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
4/26/2018 4PACE CONVENTION & EXPO | APRIL 15-18, 2018 | ATLANTA, GA
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
4/26/2018 7PACE CONVENTION & EXPO | APRIL 15-18, 2018 | ATLANTA, GA
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
4/26/2018 8PACE CONVENTION & EXPO | APRIL 15-18, 2018 | ATLANTA, GA
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
4/26/2018 9PACE CONVENTION & EXPO | APRIL 15-18, 2018 | ATLANTA, GA
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
4/26/2018 10PACE CONVENTION & EXPO | APRIL 15-18, 2018 | ATLANTA, GA
HOT MARKETS ACROSS THE US 2017-2018
4/26/2018 11PACE CONVENTION & EXPO | APRIL 15-18, 2018 | ATLANTA, GA
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
4/26/2018 12PACE CONVENTION & EXPO | APRIL 15-18, 2018 | ATLANTA, GA
4/26/2018 13PACE CONVENTION & EXPO | APRIL 15-18, 2018 | ATLANTA, GA
4/26/2018 14PACE CONVENTION & EXPO | APRIL 15-18, 2018 | ATLANTA, GA
GLOBAL OUTLOOK 2018GDP Per Capita (PPP)
4/26/2018 15PACE CONVENTION & EXPO | APRIL 15-18, 2018 | ATLANTA, GA
GLOBAL OUTLOOK 2018GDP Per Capita (PPP) - Continued
4/26/2018 16PACE CONVENTION & EXPO | APRIL 15-18, 2018 | ATLANTA, GA
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
4/26/2018 17PACE CONVENTION & EXPO | APRIL 15-18, 2018 | ATLANTA, GA
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
4/26/2018 18PACE CONVENTION & EXPO | APRIL 15-18, 2018 | ATLANTA, GA
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
4/26/2018 19PACE CONVENTION & EXPO | APRIL 15-18, 2018 | ATLANTA, GA
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)
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
4/26/2018 20PACE CONVENTION & EXPO | APRIL 15-18, 2018 | ATLANTA, GA
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
4/26/2018 21PACE CONVENTION & EXPO | APRIL 15-18, 2018 | ATLANTA, GA
GLOBAL OUTLOOK 2018Top 20 largest call centers - Offshore
OffshoreTop 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
OffshoreTop 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
4/26/2018 22PACE CONVENTION & EXPO | APRIL 15-18, 2018 | ATLANTA, GA
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:
4/26/2018 23PACE CONVENTION & EXPO | APRIL 15-18, 2018 | ATLANTA, GA
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
4/26/2018 24PACE CONVENTION & EXPO | APRIL 15-18, 2018 | ATLANTA, GA
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
WHERE IS THE INDUSTRY HEADED?
4/26/2018 25PACE CONVENTION & EXPO | APRIL 15-18, 2018 | ATLANTA, GA
THANK YOU
4/26/2018 26PACE CONVENTION & EXPO | APRIL 15-18, 2018 | ATLANTA, GA
Q & A