Call Centres : a Swedish Geographical Perspective exemplified by conditions in the West of Sweden

Transcription

1 Networks and Communication Studies NETCOM, vol. 18, n 3-4, 2004 p Call Centres : a Swedish Geographical Perspective exemplified by conditions in the West of Sweden Sten Lorentzon 1 Abstract. The arrival of the Internet as well as that of cheap long-distance telecommunications mean that many activities that once required physical presence can now be conducted online. On the other hand, at transferring unstructured information which is often the case when work is carried out in the form of a project, proximity seems to be more needed than ever. In Sweden, sparsely populated, new telecomputer techniques are seen as means for regional development. Besides, ICT-use enables the location of functions to Sweden that may serve Scandinavia and the Baltic Region in an European context. Studies presented in this paper have been conducted in Western Sweden, that represents varying prerequisites for location of call centres. Environmental conditions such as infrastructure for transportation and communication and assistance by the state and/or EU are observed. Furthermore, the studies focus on what types of functions that are performed at different locations. This paper contributes to the understanding of what types of works that are performed in call centres located to varying geographical environments and to what extent the location of call centres may be used as a tool for regional development. Keywords. Call Centres - ICT - Location - Regional competition - Sweden. Résumé. Cet article étudie le rôle des centres d appels téléphoniques en Suède, et leur incidences possibles comme outils du changement en vue du développement régional. Mots clés. Centres d appels téléphoniques - Suède - TIC - Développement régional - Télécommunications. The use of information and communication technology (ICT) is a driving force for organisational and locational changes and its use awakens both hopes and fears about the development of places and regions. The use of ICT offers new opportunities and has impact on the spatial patterns of activities and settlements 1. Department of Human and Economic Geography, School of Economics and Commercial Law, Göteborg University. P.O. Box 630, SE Göteborg, Sweden. Sten.Lorentzon@geography.gu.se.

2 204 NETCOM, vol. 18, n 3-4, 2004 (Toffler 1980, Naisbitt 1982). The issue of whether distance has any importance for the location of activities has been raised (Cairncross 1997). The availability of the Internet and of cheap long-distance telecommunications means that many activities that once required physical presence can now be conducted on-line. Outsourcing to low-cost destinations is now found in the location of call centres to India offering cheap labour (FT 2003). ICT is a dynamic factor, changing the prerequisites of the production for all types of activities from the extraction of raw materials to individual human services. New tele-computer techniques have led to new conditions for the creation of integrated systems and the formation of networks. The fall in the costs of undertaking routine transactions has allowed activities to move from expensive city centres to cheaper locations. However, the possibilities of transporting information vary. Some information such as bank statements or bookings is easy to transfer while other information needs regular face-to-face contacts and co-ordination (Jönsson et al. 2000). Moreover, the importance of being present in an informative and creative environment is stressed (Törnqvist 1998, Castells 2001). From a regional perspective, ICT-investment is seen as a means of strengthening the competitive ability as technological change both enhances productivity and alters the mix of products, industries and jobs. But there are few signs indicating that the system of information processing and exchange in itself leads to growth and development (Mansell and Steimueller 2000). Complementary assets including a goodquality labour force available at reasonable costs are required (Richardson and Gillespie 1996). Other elements that contribute to competitiveness are human capital in relation to creativity, entrepreneurship, and knowledge (Malecki 1997). It can be observed that complexity and reciprocity are more prominent in service than in manufacturing industries. Service firms are engaged in the exchanges of information between suppliers and clients. Active participation by both parties is required. In these cases, proximity is a locational advantage (Torre and Gilly 2000). By investing in human capital, the quality of a transaction is maintained but this increases the cost. Cities can satisfy this demand for face-to-face contacts (Daniels 1993). Even if other interactions take place, meetings on a faceto-face basis are still needed (Beyers 2000). Furthermore, the forces of agglomeration are strengthened by major ICT-users within important sectors such as specialized services and finance (Sassen 2001). Personal contacts are even more important for businesses based on creativity. Some information needs trust and emotions in order to be meaningful. The heart of technological change - innovation - is a learning process, related to the accumulation of a wide variety of knowledge. Innovation and development of new products and services are non-routine functions often requiring face-to-face contacts (Maskell et al. 1998). But innovation takes place in different ways in varying regional contexts (Karlsen 2002). The application of ICT also enables widespread connections exemplified by the international telecommunications

