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STAT-USA/Internet * CALL CENTERS
CALL CENTERS

 
Industry Sector Analysis [ISA]
ID: 73875
 Regions:  EUR;Europe;Western Europe;European Union
 Country:  France

 Industry:  Information & Communication
 Sector:  Telecommunications Services

by: MYRLINE MIKAL GOIDE
approver: N/A
Report Date: 08/15/2001
Expires: N/A

INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, 2005. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.
1. DEFINING CALL CENTERS
The purpose of the call center (in French, centre d'appel) is to assist in
long-distance management of relationships that companies wish to maintain with
current and prospective clients or customers. In order to ensure that its long
distance capacities are effective, the call center system employs both
telephone and information system connections, as well as other communication
forms (e.g., mail, facsimile, the Internet, lntranets, Extranets, and in
France, the Minitel -- or videotext system). The distinguishing factor of the
call center is that it is dedicated, not to a promotional campaign, but to a
business-to-client relationship. The call center is usually developed to
support the activities of companies, such as efficient channels of
distribution, or to achieve company goals, such as high customer satisfaction.
The call center system is comprised of four major components:

* equipment (mobile and fixed telecommunications systems);
* technology (telephony, information/data processing, lnternet,
software, databases);
* corporate culture and marketing methods (company strategy, customer
relations, profitability);
* human resources (telephone operators, supervisors, managers).


A. Functions of the call center

Call centers are a mechanism to improve and expand customer relations.
Assistance to clients, support of a company's distribution network, enhancement
of its internal security systems, and the taking of telephone orders are some
of the functions of call centers. A study released by consulting firm Cabinet
Diebold France concludes that the development and maintenance of client loyalty
is a key and necessary objective for any company’s call center operations.
Call centers are used to make sales, render support and assistance, and
generally provide information.
The Diebold study also revealed that 49 percent of companies surveyed used call
centers as sales tools, 54 percent used them to support users, and 31 percent
used them to offer access to information networks. Indeed, the reason for the
existence of a call center is directly linked to the activity of the
enterprise.

B. Clarification of objectives

The objectives of call centers are varied and can be quantified in terms of
number of sales generated, number of qualified prospects solicited, number of
problems solved, level of technical assistance provided, and the amount of
information retrieved on clients or prospects. To improve the ways in which a
company achieve its objectives, it conducts analyses of market data, based on
the business created and the information generated by call centers. The results
of these analyses are then measured and reviewed in light of the objectives of
the company.


C. Specific tools and technology

Call centers use a wide range of tools and technology in order to maximize
their effectiveness.

PABX (Private Automatic Branch Exchange) is the first filter between the caller
and the call center. The PABX (or PBX) consists of improved standard telephone
technology, an automated switch, employing various telephony technologies,
notably Automatic Call Distribution.

ACD (Automatic Call Distribution) is a necessary, but insufficient, basic
investment for a call center. It provides an administrative tool and
distributes flows of calls. There are numerous commercial systems available. A
company needs to choose the ACD system best adapted to the specific needs of
the center (e.g., number of positions, rerouting options on an external
structure, interconnections with the server).

PCBX (Private Computerized Branch Exchange) is an alternative to PABX,
supported by telecom cards inserted into a simple PC computer. It has a low
initial cost and a low operational budget. A general technician can monitor the
maintenance (damage to a PABX requires the aid of a specialist trained in
information and telecommunications systems). The PCBX solution is also
considered specifically adapted to small call centers or to SME structures
(small and medium sized enterprises). PCBX is also compatible with a CTI
(Computer Telephony Integration) connection, which is the linking of telephony
and information systems, and a system of predictive numeration.

Predictive dialer systems are designed to meet the needs of “outgoing" call
centers. They automatically dial telephone numbers listed in the center's
files. As soon as the caller picks up the telephone, she/he is directed to the
first available telephone operator. Such systems also detect wrong numbers and
answering machines, as well as trigger the callback feature on lines responding
with busy signals.

