Determinants of Call Centre Location: Some Evidence for UK Urban Areas

Abstract

This paper presents new evidence concerning the spatial distribution of UK call centre activity and analyses the determinants of this distribution. The study adopts a restructuring perspective, viewing call centre growth as a strategic response by companies seeking to develop competitive advantage and a process that is changing the spatial division of labour. The data indicate that there is an uneven spatial distribution of call centre activity in the UK. The results of econometric models, utilising Tobit and negative binomial regression techniques, suggest that regional aid, population density, the existing spatial division of labour and a large local labour force have a positive influence on call centre activity. Surprisingly, there is no evidence that labour costs influence call centre location.