SlideShare a Scribd company logo
C A L L C E N T E R
MARKET REPORT
THIRD QUARTER 2016
2
CUSTOMER CONTACT MANAGEMENT
Signs of Growth for Call Centers?
HIGHLIGHTS
•	 Outsourcing still provides meaningful cost savings, representing roughly 20%
of the total market with approximately 2.0 million outsourced agents located
primarily in India and the Philippines.
•	 Technology developments, vendor pruning, and consumer demand push
providers to expand their product, service, and channel offerings.20
•	 M&A activity expected to increase steadily in 2017 as corporate profits and
consumer spending increases.
•	 FCC onshoring initiatives continue to create jobs within big industry players via
organic growth and acquisitions.19
•	 Steady growth opportunities on a go-forward basis as the global customer
contact management market is expected to grow to $81 billion by 2018
representing a CAGR of 6.1%.
•	 U.S. based healthcare legislative changes and requirements will increase costs
and complexity of compliance.
2015 YEAR IN REVIEW
Advancing technology and differentiation boost growth rates
2015 was an exciting year for the Customer Contact Management (CCM) industry,
with huge strides in technology, automation, differentiation, and omni-channel
diversification. Customers want to use the channel that most quickly solves their
problems, including voice, chat, text, and social media. Corporate services expanded
their technology offerings making large technological advances, as witnessed with
Amazon's new Alexa -- a virtual assistant that can answer a wide variety of questions
from weather to traffic. These technological advances around automation create
a surge of efficiency and growth opportunities for CCM businesses. According to
International Customer Management Institute (ICMI), nearly 55% of customers want
an automated self-service experience, increasing efficiency and decreasing costs for
businesses. In addition, 80% of companies plan to use customer service as a way to
differentiate themselves from their competition.4
3
Source: IBISWorld OD4878, June 1015
Please push '0' to speak with a customer service representative
2015 SERVICES SEGMENTATION
Global and U.S. CCM Spend
CURRENT INDUSTRY PERFORMANCE
7.9% CONVERGYS CORPORATION
USMARKETSHARE2015
6.7% TELETECH HOLDINGS INC.
USMARKETSHARE2015
4.7% SYKES ENTERPRISE INC.
USMARKETSHARE2015
Over the past 20+ years, the customer experience has
remained largely the same and the CCM market has seen
steady contraction and consolidation. However, the recent
rise of internet technology has revolutionized call centers
customer service providing a breath of life into CCM systems
creating “omni-channel” product offerings and services.
Omni-channel usage includes websites (85%), call-center
(75%), email (65%), live chat (58%), Facebook, and Twitter.5
Today, customers rarely use one communication channel
when reaching out to customer support. According to an
article by TeleTech, 57% of inbound calls to the contact center
coming from customers who first attempted to resolve an
issue on the companies website, while 30% of callers are still
on the company's website when they speak to an associate.6
The CCM sector has seen significant vendor consolidation
and as a result, larger CCM providers have pushed towards
more diversified market offerings, including call centers,
automated interactions, and online interaction services.20
This diversification has improved customer service offerings
dramatically as employee agents continue to work with clients
to help build relationships. This customer-centric model
generates significant value in leveraging relationships and
ability to scale. The global market is estimated to grow to
$64 billion, of which approximately $35 billion (~56%) of call
center revenue is domiciled in the United States. Expected
growth rate for the industry as a whole is 4-5% per year.1
4
The CCM sector will grow and expand with steadily increasing
M&A activity to (i) consolidate, diversify and enhance
capabilities to secure larger, multisite contracts, and keep pace
with technological advancements; (ii) operate at the optimum
threshold between the cost savings of outsourcing and the
customer satisfaction ratings of onshoring; (iii) move up the
value chain and encompass a multitude of business models and
services; and, (iv) focus on margin enhancement and profitability
to compete as non-revenue products continue to be outsourced
and larger companies realize economy of scale cost savings.20
The CCM sector abounds with transformation and opportunities
as large industry players grow and consolidate the market.
Currently, the top four industry players are Convergys (7.9%),
TeleTech(6.7%),Sykes(4.7%),andAlorica(4.5%)withacombined
market share of 23.8% in 2015. According to International Data
Corporation (IDC), current global CCM revenues are expected
to grow from ~$64 billion to $81 billion by 2018 with a four-year
CAGR of 6.1%.1
The majority (80%) of all call center agents are still located
in-house, with an expected growth rate of 2.9%. However,
outsourced agent positions are expected to grow at 5.1% as
companies realize the cost saving benefits.1
In the past, the CCM industry has suffered as a result of
automation and offshoring with recent growth spurred from
government intervention. In 2011, the FCC announced a goal
of creating 100,000 call center jobs in the US and the industry
is still feeling the effects of that legislation today. The jobs
were generally created by larger industry players, as a way to
increase customer satisfaction compounded with technological
opportunity. Now, onshoring is a maturing business model
with agents taking customer service calls and web chats during
specific times in their homes.19
However, it is uncertain how
much longer this will last with the upcoming election.1
According to IBIS, the industry's contribution to the overall
economy is expected to grow at an average annual rate of 1.2%
-- slightly lower that the projected US GDP growth of 2.5% over
the same period. When the average annual industry growth
rate is below that of the overall economy this indicates that the
industry is in the mature phase of its life cycle.1
KEY INDUSTRY DRIVERS
CUSTOMER CONTACT MANAGEMENT
INDUSTRY WITH M&A OPPORTUNITIES
HOMESHORING
•	 Cheap tech and freelance
staff supplying their own
tech reduces home-based
call center costs
•	 Residual effects of 2011
FCC U.S. job creation via
“virtual call centers” 5
CONSUMER SPENDING
•	 Consumer spending
continues to strengthen
with economy
•	 Consumer spending means
business will invest in call
centers to increase sales
and gain market share 1
PRIVATE INVESTMENT IN
TECHNOLOGY
•	 High sensitivity to
technological innovation
•	 Recent technological
innovation may mitigate
cost disadvantages for US
operators 1
CORPORATE PROFIT
•	 CCM is sensitive to changes
in corporate profit
•	 Increases in corporate profit
results in increases in CCM
•	 Profit is expected to rise in
2015 and 2016 1
NUMBER OF BUSINESSES
•	 New businesses are more
likely to outsource CCM
•	 Business growth increases
demand for CCM services
•	 Outlook is positive for
new business creation 1
OFFSHORING
•	 Offshoring reduces labor
costs and resulted in
industry contraction
•	 Lowers labor costs result in
lower prices to clients
•	 Outsourcing remained
steady in 2015 1
U.S. MARKET 5 YEAR PERFORMANCE
2011-2016
2015 CUSTOMER MANAGEMENT SPEND BY VERTICAL
(%) (TOTAL MARKET = ~$63B)
Source: NelsonHall, June 2015; Convergys Strategic Positioning Report
'Other' Includes: Retail, healthcare, manufacturing, government, utilities,
transportation
Source: Convergys Strategic Positioning Report 2012
Source: Convergys Strategic 2012 Positioning Report
IBISWorld OD4878
Services
North America Services
Multi-Shore Services
Home Agent Services
Technology
Global Infrastructure
Technology-Based Services
Analytics
Experience Analytics
Consulting Services
38%
15%
6%
41%
C O M M U N I C A T I O N S F I N A N C I A L
S E R V I C E S
T E C H N O L O G Y O T H E R
$31
$39
2 0 1 1 2 0 1 6
4.6%
ASPECTS OF CUSTOMER MANAGEMENT
5
Customer service touches all sectors but is most developed in
the communication sector, which includes telecom, cable and
media. Other industries with sizeable exposure are the financial
sector, technology, retail and healthcare. Call centers are seeking
to grow capacities by moving up the value chain with technical
support, sales, collections and analytics service offerings.
The industry continues to grow at a moderate pace. In the last
five years, the CCM industry has recorded an annualized growth
rate at an estimate of 1.1% and industry revenue at ~$8.9 billion.
The signs of growth indicates renewed life and vigor for the call
center markets.1
THE VALUE CHAIN?
U.S. REVENUE BY SEGMENT
Sykes Enterprise, Inc. (SYKE )
Convergys Corporation (CVG)
TeleTech (TTEC)
Source: Company Reports, 2015 SEC Filings 10k
'Other' Includes: Retail, manufacturing, government, utilities
UNIQUE RISK OBSERVATIONS FROM
INDUSTRY LEADERS
6
Healthcare Legislature
Healthcare businesses are subject to many
regulatory requirements and changes in current
regulations, which can significantly increase the
cost of doing business. A substantial portion of
operating costs consist of labor costs, changes
in governmental regulations relating to wages,
healthcare and healthcare reform - all of which
could have a material adverse effect on the
business.7
Macroeconomic Trends
To mitigate the impact of any negative economic
and product cycles on growth rates, the industry
continues to seek ways to diversify into verticals
andservicelinesthathavecountercyclicalfeatures
and healthy growth rates.8
The majority of revenue
in 2015 was received from customers operating in
the global communications industry. At times, the
industry has experienced significant fluctuations
in growth rates and capital investment, and
predicting future performance in this industry is
challenging.7
Digital Media Evolution
Unfavorable regulation and negative public
perceptionaboutdigitalmarketingcouldadversely
affect the business and results of operations. With
the continued growth of the online marketplace,
there is increasing awareness and concern among
the general public, privacy advocates, mainstream
media, and government bodies regarding the
reach of digital marketing and its potential impact
on individual privacy interests.9
THE TOP PLAYERS: A BREAKDOWN
38% Communications
23% Financial Services
20% Technology/Consumer
7% Transportation & Leisure
5% Healthcare
7% Other
58% Communications
9% Financial Services
10% Technology/Consumer
22% Other
35% Communications
20% Financial Services
6% Technology/Consumer
14% Transportation & Leisure
11% Healthcare
14% Other