The most important tool for call centers, however, is CTI (Computer Telephony
Integration), which is the linking of telephony and information systems. It is
the essential element in the call center “revolution". In particular, CTI
allows real time acquisition by the operator of information concerning the
client or prospect that is being called. It is adapted to incoming call
configurations, but can also be used in outgoing call operations (predictive
systems). Increasingly, managers of call centers are opting for options
complementary to CTI, such as immediate and automatic transmission of
confirmation faxes.

According to a study released by the consulting firm IDC, annual sales of CTI
equipment in call centers rose from FF 600 million (USD 100 million) in 1998,
to FF 2.6 billion (USD 430 million in 2000, and are expected to amount to FF 4
billion (USD 670 million) in 2002. This would result in a total of 22,600
centers being equipped with CTI solutions by 2002, a growth of around 203
percent over four years. The software and materials sector represents 50
percent of this market, while the other half represents services (consulting,
implementation, and training). According to IDC, the CTI market is the most
dynamic aspect in the call center sector. The greatest potential for growth
exists in modest-sized call centers, where activity is not based solely on
telephony (e.g., commercial services, help desks). The sectors of activity of
CTI users are expected to expand overall (27 percent penetration over the next
2-3 years, compared to 9 percent today) in industry (23 percent, compared to 9
percent) and in retail operations (18 percent, compared to11 percent).
The integration of CTI solutions gives call centers a new dimension. It
allows, on one hand, the creation of “informal” call centers for smaller
companies, and on the other, the sophistication of large, existing call
centers. At the same time, this integration implies the use of new scopes of
activity.
Given the diversification of the sector, partnerships are the key elements for
success in the development strategy of companies wanting to operate within this
market. It is expected that about 39,000 French call centers will be equipped
with CTI facilities by 2004. This phenomenon is quite recent on the French
market, representing a 59 percent increase in CTI facility integration between
1999 and 2004. Although the call center market has generally been aimed at
large companies, since 1998, smaller companies have been increasingly requiring
call centers for their own operations. This evolution, launched by big,
“formal” call centers, has concentrated mostly on regional applications or
small and medium-sized companies for less-than- twenty-workstation call
centers. These centers are found in the following sectors: telecom operators,
insurance companies, banks, telemarketing companies.
In this context, productivity on call answering is a key element. Therefore,
the return on investment for a CTI solution is clear and easy to demonstrate.
The growth potential of the market, however, lies in the “informal” call
centers (call centers with less than 20 workstations) because they are focussed
on a wide range of activities such as external relations, telephony, commercial
services, after sales service, and help desks, among others. These informal
centers cover a large population, including small and medium-sized companies,
and not just big accounts.
An IDC study on call centers suggests that several major developments will take
place over the next few years:

-- a new approach, in which call centers will tend to become centers for
multimedia contacts. Telecommunications firms and software editors sell such
new products as PC-PABX and CBX (Converged Branch Exchange);
-- an evolution within CRM (Customer Relationship Management) systems, in that
the call center will become a medium for the improvement of client relations;
-- an integration of call centers with web sites and e-commerce, in that,
through the Internet, the user will be able to contact the call center agents,
with such functions such as “web call through” or "web call back";
-- an evolution towards ”virtual” or “distributed” call centers, in which the
evolution of networks and their related equipment will enable the growth of
smaller “virtual” or “distributed” call centers;
-- an integration of new call centers with new telecommunications
services.
Registration Systems or Registers allow companies to track communications
taking place within their call centers (e.g., identification of the caller or
the person being called, conversation duration, exact content of exchanges).
This capability can definitely prove useful in case of disputes between a
company and a client. It is beneficial to managers of company human resources
departments, as it becomes possible to monitor operators or groups of agents in
real situations by being able to listen to communication exchanges a number of
times.
IVS (Interactive Vocal Server/in French, service vocal interactif) is a system
that identifies and authenticates callers, switches callers to automated
services, qualified company contacts, or the call center, and provides special
services automatically (e.g., account inquiries for banks, schedules for
railways and airlines). A telephone operator in France earns an average of FF
300 (USD 50) per hour. An interactive vocal server costs FF 20 (USD 3) per
hour. An investment in IVS quickly generates economies of scale. Moreover, the
more sophisticated the system is, the more it reduces personnel needs, and the
greater the savings in operation costs will be.
A large number of calls received by companies are usually for basic
information. The function of the vocal server is to handle calls, prioritize
them and transfer more specific requests to operators, thereby freeing the call
center from dealing with general requests.
There are three technologies through which an IVS client can be transferred to
a call center:

