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2011 North America Contact Center Outsourcing Product Differentiation Excellence Award


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Teleperformance receives the 2011 North America Contact Center Outsourcing Product Differentiation Excellence Award.

Teleperformance receives the 2011 North America Contact Center Outsourcing Product Differentiation Excellence Award.

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  • 1. BEST PRACTICES RESEARCHProduct Differentiation Excellence AwardContact Center OutsourcingNorth America, 2011Frost & Sullivan’s Global Research PlatformFrost & Sullivan is in its 50th year in business with a global research organization of 1,800analysts and consultants who monitor more than 300 industries and 250,000 companies.The company’s research philosophy originates with the CEO’s 360 Degree Perspective™,which serves as the foundation of its TEAM Research™ methodology. This unique approachenables us to determine how best-in-class companies worldwide manage growth,innovation and leadership. Based on the findings of this Best Practices research, Frost &Sullivan is proud to present the 2011 North American Product Differentiation ExcellenceAward in the Contact Center Outsourcing market to Teleperformance.Significance of the Product Differentiation Excellence AwardKey Industry Challenges Addressed by Diff erentiated Off erings and StrategiesContact center outsourcing provides a way for companies to subcontract agent activitiesthat are outside of their core competency and that can be done at a lower cost. Thismovement is fueled by industry participants’ desire to use a mix of on-shore, near-shore,and offshore facilities in order to provide continuous, around the clock coverage for theirclients in every corner of the globe.Below are examples of contact center interaction services: • Customer care, loyalty and retention • Telesales, billing and post sale activities • Wireless and cable activations • Direct Response and sales campaigns • Emergency notifications • Collections & payment programsThis globalization of the contact center industry makes for more complex securitychallenges, as clients operate in multinational, cross-border environments. New securitythreats that involve more than conventional hacking are on the rise. For example, organizedcrime syndicates target individuals –specifically call center agents- who actually have accessto sensitive information. This stolen information is then sold to others for a profit. This canobviously compromise proprietary company information, private customer data and network© 2011 Frost & Sullivan 1 “We Accelerate Growth”
  • 2. BEST PRACTICES RESEARCHsystems. Teleperformance properly dubs this significant change as a move from “fraud 1.0to fraud 2.0.”Despite the many safeguards that security certifications offer, contact center organizationsare challenged to proactively uncover and mitigate risks that come from data leaks, datatheft and outright fraud. There is also the challenge of providing physical security controlsand policies to protect employees, company facilities and equipment.Finally, the principal competitive challenge in the contact center outsourcing marketrevolves around the need for flexibility and speed in implementing customized clientsolutions for security. To successfully meet clients’ needs, Frost & Sullivan independentbenchmarking confirms that providers must balance global agent capacity, the strategic useof company resources, technology expenditures, security controls and the need for continualemployee training.Impact of Product Diff erentiation Excelle nce Aw ard on Key StakeholdersThe Product Differentiation Excellence Award is a prestigious recognition ofTeleperformance’s accomplishments in the contact center outsourcing sector. An unbiased,third-party recognition can provide a profound impact in enhancing the brand value andaccelerating Teleperformance’s growth. As captured in Chart 1 below, by researching,ranking, and recognizing those who deliver excellence and best practices in theirrespective endeavors, Frost & Sullivan hopes to inspire, influence, and impact threespecific constituencies: • Investors Investors and shareholders always welcome unbiased and impartial third-party recognition. Similarly, prospective investors and shareholders are drawn to companies with a well-established reputation for excellence. Unbiased validation is the best and most credible way to showcase an organization worthy of investment. • Customers Third-party industry recognition has been proven to be the most effective way to assure customers that they are partnering with an organization that is leading in its field • Employees This Award represents the creativity and dedication of Teleperformance’s executive team and employees. Such public recognition can boost morale and inspire these stakeholders to continue the pursuit of worldwide outsourcing leadership for Teleperformance.© 2011 Frost & Sullivan 2 “We Accelerate Growth”