        
           
           
           
           
           
           
           
           
           

    
           
           
           
           
           
           
           
           
           




        
           
           
           
           
           
           
           
           
           

    
           
           
           
           
           
           
           
           
           



VALUATION METRICS: PUBLICLY TRADED CUSTOMER CONTACT MANAGEMENT COMPANIES
(AS OF AUGUST 8, 2016; FIGURES IN USD MILLIONS)
OPERATING METRICS: PUBLICLY TRADED CUSTOMER CONTACT MANAGEMENT COMPANIES
(AS OF AUGUST 8, 2016; FIGURES IN USD MILLIONS)
PROFITABILITY
Values in millions of USD, except per share data ratios.
Values converted at spot rate on 08/12/2016
Source: Capital IQ 08/12/2016
7
Industry profitability has been variable due to a confluence of
technological change, relocation of operations, government
assistance and the increasing number of remote workers.1
Industry margins are driven by several factors: (1) offshore vs.
onshore work; (2) size and scale of projects; (3) productivity &
training; and (4) vendor consolidation.
•	 Margins improve as the industry migrates offshore
because it reduce client's costs with lower labor inputs,
and favoring provider margins.
•	 Margins typically follow the scale of projects and
companies, e.g. the larger the project the better the
margins. Larger companies and projects with increased
scope of work are able to improve operating leverage
with additional revenues and efficiencies.
•	 Training and productivity of workers boosts efficiency
and reduces turnover through experience, technology,
and more advanced management systems.
•	 Larger players in the industry are benefitting from vendor
consolidation at the expense of smaller players because
of recent market volatility and the desire to simplify cost
Source: S&P Capital IQ; 2015 Company Reports
AnnouncedAnnouncedAnnouncedAnnounced
DateDateDateDate TargetTargetTargetTarget AcquirerAcquirerAcquirerAcquirer Deal SizeDeal SizeDeal SizeDeal Size
Target LTMTarget LTMTarget LTMTarget LTM
RevenueRevenueRevenueRevenue
Target LTMTarget LTMTarget LTMTarget LTM
EBITDAEBITDAEBITDAEBITDA EV/RevenuesEV/RevenuesEV/RevenuesEV/Revenues EV/EBITDAEV/EBITDAEV/EBITDAEV/EBITDA
07/06/2016 buw Holding GmbH Convergys Corporation     
06/10/2016 Allus Global BPO Center S.A. Grupo Konectanet S.L.     
12/21/2015 Comdata S.p.A. The Carlyle Group LP     
11/26/2015 Webhelp SAS KKR & Co. L.P.     
10/14/2015 Fulfillment Technologies, LLC Singapore Post Enterprise Private Limited     
09/30/2015 Gemma Communications LP DealNet Capital Corp.     
09/01/2015 BPO Management Sp. z o.o. Arteria S.A.     
07/10/2015 Sitel Worldwide Corporation Groupe Acticall SAS     
07/06/2015 Contact Center sp. z o.o. Arteria S.A.     
06/30/2015 MsourcE (India) Pvt. Ltd. Hinduja Global Solutions Limited     
06/10/2015 ETS Group Limited Million Top Enterprises Limited     
03/10/2015 H1 Communication AB Panoster Investment AB     
02/03/2015 avocis AG Capita plc     
01/07/2015 West At Home, LLC Alorica Inc.     
01/07/2015 West Direct II, Inc. Alorica Inc.     
12/03/2014 Volt Delta Resources, LLC NewNet Communication Technologies     
09/21/2014 Contact Centres Australia Pty Ltd Telekomunikasi Indonesia International     
High     
Low     
Median     
Mean     
8
Source: S&P Capital IQ
CUSTOMER CARE M&A TRANSACTIONS (LAST 24 MONTHS)
(AS OF AUGUST 8, 2016; FIGURES IN USD MILLIONS)
Source: S&P Capital IQ 2016; Company Reports
According to data provided by S&P Capital IQ, there were more
than 40 M&A transactions completed in 2015 for 'Outsourced
Client Support and Customer Services' and 'Telemarketing and
Telephone Soliciting Services'. This represents a slight increase
from the 38 M&A deals completed in 2014.
The average transaction size of $147 million was skewed by a few
largedeals,includingGroupeActicallSAS$830millionacquisition
of Sitel Worldwide Corp; KKR's $679 million acquisition of
Webhelp SAS; and The Carlyle Group's $262 million acquisition
of Comdata S.p.A. However, the median transaction size was
a more modest $25 million. EV/EBITDA Valuation multiples
reflected the volatility of the market with ranges from 4x to 19x,
and an average of 4-7x.
Lookingahead, clientscontinuetofocusonvendorconsolidation
to manage their outsourcing relationships. This should drive
more M&A activity as vendors seek to improve their competitive
position, diversify product offerings, and improve profitability.
MERGERS & ACQUISITIONS
9
ACTIVE BUYERS
LARGEST M&A CCM TRANSACTIONS 2014-2016
Source: S&P Capital IQ 2016
•	 In 2015, Acticall acquired 100 percent of Sitel Worldwide from
Onex Corporation. 10 , 11
•	 Groupe Acticall is highly respected for its business growth
and innovation, with over 7,500 employees and over 65 million
customer contacts managed annually. 10 , 11
•	 Sitel is advancing its position as a world leader in outsourced
customer care innovation with a global platform and client base
and will benefit significantly from Acticall's capital structure and
digital vision. 10 , 11
"With a leading international footprint, a blue chip
customer base, a very talented management team and
great technology, Sitel is already a world leader."
- Laurent Uberti, CEO of Groupe Acticall
•	 In 2015, the Webhelp management team will now become
controlling shareholders, alongside KKR, while Charterhouse
Capital Partners will step back. 12 , 13
•	 During Charterhouse ownership, Webhelp improved revenues
from $200 million to a forecast $725 million in 2015, the number
of contact centres has increased from 12 to more than 80 while
the number of employees globally has risen from 7,000 to in
excess of 30,000. 12 , 13
•	 Webhelp specializes in comprehensive customer experience
management services across a range of digital, social, mobile and
traditional voice channels to an international client base. 12 , 13
“We believe that Webhelp's commitment, ability to
execute and proven track record of success, coupled
with the experience, enthusiasm and resources that will
be contributed by KKR, will enable us to become a world
leading independent business process outsourcer”.
- Frederic Jousset, Co-Founder of Webhelp
•	 In 2015, The Carlyle Group acquired a majority participation in
Comdata. 14
•	 Comdata, the leading Italian company for outsourcing of contact
center, help desk, back office, credit management and document
management services. 14
•	 Comdata Group’s Executive Chairman Enrico Saraval, said:
“Comdata aspires to become a relevant European player.
structure and digital vision." 14
“We are delighted to welcome Comdata to our European
portfolio. Comdata’s strong business model offers further
potential for international growth. Using Carlyle’s extensive
international network, we hope to assist Mr Canturi and
his team in accelerating their growth plan.”
-Marco De Benedetti, MD Carlyle Europe Partners
RANK TARGET BUYER SIZE (USDM)
1 Sitel Worldwide Grupo Acticall SAS 830
2 Webhelp SAS KKR & Co. 680
3 Comdata S.p.A The Carlyle Group 262
10
RANK TARGET BUYER SIZE (USDM)
4 Avocis Capita plc 241
5 Allus Global BPO Center Grupo Konectanet 192
6 buw Holding GmbH Convergys Corporation 133
•	 In 2015, avocis has a strong position in the German speaking
regions of Europe serving similar sectors to Capita’s UK-based
customer management business, with high quality, long term
clients particularly in telecoms and utilities. 15
•	 Acquisitions, alongside generating profitable organic growth, are
a key part of Capita’s business model to both build its capabilities
and increase its market reach and penetration across a growing
number of sectors. 15
"The acquisition of avocis provides us with immediate scale
and further capabilities in this territory. avocis has a strong
position in the German speaking regions of Europe with
long term and growing relationships with quality private
sector clients."
- Andy Parker, CEO of Capita
•	 Konecta plans to strengthen their strategic position in the Latin
American Market. 16
•	 They completed two important acquisitions in the Region:
including, 49% of B-Connect, Mexican Market leader contact
centre with >4,000 employees, and 100% of Allus Global
BPO Centre, Latin American Leader with more than 22,000
employees.16
•	 These acquisitions allow Konecta to play a major role in BPO
industry and strengthen their position in Iberia and Latin America
becoming the top 3 BPO services providers in Peru and Argentina,
with a prominent position in Chile, Mexico and Brazil. 16
"Konecta acquires Latin American Allust Global BP. These
operations allow Konecta to play a major role in the BPO
industry in Latin America."
- José María Pacheco, President of Konecta
•	 By adding buw’s geographic footprint, complementary client
base, and German language capabilities, Convergys expects the
