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The customer contact centre industry continues to expand rapidly in the province. Industry surveys indicate that at peak periods in 2001, over 3,500 people were employed in this industry, up from less than 1,000 in 1997. About 28 centres (minimum 15 seats) currently operate in the province. Of these, 25 are operated by the private sector, which accounts for almost 90% of employment. The annual payroll of this industry is estimated at about $75 million.
The expansion of contact centres is primarily due to significant investments by U.S. and Canadian based companies, and through expansion of local companies (such as utilities, insurance companies and market research firms) into this industry. The accompanying map lists the location of some of the larger centres in the province. Plans for the latest centre were unveiled in February 2002 when ICT Group announced that it intends to establish a centre in St. John’s by April 2002, employing another 1,000 workers by year end.
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| Source: Network Newfoundland and Labrador |
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| Credit: Economics and Statistics Branch, Department of Finance |
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Companies operating customer contact centres are increasingly attracted to the province for several reasons, including a skilled labour supply, advanced telecommunications capacity, competitive real estate and operating costs, and, for U.S. firms, a favourable currency exchange rate. Through Network Newfoundland and Labrador, a joint industry-government partnership that offers a one-stop shopping approach for investors, the province continues to pursue opportunities for expansion and diversification in this industry.
Labour constitutes up to 70% of a centre’s total operating costs and is, therefore, a key decision making factor in establishing operations at a particular location. The province has a good supply of workers with skills suited for customer contact operations. Recent experience has shown that businesses operating in this area experience low labour turnover ratios relative to those elsewhere. Local wage rates are also competitive with most other locations in North America, and to ensure the best possible match between business demand and labour supply there are opportunities for training partnerships with local post secondary colleges. |
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