3 CALL CENTRES : A SWEDISH GEOGRAPHICAL PERSPECTIVE 205 networks operated by transnational corporations and the global reach of electronic commerce (Dicken 1998, Leinbach 2001, Santangelo 2002). A diversity of possible organisational structures is observed, ranging from highly localised componenets to far-flung networks (Storper 1997, Alvstam and Jönsson 2001). The type of functions performed, such as front office (customer interaction), routine back office (no direct customer interaction) and complex office work (often face-to-face contacts) governs the ways how ICT change the location of activities (Berry et al. 1997). The use of ICT facilitates outsourcing and the spatial redistribution of inhouse activities and thereby the build-up of call centres. Established organizational arrangements are challenged by the growing power of the integration of communications and computer technologies encouraging the creation of call centres (Boddy 2000). The process of outsourcing reflects among other things the need for cost-cutting, the search for flexibility and greater emphasis on core corporate competencies. The relocation of back-office or routine corporate functions inhouse, away from the corporate core, is a process especially pronounced in the financial and business services sector. Driving forces of call centre growth are corporate strategies and the pursuit of low cost competitive advantage. In Germany, order-services, hotlines, direct selling and telebanking are forces pushing the establishment of call centres (Graef 1998). In the United Kingdom, 90% of the call centres provide routine customer services (Bristow et al. 2000). The location of call centres varies widely in different parts of the world reflecting diversities in technology and culture. For example, since the middle of the 1990s France has quickly caught up the call centre markets of Ireland, England and Germany (Bonnet 2002). Accessibility to advanced telecommunications, good infrastructure for transportation (especially air connections), the common language and the important role of IDA (Irish Development Agency) were decisive factors for the location of American call centres in Ireland (Richardson and Gillespie 2000). In New Zealand, the government promotes the well-developed language skills of New Zealanders and stresses the highly educated, low cost workforce (Larner 2001). In Sweden, ISA (Investment in Sweden Agency ; authority for the support of foreign investments in Sweden) strives for the location of call centres and has contributed to a substantial increase in the number of employees during recent years. The strategy of ISA is to create a common Nordic market including the Baltic countries. In this perspective, Sweden - representing the largest market of Northern Europe - should be an attractive location for call centres (ISA 2001). For the location of call centres to the periphery, low labour costs and favourable taxes are important locational factors. Furthermore, studies of call centres in the Highlands and the Islands of Scotland show that many jobs more qualified than within former activities have been created. The majority of the labour force is local. However, there is a risk that peripheral areas may have difficulties in attracting higher order work requiring technical competence and language skills. For example, IDA has striven for the location of call centres to

4 206 NETCOM, vol. 18, n 3-4, 2004 Ireland to serve the European market. The purpose is to position Ireland as the Call Centre of Europe. Ireland has achieved some successes with this strategy. However, about 80% of the centres are located in or around the capital, Dublin, despite efforts to lure investment away from the capital. More than 90% of the call centres oriented towards the European market are located in metropolitan Dublin. The few call centres in the Irish countryside tend to be busy with lower order work such as booking of activities (Richardson and Gillespie 2000). The concentration of call centres in or near urban areas is also found in Germany, United Kingdom, United States and Japan (Bristow et al. 2000, Butler 2001, Graef 2001, Arai and Sugizaki 2002). An important factor explaining the preference for densely populated areas is the access to workforce. Another observation is that historical factors, e.g. existing property and the need to stay within easy reach of head offices, can restrict the locational choice to existing sites in low-cost locations or in upgraded city-centre buildings. At the same time, peripheral regions with low property price, larger sites obtainable outside of congested areas and the availability of grants can be crucial for the choice of location. Another factor is the extent in which policies to attract call centres is developed (Richardson et al. 2000). Furthermore, the irregular distribution of skilled labour and different occupational structure of regions, influence the locational choices of the firms (Bristow et al. 2000). In Sweden, the settlement structure reflects the strong position of the capital, Stockholm, based on a long tradition of strong central government ever since King Gustav Vasa, who nationalized the church at the beginning of 16th century. Sweden was a forerunner in the transition process marked by the Treaty of Westphalia, 1648, towards territorial states. Power was concentrated in the hands of the king. This highly centralized type of organisation was also adapted by the companies established at the end of the 19th century. Despite the country s wide geographic area of about km 2 (stretching km from north to south), the central government of Sweden has tried to develop a more even development all over the country. Rules have been established and implemented uniformly, independent of location. This strong position of the State stands in contrast to a contemporary world characterized by trends of globalization and regionalization. However, Swedish politicians have recently been influenced by the European policy underlining the importance of the region as an area controlled by given rules. More attention is paid to the fact that human beings are tightly connected to a regional environment. A result of these recent developments, the region/county Västra Götalands län, was created in 1998 and is a fusion of three counties (Göteborgs och Bohuslän, Skaraborg and Älvsborg) of Western Sweden. The location of call centres in Sweden should be seen within the context of this unicentric structure of political power. Call centres are used as a tool for the location of workplaces. Both push and pull factors are in play. A main push factor is the fast turnover of staff in Stockholm while many other areas lack workplaces.

