This is the headline in today's Tucson paper. Call centers have been a big employer in Tucson historically and they've lost a lot of those jobs lately. Nice to see some jobs staying home.
Citigroup call center will bring 1,300 jobs Hiring process begins in April at UA tech park By David Wichner ARIZONA DAILY STAR Financial giant Citigroup will open a customer-service operation here that will be among Tucson's largest call centers, the company announced Monday. When it reaches full employment by the end of 2005, the new Citi Cards center on the far Southeast Side will employ up to 1,300 people in full- and part-time jobs - an 8 percent to 10 percent increase in a local industry that employs an estimated 13,000 to 16,000. The Citi Cards center will occupy a 116,000-square-foot building previously leased as a call center by Convergys Corp. at the University of Arizona Science and Technology Park, 9060 S. Rita Road. Citi Cards' Tucson employees will handle customer service, collections and fraud operations for its credit card business, the company said. Employees will handle both incoming and outbound calls. The company plans to start accepting applications by the end of April. In initial discussions with tech park officials, Citi Cards officials indicated full-time workers at the new call center would earn an average of $33,000 annually in wages and benefits, said Bruce Wright, UA associate vice president for economic development and CEO of the tech park. On Monday, a company spokeswoman would not discuss wage levels except to say that they will be competitive in the industry. Assuming that benefits account for about 25 percent to 30 percent a worker's salary - and considering that the $33,000 average includes management positions - those wages are about in line with the local industry average of around $9 an hour. Tucson and the UA tech park were just what Citigroup was looking for, both in terms of the building and the availability of a skilled work force, said Maria Mendler, a spokeswoman for New York-based Citigroup Inc. "Tucson and the tech park in particular really provided us with what we needed," Mendler said. "We need to have continuity of business and a good employee stream, and we found lots of positives in Tucson at that particular location." Citi Cards plans to upgrade the building to meet its needs and open the center sometime this summer, Mendler said. It will employ 300 to 400 workers by year's end and reach 1,300 full- and part-time employees by the end of 2005, she said. Citigroup, which ranks sixth on the 2003 Fortune 500 list of largest companies, will be the third Fortune 500 company at the UA tech park. The others are IBM Corp. and Raytheon Co. The new jobs are welcome at the park, where Convergys employed about 400 until it shut one of its two local call centers late last month, the UA's Wright said. The fact that another Fortune 500 company chose Tucson makes Citigroup's choice even more significant, Wright said. "From a public relations point of view, it's a very strong statement about Tucson," he said. The new Tucson center is part of a nationwide expansion of Citi Cards' customer service operations, which also includes expansion of existing sites, Mendler said. The company, which operates more than 30 call centers in North America, recently announced the addition of 650 positions at a Boise, Idaho, call center that currently employs 1,100, Mendler said. Other Western call center locations include Albuquerque; The Lakes, Nev.; and Salt Lake City, she said. Some of the company's call centers employ more than 2,000 workers. Mendler would not say what other communities were in the running for the new call center. Citi Cards' arrival signals an uptick in call center employment after a period of relative stagnation, a local teleservices industry official said. "That's a big one, and this should bode well for the community," said Paul Hawkins, chairman of the teleservices industry group of the Information Technology Association of Southern Arizona. Call center job losses to overseas outsourcing have been offset by the addition of new jobs and centers, including a 510-worker operation that insurer GEICO opened last year near East Speedway and North Kolb Road. In the past year, the parent companies of Convergys, Intuit and America Online have moved jobs to India, mostly to take advantage of lower labor costs. "We haven't lost a lot of jobs, but we do have that issue of sending jobs overseas," said Hawkins, who is call center manager for the Communications Services for the Deaf in Tucson. Citi Cards told park officials of its decision to locate here on Friday, after six to eight weeks of intense negotiations, Wright said. Landing Citi Cards was the culmination of a five-month, joint recruitment effort including officials of the tech park, the Arizona Department of Commerce, the Greater Tucson Economic Council, the city of Tucson Office of Economic Development and Pima County Development Services. Competitive lease pricing, the ready availability of the right kind of space, the ability to bring the call center online quickly and the availability of a strong skilled labor force helped the tech park seal the deal, park officials said. "This went way beyond selling simply bricks and mortar," said John Grabo, the tech park's director of marketing and international programs. "Fortune 10 companies don't take site selection lightly." A brief history l August 1994 - The University of Arizona buys the 2 million-square-foot IBM complex at South Rita Road and Interstate 10. September 1995 - State, county and city governments pledge $4 million in incentives to attract Microsoft's technical support center to 9060 S. Rita Road. February 1996 - Microsoft signs a 10-year lease. February 1997 - Microsoft announces it is pulling out of the building and subleasing it to call center operator Keane. February 2001 - Keane sells the 675-employee call center operation to Convergys, which runs one local call center. September 2003 - After moving hundreds of jobs out of Tucson, Convergys says it will pull out of 9060 S. Rita Road and keep open its other call center. March 2004 - Citi Cards announces its move to 9060 S. Rita Road ° Contact reporter David Wichner at 573-4181 or wichner@azstarnet.com. |