-- Voice linking (using any type of PBX): the IVS indicates the identity of the
caller to the operator, who types the corresponding code on a keyboard to pull
up the correct client file and to handle the call;
-- Display at the telephone operator's station: the identity of the caller is
immediately transmitted to the call destination via numeric or alphabetic
characters on the system screen. The operator can thus immediately access the
client file;
-- CTI solution: the file appears on the operator's screen as soon as the phone
is picked up.
The interactive vocal server also offers a number of services of benefit to a
call center. Among the most important are:
-- Monitoring function: ten percent of callers are not successful in
identifying themselves on the SVI (due to errors in pressing touch-tones and
misunderstanding of instructional messages). Instead of hanging up on them,
after a few attempts the IVS automatically directs them to an available
operator, who will inform the caller about how to use the automatic services;
-- Post-call identification: the operator, having directly received a call, can
transfer the client to the call center for identification purposes, following
which the call is routed back to the operator for action.
Another advantage of interactive vocal servers is that they can rapidly
generate profits. On certain access channels, a call can generate an average
return of one French Franc (or 17 U.S. cents) for the company using such
technology. This process can thus provide significant returns, considering that
certain banks, for example, receive one million calls each month. From
worldwide sales of 10,299 systems in 1999, shipments of unified messaging
systems should increase to 517,000 by 2004, according to the Pelorus Group. The
top suppliers of such systems are Nortel, NEC and Active Voice.
2. HELP DESKS
Call centers can serve a wide range of purposes as long as they are clearly
defined. They can also be entirely dedicated to a single function. Generally,
help desks provide technical assistance. Services are given either to company
clients or to providers of technology infrastructure. The help desk is used
principally for incoming calls. It uses a “pyramidal” structure to deal with
requests, referring them to one, two, three, or four levels of information and
expertise, depending on the specificity or complexity of the request. The
objective of the first level is to absorb the majority of calls, of a general
or basic nature. Calls that require more specific or complex answers are
referred to other levels.
There has been an explosion of the help desk market. According to a study
published in 1998 by the Input Board, help desk market profits in Europe
increased from FF 9 billion (USD 1.5 billion) in 1998 to FF 27 billion (USD 4.5
billion) in 2003. This represents an average annual growth of 26 percent over
five years. The Input Board divided the market into four categories: planning
and elaboration; implementation and installation; material and software
support, and usage. The usage category has the highest potential for
development. The analysis also divided the help desk market into three levels.
In 1998, 10 percent of major companies subcontracted first level usage, 20
percent second level usage, and 50 percent third level usage. In 2000, growth
for those levels was 20, 35, and 60 percent, respectively. At the same time, 30
percent of the companies interviewed for the Input Board study claim to use the
Internet to reduce the burdens on their help desk agents. Two-thirds of them
estimate that in 2001 the Internet will be widely used to complement help desk
telephony. Furthermore, according to the Meta Group, by the end of 2001, more
than 75 percent of the top 2000 companies will outsource some aspect of their
help desk activities, an increase of more than 35 percent.
3. PAN-EUROPEAN CALL CENTERS
Typically, pan-European call centers have one central location or a few
regional locations and their personnel are multi-lingual. For example,
according to an industry expert, an American software developer can place an ad
in an Italian publication, and a potential customer in Milan calls the
toll-free number provided. The call is switched to the company's centralized
call center, which could be located practically anywhere in Europe. The call is
identified as originating in Italy and is routed to an Italian-speaking agent,
who then assists the customer. Service is prompt and professional, and the
prospective customer never knows he or she is speaking to someone possibly half
a continent away. This is the premise upon which multilingual call centers are
built. From the customer's perspective, he believes he is calling someone in
Italy. The company therefore can provide quality service to customers
throughout Europe at a fraction of the cost of setting up a presence in every
country.


