Regional Development of Call Centres

Location!  Location!  Location!  Inner city office space has been the logical location for call centres in the past.  Close to head office and easy to oversee. But this is changing as the ever-sprawling urban metropolis stretches further. 

The prerequisite of proximity to the client or head office is no longer a critical element in the call centre industry.  Cost is the major consideration and in many cases city rents are driving call centre operators out of town.

Burgeoning regional development offers the industry an ample employment pool and lower costs. 

The industry trend out of capital cities is taking place world wide.  The latest international research reveals that of all the jobs in London only 1.5% are in call centres.  By contrast, it is estimated that in some regions of northern England, up to 5% of all jobs are based in call centres.

Everywhere, governments are eager to foster a shift of industry into developing regions.  Capital cities are bursting at the seams with traffic congestion, constraints on public transport and environmental concerns.  Shifting key industrial sectors into growth corridors provides a welcome relief to the pressure points in cities.

In Australia, Victoria is a hub for the call centre sector.  In April 2007, the Victorian Minister for Regional and Rural Development, John Brumby, made a $600,000 government grant towards the development of a new $9 million dollar training facility in the town of Gisborne. Just 40 minutes drive north-west of Melbourne at the foot of the Macedon Ranges, Gisborne is a regional centre within striking distance of the ‘big smoke’ without the hefty real estate price tag.  Instead of battling in traffic towards the city, canny people see the appeal of relocating within similar travel times away from the city.

It’s not just young families who are making the shift beyond the urban fringe.   Business can see the financial opportunity of relocation.  The new facility at Gisborne will, among other tenants, house the Victorian call centre headquarters for the insurance giant AAMI.  The population growth in this particular region is nearing 2% - which is a level that’s likely to fuel further investment.

The Queensland Government can also see the benefit of enticing particular industries out of city centres and into regional hubs.  Caboolture, in south-east Queensland’s growth corridor is just 35 minutes from Brisbane airport.  Rail, road and other logistical infrastructure are in place for a massive industrial and population boom.

The rate of growth of call centres in this region of Queensland is about to outstrip Victoria.  And the southern state call centres are joining the exodus.  Call centres managers down south are looking at the numbers – rental figures, employment levels and quality of life-style are all adding up to a relocation.

Be it interstate, or offshore, the question must be asked.  Do I need to run my call centre in the heart of the city?  The performance demands of call centre managers mean no stone can be left unturned in the quest for the ultimate cost efficient model.  Call centres managers need to be prepared to make the sea-change or tree-change to deliver employment to where the workers live.