5 CALL CENTRES : A SWEDISH GEOGRAPHICAL PERSPECTIVE 207 Thus, the state has supported the location of call centres to many peripheral places within the framework of regional policy. However, the functions performed at call centres tend to include a broad spectrum of works that demand a more skilled workforce (Bittner et al.). At the same time, e.g. structural and technological changes such as deindustrialisation and digitalisation influence the labour market (Martin and Morrison 2003). This development shows that call centres may be located at a wide variety of locations. In Sweden, about call centres employ people. The average size of the Swedish call centre is relative small ; less than 30 persons in comparison to 50 persons per site internationally. The share of employees in call centres is about 1% in Sweden, as compared to about 4% in USA (ISA 2001). Furthermore, the present wave of globalization means that many types of work can be done almost anywhere (Business Week 2003). This development is driven by forces such as international competition with rationalizations, breaking open of monopolies and the increase in e-business as a consequence. In Sweden, the formerly monopolized market has gradually been transformed into a competitive market (Karlsson 1998). These facts indicate a strong potential for further increases in both the number of call centres and employees in Sweden, which can offer well-educated manpower, for example, with better language skills and an ability to access widespread technical networks. The importance of this kind of business is emphasized by the survival and dynamics of call centres in peripheral and rural areas even after the IT-enthusiasm of the late 1990s (Moberg et al. 2001a, b, Lorentzon 2003). The studies in this paper have been conducted in Western Sweden in the county/region of Västra Götaland, which includes a variety of geographical conditions. The studies focus on an analysis of the types of functions and activities performed in call centres located in varying geographical environments. The development towards more qualified skills raises the question of the extent in which cooperation occurs between call centre businesses and other activities and if this interplay influences the creation of innovative environments for business. Thereby, the studies also touch upon the issue concerning whether the location of call centres may be used as a tool for regional development. APPROACH AND METHODS The approach of this paper is to look into the type of work performed at call centres located 2 at different places in Västra Götaland. In call centres, customer information systems are combined with telephony systems. Call centres are made possible and based on automated call distribution technology (ACD). Incoming telephone calls are automatically distributed to available agents according to a set of rules. Computer-telephony integration systems (CTI) is a technology used as an 2. Call centre is defined as a workplace of 5 or more employees with an ACD.

6 208 NETCOM, vol. 18, n 3-4, 2004 efficient selling tool enabling the customers to see on the screen when the staff receive their calls. Examples of call centre activities are telesales, help desks, contact field service staff, dealer support, account enquiry, reservations and direct response advertising (Boddy 2000). The results presented in this paper are based on surveys of companies managing inbound and outbound calls 3 in Västra Götaland. Companies that manage calls in-house by their own departments and companies that have outsourced their calls are included in the surveys. In the initial stage, the call centres were identified using information from organisations such as ISA (Investment Sweden Agency) and Gothenburg Business Region and by studies of documents including the telephone directory. At this early stage 125 companies were identified and contacted for participation in the survey. These calls also clarified the actual types of business activities. As a consequence, the number of companies was reduced to 59. This figure was further reduced to 46 as companies with less than 5 employees were excluded. Questionnaires directed to the manager of each of these 46 companies were sent in December The survey covered issues such as the year of establishment of the company, the number of employees, the type of organisation (in-house vs outsource), the type of functions (inbound vs outbound) and the type of activity (telesales etc.). By the end of December 2002 and in January 2003 reminding calls were made resulting in 30 answers. Thereby, the share of repondents is 65%. The following presentation is mainly based on the information received from the questionnaires but also from telephone interviews with another 28 companies with the same type of activity. Furthermore, interviews with the representatives of Borås and Lidköping municipalities (with relatively many employees in call centre activities) have been conducted to clarify about the specific conditions for the location of call centres. THE REGION VÄSTRA GÖTALAND One and a half million people or 17% of the Swedish population live in the county/region of Västra Götaland. Almost half of the population are living in the metropolitan area of Göteborg and more than people live within 30 km from Borås, Trollhättan and Skövde (see fig. 1). As in all of Sweden, more than 80% of the people live in built-up areas (pop. in excess of 200). However, the number of inhabitants per km 2 is higher in Västra Götaland (62) than the Swedish average (22). Most people live on the West Coast and the main city Göteborg stands out as the node of the region. The density of population is more than 1000 per km 2 in Göteborg municipality (pop ) in contrast to less than 10 inhabitants per km 2 in some northern parts of the region. However, the settlement structure of the former 3. The presentation is based on excerpts of results from the survey by Wässing (2003).

