Although businesses have long needed to offer good customer service, the call centre is a relatively recent innovation. Factors ranging from consumer habits to the availability and reliability of telecommunications networks mean that, for most, customer service was handled face-to-face and locally. A consumer-facing a problem with their product would be far more likely to return to the place of purchase than pick up a phone.

That all changed when the first large call centres were established in India in the 80s and 90s. For the first time, the telecommunications and IT infrastructure meant a dedicated centre could handle customer service for an entire region. And while these first call centres in India were in-house operations, they started the modern call centre industry.

And the development happened relatively quickly. Only a few years before, India also saw the founding of the first third-party call centres. Taking advantage of the large captive operations’ skills made offshore outsourcing a viable option for far more businesses. It was no longer necessary to establish a contact centre when call centre companies had already done that. Instead, it was just a question of finding the right company and agreeing on a contract.

Since then, call centres have grown to be a significant global industry. The outsourcing sector is worth close to $100 billion annually. And analysts predict further growth; some believe the pandemic’s long-term trends have accelerated, suggesting it might be up to five times bigger by 2027.

The main attraction for many businesses are the significant savings that outsourced call centres can offer. India’s position as a dominant centre owes a lot to the lower labour costs in the nation, allowing clients to cut costs compared to in-house provision. However, the industry has had to find other ways to compete in a competitive market.

One is on quality. Outsourcing providers in India invest heavily in their staff and facilities to provide the best service possible. They are also increasingly using the natural advantages their location offers. India, for example, has been developing a reputation for call centres offering IT support, utilising the nation’s strong technical education. Call centres in the Philippines, a major competitor nation, have established themselves as the world leaders for customer services, utilising the nation’s strong cultural and language fluency in functions where building a rapport is important.

And call centers are also becoming increasingly specialist. Those working in functions like finance or healthcare, for example, can offer clients and their customers the assurance of meeting the strict regulatory framework of their industry.

The sector’s growth, both in size and the diversity of services offered, has enabled it to help businesses save money and meet the ever-growing demands of customers who are constantly looking for high-quality and low prices, something that call center companies have always provided.