Mergers have proven extremely profitable for a number of companies in recent years, with the lower consumer spending throughout the financial crisis prompting many to combine forces in order to gain access to a wider network of consumers and revenues. One of the most high profile has been the merge of Orange and T-Mobile in 2010 to create mobile network Everything Everywhere (EE), with the agreement making the new firm one of the most influential in British telecommunications.
However, mergers do have a downside – in towns and cities where both parties in the agreement already have shops closures of one store to increase profits can lead to an increase in vacancy rates and unemployment. This was the case for EE, which cut 1,200 jobs during the initial restructuring process which saw the closure of 80 stores in the last year alone, and a further 550 non-frontline roles during the rollout of the 4G network.
Fortunately, it appears that the leap in the network’s popularity as a result of the merger has led to a reconsideration of the store closure policy, with EE pledging to open 50 new shops in the near future. This, according to the firm, is to encourage consumers to buy directly from EE stores rather than going through a third party retailer such as Phones 4U or Carphone Warehouse.
Yet as well as increasing its retail footprint, EE is determined to improve its customer service offer by creating up to 1,000 jobs in the UK. Chief executive Olaf Swantee revealed that he wishes to bring more call centre operations back to the UK, rather than outsourcing heavily to areas such as South Africa and the Philippines, in order to help customers deal with more complicated issues relating to their smartphones or tablets.
Although simple transactions will still be dealt with by overseas call centre staff, the move to bring operations back to the UK is predicted to increase consumer loyalty and provide a higher standard of service.
Mr Swantee says; “Within 18 months, I want to be able to say that EE has done for customer service in the UK what it has done for networks.
“UK call centres’ performance has been shown to exceed that of overseas contact centres.”
The first 250 jobs will be created in Northern Ireland, with this process expected to begin in spring. Yet at present, it is unclear how many roles will be created for in-house EE staff as many positions are expected to be outsourced to call centre operator Convergys – which in turn would mean a lift in employment in Newcastle and Edinburgh.
With mobile communications now playing a greater role in business than ever before, EE’s expansion is sure to benefit not only the local areas in which stores and call centres are opened, but also the UK’s push towards full economic recovery.