acquisition to expand its presence in the growing EUR 3 billion
German outsourced customer management services industry. 18
•	 buw is a growing and profitable business which generates
approximately EUR 150 million annual revenue, providing end-
to-end business process outsourcing (BPO) services to leading
companies across a wide breadth of industries. 18
"This accretive transaction will increase our capacity to
serve the customer management BPO market in Germany,
further diversify our marquee client base, and strengthen
our relationships with the multinational clients we share.”
-Andrea Ayers, Convergys President and CEO
LARGEST M&A CCM TRANSACTIONS 2014-2016
ACTIVE BUYERS
Source: S&P Capital IQ 2016
11
The CCM sector experienced significant transformation over
the last few years. Government policies have spurred larger
volumes of the domestic business and higher customer quality
services by onshoring call centers, but congruently created
issues by increasing costs through legislative complexity. Despite
government intervention, M&A volumes have steadily increased
from both strategic and financial sponsors, and are expected to
continue to grow via acquisition of technology enabled service
and SaaS providers (cite BAIRD). The Customer Contact Center
will continue to evolve from a cost center to a superior customer
experience creator, providing customers the omni-channel
offerings they expect.6
The key industry players have identified a multitude of issues on
the horizon, but specifically there are concerns about healthcare
legislation, macroeconomic trends, and the digital media
evolution. Legislation increases costs, profitability is directly
influenced by macroeconomic cycles, and digital media is critical
to industry marketing.
The global CCM sector will grow at 4.5% per year driven by
consolidation from larger players to diversify and enhance
capabilities, and secure larger, multisite contracts.1
As a result,
the CCM industry will move up the value chain and encompass a
multitude of business models and services.
Technology, Consolidation, and Diversification Create a Superior Customer Contact Center
CONCLUSION
12
ENDNOTES
1
Blau, Gavan. Customer Care Centers in the US Market Research. Rep. no. OD4878. IBISWorld, 01 June 2015. Web. 12 Aug. 2016.
2
Tuchman, Kenneth. "TeleTech Summary Q3 2015." SUMMARY Q3 2015 (2015): n. pag. TeleTech. TeleTech, 1 Oct. 2015. Web. 12 Aug. 2016.
3
https://www.capitaliq.com
4
Weborg, Rich. "Year in Review: Customer Service Trends in 2015 and What They Mean for 2016." Year in Review: Customer Service Trends in 2015 and
What They Mean for 2016. ICMI, 05 Jan. 2016. Web. 12 Aug. 2016.
5
"Call Centers." Encyclopedia of Emerging Industries. Farmington Hills, MI: Gale, 2016. Business Insights: Global. Web. 2 Aug. 2016.
6
Sirohi, Niren, and Jim Dickey. "The Omnichannel Evolution of the Contact Center." TeleTech. Consulting Services, 1 Oct. 2014. Web. 12 Aug. 2016.
7
Convergys 2015 10k.
8
Sykes 2015 10k.
9
Teletech 2015 10k.
10
http://www.sitel.com/news/groupe-acticall-completes-acquisition-of-sitel-worldwide/#sthash.fNNefjCl.dpuf
11
http://www.businesswire.com/news/home/20150710005574/en/Groupe-Acticall-Announces-Agreed-Acquire-Sitel-Largest
12
http://www.webhelp.com/en-us/news-insights/news/webhelp-partners-with-kkr/
13
http://www.reuters.com/article/kkr-webhelp-idUSFWN13L08S20151127
14
https://www.carlyle.com/news-room/news-release-archive/carlyle-group-acquires-majority-shareholding-comdata-leading-italian-
15
http://www.capita.com/news/news/2015/european-contact-centre-specialists-avocis-to-be-acquired-by-capita.aspx
16
http://www.grupokonecta.com/en/espanol-konecta-compra-al-gigante-latinoamericano-allus-global/
17
http://www.grupokonecta.com/wp-content/uploads/2016/06/Konecta-crece-con-la-compra-de-la-empresa-mexicana-B-Connect_ABC-
Sevilla-07.06.2016.pdf
18
http://www.businesswire.com/news/home/20160706006368/en/Convergys-Acquire-buw
19
Wissink, Jeff. "Why Onshoring Your Call Center Make Sense." Driving Business Success with Technology. Baseline, 07 Mar. 2012. Web. 23 Aug. 2016.
20
BAIRD. "Business Process Outsourcing." Transformation of Business Process Outsourcing (2015): n. pag. RWBAIRD. RWBAIRD, 01 Mar. 2015. Web.
23 Aug. 2016.
13
WE ACTED AS SOLE ADVISOR TO THE BUYER
H A S A C Q U I R E D
T H E P U B L I C H E A LT H O P I N I O N
A N D S O C I A L S C I E N C E S
D I V I S I O N O F
INDUSTRY EXPERIENCE
W E A C T E D A S F I N A N C I A L A D V I S O R T O T H E B U Y E R
H A S A C Q U I R E D
A S U B S I D I A R Y O F
W E A C T E D A S F I N A N C I A L A D V I S O R
H A S R E C E I V E D A S T R AT E G I C
I N V E S T M E N T F R O M
A S U B S I D I A R Y O F
K B R A A n a l y t i c s
W E A C T E D A S F I N A N C I A L A D V I S O R T O T H E B U Y E R
H A S A C Q U I R E D
WE ACTED AS SOLE ADVISOR TO THE SELLER
H A S B E E N A C Q U I R E D B Y
One Equity Partners
Headwaters' transaction in the Call
Center Industry was awarded
DEAL OF THE YEAR
“Headwaters ran an exhaustive search for us and uncovered a variety of interesting
operating assets. Their global network of relationships allowed us access to the
senior leadership of WPP, a global communications powerhouse. Their deal savvy
and market knowledge made this international transaction a reality.”
- Marco Villarreal, Qualfon’s CFO
Call Center Consolidation
Qualfon acquired Center Partners, a United States contact center outsourcing company that over the last 17 years
has built an excellent reputation for high performance sales programs for its clients in communications, financial,
technology, and retail industries. Center Partners has six contact centers across Idaho, Washington and Colorado
with approximately 2,500 employees who will be added to Qualfon's 10,000 employees and 11 contact centers,
primarily in near-shore and off-shore locations.
14
Disclosure: This newsletter is a periodic compilation of certain economic and corporate information, as well as completed and announced merger and
acquisition activity. Information contained in this newsletter should not be construed as a recommendation to sell or buy any security. Any reference
to or omission of any reference to any company in this newsletter should not be construed as a recommendation to buy, sell or take any other action
with respect to any security of any such company. We are not soliciting any action with respect to any security or company based on this newsletter.
The newsletter is published solely for the general information of clients and friends of Headwaters MB, LLC. It does not take into account the particular
investment objectives, financial situation or needs of individual recipients. Certain transactions, including those involving early-stage companies, give
rise to substantial risk and are not suitable for all investors. This newsletter is based upon information that we consider reliable, but we do not represent
that it is accurate or complete, and it should not be relied upon as such. Prediction of future events is inherently subject to both known and unknown
risks and other factors that may cause actual results to vary materially. We are under no obligation to update the information contained in this newslet-
ter. Opinions expressed are our present opinions only and are subject to change without notice. Additional information is available upon request. The
companies mentioned in this newsletter may be clients of Headwaters MB, LLC. The decisions to include any company in this newsletter is unrelated
in all respects to any service that Headwaters MB, LLC may provide to such company. This newsletter may not be copied or reproduced in any form,
or redistributed without the prior written consent of Headwaters MB, LLC. The information contained herein should not be construed as legal advice.
About Headwaters MB:
Headwaters MB is an independent, middle market investment banking firm providing strategic merger and
acquisition advice, capital raising and special situations advisory. Named “Investment Bank of the Year” by major
industry organizations in 2014 and 2015, Headwaters MB is headquartered in Denver, CO, with six regional offices
across the United States and partnerships with 18 firms covering 30 countries. For more information, visit
www.headwatersmb.com.
To learn more about how the Headwaters MB team can help you grow from opportunities in the Call Center
Sector, please contact:
Bob Balaban | Managing Director
720.792.9400 bbalaban@headwatersmb.com
•	 25 years of investment banking and
operating experience.
•	 Served as the lead banker on over 75
transactions primarily in the business
services marketplace.
Chad Gardiner | Vice President
720.310.0403 cgardiner@headwatersmb.com
•	 14 years of experience in investment
banking and capital markets.
•	 Advised on over $6 billion in aggregate
transaction value working in investment
banking
Call Center Coverage Team

