The introduction of the Euro this year shows how far the European Union has come in breaking down barriers and stimulating free trade. However, U.S. businesses that fail to recognize remaining cultural differences when setting up call center operations do so at their own risk.

"Companies are in fierce competition for each customer and need to give the utmost service through phone, fax, e-mail, chat avenues and Web-related services," said Jean-Claude Goldenstein, managing partner of JCG International Inc., in Harrison, N.Y. "A customer can be turned off and go to the competition by the simplest cultural faux pas."

The European call center industry is growing larger and more sophisticated each year. There currently are 21,334 call centers in the EU, according to the European Call Center Alliance.

"Europe's call center market is thought to be worth around $9 billion," added Phil Eadon, director of marketing for County Durham Development Co. in England.

Frost & Sullivan projects the number of call centers in Europe to climb to more than 28,000 by 2006.

"The European call center industry has cast off its mid-1990s sluggishness and is exploding in size and scope," said Goldenstein. "Growth in the European Web-based call center market has been helped by the expansion of interest in e-commerce and the surge in Internet usage."

Seeking the right business strategy

U.S. businesses often make one of two mistakes when it comes to European operations. First is the belief that they can handle the tasks more efficiently from home.

"For international service-oriented companies, the call center function increasingly becomes part of the front-office channel," said Cuno de Haas, senior consultant for Buck Consultants International in the Netherlands.

As an example, de Haas cites the multilingual customer service center that Mercedes-Benz/DaimlerChrysler set up in Masstrich, the Netherlands

"Apart from the car dealer network, this facility acts as the single point of contact for customers all over Europe," said de Haas. "From here, clients are offered a wide range of services in their own language, from simple first-line support to 24/7 personal assistance. This work simply cannot be done from the United States."

Who's hot?

The UK remains the No. 1 destination for call centers, according to Goldenstein.

"Outsourcing call center functions to the UK brings significant business advantages to U.S. companies," said Eadon. "Among these are a common language and other common cultural ties. The UK has a sizable chunk - probably around 50 percent - of the European call center market, so it has a great deal of experience to offer. Access to multilingual staff also offers a distinct advantage."

De Haas keeps his eye on up-and-coming locations for the clients of Buck Consultants.

"We are not in favor of any location, other than the best for the investment projects of our clients," said de Haas. "However, regarding the competitive advantages of the Netherlands, it can be said that the country truly is at the forefront of new call center developments."

Alan Goforth is a freelance writer from Lee's Summit, Mo.