Canadian Call Center Revenues Grew 28% through 2006

The Canadian call center industry saw revenues grow at a 27.7 percent average annual rate from 1998 to 2006, according to a report from Statistics Canada. The industry saw its revenue rise from $433 million in 1998 to $2.8 billion in 2006. Over two-thirds of the growth was seen in the province of Ontario.

Employment and revenue growth at Canadian calling centers has corresponded with the worldwide shift to Business Process Outsourcing (BPO) by many companies.

In Canada, call centers typically are found in smaller urban areas with higher unemployment and a relatively educated labor force, according to Statistics Canada, a national agency similar to the U.S. Census Bureau.

Most of the call centers are located in the country’s eastern provinces. In 2005, there were 15.8 call centers per 10,000 business establishments in Prince Edward Island province, 13.1 in New Brunswick province, and 8.4 in Ontario. In contrast, on a nationwide basis, there 6.8 call centers per 10,000 businesses.

Call centers are trending larger. In 2005, 42 percent of call centers were categorized as small, with 10 or less employees; 33 percent were categorized as medium size, with 10 to 49 employees; and 25 percent were large, with more than 50 employees. However from 2000 to 2005, there were 73 fewer small call centers, but 72 more medium sized centers, and 97 more centers that were categorized as large.

The report, “Trends in the Telephone Call Centre Industry,” notes that Canadian call centers no longer have the advantage of a lower dollar as competition keeps growing in India and elsewhere worldwide. The report recommends that the industry move away from price competition to offering higher value-added skills in language and technology.