More Related Content

What's hot

Agile Trends - Liderança em Times de Alta Performance - Ricardo Miluzzi.pptx
Agile Trends - Liderança em Times de Alta Performance - Ricardo Miluzzi.pptxAgile Trends - Liderança em Times de Alta Performance - Ricardo Miluzzi.pptx
Agile Trends - Liderança em Times de Alta Performance - Ricardo Miluzzi.pptx
Ricardo Miluzzi
 
Tecnologia e Sustentabilidade
Tecnologia e Sustentabilidade Tecnologia e Sustentabilidade
Ferramenta de apoio a gerência de configuração de software
Ferramenta de apoio a gerência de configuração de softwareFerramenta de apoio a gerência de configuração de software
Ferramenta de apoio a gerência de configuração de software
elliando dias
 
Sistemas Cooperativos Aula 03 - Fundamentos (Teorias e Modelos de Colaboração)
Sistemas Cooperativos Aula 03 - Fundamentos (Teorias e Modelos de Colaboração)Sistemas Cooperativos Aula 03 - Fundamentos (Teorias e Modelos de Colaboração)
Sistemas Cooperativos Aula 03 - Fundamentos (Teorias e Modelos de Colaboração)
Leinylson Fontinele
 
Organizações como Sistemas Complexos, Sociais e Abertos
Organizações como Sistemas Complexos, Sociais e AbertosOrganizações como Sistemas Complexos, Sociais e Abertos
Organizações como Sistemas Complexos, Sociais e Abertos
Chelsio Mabote
 
Arquitetura de Software EXPLICADA
Arquitetura de Software EXPLICADAArquitetura de Software EXPLICADA
Arquitetura de Software EXPLICADA
Fábio Nogueira de Lucena
 
Gestão de Projetos Ágeis
Gestão de Projetos ÁgeisGestão de Projetos Ágeis
Gestão de Projetos Ágeis
Rildo (@rildosan) Santos
 
Introdução à Aprendizagem de Máquina
Introdução à Aprendizagem de MáquinaIntrodução à Aprendizagem de Máquina
Introdução à Aprendizagem de Máquina
Fernando Palma
 
Planejamento Estratégico
Planejamento Estratégico Planejamento Estratégico
Planejamento Estratégico
Adeildo Caboclo
 
Diagrama de implantação
Diagrama de implantaçãoDiagrama de implantação
Diagrama de implantação
elliando dias
 
Desafio da gestão das Organizações - O Risco
Desafio da gestão das Organizações - O RiscoDesafio da gestão das Organizações - O Risco
Desafio da gestão das Organizações - O Risco
A. Rui Teixeira Santos
 
Introdução a Gerência de Configuração de Software
Introdução a Gerência de Configuração de SoftwareIntrodução a Gerência de Configuração de Software
Introdução a Gerência de Configuração de Software
Camilo Almendra
 
Governança Corporativa
Governança CorporativaGovernança Corporativa
Governança Corporativa
HealthMinds Academy
 
Segurança na Era Digital: ensinando novos hábitos aos indivíduos digitais - F...
Segurança na Era Digital: ensinando novos hábitos aos indivíduos digitais - F...Segurança na Era Digital: ensinando novos hábitos aos indivíduos digitais - F...
Segurança na Era Digital: ensinando novos hábitos aos indivíduos digitais - F...
Rafael Jaques
 
Teoria Geral dos Sistemas TGS
Teoria Geral dos Sistemas TGSTeoria Geral dos Sistemas TGS
Teoria Geral dos Sistemas TGS
Luciana Roncarati
 
Orçamento plano de marketing
Orçamento plano de marketingOrçamento plano de marketing
Orçamento plano de marketing
gmktipam
 
BSC - Balanced Scorecard
BSC - Balanced ScorecardBSC - Balanced Scorecard
BSC - Balanced Scorecard
Tajra Assessoria Educacional Ltda
 
Gestao De Pessoas
Gestao De PessoasGestao De Pessoas
Gestao De Pessoas
Inova Gestão
 
SO Parte V A Mudança Organizacional
SO Parte V A Mudança OrganizacionalSO Parte V A Mudança Organizacional
SO Parte V A Mudança Organizacional
Ana Maria Santos
 
Conceitos e exemplos em versionamento de código
Conceitos e exemplos em versionamento de códigoConceitos e exemplos em versionamento de código
Conceitos e exemplos em versionamento de código
Felipe
 

What's hot (20)

Agile Trends - Liderança em Times de Alta Performance - Ricardo Miluzzi.pptx
Agile Trends - Liderança em Times de Alta Performance - Ricardo Miluzzi.pptxAgile Trends - Liderança em Times de Alta Performance - Ricardo Miluzzi.pptx
Agile Trends - Liderança em Times de Alta Performance - Ricardo Miluzzi.pptx
 
Tecnologia e Sustentabilidade
Tecnologia e Sustentabilidade Tecnologia e Sustentabilidade
Tecnologia e Sustentabilidade
 
Ferramenta de apoio a gerência de configuração de software
Ferramenta de apoio a gerência de configuração de softwareFerramenta de apoio a gerência de configuração de software
Ferramenta de apoio a gerência de configuração de software
 
Sistemas Cooperativos Aula 03 - Fundamentos (Teorias e Modelos de Colaboração)
Sistemas Cooperativos Aula 03 - Fundamentos (Teorias e Modelos de Colaboração)Sistemas Cooperativos Aula 03 - Fundamentos (Teorias e Modelos de Colaboração)
Sistemas Cooperativos Aula 03 - Fundamentos (Teorias e Modelos de Colaboração)
 
Organizações como Sistemas Complexos, Sociais e Abertos
Organizações como Sistemas Complexos, Sociais e AbertosOrganizações como Sistemas Complexos, Sociais e Abertos
Organizações como Sistemas Complexos, Sociais e Abertos
 
Arquitetura de Software EXPLICADA
Arquitetura de Software EXPLICADAArquitetura de Software EXPLICADA
Arquitetura de Software EXPLICADA
 
Gestão de Projetos Ágeis
Gestão de Projetos ÁgeisGestão de Projetos Ágeis
Gestão de Projetos Ágeis
 
Introdução à Aprendizagem de Máquina
Introdução à Aprendizagem de MáquinaIntrodução à Aprendizagem de Máquina
Introdução à Aprendizagem de Máquina
 
Planejamento Estratégico
Planejamento Estratégico Planejamento Estratégico
Planejamento Estratégico
 
Diagrama de implantação
Diagrama de implantaçãoDiagrama de implantação
Diagrama de implantação
 
Desafio da gestão das Organizações - O Risco
Desafio da gestão das Organizações - O RiscoDesafio da gestão das Organizações - O Risco
Desafio da gestão das Organizações - O Risco
 
Introdução a Gerência de Configuração de Software
Introdução a Gerência de Configuração de SoftwareIntrodução a Gerência de Configuração de Software
Introdução a Gerência de Configuração de Software
 
Governança Corporativa
Governança CorporativaGovernança Corporativa
Governança Corporativa
 
Segurança na Era Digital: ensinando novos hábitos aos indivíduos digitais - F...
Segurança na Era Digital: ensinando novos hábitos aos indivíduos digitais - F...Segurança na Era Digital: ensinando novos hábitos aos indivíduos digitais - F...
Segurança na Era Digital: ensinando novos hábitos aos indivíduos digitais - F...
 
Teoria Geral dos Sistemas TGS
Teoria Geral dos Sistemas TGSTeoria Geral dos Sistemas TGS
Teoria Geral dos Sistemas TGS
 
Orçamento plano de marketing
Orçamento plano de marketingOrçamento plano de marketing
Orçamento plano de marketing
 
BSC - Balanced Scorecard
BSC - Balanced ScorecardBSC - Balanced Scorecard
BSC - Balanced Scorecard
 
Gestao De Pessoas
Gestao De PessoasGestao De Pessoas
Gestao De Pessoas
 
SO Parte V A Mudança Organizacional
SO Parte V A Mudança OrganizacionalSO Parte V A Mudança Organizacional
SO Parte V A Mudança Organizacional
 
Conceitos e exemplos em versionamento de código
Conceitos e exemplos em versionamento de códigoConceitos e exemplos em versionamento de código
Conceitos e exemplos em versionamento de código
 

Viewers also liked

BPO Call Center, Contact Center Investment Market Landscape for M&A Corporate...
BPO Call Center, Contact Center Investment Market Landscape for M&A Corporate...BPO Call Center, Contact Center Investment Market Landscape for M&A Corporate...
BPO Call Center, Contact Center Investment Market Landscape for M&A Corporate...
Charles Bedard
 
Ops kpi sample customer service
Ops kpi sample   customer serviceOps kpi sample   customer service
Ops kpi sample customer service
unitecfurey
 
Potential Acquirer Profile - Capita PLC
Potential Acquirer Profile - Capita PLCPotential Acquirer Profile - Capita PLC
Potential Acquirer Profile - Capita PLC
Joyce Leong
 