A. The European Market
The United Kingdom, France, Germany and the Netherlands accounted for
approximately 80 percent of call center revenues within the 15-member European
Union in 1999. Over the next five years, according toa study by the Pelorus
Group, an industry consulting firm, call center systems in these four nations
will generate more than $9 billion in gross revenues. The total number of call
centers in Europe will grow from 12,750 in 1999 to 28,289 in 2006. Today, the
United Kingdom hosts the largest number of call centers in Europe, with more
than 5000 active call centers, almost half the current European total.
Each country will continue to develop in its own unique way of developing call
centers, and at its own pace. There is not, at the present time, the prospect
of a single European market for call center products.

B. The French Market

Call centers in France are organized differently than in other European
countries. As a result of decentralization in France, they operate more on a
regional than on a national basis. This means that they are also individually
smaller than those that operate on a national basis in other countries are.
In France, the market for call centers began to emerge in the mid-1990s.
Reasons for France's late entry into the market, compared to the United
Kingdom, Ireland, and the Netherlands, include a tradition of preferring
face-to-face communication; the strong position of France’s Minitel videotext
system; continuing disarray in the telecommunications industry; and lack of
public sector support. A study done in 2000 by IDC-Cap Gemini Ernst & Young
estimated that 40 percent of French firms intend to develop Customer
Relationship Management projects, while 20 percent of French firms have already
established CRM strategies. According to a study by Diebold France, about 1000
companies in France now have call centers, with the sales figures in this
market reaching FF 4.1 billion (USD 550 million). A Cesmo study estimated the
call center market to be FF 3 billion (USD 500 million), a growth rate of 25
percent since 1999. Telecommunications operators are not new to this sector.
France Telecom (the national operator) operates 700 call centers, employing
12,000 agents. Cegetel (the second largest French telecom operator) has created
about 5000 jobs in the call centers it operates. According to the Gartner
Group, 30-40 percent of French corporations intend to have centers for
long-distance customer relations. In 2002, more than 21,300 should be in
service. In order to enhance customer service, call centers in France are
expanding in all sectors of activity. Additionally, consulting firms are
playing an important role in setting up call centers.
A Datamonitor study shows a slight decrease in the number of workstations set
up in the past few years. There will be 12,000 new workstations set up in
French call centers by the end of 2001, while in 1998 some15,000 were put in
place. The French market is said to be slower to develop than the United
Kingdom's.
While the French have been more reluctant to undertake business-related
activities on the telephone, the growing number of “numeros verts,” or
toll-free numbers, demonstrates that France has the potential for setting up
Pan-European call centers. In France, financial services companies mostly use
call centers. Some 15,000 workstations were in operation in 1998 in this
sector, making up 20 percent of the market (mainly due to the development of
online banking). Manufacturing, consumer goods and telecommunications
companies accounted for about 13,000 workstations as of 1998.

According to the last figures published by IDC, the European market for
services in CRM (e.g., consulting, management, support, formation) is expected
to reach FF 250 billion (USD 34 billion) in turnover by 2004, some 29 percent
of the worldwide market. These statistics demonstrate the market’s great
growth potential, as the market amounted to USD 9.4 billion in 1999.
In 1998, the call center market in France totaled FF 3.7 billion (USD 617
million). Of this total, FF 2.08 billion (USD 347 million) was accounted for by
external services. The installation of centers only accounted for FF 1.62
billion (USD 270 million), of which FF 610 million (USD 102 million) consisted
were for software programs. The FF 1.62 billion (270 million USD) for the
installation of centers was taken up by the organizations usually involved in
the establishment of call centers (consulting companies, information and
communications equipment providers, integrators, and telecommunications
operators).

C. Major Players in France
According to a study by CIGREF (Club Informatique des Grandes Entreprises
Françaises), an information technology grouping consisting of France’s largest
corporations, 90 percent of its members, which consist of France's top
corporate performers, are using call centers. Thirty percent of call centers
employ 10 people or less, 30 percent employ 11-50 people, and 30 percent employ
more than 50 people. Over sixty percent of these structures have three
platforms, while another 30 percent have four or more platforms. Services
proposed by the call centers are support services, general and specific
assistance, and general information (75 percent of companies surveyed), and
marketing and commercial activities (15 percent of companies surveyed).
Regardless of the main function of the call center, four major considerations
govern its creation and existence. Companies stated that their major reasons
for setting up and maintaining a call center are:

-- Good positioning with regard to the existing networks (40 percent of the
enterprises);
-- Good architecture and flexible solutions (30 percent);
-- Quality of the call center teams and their integration into the rest of the
company (15 percent);
-- Prior demonstration of financial viability and return on investment (15
percent).

