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Story URL: http://www.silicon.com/research/specialreports/offshoring/0,3800003026,39126888,00.htm

Voice recognition to replace costly call centres
No more screaming down the line at some poor phone-jockey...

By Andy McCue

Published: Thursday 06 January 2005

The banking industry is planning on replacing many call centre operations with self-service automated voice recognition systems and the web, according to predictions by the UK's National Outsourcing Association (NOA).

Research conducted among the NOA's membership base of users and vendors found the fiercely competitive financial services sector in particular is exploring ways of replacing expensive call centre operations.

Martyn Hart, chairman of the NOA, said HSBC had declared its intention in a recent presentation to NOA members to try and move more services onto voice recognition.

Hart expressed reservations about the current viability of the technology, which many customers find frustrating and irritating to use, but said the first firm to get it right will gain a huge advantage.

"If one organisation does crack it they will be streets ahead of the competition," he said.

Another trend to come out of the study was the growing interest among SMEs in offshoring software development work overseas.

"SMEs don't have the management bandwidth. What we'd like to do is build a bridge between us and trade associations in countries like India to take out some of that risk," said Hart.

Despite the continued growth of outsourcing and offshoring in particular, Hart said the research showed there are likely to be fewer public spats and outbreaks of strike action over the loss of UK jobs as both sides get better at communicating and consulting about controversial decisions.

"At the end of the day it's not about technology, it's about people. It seems the unions are trying to be more proactive and offer a service to companies and it makes more sense," he said.