An Outsourcing Comparison

Ukraine – An Alternative Labor Cost Multi-Lingual Capability Location Call Center Infrastructure Geo-Political Culture Talent Supply Education

Labor Cost

Multi-Lingual Capability

Location

Call Center Infrastructure

Geo-Political

Culture

Talent Supply

Education

Labor Cost Philippines Ukraine Minimum Wage 382 PHP (PESOS) per day $0.99 per hour Corporate Tax 30% Individual Tax 5-32% VAT 12% Minimum Wage 625 UAH (HRYVNIA) per month $0.45 per hour Corporate Tax 25% Individual Tax 15% VAT 20%

Philippines

Ukraine

Minimum Wage

382 PHP (PESOS) per day

$0.99 per hour

Corporate Tax

30%

Individual Tax

5-32%

VAT

12%

Minimum Wage

625 UAH (HRYVNIA) per month

$0.45 per hour

Corporate Tax

25%

Individual Tax

15%

VAT

20%

Multi-Lingual Capabilities Philippines Ukraine English Spanish French Japanese English, Russian, Ukrainian, Polish, Hungarian, Slovak, Moldavian, Romanian, German, Italian, Spanish, Dutch, Swedish, French, Austrian, Chinese, Japanese, Czech, Danish, Estonian, Greek, Finnish Many people in Ukraine are bi-lingual and tri-lingual as it is required to work abroad.

Philippines

Ukraine

English

Spanish

French

Japanese

English, Russian, Ukrainian, Polish, Hungarian, Slovak, Moldavian, Romanian, German, Italian, Spanish, Dutch, Swedish, French, Austrian, Chinese, Japanese, Czech, Danish, Estonian, Greek, Finnish

Many people in Ukraine are bi-lingual and tri-lingual as it is required to work abroad.

Location Philippines Ukraine East of Vietnam. Between Philippine and South China More than 7000 volcanic islands make up the territory Capital is Manila 20-24 Hours by plane from Detroit Located in Eastern Europe Neighboring country to Euro zone Boarders with 7 countries in Europe 12-13 Hours by plane from Chicago Capital is Kiev

Philippines

Ukraine

East of Vietnam.

Between Philippine and South China

More than 7000 volcanic islands make up the territory

Capital is Manila

20-24 Hours by plane from Detroit

Located in Eastern Europe

Neighboring country to Euro zone

Boarders with 7 countries in Europe

12-13 Hours by plane from Chicago

Capital is Kiev

Geo-Political Philippines Ukraine President elected to a 6 year term. Human rights issues especially in Muslim areas. Bullying from China has resulted in occasional spats between the 2 countries. Democratic government modeled from US. Good relations with US Visited by US Vice President, Joe Biden last week USA supports Ukraine’s ambition to join NATO and European Union. USA will not compromise relations with Ukraine at the sake “resetting” relations with Russia. Democracy Pro-Western Government

Philippines

Ukraine

President elected to a 6 year term.

Human rights issues especially in Muslim areas.

Bullying from China has resulted in occasional spats between the 2 countries.

Democratic government modeled from US.

Good relations with US

Visited by US Vice President, Joe Biden last week

USA supports Ukraine’s ambition to join NATO and European Union.

USA will not compromise relations with Ukraine at the sake “resetting” relations with Russia.

Democracy

Pro-Western Government

Culture Philippines Ukraine 30% of high school grads get a college/university education Predominantly Roman Catholic religion Many traditions from prior colonial history 11% of Filipinos live and work abroad Majority of the people have contemporary lifestyles Working more 40 hours per week is common Time differential pay difference is uncommon Very friendly to foreigners and highly interested in Western culture Employee loyalty is considered very important to staff

Philippines

Ukraine

30% of high school grads get a college/university education

Predominantly Roman Catholic religion

Many traditions from prior colonial history

11% of Filipinos live and work abroad

Majority of the people have contemporary lifestyles

Working more 40 hours per week is common

Time differential pay difference is uncommon

Very friendly to foreigners and highly interested in Western culture

Employee loyalty is considered very important to staff

Talent Supply Philippines Ukraine Turn over is high due competition by many outsourcing suppliers Use of internet is less developed for job hunting than in the West Ownership of home computer less common Philippines has a population of 70,0000,000 Unemployment is at 25% officially 50% unofficially Many graduates have multiple degrees when entering the labor market Competition for any employment is high Turn over is extremely low due to historic economic conditions

Philippines

Ukraine

Turn over is high due competition by many outsourcing suppliers

Use of internet is less developed for job hunting than in the West

Ownership of home computer less common

Philippines has a population of 70,0000,000

Unemployment is at 25% officially

50% unofficially

Many graduates have multiple degrees when entering the labor market

Competition for any employment is high

Turn over is extremely low due to historic economic conditions

Education Philippines Ukraine 30% of high school grads get a college education. Less than 60 percent of students graduate high school. Bi-lingual English program adopted by schools in 1974. 3 rd largest English speaking nation. Ukrainian university students often obtain their Masters degree in comparison with the West. Ukrainians are able to accelerate through college based on good grades. Over 900 universities Education reforms continue to improve the quality of Ukraine’s education system

Philippines

Ukraine

30% of high school grads get a college education.

Less than 60 percent of students graduate high school.

Bi-lingual English program adopted by schools in 1974.

3 rd largest English speaking nation.

Ukrainian university students often obtain their Masters degree in comparison with the West.

Ukrainians are able to accelerate through college based on good grades.

Over 900 universities

Education reforms continue to improve the quality of Ukraine’s education system

247HR Ukraine Offers Services Call Center Infrastructure 2000 Seats Expansion to 5000 by end of 2009 6 Locations Lvov, Kharkov, Nikolayev, Simferopol, Vinnitsa, Kiev Technology partnerships with all of Ukraine’s leading communications, software, hardware and consulting companies Help Desk Technical support Order line Bookings IVR Contact validation and discovery Database creation and management Lead generation, profiling Appointment setting Multi-channel campaign execution B2B and B2C sales Customer retention and up-sell Credit collection Data entry Application processing Accounting Market research, customer satisfaction surveys Up Sell / Cross Sell Lead Capture Conference & Seminar Registration Fulfillment Lead Generation Customer Follow Up Customer Acquisition Live Phone Support Email Response Direct Response Live Web Chat Services Click To Talk Telesales Emergency Response Bilingual / Multilingual Service IT support, system monitoring Inbound Services Customer Service Customer Care & Retention Order Taking Toll Free Services

Services

Call Center Infrastructure

2000 Seats

Expansion to 5000 by end of 2009

6 Locations

Lvov, Kharkov, Nikolayev, Simferopol, Vinnitsa, Kiev

Technology partnerships with all of Ukraine’s leading communications, software, hardware and consulting companies

Help Desk

Technical support

Order line

Bookings

IVR

Contact validation and discovery

Database creation and management

Lead generation, profiling

Appointment setting

Multi-channel campaign execution

B2B and B2C sales

Customer retention and up-sell

Credit collection

Data entry

Application processing

Accounting

Market research, customer satisfaction surveys