Call center development has an impact on employment. Over the past three
years, the number of call center operators is believed to have doubled. In
2002, three percent of the active population in Europe will work in a call
center.
4. ROLE OF THE INTERNET AND THE SOFTWARE INDUSTRY
Over 90 percent of European call center managers polled by the Pelorus Group in
1999 indicated that the Internet would be incorporated within their call
centers. This is an increase of 15 percent over the previous year. E-mail
integration represented 79 percent of Internet applications cited by call
center managers while call back and Internet telephony represented 14 percent
and 6 percent, respectively. By the end of 2000, e-mail represented only 55
percent of total Internet applications while call back and Internet telephony
applications will increase to 25 percent and 19 percent, respectively.

According to industry experts, the European interactive "kiosk" (Internet-based
server on which users conduct transactions or obtain information) market is
projected to show a total annual revenue growth rate of more than 20 percent
from 1999 to 2006. Interactive kiosk vendors supplying the retail, government,
banking and finance, tourism, entertainment, transportation and
telecommunications sectors brought in USD 806.6 million in 1999. The electronic
voice market, IVR (Interactive Voice Response) is expected to be more than USD
1 billion in 2001 and USD 2 billion by 2005. The electronic voice market as a
whole will increase by more than 340 percent by 2005.
Engineers are responsible for undertaking the necessary installations of call
centers. Their work has two distinct approaches: target solutions or complete
solutions. Middleware solution providers focus on software applications that
allow transmission between telephony and information systems. The main actors
in the software-editing segment are the companies that offer services geared to
front office operations. Editors are proposing two types of products: standard
solutions and specific personalized solutions. The integrator implements the
overall operation of the call centers, using multiple products to undertake
complex projects.

According to a 1999 study by Datamonitor, the global call center software
market will nearly triple in size, to USD 8.5 billion by 2003. Growth will be
driven primarily by demand for web-enabling software and media-neutral call
monitoring solutions. Experts say that the aggregate market for call center
software grew, from USD 245 million in 1999 to USD1.6 billion in 2003.
Companies with no experience in call center software have performed 90 percent
of all mergers and acquisitions involving call center software vendors. Growth
in the call center software industry will not occur uniformly within all of the
software segments. Market share claimed by each of the CRM sub-segments
(customer care, sales force automation and help desk software) will decrease to
some extent between 1999 and 2003. Global spending on software that supports
web-enablement will grow more than sixfold between 1999 and 2003, to $850
million.
Each customer relations manager faces the challenge of "dimensioning" a
platform. The installation of a network allows call centers both to manage
peaks in usage and to be located on all continents, in all languages, and at
any time. According to a 1999 Datamonitor study, the United States had about
900 virtual call centers and Europe had 100. Also according to Datamonitor, a
virtual call center is defined as several groups of agents, in geographically
separate locations being treated as a single entity for call-handling,
reporting, management and scheduling purposes. These agents may be located in
individual call centers, at a remote office, at a "tele-cottage" or at home.
However, by 2003, these figures should rise to 2,300 and 450, respectively.
Technologies enabling the establishment of virtual call centers should benefit
from this growth.

A. E-Call Centers

Datamonitor estimates that 21 percent of call centers in Europe will be
connected to the Internet in 2001. This would make France the leader in
Internet connections by call centers. Thirty percent of the call centers in
France polled by Datamonitor estimated that they have spent over USD 1 million
each on average on new technology during 2000. This is more than both the
United Kingdom and Germany, where over 60 percent of call centers estimate
spending less than USD 25,000.

