INDUSTRY Secretary Patricia Hewitt today warned Hampshire's army of call centre workers to improve their skills - or risk losing jobs to India and the Philippines.

Ms Hewitt insisted call centres have a bright future in this country and will employ one million people within three years.

But in a long-awaited report on "offshoring", she warned that British staff lacked vital "soft skills" such as communication and customer service.

She also raised the alarm over "the frustration of being put on hold for ages" and claimed the call centre industry, which employs about 5,000 across the county, suffers from a poor image.

Earlier this year, the Daily Echo revealed how unions feared more than 200,000 financial services jobs could be moved overseas by 2008, with a devastating impact on Hampshire's economy.

A growing number of local and national companies are outsourcing large numbers of call centre jobs to India.

Norwich Union announced 130 jobs were to go by the end of the year from its office at Grosvenor Square, Southampton.

Staff at Lloyds TSB's inquiry centre at Whiteley are also anxious after it emerged that the bank has a pilot scheme in Bangalore.

Unveiling the report in London today, Ms Hewitt demanded call centre firms boost training and qualifications at every level, from the most junior staff to management.

She said: "Call centres can be incredibly quick and efficient ways of dealing with companies - for example, helping us to buy train tickets, check our bank balance, or book a holiday. But we've all experienced the frustration of being put on hold for ages or just not being able to reach the right person in the company.

"Improving the customer service and skills of our call centres are the best ways of preparing for the future."