AO World, the online electricals retailer, has announced plans to outsource approximately 200 call centre roles from its UK operations to South Africa. The move will primarily affect employees at its customer service centre in Bolton, Greater Manchester, where around 350 staff currently work.
Details of the Outsourcing Plan
The company confirmed that the decision is part of a broader strategy to reduce costs and improve operational efficiency. AO World expects the transition to be completed by early next year. Affected employees will be offered redundancy packages or the opportunity to apply for other roles within the company.
Impact on Workforce
Unite the Union, which represents some of the affected workers, expressed disappointment at the decision. The union's national officer said the move was a 'betrayal' of the workforce in Bolton, especially given the company's previous commitments to UK jobs. AO World stated that it would work closely with staff and unions to ensure a fair process.
Company's Rationale
AO World's chief executive, John Roberts, said the decision was not taken lightly but was necessary to remain competitive in a challenging retail environment. He highlighted that the company had invested significantly in its UK operations over the years but needed to adapt to changing market conditions. The outsourcing is expected to generate substantial cost savings, which will be reinvested into the business.
Reactions and Broader Context
The announcement comes amid a wider trend of UK companies moving customer service roles overseas to cut costs. However, it has sparked criticism from politicians and unions who argue that it undermines the UK's service sector and local economies. Bolton Council expressed concern over the job losses and called on AO World to reconsider its decision.
AO World assured customers that the quality of service would not be affected by the change. The company plans to invest in training for the South African staff to ensure they meet the company's standards. The retailer also emphasised that it remains committed to its UK headquarters and distribution centres.