B. The "Web Call Center" and Voice over the Internet

According to a report by Mediametrie issued in early 2001, France has about
11.6 million Internet users over fifteen years old. Currently, the "web call
center" is not yet fully integrated into call center activities. However, it is
soon expected to be a major part of future call centers. The first stage of
Internet integration in call centers consisted of adding a "call back" button
on the web pages. The client is asked to leave contact information in an
electronic post office box. The messages are then transferred by e-mail to an
operator who would then call the client back. This system, however, was
inconvenient because of the reluctance of clients to leave their contact
information on the Internet, and the length of time of the telephone call.
It would be ideal to have instant and uninterrupted communication between the
Internet user and the call center operator, a concept on which "second stage"
Internet integration process is based. It is actually possible to make a voice
telephone call and send an Internet page to another computer, without ending
the connection. This technology is called "encapsulated voice" or “voice over
the Internet.” Telephone communication over the Internet is integrated as a
regular Internet connection and does not cost more, even for long distance
calls. It enables consumers to keep surfing the Internet while talking to a
customer service operator. Internet software editors have already included such
a capability in their products. As far as "web call centers" are concerned, the
client has a button on each screen page that allows the client to enter
directly into contact with an agent. The agent can then access exactly what the
client sees onthe screen, enabling the operator to guide the client through
the navigation of the site. This “push-to-talk” capability has been created to
improve e-commerce relationships and on-line services and consumer satisfaction
levels.

C. Tele-recovery

Companies are now more and more likely to use "tele-recovery" to handle debt
recovery over the telephone. The primary objective here is to minimize the
costs incurred by ineffective management of delayed payments. To anticipate
delayed payments and thereby avoid eventual problems with the debtor is the
objective of tele-recovery. Tele-recovery focuses on client acceptance of debt
settlement and seeks to develop a positive approach vis-à-vis the client with
the goal of gathering a maximum of information pertaining to a specific case,
and identifying the reasons for non-payment.

D. Geographic Distribution of Call Centers

Six main regions, with more than 70 percent of recorded calls, represent the
main call center market in France. The Paris area ranks first with 32 percent,
second is Nord-Pas-de-Calais with 15 percent, followed by Provence-Alpes-Cote
d’Azur with 9 percent, Rhone-Alpes with 8 percent, Aquitaine with 8 percent,
and Midi-Pyrenees with 5 percent.

There is a relationship between where a call center is located and the scope of
its activity. Leaving out the Paris area, the level of call center activity in
Aquitaine and the Rhone Alpes regions reflects the importance of high tech
industries in those regions. Additionally, the Midi-Pyrenees Region attracts
more tourism, automobile and logistics call centers. Outsourcers are massively
concentrated in Nord-Pas-de-Calais and account for 27 percent of the call
centers in the area, given the significant presence of direct marketers and
large-scale retail operations there.

Call centers are set up in “priority zones,” where many companies have already
settled. Currently, several organizations, especially outsourcers, are
relocating their call centers in order to take advantage of the financial
support and human resources available in these zones.

5. COSTS ASSOCIATED WITH SETTING UP CALL CENTERS

A. Initial investment

The average cost of establishing a call center is estimated to be FF
100,000-200,000 (USD16,700-33,300 per workstation. A center of 20 stations
represents an initial investment of FF 1-3 million (USD167,000-500,000).

B. Additional investments

In addition, call centers require audits, market studies, testing, and the
assistance of outside consultants. The costs can be broken down as follows:

-- Audit: FF 30,000-100,000 ( USD 5000-16,700);
-- Market study: FF 30,000 to 100,000 FRF (USD 5000-16,700;
-- Agency test of telephone marketing: FF 150,000-400,000 (USD
25,000-67,000);
-- Outside consultant: FF 20,000-60,000 ( USD 3,300-10,000).

C. Technology

Investments in technology are also required. They include the following:

-- ACD: FF 20,000-50,000 (USD 3300 to 8300) per call center;
-- Predictive dialer: FF 40,000-70,000 (USD 6700-11,700) per station;
-- CTI: FF 60,000 ($10,000) per station;
-- Applications: FF 25,000 (USD 4,200) per station;
-- Board table software: FF200,000-400,000 ( FF 33,000-67,000) for a
ten-position platform;
-- Help desk software: FF 50,000-over 1 million (USD 8,300-167,000);
-- IVS: FF 100,000- 1,000,000 (USD16,700-167,000 USD) per station;
-- Movables: FF 5000-15,000 (USD 830 to 2,500) per station;
-- Headsets: approximately FF 1,000 FRF (USD 167) per unit;
-- BDD: FF 3,000-10,000 (USD 500-1,670) per station;
-- PCs: FF 10,000 FRF (USD1,670) per station.

