CHICAGO—Millennials hate to talk on the phone, so where does that leave call centers? Well, they've become multi-channel contact centers, and they now offer alternative customer service channels such as tweeting and live chatting. This increased level of technological sophistication is also creating jobs in North America. According to a new study by Chicago-based JLL, contact center employment in the US has grown approximately 22% in the last five years. This industry evolution has implications for real estate. Contact center operators seek new locations that provide access to skilled labor. We sat down with three contact center specialists from JLL to better understand the shifts happening in this evolving industry and what it means for real estate.

GlobeSt.com: When did JLL start a group specifically for contact centers, and why?

Kyle Harding, JLL Senior Vice President: We've had a group focused on contact centers since 2015 because the real estate needs of the industry are unique. Identifying an ideal location for a contact center requires a sophisticated analysis of the location's economic incentives, labor availability and costs, and the technological savvy of the workforce. Many contact center third-party operators look for Plug & Play facilities with specific requirements, so it's important to have the technology in place. Through our dedicated team, we have not only industry experts, but also access to advanced technology like our Blackbird system that uses virtual reality to help find the right combination of location factors. Additionally, corporations that run their own call centers want the same level of sophistication in their location decision-making; we serve both groups by offering our highly-specialized team.

GlobeSt.com: What is the difference between call centers and contact centers and why are companies becoming more interested in the latter?

Tadd Wisinski, JLL Managing Director: A traditional call center is just what it sounds like – a place where customer service representatives answer phones and help solve problems. But “always on” consumers today prefer to communicate via email, web chat, SMS texting and social media. Companies are transitioning their call centers to multi-channel contact centers in response to this growing demand for digital communications. Case in point – non-voice channel revenues by contact center operators have nearly doubled since 2011.

GlobeSt.com: How large is the contact center industry in the US? How much do you expect it to grow in the next five years?

Sam Weatherby, JLL Senior Vice President: The US has emerged as an attractive market for contact centers, thanks to our tech-savvy workforce. North American contact centers brought in $9.4 billion in revenue in 2016. That's up about 22% since 2013. The industry also employs about 2.35 million people in the US alone. We expect the contact center outsourcing industry to grow steadily over the next five years. Onshore centers will definitely have the upper hand as demand increases for technology and increasingly complex conversations with customers.

GlobeSt.com: What sort of skill set do the employees of a contact center need?

Harding: Contact center employees have always required a customer service mindset. Their role as the human voice of a brand means they need to be friendly and calm under pressure, and have effective communication skills. But today's contact center employees also need to be skilled users of technology, as they may need to utilize several digital platforms to interact with customers.

GlobeSt.com: Where are service providers most likely to find these people? If the US, which markets do you expect to benefit the most?

Wisinski: We see a big shift in the contact center industry as companies are moving operations back onshore to take advantage of the skilled labor market in the US. Many factors go into selecting the right location for a contact center, and availability of skilled labor weighs heavily on the decision. The southern region of the US has the highest density of contact center jobs – 26 out of 1,000 employees in that region work in the contact center industry. This is due in part to a lower hourly rate for employees compared to other regions. Other areas are benefiting from the industry's expansion as well. The cities where we see the most contact center employment growth include Seattle-Tacoma-Bellevue in Washington, Detroit-Warren-Dearborn in Michigan and Miami-Fort Lauderdale-West Palm Beach in Florida.

GlobeSt.com: What are the most important features or amenities needed in contact centers?

Weatherby: In most US markets, the number of open customer service representative positions heavily outnumbers the actual volume of qualified candidates. With high competition for skilled labor, employee expectations for modern workplaces is also increasing. Contemporary design and comfortable furnishings can go a long way in keeping employees happy. We see lots of companies ditching the cubicle model and instead offering a variety of work station types to cater to the different working styles of various employees. Thoughtful relaxation and recreation areas are also essential to give employees a place to reset between high periods of call volume.

GlobeSt.com: Will contact centers need unique spaces designed for a specific user? Are there existing types of buildings that will work well?

Harding: Not necessarily. Plug & Play spaces are increasingly popular as they provide convenient and efficient move-in ready centers for operators. These spaces are traditionally located in vacant buildings and have furniture and generators and ample parking in place. Plug & Play spaces are also now aiming to cater to the “live, work, play” employee base, targeting areas with amenities, gyms, and restaurants nearby. Other ready-to-go call center options are incorporating adaptive reuse elements by transforming former retail spaces and big box stores.

GlobeSt.com: When did JLL start a group specifically for contact centers, and why?

GlobeSt.com: What is the difference between call centers and contact centers and why are companies becoming more interested in the latter?

GlobeSt.com: How large is the contact center industry in the US? How much do you expect it to grow in the next five years?

GlobeSt.com: What sort of skill set do the employees of a contact center need?

GlobeSt.com: Where are service providers most likely to find these people? If the US, which markets do you expect to benefit the most?

GlobeSt.com: What are the most important features or amenities needed in contact centers?

GlobeSt.com: Will contact centers need unique spaces designed for a specific user? Are there existing types of buildings that will work well?

Instant Insights /

Contact Center Opportunities Soar in North America

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