G08.2013 magic quadrant for mobile application development platforms
G08.2013 magic quadrant for mobile application development platformsG08.2013 magic quadrant for mobile application development platforms
G08.2013 magic quadrant for mobile application development platforms
Satya Harish
 
Whats new in customer experience management
Whats new in customer experience managementWhats new in customer experience management
Whats new in customer experience management
Prayukth K V
 
Hr kpi template
Hr kpi templateHr kpi template
Hr kpi template
biklejamebrow
 
Network system administrator perfomance appraisal 2
Network system administrator perfomance appraisal 2Network system administrator perfomance appraisal 2
Network system administrator perfomance appraisal 2
tonychoper6604
 
Help desk kpi
Help desk kpiHelp desk kpi
Help desk kpi
biklejamebrow
 
Gartner Magic Quadrant Ev
Gartner Magic Quadrant EvGartner Magic Quadrant Ev
Gartner Magic Quadrant Ev
Peragine
 
Gartner magic quadrant report
Gartner magic quadrant reportGartner magic quadrant report
Gartner magic quadrant report
Satya Harish
 
The pros and cons of offshore outsourcing
The pros and cons of offshore outsourcingThe pros and cons of offshore outsourcing
The pros and cons of offshore outsourcing
Immortal Technologies
 
Global Call Centers Industry
Global Call Centers IndustryGlobal Call Centers Industry
Global Call Centers Industry
ReportLinker.com
 
Genpact Inc, A Business Process Outsourcing Company
Genpact Inc, A Business Process Outsourcing CompanyGenpact Inc, A Business Process Outsourcing Company
Genpact Inc, A Business Process Outsourcing Company
Riri Kusumarani
 
Customer service account manager kpi
Customer service account manager kpiCustomer service account manager kpi
Customer service account manager kpi
fbunnetir
 
Capita in the financial sector
Capita in the financial sectorCapita in the financial sector
Capita in the financial sector
capita-ti
 
Customer Service KPIs - KPI working group presentation 3
Customer Service KPIs - KPI working group presentation 3Customer Service KPIs - KPI working group presentation 3
Customer Service KPIs - KPI working group presentation 3
Chikodi Onyemerela
 
Gartner magic quadrant 2015
Gartner magic quadrant 2015Gartner magic quadrant 2015
Gartner magic quadrant 2015
Satya Harish
 
KPIs in Mobile Money: A Reference Guide
KPIs in Mobile Money: A Reference GuideKPIs in Mobile Money: A Reference Guide
KPIs in Mobile Money: A Reference Guide
GSMA Mobile for Development
 
Examples of Customer Metrics and KPIs: CRM Metrics, KPI, CRM KPI, Examples, C...
Examples of Customer Metrics and KPIs: CRM Metrics, KPI, CRM KPI, Examples, C...Examples of Customer Metrics and KPIs: CRM Metrics, KPI, CRM KPI, Examples, C...
Examples of Customer Metrics and KPIs: CRM Metrics, KPI, CRM KPI, Examples, C...
The-KPI-Examples-Review
 
White Paper on Call Center Metrics (31West Knowledge Series)
White Paper on Call Center Metrics (31West Knowledge Series)White Paper on Call Center Metrics (31West Knowledge Series)
White Paper on Call Center Metrics (31West Knowledge Series)
31West Global Services
 

Viewers also liked (20)

BPO Call Center, Contact Center Investment Market Landscape for M&A Corporate...
BPO Call Center, Contact Center Investment Market Landscape for M&A Corporate...BPO Call Center, Contact Center Investment Market Landscape for M&A Corporate...
BPO Call Center, Contact Center Investment Market Landscape for M&A Corporate...
 
Ops kpi sample customer service
Ops kpi sample   customer serviceOps kpi sample   customer service
Ops kpi sample customer service
 
Potential Acquirer Profile - Capita PLC
Potential Acquirer Profile - Capita PLCPotential Acquirer Profile - Capita PLC
Potential Acquirer Profile - Capita PLC
 
G08.2013 magic quadrant for mobile application development platforms
G08.2013 magic quadrant for mobile application development platformsG08.2013 magic quadrant for mobile application development platforms
G08.2013 magic quadrant for mobile application development platforms
 
Whats new in customer experience management
Whats new in customer experience managementWhats new in customer experience management
Whats new in customer experience management
 
Hr kpi template
Hr kpi templateHr kpi template
Hr kpi template
 
Network system administrator perfomance appraisal 2
Network system administrator perfomance appraisal 2Network system administrator perfomance appraisal 2
Network system administrator perfomance appraisal 2
 
Help desk kpi
Help desk kpiHelp desk kpi
Help desk kpi
 
Gartner Magic Quadrant Ev
Gartner Magic Quadrant EvGartner Magic Quadrant Ev
Gartner Magic Quadrant Ev
 
Gartner magic quadrant report
Gartner magic quadrant reportGartner magic quadrant report
Gartner magic quadrant report
 
The pros and cons of offshore outsourcing
The pros and cons of offshore outsourcingThe pros and cons of offshore outsourcing
The pros and cons of offshore outsourcing
 
Global Call Centers Industry
Global Call Centers IndustryGlobal Call Centers Industry
Global Call Centers Industry
 
Genpact Inc, A Business Process Outsourcing Company
Genpact Inc, A Business Process Outsourcing CompanyGenpact Inc, A Business Process Outsourcing Company
Genpact Inc, A Business Process Outsourcing Company
 
Customer service account manager kpi
Customer service account manager kpiCustomer service account manager kpi
Customer service account manager kpi
 
Capita in the financial sector
Capita in the financial sectorCapita in the financial sector
Capita in the financial sector
 
Customer Service KPIs - KPI working group presentation 3
Customer Service KPIs - KPI working group presentation 3Customer Service KPIs - KPI working group presentation 3
Customer Service KPIs - KPI working group presentation 3
 
Gartner magic quadrant 2015
Gartner magic quadrant 2015Gartner magic quadrant 2015
Gartner magic quadrant 2015
 
KPIs in Mobile Money: A Reference Guide
KPIs in Mobile Money: A Reference GuideKPIs in Mobile Money: A Reference Guide
KPIs in Mobile Money: A Reference Guide
 
Examples of Customer Metrics and KPIs: CRM Metrics, KPI, CRM KPI, Examples, C...
Examples of Customer Metrics and KPIs: CRM Metrics, KPI, CRM KPI, Examples, C...Examples of Customer Metrics and KPIs: CRM Metrics, KPI, CRM KPI, Examples, C...
Examples of Customer Metrics and KPIs: CRM Metrics, KPI, CRM KPI, Examples, C...
 
White Paper on Call Center Metrics (31West Knowledge Series)
White Paper on Call Center Metrics (31West Knowledge Series)White Paper on Call Center Metrics (31West Knowledge Series)
White Paper on Call Center Metrics (31West Knowledge Series)
 

Similar to Call Center Market Report

I Bytes Telecommunication & Media industry
I Bytes Telecommunication & Media industryI Bytes Telecommunication & Media industry
I Bytes Telecommunication & Media industry
EGBG Services
 
2012_GTM Recommendation
2012_GTM Recommendation2012_GTM Recommendation
2012_GTM Recommendation
Rick VARGAS
 
2009 Ingram Corp Overview
2009 Ingram Corp Overview2009 Ingram Corp Overview
2009 Ingram Corp Overview
ASUS Computer Intl
 
Evolving landscape of technology deals: Semiconductor Industry
Evolving landscape of technology deals: Semiconductor Industry Evolving landscape of technology deals: Semiconductor Industry
Evolving landscape of technology deals: Semiconductor Industry
PwC
 
Telecom 2020:Preparing for a very different tomorrow
Telecom 2020:Preparing for a very different tomorrowTelecom 2020:Preparing for a very different tomorrow
Telecom 2020:Preparing for a very different tomorrow
Rob Van Den Dam
 
Digital transformation for 2020 and beyond
Digital transformation for 2020 and beyondDigital transformation for 2020 and beyond
Digital transformation for 2020 and beyond
Sarhan, Ahmed
 
CHALLENGES.pptx
CHALLENGES.pptxCHALLENGES.pptx
CHALLENGES.pptx
sukhmeetsikka1
 
CHALLENGES.pptx
CHALLENGES.pptxCHALLENGES.pptx
CHALLENGES.pptx
sukhmeetsikka1
 
Telcos Strategic Positioning in the new world: The revolution will be Digital...
Telcos Strategic Positioning in the new world: The revolution will be Digital...Telcos Strategic Positioning in the new world: The revolution will be Digital...
Telcos Strategic Positioning in the new world: The revolution will be Digital...
Rob Van Den Dam
 
Latest Market Trends Impacting Contact Center Strategy V1
Latest Market Trends Impacting Contact Center Strategy V1Latest Market Trends Impacting Contact Center Strategy V1
Latest Market Trends Impacting Contact Center Strategy V1
Art Hall
 