According to a recent study conducted by Input France, 60 percent of spending
for call centers is allocated to development, of which 41 percent is for
personnel costs, recruitment, training, information systems management, and 19
percent for telecommunications costs. These costs are allocated as follows:

-- Telephone units: average of 20-25 percent of total operational costs;
-- IVS: FF 20 (USD 3) per hour, compared to FF 300 (USD 50) for a telephone
operator;
-- Maintenance: monthly contracts of FF 3000 - FF 4000 (USD 500 - 670) ;
-- External training: FF 15,000 - FF 20,000 (USD 2,500 - 3,300) for a
group of 8 people;
-- Personnel: at least 60 percent of operational costs.

The following table shows annual sales for each of the cost categories
mentioned above.

Call Center activity 1998 – Annual Sales
(Millions FF) Percentage
Consulting 130 3.5
Equipment 400 11.0
Middleware 210 5.5
Software 260 7.0
Specific Applications 130 3.5
Integration 480 13.0
Total Proposed Installation 1,610 43.5
Technical Lodging 630 17.0
Outsourcing 1,450 39.5
Total Proposed Outsourcing 2,080 56.5
TOTAL 3,690 100.0

Source: CESMO, 2000

The annual sales figures cited above were calculated using information obtained
from 40 selected companies.

6. HUMAN RESOURCES
A. Current employment situation and trends
The development of call centers has had a significant impact on employment. It
has been estimated that the 2000 call centers in France currently employ about
130,000 people. Call center teams may vary in size from 5-6 people to a few
hundred, or even a thousand people. The total number of telephone operators is
expected to double in the next two years. According to some industry
estimates, in the year 2002, three percent of the active population will work
in call centers. In Europe alone, over one million jobs have already been
created, and approximately 15,000 positions are currently unfilled. Almost half
of the telephone operators are employed in the United Kingdom and Ireland.
Additionally, a study done by Purdue University revealed that inbound centers
have an average annual turnover of 26 percent for full-time workers and of 33
percent for part-timers. Nearly half of the call centers reported that
part-timers handle five percent or less of total calls. The following tables
show employment figures for the five largest call center operators in France,
and for the five biggest subcontracting companies that provide call center
services to other companies.
The Five Largest Call Center Operators

Company # of Call Center Employees
France Telecom 20,000
Cegetel 5,000
Bouygues Telecom 2,000
Intermondial Assistance 1,000
E-Laser 1,000

(Source: Association Francaise des Relations Clients)



The Five Main Call Center Sub-Contractors

Company # of Call Center Employees
Atos 2,000
Teleperformance 2,000
Experian 1,500
Convergys 1,000
Ceritex 700

(Source: Association Francaise des Relations Clients)

A. Recruitment
Call centers in France, as in other European countries, provide an increasingly
needed type of employment. For enterprises in the Paris region, print
advertising space represents some 70 percent of recruitment methods. On
average, one announcement generates one hundred calls, from which, after an
interview process, about ten people are ultimately hired.

B. Employment Length
The SMT (Syndicat du Marketing Téléphonique, des centres d'appels et des médias
électroniques), the French trade association of telephone marketing and
electronic media, has reported that length of employment contracts depends on
the nature of the job to be performed. Fifty percent of the contracts were less
than three months, ten percent were for more than three months, and forty
percent were for an indefinite period of time. In most of the companies, the
administrative functions (e.g., supervisors) are more likely to be filled
through indefinite-length contracts. For those employed under specific-length
contracts, the average length of employment is six months.
7. CONCLUSION

In conclusion, call centers generate increased productivity, efficiency, and
flexibility, increasing the overall operation of an enterprise. They reflect
renewed attention to customer service. However, studies do indicate that the
ulimate objective, directly or indirectly, is the increase of annual sales. The
call center is an organization whose task is to receive incoming calls and/or
generate outgoing calls. Companies which establish call centers seek to
integrate them as part of their overall strategy, to increase revenues and
generate profits. Companies are also increasingly tasked with identifying the
value-added of call centers and their impact on increased sales and income.

