A Promise Kept

Virginia's southwest "Promise Region" attracts the booming teleservice industry.

By Kimberly D. Acreback

To expand its economic base far beyond its coal-mining tradition, rural southwest Virginia has tapped into the fast-growing teleservice industry. This sector, which has undergone dramatic change and growth in the last five years, has already had a tremendous impact on the region, thanks to the targeted efforts of the Virginia Coalfields Economic Development Authority (VCEDA).

Virginia's General Assembly created VCEDA in 1988 when legislators saw the writing on the wall for the natural resource industry. The General Assembly's prediction was accurate; coal mining lost 10,000 jobs in 10 years. The development authority now works to expand the economic base of seven southwestern counties (Buchanan, Dickenson, Lee, Scott, Wise, Russell and Tazewell) and the city of Norton, otherwise known as the Virginia "Promise Region." One of VCEDA's primary targets is attracting inbound customer service (call) centers.

According to Sandy Ratliff, marketing manager for VCEDA, companies now realize that labor is their greatest expense. Also, these firms need reliable, friendly people who can solve problems or gather information over the phone.

"Many companies have found that going into rural areas allows them to lower their operating costs while improving their quality of labor," she said.

Key players, such as Travelocity and Verizon must have recognized this when they recently selected southwest Virginia as the site for their inbound call centers. TeleCorp PCS, which is AT&T's largest wireless affiliate, and VeriSign, Inc., the nation's largest registrar of Internet domain names, also have call centers located in the region.

Travelocity, the nation's leading travel Web site, began operations with approximately 145 employees in the Dickenson County Technology Park in July 2001. By summer 2002, it plans to employ 450-500. TeleCorp plans to hire 300 new employees and VeriSign created just over 100 new jobs.

"In most places, call center employment is like a revolving door, people coming and going all the time," Ratliff said. "In the 'Promise Region,' turnover rates are so low they break records." In addition to reduced turnover, call centers located in the region have experienced higher productivity. Verizon's directory-assistance division, for example, repeatedly breaks performance records.

Terrell B. Jones, president and chief executive officer of Travelocity said, "We were convinced right away that this location was ideal for us. We've found a very ready and able workforce and an enthusiastic community that has welcomed us with open arms." Company-wide, Travelocity serves more than 27 million members and employs more than 1,000 customer-service professionals.

Ratliff believes that the support offered by VCEDA is another reason companies are choosing the Promise Region. VCEDA offers fixed-asset funding at interest rates below prime, construction of buildings, installation of utilities, direct loans, and flexibility in repayment. Some companies are even able to defer payments for up to two years.

"We're not sitting around waiting for companies to find us. We have 23,000 people here actively looking for work. We are creative and no place is more business-friendly," she explained.

The Promise Region is small enough that it's likely a mayor may drop in to see what he can do for you. Yet, technology-wise, the area has most anything a big city will offer. For instance, the region boasts a state-of-the-art infrastructure with fiber optics. Additionally, there are three technology parks and numerous shell structures ready for customization. VCEDA even has a ready-to-go call center space of about 11,000 square feet and is in the process of building a multi-tenant structure targeted at information or technology-based companies.

The region also offers strong family values, a solid sense of community, a low crime rate, safe public schools, low-cost housing and exceptional recreation. These factors further influenced Travelocity's choice of rural southwest Virginia. As Jim Marsicano, Travelocity's executive vice president of sales and service, said, "We want to sponsor the softball team and participate in the band uniform drive and all the things that make it so compelling to be a real part of the community."

Because it offers a ready work force with a strong work ethic, cutting-edge technology parks, and the many benefits of a rural location, any company looking for a home, particularly for its customer service center, would be wise to take advantage of the promise Southwest Virginia provides.

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