Global business process outsourcing m&a update. summer 2014. norgestion merge...
Global business process outsourcing m&a update. summer 2014. norgestion merge...Global business process outsourcing m&a update. summer 2014. norgestion merge...
Global business process outsourcing m&a update. summer 2014. norgestion merge...
NORGESTION
 
computer sciences FY 2000 Q1
computer sciences FY 2000 Q1computer sciences FY 2000 Q1
computer sciences FY 2000 Q1
finance17
 
Vendor assessment
Vendor assessmentVendor assessment
Vendor assessment
Milind Kinker
 
Market landscape how pervasive technology has changed the game
Market landscape how pervasive technology has changed the gameMarket landscape how pervasive technology has changed the game
Market landscape how pervasive technology has changed the game
Dennis Stoutjesdijk
 
HCIT Market Research October 2011
HCIT Market Research October 2011HCIT Market Research October 2011
HCIT Market Research October 2011
MMMTechLaw
 
HCIT Market Research Oct 2011
HCIT Market Research Oct 2011HCIT Market Research Oct 2011
HCIT Market Research Oct 2011
MMMTechLaw
 
Roth presentation jason tienor telkonet
Roth presentation   jason tienor telkonetRoth presentation   jason tienor telkonet
Roth presentation jason tienor telkonet
IRDirect
 
Roth presentation jason tienor telkonet
Roth presentation   jason tienor telkonetRoth presentation   jason tienor telkonet
Roth presentation jason tienor telkonet
Adam Martin
 
Yet another metamorphosis for gcc telecom operators
Yet another metamorphosis for gcc telecom operatorsYet another metamorphosis for gcc telecom operators
Yet another metamorphosis for gcc telecom operators
sharingpublications
 
Feet on the Ground, Eyes on the Horizon: A Transformational Roadmap for the H...
Feet on the Ground, Eyes on the Horizon: A Transformational Roadmap for the H...Feet on the Ground, Eyes on the Horizon: A Transformational Roadmap for the H...
Feet on the Ground, Eyes on the Horizon: A Transformational Roadmap for the H...
Cognizant
 

Similar to Call Center Market Report (20)

I Bytes Telecommunication & Media industry
I Bytes Telecommunication & Media industryI Bytes Telecommunication & Media industry
I Bytes Telecommunication & Media industry
 
2012_GTM Recommendation
2012_GTM Recommendation2012_GTM Recommendation
2012_GTM Recommendation
 
2009 Ingram Corp Overview
2009 Ingram Corp Overview2009 Ingram Corp Overview
2009 Ingram Corp Overview
 
Evolving landscape of technology deals: Semiconductor Industry
Evolving landscape of technology deals: Semiconductor Industry Evolving landscape of technology deals: Semiconductor Industry
Evolving landscape of technology deals: Semiconductor Industry
 
Telecom 2020:Preparing for a very different tomorrow
Telecom 2020:Preparing for a very different tomorrowTelecom 2020:Preparing for a very different tomorrow
Telecom 2020:Preparing for a very different tomorrow
 
Digital transformation for 2020 and beyond
Digital transformation for 2020 and beyondDigital transformation for 2020 and beyond
Digital transformation for 2020 and beyond
 
CHALLENGES.pptx
CHALLENGES.pptxCHALLENGES.pptx
CHALLENGES.pptx
 
CHALLENGES.pptx
CHALLENGES.pptxCHALLENGES.pptx
CHALLENGES.pptx
 
Telcos Strategic Positioning in the new world: The revolution will be Digital...
Telcos Strategic Positioning in the new world: The revolution will be Digital...Telcos Strategic Positioning in the new world: The revolution will be Digital...
Telcos Strategic Positioning in the new world: The revolution will be Digital...
 
Latest Market Trends Impacting Contact Center Strategy V1
Latest Market Trends Impacting Contact Center Strategy V1Latest Market Trends Impacting Contact Center Strategy V1
Latest Market Trends Impacting Contact Center Strategy V1
 
Global business process outsourcing m&a update. summer 2014. norgestion merge...
Global business process outsourcing m&a update. summer 2014. norgestion merge...Global business process outsourcing m&a update. summer 2014. norgestion merge...
Global business process outsourcing m&a update. summer 2014. norgestion merge...
 
computer sciences FY 2000 Q1
computer sciences FY 2000 Q1computer sciences FY 2000 Q1
computer sciences FY 2000 Q1
 
Vendor assessment
Vendor assessmentVendor assessment
Vendor assessment
 
Market landscape how pervasive technology has changed the game
Market landscape how pervasive technology has changed the gameMarket landscape how pervasive technology has changed the game
Market landscape how pervasive technology has changed the game
 
HCIT Market Research October 2011
HCIT Market Research October 2011HCIT Market Research October 2011
HCIT Market Research October 2011
 
HCIT Market Research Oct 2011
HCIT Market Research Oct 2011HCIT Market Research Oct 2011
HCIT Market Research Oct 2011
 
Roth presentation jason tienor telkonet
Roth presentation   jason tienor telkonetRoth presentation   jason tienor telkonet
Roth presentation jason tienor telkonet
 
Roth presentation jason tienor telkonet
Roth presentation   jason tienor telkonetRoth presentation   jason tienor telkonet
Roth presentation jason tienor telkonet
 
Yet another metamorphosis for gcc telecom operators
Yet another metamorphosis for gcc telecom operatorsYet another metamorphosis for gcc telecom operators
Yet another metamorphosis for gcc telecom operators
 
Feet on the Ground, Eyes on the Horizon: A Transformational Roadmap for the H...
Feet on the Ground, Eyes on the Horizon: A Transformational Roadmap for the H...Feet on the Ground, Eyes on the Horizon: A Transformational Roadmap for the H...
Feet on the Ground, Eyes on the Horizon: A Transformational Roadmap for the H...
 

More from Capstone Headwaters

Introduction To The Global Mining Industry
Introduction To The Global Mining IndustryIntroduction To The Global Mining Industry
Introduction To The Global Mining Industry
Capstone Headwaters
 
Explosive Growth in Frac Sand and Lithium- Lessons To Be Learned?
Explosive Growth in Frac Sand and Lithium- Lessons To Be Learned?Explosive Growth in Frac Sand and Lithium- Lessons To Be Learned?
Explosive Growth in Frac Sand and Lithium- Lessons To Be Learned?
Capstone Headwaters
 
A Primer re Gold Valuations & Development Costs and Private Equity's Role in ...
A Primer re Gold Valuations & Development Costs and Private Equity's Role in ...A Primer re Gold Valuations & Development Costs and Private Equity's Role in ...
A Primer re Gold Valuations & Development Costs and Private Equity's Role in ...
Capstone Headwaters
 
Case Study: Private Equity Investment in Frac Sand
Case Study: Private Equity Investment in Frac SandCase Study: Private Equity Investment in Frac Sand
Case Study: Private Equity Investment in Frac Sand
Capstone Headwaters
 
The New Industry Paradigm: Industry Specialist Private Equity Investors as Dr...
The New Industry Paradigm: Industry Specialist Private Equity Investors as Dr...The New Industry Paradigm: Industry Specialist Private Equity Investors as Dr...
The New Industry Paradigm: Industry Specialist Private Equity Investors as Dr...
Capstone Headwaters
 
Expert Perspectives on the Frac Sand Market and Supply Chain
Expert Perspectives on the Frac Sand Market and Supply ChainExpert Perspectives on the Frac Sand Market and Supply Chain
Expert Perspectives on the Frac Sand Market and Supply Chain
Capstone Headwaters
 
The Impending Sand Industry Consolidation
The Impending Sand Industry ConsolidationThe Impending Sand Industry Consolidation
The Impending Sand Industry Consolidation
Capstone Headwaters
 
Will Point-To-Point Distribution Drive Sand Industry Consolidation?
Will Point-To-Point Distribution Drive Sand Industry Consolidation?Will Point-To-Point Distribution Drive Sand Industry Consolidation?
Will Point-To-Point Distribution Drive Sand Industry Consolidation?
Capstone Headwaters
 
Making An Economic Assessment of Frac Sand
Making An Economic Assessment of Frac SandMaking An Economic Assessment of Frac Sand
Making An Economic Assessment of Frac Sand
Capstone Headwaters
 
The Frac Sand Industry New Normal: Supply Chain Challenges and Opportunities
The Frac Sand Industry New Normal: Supply Chain Challenges and OpportunitiesThe Frac Sand Industry New Normal: Supply Chain Challenges and Opportunities
The Frac Sand Industry New Normal: Supply Chain Challenges and Opportunities
Capstone Headwaters
 
Coping with the new paradigm: What might the industry look like when it all ...
 Coping with the new paradigm: What might the industry look like when it all ... Coping with the new paradigm: What might the industry look like when it all ...
Coping with the new paradigm: What might the industry look like when it all ...
Capstone Headwaters
 
Financing and Investment: Value Propositions and Refinancing
Financing and Investment: Value Propositions and RefinancingFinancing and Investment: Value Propositions and Refinancing
Financing and Investment: Value Propositions and Refinancing
Capstone Headwaters
 
