TSC creates 200 new jobs in city.

SCOTTISH contact centre operator Telecom Service Centres has opened its first city centre office, creating 200 new jobs in Glasgow's Bath Street.

Ken Hills, chief executive, said the facility has been established to service a hefty contract with an internet communications provider, whose identity he declined to disclose. The move is a strategic departure for 10-year-old TSC, which has based its success mainly on rural centres since its launch in Rothesay in 1994. The firm has since expanded into Dunoon, Greenock, Falkirk, Aviemore and most recently, Shawbost on Lewis, where it is running a new consumer advice service for the Department of Trade and Industry. Hills hailed the Glasgow expansion as further proof of TSC's vigour at a time when much of the UK contact centre industry has been losing business to overseas competitors, notably in the Indian sub-continent. He said: "We are very pleased to be bringing jobs to Glasgow.

I've always maintained that if contact centre companies have the technological and people skills, they can offer a viable alternative to the overseas operations – and so this has proved. There is more business to be won out there and we are working very hard to secure it." Less than 15% of the UK's call centre operations are outsourced and Hills believes there is "huge scope" for growth. TSC now has over 1900 UK staff. Hills indicated that further city openings could be on the agenda. "Property is generally more expensive but in salary terms there is not a huge difference in costs," he said. TSC made a £3.7m profit on £31.2m turnover in 2003. Hills said "things have slowed down a bit since", amid "difficult" market conditions.

However, he added that business has picked up in the last three months and anticipates "significant growth" in the bottom line next year. The company is now vying with Rangers owner David Murray's Response Handling for the status of Scotland's biggest call centre business, after Response agreed to buy the underperforming call centre business of telecoms carrier Thus earlier this month. Hills – who joined TSC from Thus earlier this year – said there has been no approach from Murray to buy TSC. The Glasgow Herald (20/07/04)