  • 3. BEST PRACTICES RESEARCH C ha r t 1 : B es t P ra c t i c es L ev e ra g e f o r Gr ow t h Ac c e l era t i onKey Benchmarking Criteria f or Product Diff erentiation Excellence Aw ardFor the Product Differentiation Excellence Award, the following criteria were used tobenchmark Teleperformance’s market performance against key competitors: • Unique Features/Functionality • Quality/Complexity • Customization • Matched to Target Markets Needs • Brand Perception of the Uniqueness of the ProductDecision Support Matrix and Measurement CriteriaTo support its evaluation of best practices across multiple business performance categories,Frost & Sullivan employs a customized Decision Support Matrix (DSM). The DSM is ananalytical tool that compares companies’ performance relative to each other with anintegration of quantitative and qualitative metrics. The DSM features criteria unique to eachAward category and ranks importance by assigning weights to each criterion. The relativeweighting reflects current market conditions and illustrates the associated importance ofeach criterion according to Frost & Sullivan. Fundamentally, each DSM is distinct for eachmarket and Award category. The DSM allows our research and consulting teams to© 2011 Frost & Sullivan 3 “We Accelerate Growth”
  • 4. BEST PRACTICES RESEARCHobjectively analyze each companys performance on each criterion relative to its topcompetitors and assign performance ratings on that basis. The DSM follows a 10-point scalethat allows for nuances in performance evaluation; ratings guidelines are shown in Chart 2. C ha r t 2 : P erf o rm a n c e- Ba s e d Ra t i ng s f o r De c is i on S u pp o r t Ma tr i xThis exercise encompasses all criteria, leading to a weighted average ranking of eachcompany. Researchers can then easily identify the company with the highest ranking. As afinal step, the research team confirms the veracity of the model by ensuring that smallchanges to the ratings for a specific criterion do not lead to a significant change in theoverall relative rankings of the companies. C ha r t 3 : Fr os t & S ul l iva n’s 10-S t e p P r oc es s f or I de n t if y in g Aw a rd R ec ip i en tsBest Practice Award Analysis for TeleperformanceThe Decision Support Matrix, shown in Chart 4, illustrates the relative importance of eachcriterion for the Product Differentiation Excellence Award and the ratings for eachcompany under evaluation. To remain unbiased while also protecting the interests of theother organizations reviewed, we have chosen to refer to the other key players asCompetitor 1 and Competitor 2.© 2011 Frost & Sullivan 4 “We Accelerate Growth”
  • 5. BEST PRACTICES RESEARCH C ha r t 4 : D ec is io n S u p po r t M a t ri x f or P ro d uc t D if f er e n ti a t io n E xc e ll e nc e Aw a r d Measurement of 1–10 (1 = lowest; 10 = highest) Award Criteria Matched to Target Markets Features/Functionality Unique Name/Brand Quality/Complexity Weighted Rating Customization Recognition Unique Needs Relative Weight (%) 20% 20% 20% 20% 20% 100% Teleperformance 10 9 9 9 10 9.4 Competitor 1 8 8 7 9 10 8.4 Competitor 2 8 8 8 8 9 8.2Key Company Highlights and OperationsTeleperformance was established in France in 1978 by founder and CEO, Daniel Julien.Teleperformance is currently the leading global provider of outsourced contact centerservices. It competes against other Tier 1 giants in the industry including Convergys, IBM,Sitel, Sykes, Teletech and West. The Group operates about 88,000 computerizedworkstations, with more than 128,000 employees across 263 contact centers in 50countries. Teleperformance conducts client programs in more than 66 different languagesand dialects.Teleperformance positions itself in the contact center outsourcing market as P-2-B; peopleto business. This is a new business concept that translates Teleperformance’s commitmentto put people first, building desirable places to work, and delivering outstanding customerexperiences for clients. Consolidated revenue stood at& 2.7 million (USD) in 2010,representing an increase of more than 11.4% over 2009.The Group now operates in the following three major geographic regions:1. The English-speaking and Asia-Pacific region, which includes: Great Britain, USA, Canada,China, Korea, Indonesia, the Philippines, Singapore, South Africa and Vietnam.2. The Iberian-LATAM region, which includes Argentina, Brazil, Chile, Colombia, Costa Rica,El Salvador, Mexico, Spain and Portugal.3. The Continental Europe & MEA, which includes all countries in the EMEA region (Europe,Middle East & Africa), except Great Britain, South Africa, Spain and Portugal.© 2011 Frost & Sullivan 5 “We Accelerate Growth”