Frac Sand Outlook & Perspectives
Frac Sand Outlook & PerspectivesFrac Sand Outlook & Perspectives
Frac Sand Outlook & Perspectives
Capstone Headwaters
 
Shifting Sands
Shifting SandsShifting Sands
Shifting Sands
Capstone Headwaters
 
Lithium and Frac Sands Have Attracted Investor Interest: What Are The Lessons?
Lithium and Frac Sands Have Attracted Investor Interest: What Are The Lessons?Lithium and Frac Sands Have Attracted Investor Interest: What Are The Lessons?
Lithium and Frac Sands Have Attracted Investor Interest: What Are The Lessons?
Capstone Headwaters
 
Development Stage Gold Companies Value Proposition Timeline
Development Stage Gold Companies Value Proposition TimelineDevelopment Stage Gold Companies Value Proposition Timeline
Development Stage Gold Companies Value Proposition Timeline
Capstone Headwaters
 
Energy equipment & services monthly report – september final
Energy equipment & services monthly report – september finalEnergy equipment & services monthly report – september final
Energy equipment & services monthly report – september final
Capstone Headwaters
 
Energy Equipment & Services: Industry Insights & Happenings
Energy Equipment & Services: Industry Insights & HappeningsEnergy Equipment & Services: Industry Insights & Happenings
Energy Equipment & Services: Industry Insights & Happenings
Capstone Headwaters
 
U.S. Midstream and Downstream Services Market Update
U.S. Midstream and Downstream Services Market UpdateU.S. Midstream and Downstream Services Market Update
U.S. Midstream and Downstream Services Market Update
Capstone Headwaters
 
July 2016 Energy Equipment & Services: Industry Insights & Happenings
July 2016 Energy Equipment & Services: Industry Insights & HappeningsJuly 2016 Energy Equipment & Services: Industry Insights & Happenings
July 2016 Energy Equipment & Services: Industry Insights & Happenings
Capstone Headwaters
 

More from Capstone Headwaters (20)

Introduction To The Global Mining Industry
Introduction To The Global Mining IndustryIntroduction To The Global Mining Industry
Introduction To The Global Mining Industry
 
Explosive Growth in Frac Sand and Lithium- Lessons To Be Learned?
Explosive Growth in Frac Sand and Lithium- Lessons To Be Learned?Explosive Growth in Frac Sand and Lithium- Lessons To Be Learned?
Explosive Growth in Frac Sand and Lithium- Lessons To Be Learned?
 
A Primer re Gold Valuations & Development Costs and Private Equity's Role in ...
A Primer re Gold Valuations & Development Costs and Private Equity's Role in ...A Primer re Gold Valuations & Development Costs and Private Equity's Role in ...
A Primer re Gold Valuations & Development Costs and Private Equity's Role in ...
 
Case Study: Private Equity Investment in Frac Sand
Case Study: Private Equity Investment in Frac SandCase Study: Private Equity Investment in Frac Sand
Case Study: Private Equity Investment in Frac Sand
 
The New Industry Paradigm: Industry Specialist Private Equity Investors as Dr...
The New Industry Paradigm: Industry Specialist Private Equity Investors as Dr...The New Industry Paradigm: Industry Specialist Private Equity Investors as Dr...
The New Industry Paradigm: Industry Specialist Private Equity Investors as Dr...
 
Expert Perspectives on the Frac Sand Market and Supply Chain
Expert Perspectives on the Frac Sand Market and Supply ChainExpert Perspectives on the Frac Sand Market and Supply Chain
Expert Perspectives on the Frac Sand Market and Supply Chain
 
The Impending Sand Industry Consolidation
The Impending Sand Industry ConsolidationThe Impending Sand Industry Consolidation
The Impending Sand Industry Consolidation
 
Will Point-To-Point Distribution Drive Sand Industry Consolidation?
Will Point-To-Point Distribution Drive Sand Industry Consolidation?Will Point-To-Point Distribution Drive Sand Industry Consolidation?
Will Point-To-Point Distribution Drive Sand Industry Consolidation?
 
Making An Economic Assessment of Frac Sand
Making An Economic Assessment of Frac SandMaking An Economic Assessment of Frac Sand
Making An Economic Assessment of Frac Sand
 
The Frac Sand Industry New Normal: Supply Chain Challenges and Opportunities
The Frac Sand Industry New Normal: Supply Chain Challenges and OpportunitiesThe Frac Sand Industry New Normal: Supply Chain Challenges and Opportunities
The Frac Sand Industry New Normal: Supply Chain Challenges and Opportunities
 
Coping with the new paradigm: What might the industry look like when it all ...
 Coping with the new paradigm: What might the industry look like when it all ... Coping with the new paradigm: What might the industry look like when it all ...
Coping with the new paradigm: What might the industry look like when it all ...
 
Financing and Investment: Value Propositions and Refinancing
Financing and Investment: Value Propositions and RefinancingFinancing and Investment: Value Propositions and Refinancing
Financing and Investment: Value Propositions and Refinancing
 
Frac Sand Outlook & Perspectives
Frac Sand Outlook & PerspectivesFrac Sand Outlook & Perspectives
Frac Sand Outlook & Perspectives
 
Shifting Sands
Shifting SandsShifting Sands
Shifting Sands
 
Lithium and Frac Sands Have Attracted Investor Interest: What Are The Lessons?
Lithium and Frac Sands Have Attracted Investor Interest: What Are The Lessons?Lithium and Frac Sands Have Attracted Investor Interest: What Are The Lessons?
Lithium and Frac Sands Have Attracted Investor Interest: What Are The Lessons?
 
Development Stage Gold Companies Value Proposition Timeline
Development Stage Gold Companies Value Proposition TimelineDevelopment Stage Gold Companies Value Proposition Timeline
Development Stage Gold Companies Value Proposition Timeline
 
Energy equipment & services monthly report – september final
Energy equipment & services monthly report – september finalEnergy equipment & services monthly report – september final
Energy equipment & services monthly report – september final
 
Energy Equipment & Services: Industry Insights & Happenings
Energy Equipment & Services: Industry Insights & HappeningsEnergy Equipment & Services: Industry Insights & Happenings
Energy Equipment & Services: Industry Insights & Happenings
 
U.S. Midstream and Downstream Services Market Update
U.S. Midstream and Downstream Services Market UpdateU.S. Midstream and Downstream Services Market Update
U.S. Midstream and Downstream Services Market Update
 
July 2016 Energy Equipment & Services: Industry Insights & Happenings
July 2016 Energy Equipment & Services: Industry Insights & HappeningsJuly 2016 Energy Equipment & Services: Industry Insights & Happenings
July 2016 Energy Equipment & Services: Industry Insights & Happenings
 

Recently uploaded

Manhole Covers_ Design, Durability & Innovation.pdf
Manhole Covers_ Design, Durability & Innovation.pdfManhole Covers_ Design, Durability & Innovation.pdf
Manhole Covers_ Design, Durability & Innovation.pdf
Pupa India
 
Busty Girls Call Navi Mumbai 🛵🚡9820252231 💃 Choose Best And Top Girl Service ...
Busty Girls Call Navi Mumbai 🛵🚡9820252231 💃 Choose Best And Top Girl Service ...Busty Girls Call Navi Mumbai 🛵🚡9820252231 💃 Choose Best And Top Girl Service ...
Busty Girls Call Navi Mumbai 🛵🚡9820252231 💃 Choose Best And Top Girl Service ...
902basic
 
Girls Call Andheri East 9910780858 Provide Best And Top Girl Service And No1 ...
Girls Call Andheri East 9910780858 Provide Best And Top Girl Service And No1 ...Girls Call Andheri East 9910780858 Provide Best And Top Girl Service And No1 ...
Girls Call Andheri East 9910780858 Provide Best And Top Girl Service And No1 ...
margaretblush
 
BDSM Girls Call Navi Mumbai 🛵🚡9920725232 💃 Choose Best And Top Girl Service A...
BDSM Girls Call Navi Mumbai 🛵🚡9920725232 💃 Choose Best And Top Girl Service A...BDSM Girls Call Navi Mumbai 🛵🚡9920725232 💃 Choose Best And Top Girl Service A...
BDSM Girls Call Navi Mumbai 🛵🚡9920725232 💃 Choose Best And Top Girl Service A...
6459astrid
 
Hyderabad Girls call 👀 XXXXXXXXXXX 👀 Cash Payment With Room DeliveryDelivery
Hyderabad Girls call  👀 XXXXXXXXXXX 👀 Cash Payment With Room DeliveryDeliveryHyderabad Girls call  👀 XXXXXXXXXXX 👀 Cash Payment With Room DeliveryDelivery
Hyderabad Girls call 👀 XXXXXXXXXXX 👀 Cash Payment With Room DeliveryDelivery
Jasmine Rawat
 
Buy Two Wheeler Insurance at Best Price in India | MyPolicyExpess
Buy Two Wheeler Insurance at Best Price in India | MyPolicyExpessBuy Two Wheeler Insurance at Best Price in India | MyPolicyExpess
Buy Two Wheeler Insurance at Best Price in India | MyPolicyExpess
R&D Insurance Brokers Private Limited
 
