4/26/2018 pace convention & expo | april 15-18, 2018 ... 2018...500 500 450 450 350 300 300 280...

14/26/2018 PACE CONVENTION & EXPO | APRIL 15-18, 2018 | ATLANTA, GA

PACE CONVENTION & EXPO | APRIL 15-18, 2018 | ATLANTA, GA 24/26/2018

A Market Update on Call Center Locations Trends

4/26/2018 3PACE CONVENTION & EXPO | APRIL 15-18, 2018 | ATLANTA, GA

MEET YOUR TEAM

Keith Weaver

Director, Business

Intelligence

Senior Associate,

Brokerage Services

Grant Whittle

Managing Director,

Brokerage Services

Jarrett Dunaway


OVERVIEW

1. History of the Call Center Industry

2. Todays Marketplace

A. United States Outlook 2018

• Largest Call Centers Opened or expanded in 2017

• Hot Markets

• United States Wage Rate Trends

B. Global Outlook 2018

• Wage Rate Trends Internationally

• Largest Call Centers Opened or expanded in 2017

3. Where is the Industry Headed


HISTORY OF CALL CENTERS

1960’s & 1970’s The Development of the First Call Center’s

• The First known Call Center: Private Automated Business Exchanges (PABX) • The Rockwell Galaxy – Continental Airlines

1980’s Call Centers becomes a True Business

• First use of the Term Call Center was coined by Data Communications.• Large companies started to enter the industry. • The Predictive Dialer came into existence.

1990’s The Golden Years & Offshoring Begins

• The Rise of the Midwest• Relatively Cheap Labor, Cheap Real Estate, High Unemployment• Technological Advances in the Industry • Dotcom Era

• Interactive Voice Response• I.P. Based communications

• Ireland, The Philippines, China & India

2000’s Offshoring Continues & The Following Backlash

• The Rise of the Midwest• Relatively Cheap Labor, Cheap Real Estate, High Unemployment


U.S. OUTLOOK 2018Call Centers that opened or expanded in 2017

29,983

17,213

8,775

5,570 5,498

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Southeast Southwest Midwest Northeast West

Number of Customer Representative Positions Created per Region 2017

Southeast Southwest Midwest Northeast West


U.S. OUTLOOK 2018Top 20 largest call center opened or expanded in 2017

Top 10 Largest Call Center Announcements in the United States (2017)

1 Raidal 3,000 Melbourne FL Expansion

2 C3 2,400 Tuscon AZ Expansion

3 Allstate Insurance 2,250 Charlotte NC Expansion

4 Infosys 2,000 Raleigh NC New Site

5 Strategic Financial Solutions 1,500 Amherst NY New Site

6 Navy Federal Credit Union 1,200 Winchester VA Expansion

7 C3 1,200 McGregor TX Expansion

8 Cognizant 1,000 Irving TX New Site

9 Diversified Collections Inc. 1,000 Louisville KY New Site

10 Teleperformance 1,000 Mutli Site FL Expansion

11 - 20 Largest Call Center Announcements in the United States (2017)

11 Alorica 830 Ownensboro KY New Site

12 Royal Phillips 800 Nashville TN New Site

13 Conduent 750 Rochester NY Expansion

14 Empereon Marketing 750 Waco TX New Site

15 Paychex 625 Henrietta NY New Site

16 Bookings.com 600 Toronto ON New Site

17 Radial 600 Eau Claire WI Expansion

18 Alorica 600 High Point NC Expansion

19 Alta Resources 600 Fort Myers FL Expansion

20 Lowes 600 Wilkesboro NC Expansion


HOT MARKETS ACROSS THE US 2017-2018


SITE SELECTION DRIVERS

Demographics Wage Rates Local Businesses

• Saturation Rate• Unemployment Rate• Bilingual Availability• Educational Attainment

• CSR Wages• Telemarketer Wages• Entry Level/Experienced

• Military Bases• Universities• Competitors


GLOBAL OUTLOOK 2018GDP Per Capita (PPP)


GLOBAL OUTLOOK 2018GDP Per Capita (PPP) - Continued


GLOBAL OUTLOOK 2018Total number of call centers opened in 2017

215

4436

2819 18 14

9 5 3

0

50

100

150

200

250

UnitedStates

WesternEurope

LACA Phillipines India Asia-Pacific Canada EasternEurope

Africa MiddleEast

Number of Sites Opened or Expanded by Country 2017


GLOBAL OUTLOOK 2018167,000 customer service representative positions were created in 2017

66,231

30,950

24,805

16,42912,930

6,6003,325 2,750 2,680

2900

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Number of Customer Service Representative Positions Created 2017


GLOBAL OUTLOOK 2018Top 20 largest call centers - Nearshore

4,500

2,500

1,020

500 500 450 450 350 300 300 280 200 200 200 200 150 120 100 100 50 -

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Number of Customer Service Representative Positions Created Per Employer 2017