  • 6. BEST PRACTICES RESEARCHTeleperformance has executed a strategy of extending the company’s geographic scope withseveral targeted acquisitions in 2010. These included beCogent in the United Kingdom,Metis in Turkey, U.S. Solutions Group in the United States, and TLS Contact, Europe’sleading provider of visa application services. Teleperformance is publicly traded (NYSEEuronext: Symbol 5180)..Criterion 1: Unique Features/FunctionalityWith CEO Daniel Julian’s vision and support, Teleperformance has built its own uniquesecurity team. It operates autonomously from the IT division. With the Chief InformationSecurity Officer (CISO) Bruce Wignall at the helm, a team of over fifty dedicated securityprofessionals holding various professional security certifications including CISSP “CertifiedInformation Systems Security Professional”, CFE “Certified Fraud Examiners”, CSA & CISA“Certified Security/Information Security Auditor” and various other certifications enable theproper scale of people with the necessary experience and skills to provide the best securityservices to their customers. Team members are distributed across the three majorgeographic regions noted beforehand. Competitors in the industry manage security withintheir IT departments and do not have a dedicated organization.The security team’s mission and core values include:1. Following strict security standards to protect the confidentiality, availability and integrityof clients data, services and reputation.2. The need to be measurable in its performance.3. Being the security “center of excellence” leader in the industryCompetitive AdvantageTelepeformance responds to clients’ individual security requirements by assigning a CISSPcertified Security Analyst (SA) to each client account. Unique within the industry, theTeleperformance SA is responsible for identifying resources, tools and processes to enforceand manage client security requirements. In addition, Teleperformance also offers securityService Level Agreements (SLA’s) to its customers. Frost & Sullivan firmly believes thatthese dual security enhancements serve as distinct world-class competitive advantages.Special Security Measures for Work-at-HomeThe most important security measure for Work-at-home agents is the set of hiringstandards. Potential candidates undergo detailed screening and testing, including:background checks; drug screenings; and skills assessments of abilities such as keying,voice, and soft skills; an even more rigorous process than that for traditional on-site agents.At-home agent candidates must pass evaluations that determine integrity and work ethics -measuring their honesty and trustworthiness. Work-At-Home-Agents are required to have a© 2011 Frost & Sullivan 6 “We Accelerate Growth”
  • 7. BEST PRACTICES RESEARCHsecure, dedicated work environment with no interruptions. Unlike its competitors,Teleperformance goes the extra mile by checking for compliance. Supervisors conductunannounced on-site audits, randomly and/or with cause, during regularly scheduled shiftsfor at-home employees. Frost & Sullivan points out that no other provider in the spaceoffers an advanced four-factor authentication process.Teleperformance’s Work-At-Home security solution utilizes a pan/tilt/zoom video cameraenabling remote visual audit capabilities. This way local supervision and management inthe call center can conduct a quick virtual audit of the work-at-home environments. Clientswant to be assured that home agents comply with Teleperfomance’s clean desk rules, sansnon-employees or distractions in the work area.Criterion 2: Quality/ComplexityAgent Authentication ManagementTeleperformance has developed a proprietary solution to manage loose password controlsthat may contribute to fraud for its contact center agents across all of its global centers.Teleperformance’s Passport Secure Identity Management allows verified agents quick andsecure access to necessary applications. Voice bio-metric authentication combined withSingle Sign On technology provides definite confirmation of agent identity while eliminatingthe need for multiple agent passwords and creating a simplified end-to-end login process.This single sign-on voice authentication process prevents impersonation, unauthorizedsystem access, or sharing of passwords which helps in fraud prevention.Criterion 3: Customization:In June 2010, Teleperformance announced the launch of its Teleperformance Fraud RiskAssessment (FRA) Solution. This is a new service intended to help identify and quantify thebusiness impact of fraud risks within many phases of a call center agents work. It reviewsprocesses, applications, daily monitoring and reporting activities to provide a comprehensiveassessment of risks. The Teleperformance Fraud Risk Assessment is part of a four-phasesecurity-enhancing program. The assessment relies on knowledge of fraud trends, commonand known vulnerabilities among client applications, and some of the ways an agent couldcircumvent controls within an application or process. The solution includes reviewing aclients past incidents of fraud prior to a contractual engagement with Teleperformance. Thisincludes application vulnerabilities, environmental controls, recruiting, training goals,operation expectations and compliance and regulatory requirements.The FRA is conducted in collaboration with specific personnel from the client’s FraudManagement Team, IT and security organizations. It is led by Teleperformance’s assignedSecurity Analyst. The primary goal of the Fraud Risk Assessment Service is to identify howfraud or data leaks occur and provide preventive and early detection controls for the client.© 2011 Frost & Sullivan 7 “We Accelerate Growth”
