Vodafone says it is spending $10 million on a team of New Zealand-based ‘X Squad’ customer service agents after admitting past failings in customer support.

The company says its new agents will be able to handle more complex problems and in many cases resolve them during the first call.

Earlier this year Vodafone outsourced some of its local contact centres to Tech Mahindra, an Indian services company.

But after the business was acquired from the UK-based Vodafone Group by Infratil and Brookfield, funds were freed to invest in much needed local support.

Vodafone CEO Jason Paris says almost all of the $10 million support budget will be spent on salaries. He says the commitment to support will grow again next year.

Some of the X Squad agents will be employed by Vodafone, others will be on the payroll of Tech Mahindra and Probe, another outsourced call centre business.