BT contact centre changes

BT Group PLC
27 March 2002

March 27, 2002

                             BT REACHES DECISION ON

                        NEXT-GENERATION CONTACT CENTRES

                           TO IMPROVE CUSTOMER FOCUS

  • £100 million to be spent on creating 30 next-generation multi-function
    customer contact centres.
  • Fifty three existing call centres will close within two years but 68% of
    people will relocate to neighbouring next-generation sites.
  • No compulsory redundancy and commitment to find suitable alternative roles
    for everyone who wants to stay with BT.
  • Total net effect on jobs will be a reduction of around 2,200 full-time
    equivalent posts by 31 March 2004.
  • Decision follows extensive review and consultation with unions.
  • New spend will focus on people, technology, training and working
    environment.

   BT today (Wednesday, March 27) announced the shape of its next-generation
 contact centre operation following an extensive review of its call centres and
                         consultation with the unions.

BT is to spend £100 million on developing a network of 30 next-generation
multi-function contact centres that will better meet the changing demands of its
customers.

As a result of an extensive review of call centres that handle the greatest
volume of contacts and a month-long consultation with the unions, BT has decided
to:

  • create a network of 30 next-generation contact centres, on which it will
    spend £100m over the next two years;
  • close 53 of its existing call centres during the next two years, with the
    majority of employees relocating to next-generation sites;
  • keep open eight existing sites for up to four years before they close to
    allow the transition to be managed more smoothly for relatively isolated
    centres;
  • retain a further six sites which will be used for other specialist
    functions, not directly related to next-generation work.

Patricia Vaz, BT Retail's Managing Director of Customer Service, said: "We do
not underestimate the impact of this transformation project and virtually
everyone in our existing call centre operation will be affected in one way or
another. However, we are totally committed to manage these changes sensitively
and professionally, and in line with specific principles agreed with the unions.

"We value our people very highly and will be giving them all the support we can.
We are committed to finding suitable alternative roles for everyone who wants to
remain in BT.

"Even though this will mean upheaval for many of our people, it is a step we
cannot not shy away from if we are to ensure BT's call centre operations are
kept in-house and are given the capabilities to achieve the twin goals of
industry-best customer service and increased efficiency.

"We are absolutely committed to offering the best possible customer experience
and ensuring we develop a call centre operation that will be truly world-class
and set the standard for others to follow in Europe. This project will deliver
just that - using our own people and properly-equipped centres.

Although just over 50% of existing call centre sites will close within two
years, the proportional impact on job numbers will be significantly less.

Vaz said: "In close consultation with the unions, we are exploring every
possible avenue to ensure that most people can be relocated to next-generation
sites which are within travelling distance. Where that is not possible, we are
looking at alternative options across BT Group, including non-call centre work."

The overall net effect on BT and agency jobs by the end of the two-year project
is expected to be a reduction of around 2,200 full-time equivalent posts. This
would take the number of full-time equivalent posts in BT Retail's contact
centre operation from 15,800 to around 13,600. There will be no compulsory
redundancy.

The closures will be implemented in seven, overlapping phases over the two
years, with six months notice being given in all cases. The first closures are
expected to happen in October. Wherever possible, closure sites where further
work is needed to identify relocation or redeployment options will be left open
until the latter part of the two-year programme.

The new multi-function centres will cover a range of services for residential
and small business customers. This will provide greater flexibility and robust
processes to ensure customers get a consistently high quality of service,
irrespective of which centre they contact. They will also give the customer a
greater choice of how to interact with BT.

Carol Borghesi, Director of the next-generation contact centre project said: "We
will be spending £100 million to ensure our people get the best training, have
the best working environment and can exploit cutting-edge technology to deliver
the kind of services our customers want.

"The quality of our call centres is critical to achieving our goal of being the
UK's customer service champion within two years. Creating a smaller network of
leading-edge multi-function contactcall centres is key to making dramatic
improvements to the quality of customer service.

"Every year about 10 per cent of people working in our contact centres leave by
their own choice to take up positions elsewhere in company or leave BT
altogether. This natural wastage, over the two-year implementation period, gives
us scope and flexibility and will help with redeployment.

"In parallel with these moves, we are already implementing a raft of other
initiatives to improve the standard of our service to the customer. Over the
past 18 months, we have made much progress in improving the standard of service
offered by our call centres. These include a 35 per cent reduction in repeat
contacts, a fall of 50 per cent in the number of abandoned calls and a 10 per
cent improvement in the number of calls answered promptly. But we have now
reached a watershed, and, to achieve any further dramatic improvement, we have
to re-appraise completely the way in which we organise and run our call centre
operations.

"Everything we are currently doing and planning is geared to meeting the
changing demands of the customer, while also ensuring that we maintain our
commitment to our people in this period of significant transition."

                                      Ends

           Malcolm Williams, BT Retail PR manager: Tel [phone]

         Edward Townsend, Le Fevre Communications: mobile [phone]

          Claire Dumican, Le Fevre Communications: mobile [phone]

Inquiries about this news release should be made to the BT Group newsroom on its
 24-hour number: 020 7356 5369. From outside the UK, dial [phone]. All
                 new releases can be accessed at our web site:

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                                Note to editors

BT Retail is one of the businesses that make up the BT Group. Others include BT
Ignite, BT Wholesale, BTopenworld, BT Affinitis and Btexact Technologies. It is
the UK's leading communications service provider and the prime channel to market
for the other businesses in the Group. It has 21 million residential and
business customers, a turnover of £11.8bn (in the last full financial year) and
around 50,000 employees.



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