7 CALL CENTRES : A SWEDISH GEOGRAPHICAL PERSPECTIVE 209 Figure 1. The major transport infrastructure and places of Västra Götaland with more than inhabitants. county of Skaraborg deviates. Here, there are many small settlements organised in a hierarchical way around Skövde (Statistical Yearbook of Sweden 2002). The natural conditions have contributed to the development of some of the industrial profiles of Västra Götaland. Rich agricultural resources in Skaraborg and the fishery along the coast combined with the big market of Göteborg mean that the food industry has been very strong. The availability of water power and a maritime climate have been fundamental factors for the development of the textiles

8 210 NETCOM, vol. 18, n 3-4, 2004 and clothing industry in the southern part of Älvsborg. The location at the mouth of the river Göta Älv explains the development of Göteborg as the most important industrial city of Sweden and the Swedish centre for trading. Göteborg is the biggest port of Scandinavia and has a long tradition in shipping and international trade. Excellent deep harbour conditions are important for the location of chemical industries at Stenungsund, the centre of Swedish petrochemical industry (60 km north of Göteborg). Nearly all the Swedish oil-refining takes place in Göteborg and Lysekil (about 120 km north of Göteborg). Most engineering employment is associated with the manufacturing of vehicles based on the Swedish tradition of shipbuilding. At the peak of this development during the 1950s and 1960s Sweden accounted for an average of almost ten percent of the world ship production. At that time, Göteborg was the largest shipbuilding city of the world (in tonnage). The oil crisis of 1973/1974 and the keen international competition resulted in a sharp decline that hit the Swedish shipbuilding industry hard. The shipbuilding in Västra Götaland nearly ceased. But the shipping-building tradition means that a large pool of skilled labour is available. In 1926, AB Volvo was established in Göteborg within the ball bearing company SKF. Initially, the production took place in Göteborg and parts were bought. However, some of the suppliers, such as the plant for the production of engines at Skövde, were integrated at an early stage. In 1947, SAAB started production of cars at Trollhättan and more places have been integrated in the production of cars, trucks and busses (SNA 1995). At present, the production of vehicles is the largest industrial sector of Västra Götaland as represented by the assembly plants of Volvo and Saab and their suppliers ( ). The strong position of this sector also explains why relatively many people are involved in knowledge intensive activities (Törnqvist 1996). The high proportion of employees in manufacturing in this region means that Västra Götaland, as compared to all Sweden, is more oriented towards the production of goods than services. The companies of Ericsson Microwave and Saab-Ericsson Space are companies stressing the importance of wireless communication, IT, electronics and space for the development of the region. Furthermore, some other clusters such as the pharmaceutical industry mainly located in the Göteborg area, textiles and mail-order businesses in Borås and the furniture industry in Tibro (outside Skövde) can be identified ( ). The region is also a transport and logistics centre. Activities connected to trade and communications are important for the employment in coastal areas. These areas also attract tourists. As a result, quite a few people work in personal and cultural services. By road and railway, Västra Götaland is linked in the north to the Norwegian capital Oslo, in the south to the Danish capital Copenhagen and in the northeast to the Swedish capital Stockholm. Göteborg is located at the same distance of about 300 km, between Oslo and Copenhagen. The distance between Göteborg and Stockholm is about 450 km. The longer distance to Stockholm is compensated

