There must have been some mistake. Brightly painted walls, fresh open plan offices, and staff with smiles on their faces? Surely this isn't what life is supposed to be like inside a call centre.

For critics of the much-maligned industry, call centres are for the underpaid, under-satisfied and under-skilled.

It's a sector Bradford would be better off doing without, a flash-in-the-pan craze driven by the trend towards telesales and a shaky foundation upon which to build a city's employment base.

The recent admission of Abbey National that it wants to shift its call centre functions overseas was just the latest blow. It's feared other companies, desperate to cut costs, may follow suit.

But critics would be well advised to take a look around the smart, modern offices of Loop Customer Management, and see the alternative prospective.

This business, which has just announced a new contract to supply customer management functions for a major international client, is bucking the trend. Once the new building at its site just off the Thornbury roundabout is up-and-running at the end of the year, Loop will employ more than 850 people in Bradford, and the number is growing.

And, far from the 21st Century alternative to a Victorian sweat shop, Loop has already established a reputation as a great place to work.

After all, it is the only call centre to feature in two leading surveys of the top 100 places to work in the UK, and has scooped a string of other accolades and distinctions.

Quite an achievement considering the business has only been up-and-running for three years. It was established from the customer service department of Bradford-based Yorkshire Water, and remains part of the Kelda Group. Softly spoken Glaswegian Alastair Thomson, a law graduate and trained accountant, joined Loop at the start of the six to nine-month process to create the new business.

He admitted there was some scepticism among the staff about the move from Yorkshire Water's headquarters in Halifax Road.

But once the contract to continue supplying the water firm's customer service was secured, Loop was immediately confident it had a bright future.

"It was a relatively easy job because there was a lot of interest and excitement at the time," said Mr Thomson. "All the people were up for it, but it was a big process and the directors held face-to-face briefings with every member of staff."

Mr Thomson said the firm considered other sites around Bradford before choosing the Thornbury business park.

And that decision was made with one eye on the company's big expansion plans.

"Bradford was ideal for us," he said. "We were very keen to retain the staff that we had working for us because they were very good at what they did. They were already leading the water industry in terms of customer service and Yorkshire Water was to remain a major client.

"We chose here because there would be space to expand. My philosophy has always been that if you only do what you need to do to get through today, then you will never get to tomorrow. We needed to think ahead and about what we would need in the future."

And Loop certainly has no regrets about committing its future to Bradford.

Since starting off with just Yorkshire Water as its major customer, it has gone on to win contracts to provide customer management for B&Q, the Merseyside Fire Service, the National Blood Service and the Welsh Tourist Board, among others. To accommodate the latter - which caused some controversy in the principality - Loop has since opened a Welsh language centre in Bangor.

Loop is an organisation which loves its snappy catchphrases, and Mr Thomson makes no apologies for stressing the "great customer experiences through great people" strapline.

But he insists it's much more than a throwaway line, pointing to several million pounds worth of investment in staff training.

And Loop has also become increasingly concerned about its community role, taking part in a string of initiatives which help local people and boost morale among the workforce. "A lot of companies stop at having a nice, positive slogan on the back of their lorries," said Mr Thomson. "Well, we are absolutely passionate about our philosophy. We've based the entire structure of our business around it. If we are not training and investing in our people, then how can we expect them to improve?"

And Mr Thomson said high levels of investment did not necessarily mean Loop was unable to compete with its cheaper rivals.

"I have always said that, if you don't do something properly then, in the long run, it is a more expensive way of doing business. We have to have the courage of our convictions and believe that, in the long-term, it is cheaper. We are competitive because we invest in training rather than spending money on recruiting new people to replace those who are leaving.

"Every one who comes here is very, very impressed by what we do. It is not just about having a pretty, shiny building, it is our investment in people that makes us stand out."

But then cost has become such an important factor for many businesses rethinking their call centre operations.

Mr Thomson said centres in the Far East were often capable of undercutting UK rivals by around 20 to 30 per cent. And he admitted that the off-shoring option was suitable for some firms which required a straight forward call centre where staff can follow a simple script.

"But that is not what we are about," said Mr Thomson. "When you speak to someone in a call centre half way round the world, then it is not the same customer experience. As soon as you ask a question that does not fit the script, then you can hear the panic. It's about horses for courses. It has been fashionable to move your call centre overseas, but some companies are already bringing them back over here. I can see more jobs going in the UK, because some companies are happy to put the cost saving above customer care. But if it results in them losing customers then it could be the most expensive decision they have ever made."