  • 8. BEST PRACTICES RESEARCHThe Fraud Risk Assessment is conducted prior to the launch of new programs with the goalof identifying the risks and prevention strategies or early detection strategies whenprevention is not possible. Once the assessment identifies the unique program risks,Teleperformance’s security professionals utilize three criteria for prioritizing fraud risks forits clients:1. Popularity: how many people in the call center know of the vulnerability?2. Exploitability: is it easy or difficult to exploit the vulnerability?3. Severity: how severe is the impact with just one exploit of the vulnerability?Teleperformance analysts then rate each of these three criteria on a scale of 1-3 (3 beinghigh) with the help of the client. The total of the 3 scores are taken to determine the risk ofthe vulnerability ratings: A. 0-2 = low, B. 3-5 = medium C. 6-9 = highCriterion 4: Matched to Target Market NeedsFoundational Excellence – Contact Center SecurityWhen it comes to security compliance, the goal of any organization should be to maintain itsstate of security in adherence with the minimum baseline compliance requirements set byinternationally recognized standards. By 2007 Teleperformance had already demonstratedits leadership in the field by achieving VISA Payment Card Industry (PCI), level compliancefor U.S. and Mexico operations. Teleperformance stands among the first outsourcingcompanies in the industry to attain this important certification. In 2010, Teleperformancelaunched and deployed new processes, initiatives and products throughout its subsidiariesto ensure that all global teams are compliant with its security policies and standards. Thisincludes the BEST Security Guide and the implementation, audit and management of morethan 200 internal Teleperformance security controls.Market and Site AccountabilityEach region in which Teleperformance operates has its own set of compliance standards. Inthe North American market, this means that local, state and Federal regulations andcompliance rules must be documented and then scored against continuous monitoring andcontrol activity within each individual site. This approach carries over globally, ensuring thatthe company’s compliance requirements are consistently deployed world-wide.Each site is individually rated and regional CEO’s have accountability to meet stringentcompany metrics and objectives. Teleperformance conducts frequent random remote qualitychecks, with recorded voice and visual images, on every type of call and transaction.Unlike most organizations that obtain annual security certifications and may experiencerelaxed controls until the next annual audit, Teleperformance conducts various 3rd partysecurity audits as well as weekly compliance audits with visibility to the CISO and the CEO.© 2011 Frost & Sullivan 8 “We Accelerate Growth”
  • 9. BEST PRACTICES RESEARCHThis process ensures consistent levels of security compliance each week rather than anannual true-up process. This process extends a higher level of security and consistentsecurity to their clients.Criterion 5: Brand Perception of the Uniqueness of the Product:A d d it i on al B e st P ra c t ic e s t o Min i m i z e F r au dAccording to the Association of Fraud Examiners, the most effective fraud awarenessprograms including knowledge of the controls in place and the likelihood of those controlsidentifying fraudulent activity and the consequences if caught. Teleperformance leveragesthis best practice during Agent training. During the training phase, Teleperformance sharesthe proactive daily investigation controls and monitoring activities with new employees. Thisdrives expectations, discourages fraud and reinforces the appropriate behavior. Agents arerequired to sign employee agreements regarding fraud and clean desk polices and agree tothe consequences. Most importantly, the agents see these controls in action on the callcenter floor which changes behavior and thus creates effective awareness.Teleperformance’s CCMS (Contact Center Management System) provides several additionalsecurity safeguards. CCMS manages and tracks employees time, holding home agents tothe same login and logout standards as on-site agents. In addition, the CallCopy systemserves as the call recording platform that preserves both voice recording and screen capturefor a set percentage of overall calls taken.Physical SecurityTeleperformance puts stringent measures in-place to protect its sites and employees from: • Natural threats (Floods, earthquakes, tornadoes) • Human threats (network-based attacks, malicious software, unauthorized access, insider threats) • Environmental threats (Long-term power failure, pollution, chemicals, liquid leakage)Here is a partial list of Teleperformance’s facilities controls: • Written security policies and building access procedures • Badge sharing and piggy back entry is prohibited • All visitors must be logged and admitted through reception • 24x7 onsite security guards • Card-key, biometric, or similar entry locks© 2011 Frost & Sullivan 9 “We Accelerate Growth”