9 CALL CENTRES : A SWEDISH GEOGRAPHICAL PERSPECTIVE 211 by high-speed trains. Stockholm can be reached within 3 hours. In the near future, the time needed for traveling from Göteborg to Copenhagen and Oslo will also be shortened with the completion of the new railway line. The road traffic is dominated by two roads road E6 in the north-south direction and road E20 in northeast direction. E6 has the best standard with motorway from Uddevalla to Copenhagen. Moreover, a new road is under construction between Uddevalla- Oslo. The infrastructure linking linking the road and railway traffic to the sea and air transport are also good because of the Göteborg harbour and Landvetter airport, as well as the harbours along Vänern Lake and the smaller airports. Furthermore, there are ferries linking the region to Denmark, Germany, Norway and Great Britain. Landvetter - the second largest airport in Sweden - has direct air flights to many of the big European cities such as London, Paris and Brussels. The region also offers a good infrastructure for communications that can satisfy the qualified demand for technologies enabling the transmission and processing of information. However, the transmission of unstructured information often needs face-to-face meetings. This underlines the importance of accessibility as a strategic competitive factor influencing regional attractiveness. Thus, the good infrastructure for both transportation and communication in Västra Götaland represents the competitive advantage of the region. ORGANISATION, FUNCTION AND EMPLOYMENT IN A LOCATIONAL CONTEXT 4 The Swedish locational pattern of call centres is characterized by the establishment of activities in the North, some of which are related to the objective of promoting the development of the sparsely populated northern regions. The distribution of call centres with regard to employment is shown in figure 2. Organisation and Function Most of the call centres are independent companies managing outsourced services. As seen in table 1, many companies are also providing in-house services mainly taking care of inbound calls. The technical tools used for the performance of work at the call centres are telephone (100%), computer (97%), fax (94%), (87%), internet (87%), intranet 45 % and other types of tools (19%). Most of the work is carried out during regular work hours (71%) and usually between 8 a.m - 5 p.m. (about 70%). The work is extended during the evening, especially during holidays. Nearly 2/3 of the calls are inbound, Table 1. Call centre companies classified according to organisation (in-house and outsource) and function (inbound and outbound). In-house Outsource Inbound Outbound 2 35 Note : Some companies manage both inbound and outbound contacts. 4. The presentation is mainly based on excerpts from the survey by Wässing (2003).

10 212 NETCOM, vol. 18, n 3-4, 2004 managing mainly customer service (49%), help desk (17%) and computer support (15%). Outbound calls are dominated by marketoriented activities. Of all calls, almost 9 of 10 are within Sweden and about 1/3 of the contacts take place in Västra Götaland. The Nordic countries correspond to a good 10%, while 2% of the contacts go to other parts of Europe and less than 1% to other parts of the world. The locational pattern of call centres in Västra Götaland (60 companies) is dominated by Göteborg and Borås ; 23 companies in Göteborg and 13 at Borås. Furthermore, there are 4 call centres in Lidköping and 3 in Skara and Skövde, while Bengtsfors and Strömstad have 2. There are also call centres located Figure 2. Number of employees at call centres in Sweden in 11 other places of Note: The distribution is mapped according to the postal code areas. Source: ISA (2001). Västra Götaland. Most of the call centres are classified as outsource which can mainly be explained by the large number of telemarketing companies (22 of 35). In a similar way, call centres providing in-house services are explained by the many mail-order companies (9 of 25). Göteborg dominates the location of telemarketing while Borås is the centre for mail-order companies. See table 2.

11 CALL CENTRES : A SWEDISH GEOGRAPHICAL PERSPECTIVE 213 Table 2. The distribution of call centres in Västra Götaland with regard to location and type of work (telemarketing or mail-order) Municipality Telemarketing Mail-order Sum Employment The manpower is equally divided between in-house (including mail-order companies) and outsource (including telemarketing) activities. On average, about 2/3 of the employees work full-time and 1/3 part-time. In mail-order activities, however, more than half of the workforce is employed on a part-time basis. Most employees are women (76%) of which about 40% work part-time (10% for men). In mailorder business, 9 of 10 employees are women. Most men (70%) work with outbound functions organised in outsource activities (incl. telemarketing), while women (55%) usually work with inbound functions organised inhouse (incl. mail-order). About 1/3 of the employees are between 20 and 29 years old. But there are big differences between men and women. Half of the men are in the age-category while only 1/4 of the women are in this age category. The young age structure for men is different from the female age-structure that is more evenly spread and also includes many elderly; especially in mail-order business. The number of employees of Table 3. Number of call centres and employees in different size-intervals Size-intervals/ employees Call centres Employees Number % Number % Sum Göteborg Borås Lidköping Skara Bengtsfors 1 1 Falköping 1 1 Lerum 1 1 Stenungsund 1 1 Ulricehamn 1 1 Vänersborg 1 1 Sum different companies varies from 1 to more than 200 people. Even if there are many small call centres (less than 10 employees), the number of employees is few in this category. Nearly half of the labour force is found in companies with more than 100 employees. See table 3. The 2 largest companies with more than 200 employees are located in Göteborg and Dals-Ed. Both are outsource call centres. Another 7 companies have more than 100 employees of which 3 are outsource, 2 are inhouse and 2 can be classified as mailorder companies. Of the companies with more than 100 employees, 5 are located in Borås, 2 in Göteborg and

12 214 NETCOM, vol. 18, n 3-4, 2004 Figure 3. Location, size (number of employees) and type of work (% of employees) at call centres in Västra Götaland. 1 each in Lidköping and Dals-Ed. As shown above, most of the identified outsource companies work with telemarketing. But many of these companies are small with an average size of 17 employees. The average number of employees in companies managing mail-order activities is 54 and for in-house call centres, 45. The locational pattern of call centres including information about size and the type of work carried out at different municipalities in Västra Götaland is shown in figure 3. The largest number of employees is found in the cities of Borås and Göteborg. But when the size of the companies is considered with respect to the number of inhabitants, Dals-Ed stands out. See figure 4. The high figure for Dals-Ed is explained by the location of Sykes company, which is the largest call centre in Västra Götaland. It is an outsource call centre, the type of call centres that also dominate in Lidköping, Skara, Skövde and Mariestad.

