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

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2 A Market Update on Call Center Locations Trends 4/26/2018 PACE CONVENTION & EXPO APRIL 15-18, 2018 ATLANTA, GA 2

3 MEET YOUR TEAM Keith Weaver Director, Business Intelligence Grant Whittle Senior Associate, Brokerage Services Jarrett Dunaway Managing Director, Brokerage Services 3

4 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 Where is the Industry Headed 4

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7 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 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 7

8 U.S. OUTLOOK 2018 Call Centers that opened or expanded in 2017 Number of Customer Representative Positions Created per Region ,000 30,000 29,983 25,000 20,000 17,213 15,000 10,000 5,000 8,775 5,570 5,498 - Southeast Southwest Midwest Northeast West Southeast Southwest Midwest Northeast West 8

9 U.S. OUTLOOK 2018 Top 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 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 9

10 HOT MARKETS ACROSS THE US

11 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 11

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14 GLOBAL OUTLOOK 2018 GDP Per Capita (PPP) 14

15 GLOBAL OUTLOOK 2018 GDP Per Capita (PPP) - Continued 15

16 GLOBAL OUTLOOK 2018 Total number of call centers opened in 2017 Number of Sites Opened or Expanded by Country United States 44 Western Europe LACA Phillipines India Asia-Pacific Canada Eastern Europe Africa Middle East 16

17 GLOBAL OUTLOOK ,000 customer service representative positions were created in 2017 Number of Customer Service Representative Positions Created ,000 66,231 60,000 50,000 40,000 30,000 30,950 24,805 20,000 16,429 12,930 10, ,600 3,325 2,750 2,

18 GLOBAL OUTLOOK 2018 Top 20 largest call centers - Nearshore Number of Customer Service Representative Positions Created Per Employer 2017 Number of Customer Service Representative Positions Created by Country ,000 4,500 4,000 4,500 6,000 5,000 5,530 3,500 3,000 2,500 2,000 2,500 4,000 3,000 3,620 1,500 1, , ,000 1,000 1, Jamaica Costa Rica Guyana Peru Nicaragua Argentina Cuba Puerto Rico 18

19 GLOBAL OUTLOOK 2018 Largest call centers - Nearshore Nearshore Top 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 Nearshore Number Call Center Projects (2017) Company Number of Jobs City Country Type 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 19

20 Number of Employees / Company GLOBAL OUTLOOK 2018 Top 20 largest call centers - Offshore Number of Customer Service Representative Positions Created per Country , Number of Customer Service Representative Positions Created per Country , ,000 8,000 10,000 14, , , ,000 4,000 10, ,000 2,000-3,000 3,000 2,800 1,200 1,000 1,000 1,000 1, , , , , , , Company Name - Philippines India Malaysia Nigeria 20

21 GLOBAL OUTLOOK 2018 Top 20 largest call centers - Offshore Offshore Top 10 Call Center Projects (2017) Company Number of Jobs City Country Type 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 Offshore Top 10 Call Center Projects (2017) Company Number of Jobs City Country Type 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 21

22 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 Continue to stay true to the fundamentals: 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. 22

23 WHERE IS THE INDUSTRY HEADED? 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 23

24 WHERE IS THE INDUSTRY HEADED? 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 Why? 1. China 2. India 3. The Philippines 4. Latin America Central America - Lower Wage Rates & Fixed Costs - Educated Workforce - Contracts are in Place 24

25 THANK YOU 25

26 Q & A 26