  • 10. BEST PRACTICES RESEARCH • ID-badge system for all employees and visitors • Individual lockers/cabinets to enforce the clean desk policy • Video surveillance and motion sensors for entrances, interior doors, equipment cages, and critical equipment locations within the buildingWorld-class Technology PartnersTelepeformance has partnerships with the leading technology companies in the industry.This includes Cisco, RSA, McAfee, and Microsoft to name a few. For its ISO, PCI and HIPAAaudits, the company utilizes ScanAlert, BT, AT&T, and Security Metrics. These solidtechnology partnerships offer clients leading-edge technological solutions and fullintegration with existing applications. Teleperformance continues to maintain compliance orcertification with the following regulations; ISO 2700x, PCI, HIPAA, HYTRUST, MexicoPrivacy Act, Safe Harbor, European Union Privacy Act and compliance with individual EUcountry privacy laws.ConclusionIt is Frost and Sullivan’s belief that Teleperformance has built a security-conscious culturewithin the entire organization; reinforcing customer trust, reducing agent churn anduncovering gaps that may put client intellectual property at risk. This is no small featwhen considering the fact that Teleperformance operates 263 contact centers in 50countries with 128,000 employees. Given its proactive efforts to design and continuallyimprove internal controls, Teleperformance goes far beyond simply being compliant withrecognized security standards. In recognition of its demonstrated and unparalleledexcellence in security, Frost & Sullivan is pleased to recognize Teleformance with the 2011Product Differentiation Excellence Award.The CEO 360-Degree Perspective T M - Visionary Platform for GrowthStrategiesThe CEO 360-Degree Perspective™ model provides a clear illustration of the complexbusiness universe in which CEOs and their management teams live today. It representsthe foundation of Frost & Sullivans global research organization and provides the basis onwhich companies can gain a visionary and strategic understanding of the market. The CEO360-Degree Perspective™ is also a “must-have” requirement for the identification andanalysis of best-practice performance by industry leaders.© 2011 Frost & Sullivan 10 “We Accelerate Growth”
  • 11. BEST PRACTICES RESEARCHThe CEO 360-Degree Perspective™ model enables our clients to gain a comprehensive,action-oriented understanding of market evolution and its implications for their companies’growth strategies. As illustrated in Chart 5 below, the following six-step process outlineshow our researchers and consultants embed the CEO 360-Degree Perspective™ into theiranalyses and recommendations. C ha r t 5 : 3 60 D e gr e e P ers p ec t iv e ™ M o d e lCriticalImportance of TEAM ResearchFrost & Sullivan’s TEAM Research methodology represents the analytical rigor of ourresearch process. It offers a 360 degree view of industry challenges, trends, and issues byintegrating all seven of Frost & Sullivans research methodologies. Our experience hasshown over the years that companies too often make important growth decisions based ona narrow understanding of their environment, leading to errors of both omission andcommission. Frost & Sullivan contends that successful growth strategies are founded on athorough understanding of market, technical, economic, financial, customer, bestpractices, and demographic analyses. In that vein, the letters T, E, A and M reflect ourcore technical, economic, applied (financial and best practices) and market analyses. Theintegration of these research disciplines into the TEAM Research methodology provides an© 2011 Frost & Sullivan 11 “We Accelerate Growth”
  • 12. BEST PRACTICES RESEARCHevaluation platform for benchmarking industry players and for creating high-potentialgrowth strategies for our clients. C ha r t 6 : B e nc h ma r ki ng P e rf or ma nc e w i t h TE A M R es ea rc hAbout Frost & SullivanFrost & Sullivan, the Growth Partnership Company, enables clients to accelerate growthand achieve best-in-class positions in growth, innovation and leadership. The companysGrowth Partnership Service provides the CEO and the CEOs Growth Team with disciplinedresearch and best-practice models to drive the generation, evaluation and implementationof powerful growth strategies. Frost & Sullivan leverages 50 years of experience inpartnering with Global 1000 companies, emerging businesses and the investmentcommunity from more than 40 offices on six continents. To join our Growth Partnership,please visit© 2011 Frost & Sullivan 12 “We Accelerate Growth”