The success of offshoring is yet to be proved, said the Department of Trade and Industry (DTI) report on the UK contact centre industry.

Despite fears over the number of call centre jobs transferred abroad, the

DTI said its research had shown that the industry was still growing within the UK.

Contact centres in the UK will employ more than one million people in the next three years, said the report which was commissioned by the government last year to calm fears over offshoring.

But it is extremely difficult to get accurate figures on the number of contact centre jobs that have been moved offshore due to the commercial nature of the information, added the report.

The cost savings of moving operations offshore were obvious in salary terms, it said. Agents in Indian call centres are paid only 10% - 15% of their UK counterparts.

"But what some organisations fail to take into account when offshoring is the cost, time and financial implications of the exercise," added the report.