There is no doubt that call centers will be an important element in the
operation of French companies in a highly competitive business environment. Over the foreseeable future, call centers should increasingly demonstrate
profitability and provide measurable returns on investment.

In addition, call centers in France - as they expand in number and
sophistication - will provide opportunities for companies that offer products
and services needed to operate such call centers efficiently.

8. ADDITIONAL INFORMATION

A. Trade Shows

SECA 2002, European Call Center trade show
Location: Paris Expo, Porte de Versailles
PARIS
Website: www.seca2001.com
Date: 29 – 31 May 2002
Organized by: Groupe MM
31/35 Rue Gambetta
92150 Suresnes
Tel: (33) 1 41 18 86 18
Fax: (33) 1 45 06 29 81

PROGIMARK 2002
Location: CNIT La Defense
2-4 Place de la Defense
92053 PARIS LA DEFENSE
Website www.groupemm.com/progimark
Date: 12-13 March 2002
Organized by: Groupe MM
31/35 Rue Gambetta
92150 Suresnes
Tel: (33) 1 41 18 86 18
Fax: (33) 1 45 06 29 81

B. Contacts

AFRC (Association Française des Relations Clients) [French association of
client relations]

Address: c/o Intra Call Center
53 Avenue de l’Europe
80080 AMIENS
Tel: (33) 1 41 99 19 68
Fax: (33) 1 41 99 15 08
Contact: Mr. Eric DADIAN, President
Website: www.afrc.org

SMT (Syndicat National du Marketing Telephonique, des Centres d'appels et des
Medias Electronique) [trade association for telephone marketing and electronic
media]

Address: 26, Rue des Rigoles
75020 PARIS
Tel: (33) 8 36 68 68 72
Fax: (33) 1 41 86 25 00
Email: smt@softel.fr
Website: www.softel.fr/smt
Contact: Ms. Coralie Boiko

TENOR [call center commission]

Address: 17, Rue Hamelin
75783 PARIS CEDEX 16
Tel: (33) 1 45 53 70 74
Fax: (33) 1 45 53 70 84
Contact: Ms. Marie-Christine Rambaud, General Manager
Email: mcrambaud@tenor.org
Website: www.tenor.org

C. Specialized publications
Centres d’appels and Marketing Direct (published monthly)

Address: SECA (Groupe MM)
BP 141, 31-35 Rue Gambetta
92150 SURESNES
Tel: (33) 1 41 18 86 18
Fax: (33) 1 45 06 30 51
Email: francois_rouffiac@groupemm.com
Contact: Mr. François Rouffiac


D. Regulatory body

ART (Autorité de Régulation des Télécommunications) [French Telecommunications
Regulatory Authority]

Address: 7, Square Max Hymans
75730 PARIS CEDEX 150
Tel: (33) 1 40 47 70 33
Fax: (33) 1 40 47 71 98
Website: www.art-telecom.fr
Contact: Mr. Jean-François Hernandez

E. U.S. Commercial Service

The U.S. Commercial Service office at the U.S. Embassy in Paris offers market
research and market entry assistance to U.S. companies wishing to provide
products and services in France. The telecommunications sector specialist is
Myrline Mikal-Goide, who can be contacted at:

U.S. Embassy
Commercial Section
2, Avenue Gabriel
75008- Paris, France
Tel: 33-1-43-12-29-80
Fax: 33-1-43-12-21-72
E-mail: Myrline.Mikal-Goide@mail.doc.gov
Website: http://csfrance.amb-usa.fr

For additional information regarding market research specific to your products
and services, ask about our Flexible Market Research and Customized Market
Analysis programs by contacting us at 1-800-USA-TRAD(E) or www.usatrade.gov.
Both reports provide timely, customized, reliable answers to your inquiries
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accurate as of the date published. However, the Department of Commerce does not
take responsibility for actions readers may take based on the information
contained herein. Readers should always conduct their own due diligence before
entering into business ventures or other commercial arrangements. The
Department of Commerce can assist companies in these endeavors.

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