13 CALL CENTRES : A SWEDISH GEOGRAPHICAL PERSPECTIVE 215 Figure 4. Number of employees in call centres related to number of inhabitants in the municipalities of Västra Götaland (per thousand). The location of call centres in Borås is influenced by the tradition of customer relations via mail-order activities. Telemarketing is the most common type of call centre activity in Göteborg. But the picture is different. The profile of Göteborg is also characterized by in-house call centres. Yet, when the number of employees is taken into account, this in-house profile is even more characteristic in Alingsås, Bengtsfors, Trollhättan and Uddevalla. Within the metropolitan area of Göteborg, in-house call centres tend to be concentrated in the central parts of the city and are forming agglomerations/clusters. All in all, the most common type of activity for call centres is customersupplier interactions. This is especially pronounced for inbound traffic. About half of the inbound-companies deal with this kind of activity. Of outbound-companies four out of five companies deal with telemarketing and market-surveys. In fact, more than half of the outbound-companies are dealing with telemarketing activity. But for all companies, telemarketing and market-surveys has the same share as customer-supplier interaction (about 1/3). Most (about 75%) of the work is performed on weekdays (Monday to Friday and usually between 8 a.m. and 5 p.m). Employees in large businesses (more than 20 employees) are usually older than in small businesses. More than 40% of the manpower in large businesses is older than 50 years old, compared to about 20% in small businesses. On the other hand, more than 40% of the employees in small business are younger than 30 years compared to about 10% in businesses with more than 20 employees.

14 216 NETCOM, vol. 18, n 3-4, 2004 Locational factors This section focuses on the analysis of factors influencing the location of call centres in the municipalities of Borås, Dals-Ed and Lidköping. Half of the employment in call centres in Västra Götaland is found in these municipalities. Borås alone has nearly 1/3 of the number of employees. Göteborg adds another 1/3, which corresponds to Göteborg s share of the population of Västra Götaland. In Borås, Dals-Ed and Lidköping, the share of employees in call centres of Västra Götaland is much higher compared to the share of the population of Västra Götaland. See figure 5. In terms of population, there are 42 call centre employees per thousand population in Dals-Ed. The figures for Lidköping and Borås are 8 per thousand and 7 per thousand respectively. For the other municipalities in Västra Götaland, the maximum is only 2 per thousand. The average size of the companies is relatively large ; on average 53 employees in Borås (13 companies), 210 in Dals-Ed (one company) and 76 in Lidköping (four companies) compared with an average 44 in Västra Götaland. Borås is located in the hills about 60 km east of Göteborg and is crisscrossed by railways and roads east-west and north-south. The main link is the motorway between Borås and Göteborg. The area of the municipality is 915 km 2 ( ). The population of Borås municipality is of which more than 51% are women ( ). Waterpower and the maritime climate were beneficial locational factors for the textile and clothing industry at the beginning of the industrial process. The combination of commercial trade and the production of textiles is an explanation to the intensive foreign trade that took place in Borås. Many headquarters of Swedish agencies and commercial chains of textile and clothing as well as nearly all big Swedish mail-order companies are located at Borås ( ). The share of employment within the service sector is higher for both men (61%) and women (88%) than the Swedish average (57% for men and 85% for women) (Statistics Sweden 2003). In comparison to Västra Götaland as a whole, the income per capita is the same for women but a little less for men (Statistical Yearbook of Sweden 2003). Borås is dominant when it comes to call centres oriented towards mail-order functions in Västra Götaland (7 of 9 companies). The average number of employees in these companies located in Borås is 60, that is more than the average size of call centres in Borås (53). Women constitute about 90% of the workforce. The work performed at the call centres in Borås is influenced by the tradition of customer relations based on experiences from selling textile products and clothing. This tradition of interaction between customer and supplier is reflected in the establishment of mail-order companies in Borås about 50 years ago. Otherwise, the expansion of call centre activities of Västra Götaland mainly dates back to the 1990 s. The competitiveness of Borås is also related to Borås logistical position with market access and distribution to Scandinavia and the Baltic Sea region facilitated by the ability to offer competent multilingual labour force. Other competitive factors

