AO World moves 200 UK call centre roles to South Africa, cites rising costs
10 reported
AO World, the online electrical goods retailer, announced it is outsourcing up to 200 UK call centre roles to South Africa, citing rising labour costs. The company reported a 145% jump in pre-tax profits to £50.5m for the year ending 31 March and is distributing £20m in special payments to shareholders. About 150 roles in phone sales and enquiries have already been moved from its Bolton call centre to South Africa over the past 12 to 18 months, with an additional 50 expected to transfer as UK employees leave voluntarily. More than 100 roles handling complex customer queries will remain in the UK. Founder and CEO John Roberts blamed government policies for increasing employment costs, stating the shift is necessary to keep prices lower for shoppers. The company’s overall employee numbers fell by 340 to 2,800 during the year due to efficiencies across the business.
What’s reported
AO World is outsourcing up to 200 UK call centre roles to South Africa.
The move is blamed on rising labour costs and inflationary pressures.
Pre-tax profits jumped 145% to £50.5m in the year to 31 March.
AO is handing £20m in special payments to shareholders.
About 150 roles have already been moved from Bolton to South Africa; 50 more are expected to transfer.
More than 100 complex customer query roles will remain in the UK.
Overall employee numbers fell by 340 to 2,800.
Founder John Roberts said government decisions are making employment costs higher and less flexible.
AO conducted a small-scale trial of robotics in warehousing and is beginning further tests.
Sales rose 11.4% to nearly £1.3bn; TV sales surged 17% in May.
Key figures
John Roberts, founder and chief executive of AO World
Simon Wolfson, boss of Next (mentioned as echoing criticism)
Sources: The Guardian
