AO World Outsources UK Call Centre Roles to South Africa

The Shift in AO World's Operations

AO World, a leading online electrical goods seller, has announced plans to outsource up to 200 UK call centre roles to South Africa. This decision is attributed to rising labour costs in the UK, with the company expecting to save approximately £4m per year as a result of this change.

Impact on UK Call Centre Roles

About 150 roles in phone sales and enquiries have already been transferred from AO's call centre in Bolton to South Africa over the last 12 to 18 months. A further 50 roles are expected to be moved, with the transition occurring as UK employees choose to leave rather than through redundancies. More than 100 roles handling complex customer queries will remain in the UK.

Financial Performance

AO World reported a significant increase in pre-tax profits, which jumped 145% to £50.5m in the year to 31 March. The company is also distributing £20m in special payments to shareholders. Sales rose 11.4% to nearly £1.3bn in the year, with a notable 17% surge in TV sales in May.

The Future of Automation

AO World is exploring the use of automation and robotics within its operations. The company conducted a small-scale trial during the year, which showed encouraging results. AO is now planning further tests in its live operations, driven by inflationary pressures and changes to national insurance and the national minimum wage.

Employment Trends

This move by AO World comes amid rising concerns about youth employment, as technology, including robotics and AI, replaces some entry-level jobs. The UK is experiencing its highest level of unemployment since the outbreak of the Covid pandemic, with young people disproportionately affected.