5,530

3,620

1,020 950 750

200 200 200

-

1,000

2,000

3,000

4,000

5,000

6,000

Jamaica Costa Rica Guyana Peru Nicaragua Argentina Cuba Puerto Rico

Number of Customer Service Representative Positions Created by Country 2017


GLOBAL OUTLOOK 2018Largest call centers - Nearshore

NearshoreTop 10 Call Center Projects (2017)

Company Number of Jobs City Country Type

Alorica 4,500 St. Catherine Jamaica New Site

Amazon 2,500 San Jose Costa Rica Expansion

Qualfon 1,020 Guyana Expansion

HGS 500 Kingston Jamaica Expansion

Teleperformance 500 Lima Peru New Site

Sitel 450 Peru Expansion

Tek Experts 450 Managua Nicaragua Expansion

Smile Direct Club 350 San Jose Costa Rica Expansion

IBEX Global 300 San Jose Costa Rica New Site

Conduent 300 Managua Nicaragua Expansion

NearshoreNumber 11 – 20 Call Center Projects (2017)


Santander 280 Jamaica New Site

Microsoft 200 San juan Puerto Rico Expansion

Atentto 200 Chaco Argentina New Site

Collective Solution 200 Montego Bay Jamaica New Site

IQOR 200 Trinidad Cuba Expansion

Feuji 150 San Jose Costa Rica Expansion

Transperfect 120 San Jose Costa Rica New Site

AstraZeneca 100 San Jose Costa Rica New Site

Roche 100 San Jose Costa Rica New Site

Advantage Communications 50 Portmore Jamaica New Site


GLOBAL OUTLOOK 2018Top 20 largest call centers - Offshore

-

2,000

4,000

6,000

8,000

10,000

10,000

4,000

3,000 3,000 2,800

1,200 1,000 1,000 1,000 1,000 800 675 600

550 500 500 500

Nu

mb

er o

F Em

plo

yee

s /

Co

mp

any

Company Name

Number of Customer Service Representative Positions Created per Country 2017

15,175.00

11,050.00

2,500.00

1,200.00

-

2,000.00

4,000.00

6,000.00

8,000.00

10,000.00

12,000.00

14,000.00

16,000.00

Philippines India Malaysia Nigeria

Number of Customer Service Representative Positions Created per Country 2017


GLOBAL OUTLOOK 2018Top 20 largest call centers - Offshore

OffshoreTop 10 Call Center Projects (2017)


Tata Consulting Services 6,000 Philippines Expansion

[24]7 3,000 India Expansion

Tata Consulting Services 3,000 Patna India New Site

C3 2,800 Philippines Expansion

Aegis 2,000 Malaysia New Site

Aegis 2,000 Ranchi India New Site

IsonBPO 1,200 Kwara State Nigeria New Site

Patra Corporation 1,000 India New Site

Tata Consulting Services 1,000 Patna India New Site

Accenture 1,000 Cebu Philippines Expansion

OffshoreTop 10 Call Center Projects (2017)


Alorica 1,000 Makati Philippines New Site

Fintru 1,000 Philippines New Site

Accenture 800 Cebu Philippines New Site

Sitel 800 Baguio Philippines New Site

Merck 675 Philippines Expansion

PMAX Global 600 Cebu Philippines New Site

Mattsenkumar 550 Jaipur India New Site

Teleperformance 500 Penang Malaysia New Site

Uber 500 Hyderabad India Expansion

Sykes 500 Cebu Philippines New Site


WHERE IS THE INDUSTRY HEADED?

“No Matter your contact Center ’s size, the fundamentals of effective management remain the same: having the right number of properly skilled people and supporting resources in the right place, at the right time, to handle an accurately forecasted workload… are the fundamentals of the organizations success” – ICMI: Workforce Management for Small and Midsized Contact Centers

1. Have the Right Number of People.

2. Have the Right Tools.

3. Have it at the Right Time.

4. Have it at the Right Place.

5. Your chances of success are High.

Continue to stay true to the fundamentals:



1. High End Customer Service Jobs are coming back to America and Western Europe.

A) The Public Perception of Offshoring (And Nearshoring) Jobs has Worsened. English Remains the language of Global Commerce.

i. They do not understand what I am saying.

ii. They will not be able to help me with my problem.

B) Technological Advances have Made it Feasible to Bring Jobs Back.

i. Cloud Technology

- Cost Effective Data Storage Available and Accurate

i. Ability to offset Labor Cost through Technological Advances.

• Chat Bots

• IVR’S• A.I. Ability to handle complete sentences and direct us to the right person


Rome was not built in a day and the BPO industry will not be significantly changing tomorrow.

The major Offshore & Nearshore BPO destinations are not going away anytime soon

1. China

2. India

3. The Philippines

4. Latin America – Central America

Why?

- Lower Wage Rates & Fixed Costs

- Educated Workforce

- Contracts are in Place



THANK YOU


Q & A

4/26/2018 pace convention & expo | april 15-18, 2018 ... 2018...500 500 450 450 350 300 300 280...

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