Determinants of Call Centre Location: Some Evidence for UK Urban Areas

Abstract

This paper presents new evidence concerning the spatial distribution of UK call centre activity and analyses the determinants of this distribution. The study adopts a restructuring perspective, viewing call centre growth as a strategic response by companies seeking to develop competitive advantage and a process that is changing the spatial division of labour. The data indicate that there is an uneven spatial distribution of call centre activity in the UK. The results of econometric models, utilising Tobit and negative binomial regression techniques, suggest that regional aid, population density, the existing spatial division of labour and a large local labour force have a positive influence on call centre activity. Surprisingly, there is no evidence that labour costs influence call centre location.

Impacts of Agglomeration on Call Centre Operations: Evidence from North West England

“…Research on UK peripheral regions confirms that call centres have until fairly recently provided a significant source of employment growth at least over the past ten years (BRISTOW, MUNDAY and GRIPAIOS 2000;BISHOP GRIPAIOS andBRISTOW 2003, DEPARTMENT OF TRADE AND INDUSTRY 2004). Despite the potential for locational dispersal throughout the urban hierarchy, however, studies have shown that call centres tend to be highly concentrated in larger urban centres.…”

“…The data also confirms the concentration of these contact centres within the major conurbations of Greater Manchester, Merseyside and Central Lancashire where more than fourth fifths of these businesses are located. ContactBabel data also appears to show strong growth in employment in contact businesses during 2003-2004(PECK and CABRAS, 2005.…”

“…shown that despite the significance of labour costs for these activities, wage costs appear to (BISHOP, GRIPAIOS and BRISTOW 2003). This lack of association between location and labour costs is explored further in this paper which examines the labour market difficulties experienced by call centre managers operating in different urban environments across the North West Region of England.…”

“…In the UK, the impacts of these changes on the development of cities and regions has been widely researched including studies of locational determinants and their impacts on employment (BRISTOW, MUNDAY and GRIPAIOS 2000;BISHOP, GRIPAIOS andBRISTOW 2003, RICHARDSON, BELT andMARSHALL, 2000;RICHARDSON and BELT, 2001). Early expansion of call centres focussed primarily on finance and insurance industries (MARSHALL and RICHARDSON, 1996), but the approach was soon adopted widely across many sectors including prominently in travel and transport, computer services, distribution, hotels, telecommunications retailing and utilities.…”

Re-embedding agency at the workplace scale: Workers and labour control in Glasgow call centres

“…In pursuit of low cost and abundant pools of labour, call centre work has become concentrated in many of the old industrial areas of the UK, superseding the previous layers of investment based upon branch plant manufacturing and heavy industries (Bishop et al, 2003;Richardson et al, 2000). Reflecting this broader trend, call centres have developed a strong concentration in Glasgow, spurred also by financial incentives and the availability of low-cost accommodation (Taylor and Anderson, 2012: 24).…”