry operators. However, the financial crisis and the subsequent recession caused demand to fall considerably as businesses slashed spending. The industry also faced strong competition from offshore call centres, which further hampered industry performance. Call centres in developing countries such as India, benefit from significantly lower labour costs and a large pool of potential English-speaking workers.
Industry revenue is forecast to decline at a compound annual rate of 2.5%... purchase to read more
Industry Report - Industry Investment Chapter
The level of capital intensity is determined by comparing the human and capital equipment factors of production, using wages and depreciation costs as proxies. Comparatively high depreciation costs are indicative of a high level of investment in depreciable assets, such as buildings and equipment; therefore, high capital intensity. Conversely, comparatively high wage costs are indicative of high labour intensity.
The Call Centres industry has a low level of capital intensity with an estimated labour-to-capital ratio of 1:15.7 in 2013-14. This indicates that for every £1.0 spent on capital, £15.7 will be spent on labour. The industry is heavily reliant on its large labour force for delivering services... purchase to read more