Global economic recession: Call centre business down as outsourcing dries up -Pakistan Press Foundation (PPF)

Paksitan Press Foundtion

Global economic recession: Call centre business down as outsourcing dries up

KARACHI: The volume of Pakistan call centers’ businesses outsourced by US and UK companies is witnessing a significant slowdown owing to the global economic recession, sources in the sector told Daily Times.

Sources informed that the telemarketing campaigns run by Pakistan’s call centres witnessed 30 percent cut by the overseas companies as they have started feeling the pinch of economic slowdown, resulting lower products and services demand in their respective markets.

The business of local call centers is based on sales and telemarketing campaigns of electronic goods, home appliances and financial services outsourced by various foreign firms and brands. Moreover, call centres are incurring losses following the non-payment of their dues by the companies, who became bankrupt or are closing to bankruptcy in their respective countries, call centre operators said. They told that the reductions in business have led to closure of innumerable small and medium sized call centres whereas the large ones are facing difficulties in sustaining their businesses.

“Call centres have reduced their staffs in order to survive in this unfavorable business environment,” President, Association of Call Centre Operators (ACCO) Pakistan, Abdullah Butt said. There are around 2500 to 3000 call centre agents and other relevant staff working in the sector in which 25 percent people have faced job cuts in the past three months, he added.

Pakistani call centres normally provide inbound and outbound telemarketing campaigns to UK, US, Canada and Australia in a healthy competition environment with Indian call centres. This sector consists of 300 small, medium and large size units out of which 100 are registered with 30 operational.

The frequent power failures in the country and rising cost of doing business have further added to the miseries of the call centres.

Source: Daily Times

Date:1/7/2009