15 CALL CENTRES : A SWEDISH GEOGRAPHICAL PERSPECTIVE % % county pop empl. c.c. 5 0 Borås Dals-Ed Lidköping Figure 5. Share (%) of the population and share (%) of the number of employees in call centres in Borås, Dals-Ed and Lidköping as compared to Västra Götaland as a whole. Note : The number of employees includes both full- and part-time workers. The share of full-time workers is higher in Dals-Ed (99%) but lower in Borås and Lidköping (about 40%) compared to an average of 65% in Västra Götaland (65%). This observation stresses the importance of call centres for the labour market of Dals-Ed but reduces its importance for the labour markets of Borås and Lidköping. Furthermore, the figures indicate differences in manpower as part-time jobs are more frequent among women. include nearness to Landvetter International Airport and the biggest port of Scandinavia (Gothenburg) and the existence of many import/export-oriented businesses appropriate for call centre activities. The University of Borås offers qualified and flexible labour well adapted to call centre tasks. Furthermore, Borås has created a distributional concept by integrating logistical and distributional functions, based on the tradition of mail-order companies, to attract mainly American companies. ISA (Investment in Sweden Agency) regards Borås as a competitive logistical hub of Sweden in their efforts to attract foreign companies to Sweden (Nyhlén ). Dals-Ed is located on the border between Sweden and Norway in the northern periphery of Västra Götaland. The railway between Göteborg and Oslo as well as roads crisscross the municipality of 728 km 2 ( ). The number of inhabitants in Dals-Ed is of which 51% are men ( ). Industry and commerce is mainly based on industrial production reflected in the many jobs in the production of goods (56% of men s employment) while few people work in services (39% of men s and 79% of women s employment) (Statistics Sweden 2003). The income per capita is low for both men and women in

16 218 NETCOM, vol. 18, n 3-4, 2004 comparison with the average of Västra Götaland as a whole (Statistical Yearbook of Sweden 2003). It can be observed that the present labour market of Dals-Ed seems to be influenced by the influx of Norwegian customers attracted by low Swedish prices stimulating the location of supermarkets ( ). The call centre work at Dals-Ed is performed at Sykes. Founded 1977 in Charlotte, NC, the global footprint dates from 1994 with the opening of the Amsterdam support center. In 2002 the number of employees worldwide reached The headquarters are located in Tampa, Florida, and Sykes operates 43 customer support centres and four fulfillment centres with operations throughout the United States, Canada, Europe, Latin America, Asia and Africa. The company provides customer management solutions and services to external and internal customers primarily in the technology/consumer, communications and financial services markets. Sykes focuses on flexible, high quality customer-care outsourcing emphasizing technical support and customer service ( ). The number of employees at Dals-Ed is 210, of which 208 work full-time. Sykes receives and switches further inbound calls asking for support and customer service. The location of Sykes to Dals-Ed was influenced by regional aid. Lidköping is located beside the largest lake of Sweden ; Vänern. Ships of more than tonnes can reach Lidköping by Göta Älv connecting Vänern to the Atlantic. The area of the municipality (689 km 2 ) is crossed by roads and linked to the Swedish railway network ( ). The population of Lidköping municipality is of which nearly 51% are women ( ). Industry and commerce is a mixture of a variety of activities such as the military air force, the production of saws and machine tools, plastic packaging, bakery and call centre activities ( ). A smaller share (47%) of men is employed in services (the Swedish average is 57%) while this share of the female workforce is about the same as in the whole of Sweden (Statistics Sweden 2003). The income per capita is a little less for both men and women compared to the situation in Västra Götaland as a whole (Statistical Yearbook of Sweden 2003). The largest call centre in Lidköping is InfoOne with 150 employees of which 20 persons are full-time and 130 persons work as part-time or extra employees. The location at Lidköping dates back to 1993 when the educational program the surveyors was launched. This program, focusing on market-researchers, together with the central location of office-buildings, modern ICT-tools and agreeable environments (incl. social security and social care) enabled the municipality to offer an attractive locational concept to be implemented immediately. A result was the location in 1993 of InfoOne that manages inbound calls such as customer-service, data support and helpdesk and outbound telemarketing calls. From InfoOne, the company, Marketresponse, has sprung into life. Furthermore, the municipality tries to develop projects to stimulate the demand for advanced products and create contacts between different actors in order to develop innovative environments (Eriksson ).

17 CALL CENTRES : A SWEDISH GEOGRAPHICAL PERSPECTIVE 219 CONCLUSION As a result of this overview of the call centres of Västra Götaland, some observations can be made. Most of the companies are independent, managing outsourced calls and function on an outbound basis as explained by the large number of market-oriented telemarketing companies. However, most of the calls are inbound providing customer services, helpdesk and computer support. One reason for this is the existence of many mail-order companies. The workforce is equally divided between in-house (incl. mail-order companies) and outsource (incl. telemarketing) activities. On average, about 2/3 of the workers work fulltime. However, in mail-order companies, more than half of the labour is employed on a part-time basis. Most of the employees are women (3/4) ; in mail-order business 9 of 10 are women. Men usually work full-time and are mostly engaged in outbound functions, while women are usually involved in inbound functions organised in-house (incl. mail-order). On average, 1/3 of the employees are between 20 and 29 years old. However, among men, half of the manpower are between these ages compared to 1/4 of the female workers. These figures reflect the tradition of call centre functions in Västra Götaland related to mail-order activities performed by older workers employed in large companies, especially pronounced in Borås. The strong influence of Borås upon the composition of manpower points to the importance of linking present observations to the historical embeddedness of the labour market. The geographical distribution of the call centres is characterized by the dominance of Göteborg and Borås ; the largest cities of Västra Götaland. There are 9 companies in the county with more than 100 employees. Of these 9 companies, 5 are located in Borås, 2 in Göteborg and 1 each in Lidköping and Dals-Ed. The dominance of Göteborg and Borås is underlined by the functional integration of these cities, which is associated with in the high flows of commuters and the concentration of call centres in or near urban areas. However, when the number of employees in call centres is related to the population of the municipalities, the picture changes. Dals-Ed, Lidköping and Borås stand out. The position of Dals-Ed shows that customer services can be performed outside urban areas in places located in the European periphery. This also shows that the location may be governed by regional policy encouraging the adoption of labour-intensive techniques contributing to the reduction of unemployment. Furthermore, the location at Dals-Ed illustrates the ability of ICT to integrate small peripheral places to international networks. The large number of call centres in Borås is a result of the many mail-order companies based on a tradition in textiles and clothing. Contacts between suppliercustomer by mail and phone have taken place long before the introduction of computer and communications technologies. Hence, many employees have been engaged in customer related jobs before new ICT-tools enabled a more intensive interaction between customers and suppliers. Thereby, the build-up of knowledge

18 220 NETCOM, vol. 18, n 3-4, 2004 and competence with regards to customer-supplier relations has been an advantage in the efforts made to upgrade the supply of services. Thus, the creation of Borås as a cluster of call centres in Västra Götaland emphasizes the important role played by historical conditions for regional competition. However, the studies also show that the growth of call centres may be explained by initiatives taken at the right moment. One example is the distributional concept in Borås which aimed at attracting mainly American companies. Another example is the start-up of market-oriented educational programs in Lidköping and the efforts made to offer a complete concept for call centre activities. The program focused on the training of market-researchers but the concept also included other initiatives such as appropriate office-buildings equipped with new computer and communication technologies. Other initiatives are the stimulation of innovative processes through the upgrading and integration of call centre activities. This can be achieved by demanding a higher level of competence enabling the performance of advanced projects and the creation of contacts. When establishing call centres, the labour market is a primary consideration. An example would be the location of in-house call centres to central parts of the metropolitan area of Göteborg. These establishments indicate that the largest labour market in Västra Götaland attracts in-house call centres. Other important centers for labour markets are Borås, Trollhättan and Skövde. In some areas the labour markets are integrated with each other. Thus, Borås is linked to Göteborg and Lidköping to Skövde. This means that Borås and Lidköping, both profiled as call centre locations, are functionally integrated into larger labour markets. However, many municipalities such as Dals-Ed, are isolated, which upset the balance between the demand and supply of labour. The demand for qualified manpower may be especially difficult to satisfy. This observation along with the ongoing upgrading of call centre jobs, stresses the importance of local initiatives, such as educational programs, to compensate for the limitations of the labour market. It is notable that the most common reason for the choice of location is the homestead of the owners or the founders of the company. This role of the owner is related to low start-up cost for call centres, which enables location almost anywhere. Flows of communication can take place between nodes located far away from each other. The locational pattern of call centres in Västra Götaland verifies this. On the other hand, the infrastructure for transportation varies, indicating different regional competitiveness with regard to the location of activities. When dealing with strategic issues, such as planning and development of production, face-to-face meetings are often necessary. This fact underlines the necessity of investing in infrastructure for both transportation and communication enabling places to be integrated into different networks that may facilitate the development of innovative environments.

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