Girls Call ServiCe Hyderabad 0000000000 Tanisha Best High Class Hyderabad Ava...
Girls Call ServiCe Hyderabad 0000000000 Tanisha Best High Class Hyderabad Ava...Girls Call ServiCe Hyderabad 0000000000 Tanisha Best High Class Hyderabad Ava...
Girls Call ServiCe Hyderabad 0000000000 Tanisha Best High Class Hyderabad Ava...
aslasdfmkhan4750
 
SFU degree offer diploma Transcript
SFU degree offer diploma TranscriptSFU degree offer diploma Transcript
SFU degree offer diploma Transcript
oymwthh
 
development men lap tok mhlcf;k,hhg, jx,dthu;yli7b. pptx
development men lap tok mhlcf;k,hhg, jx,dthu;yli7b. pptxdevelopment men lap tok mhlcf;k,hhg, jx,dthu;yli7b. pptx
development men lap tok mhlcf;k,hhg, jx,dthu;yli7b. pptx
namansingla546
 
UCL biyezheng degree offer diploma Transcript
UCL biyezheng degree offer diploma TranscriptUCL biyezheng degree offer diploma Transcript
UCL biyezheng degree offer diploma Transcript
aaxweek
 
420 for sale near me Telegram @pplanet0 weed for sale in UAE
420 for sale near me Telegram @pplanet0 weed for sale in UAE420 for sale near me Telegram @pplanet0 weed for sale in UAE
420 for sale near me Telegram @pplanet0 weed for sale in UAE
ausway566
 

Recently uploaded (11)

Manhole Covers_ Design, Durability & Innovation.pdf
Manhole Covers_ Design, Durability & Innovation.pdfManhole Covers_ Design, Durability & Innovation.pdf
Manhole Covers_ Design, Durability & Innovation.pdf
 
Busty Girls Call Navi Mumbai 🛵🚡9820252231 💃 Choose Best And Top Girl Service ...
Busty Girls Call Navi Mumbai 🛵🚡9820252231 💃 Choose Best And Top Girl Service ...Busty Girls Call Navi Mumbai 🛵🚡9820252231 💃 Choose Best And Top Girl Service ...
Busty Girls Call Navi Mumbai 🛵🚡9820252231 💃 Choose Best And Top Girl Service ...
 
Girls Call Andheri East 9910780858 Provide Best And Top Girl Service And No1 ...
Girls Call Andheri East 9910780858 Provide Best And Top Girl Service And No1 ...Girls Call Andheri East 9910780858 Provide Best And Top Girl Service And No1 ...
Girls Call Andheri East 9910780858 Provide Best And Top Girl Service And No1 ...
 
BDSM Girls Call Navi Mumbai 🛵🚡9920725232 💃 Choose Best And Top Girl Service A...
BDSM Girls Call Navi Mumbai 🛵🚡9920725232 💃 Choose Best And Top Girl Service A...BDSM Girls Call Navi Mumbai 🛵🚡9920725232 💃 Choose Best And Top Girl Service A...
BDSM Girls Call Navi Mumbai 🛵🚡9920725232 💃 Choose Best And Top Girl Service A...
 
Hyderabad Girls call 👀 XXXXXXXXXXX 👀 Cash Payment With Room DeliveryDelivery
Hyderabad Girls call  👀 XXXXXXXXXXX 👀 Cash Payment With Room DeliveryDeliveryHyderabad Girls call  👀 XXXXXXXXXXX 👀 Cash Payment With Room DeliveryDelivery
Hyderabad Girls call 👀 XXXXXXXXXXX 👀 Cash Payment With Room DeliveryDelivery
 
Buy Two Wheeler Insurance at Best Price in India | MyPolicyExpess
Buy Two Wheeler Insurance at Best Price in India | MyPolicyExpessBuy Two Wheeler Insurance at Best Price in India | MyPolicyExpess
Buy Two Wheeler Insurance at Best Price in India | MyPolicyExpess
 
Girls Call ServiCe Hyderabad 0000000000 Tanisha Best High Class Hyderabad Ava...
Girls Call ServiCe Hyderabad 0000000000 Tanisha Best High Class Hyderabad Ava...Girls Call ServiCe Hyderabad 0000000000 Tanisha Best High Class Hyderabad Ava...
Girls Call ServiCe Hyderabad 0000000000 Tanisha Best High Class Hyderabad Ava...
 
SFU degree offer diploma Transcript
SFU degree offer diploma TranscriptSFU degree offer diploma Transcript
SFU degree offer diploma Transcript
 
development men lap tok mhlcf;k,hhg, jx,dthu;yli7b. pptx
development men lap tok mhlcf;k,hhg, jx,dthu;yli7b. pptxdevelopment men lap tok mhlcf;k,hhg, jx,dthu;yli7b. pptx
development men lap tok mhlcf;k,hhg, jx,dthu;yli7b. pptx
 
UCL biyezheng degree offer diploma Transcript
UCL biyezheng degree offer diploma TranscriptUCL biyezheng degree offer diploma Transcript
UCL biyezheng degree offer diploma Transcript
 
420 for sale near me Telegram @pplanet0 weed for sale in UAE
420 for sale near me Telegram @pplanet0 weed for sale in UAE420 for sale near me Telegram @pplanet0 weed for sale in UAE
420 for sale near me Telegram @pplanet0 weed for sale in UAE
 

Call Center Market Report

  • 1. C A L L C E N T E R MARKET REPORT THIRD QUARTER 2016
  • 2. 2 CUSTOMER CONTACT MANAGEMENT Signs of Growth for Call Centers? HIGHLIGHTS • Outsourcing still provides meaningful cost savings, representing roughly 20% of the total market with approximately 2.0 million outsourced agents located primarily in India and the Philippines. • Technology developments, vendor pruning, and consumer demand push providers to expand their product, service, and channel offerings.20 • M&A activity expected to increase steadily in 2017 as corporate profits and consumer spending increases. • FCC onshoring initiatives continue to create jobs within big industry players via organic growth and acquisitions.19 • Steady growth opportunities on a go-forward basis as the global customer contact management market is expected to grow to $81 billion by 2018 representing a CAGR of 6.1%. • U.S. based healthcare legislative changes and requirements will increase costs and complexity of compliance. 2015 YEAR IN REVIEW Advancing technology and differentiation boost growth rates 2015 was an exciting year for the Customer Contact Management (CCM) industry, with huge strides in technology, automation, differentiation, and omni-channel diversification. Customers want to use the channel that most quickly solves their problems, including voice, chat, text, and social media. Corporate services expanded their technology offerings making large technological advances, as witnessed with Amazon's new Alexa -- a virtual assistant that can answer a wide variety of questions from weather to traffic. These technological advances around automation create a surge of efficiency and growth opportunities for CCM businesses. According to International Customer Management Institute (ICMI), nearly 55% of customers want an automated self-service experience, increasing efficiency and decreasing costs for businesses. In addition, 80% of companies plan to use customer service as a way to differentiate themselves from their competition.4
  • 3. 3 Source: IBISWorld OD4878, June 1015 Please push '0' to speak with a customer service representative 2015 SERVICES SEGMENTATION Global and U.S. CCM Spend CURRENT INDUSTRY PERFORMANCE 7.9% CONVERGYS CORPORATION USMARKETSHARE2015 6.7% TELETECH HOLDINGS INC. USMARKETSHARE2015 4.7% SYKES ENTERPRISE INC. USMARKETSHARE2015 Over the past 20+ years, the customer experience has remained largely the same and the CCM market has seen steady contraction and consolidation. However, the recent rise of internet technology has revolutionized call centers customer service providing a breath of life into CCM systems creating “omni-channel” product offerings and services. Omni-channel usage includes websites (85%), call-center (75%), email (65%), live chat (58%), Facebook, and Twitter.5 Today, customers rarely use one communication channel when reaching out to customer support. According to an article by TeleTech, 57% of inbound calls to the contact center coming from customers who first attempted to resolve an issue on the companies website, while 30% of callers are still on the company's website when they speak to an associate.6 The CCM sector has seen significant vendor consolidation and as a result, larger CCM providers have pushed towards more diversified market offerings, including call centers, automated interactions, and online interaction services.20 This diversification has improved customer service offerings dramatically as employee agents continue to work with clients to help build relationships. This customer-centric model generates significant value in leveraging relationships and ability to scale. The global market is estimated to grow to $64 billion, of which approximately $35 billion (~56%) of call center revenue is domiciled in the United States. Expected growth rate for the industry as a whole is 4-5% per year.1
  • 4. 4 The CCM sector will grow and expand with steadily increasing M&A activity to (i) consolidate, diversify and enhance capabilities to secure larger, multisite contracts, and keep pace with technological advancements; (ii) operate at the optimum threshold between the cost savings of outsourcing and the customer satisfaction ratings of onshoring; (iii) move up the value chain and encompass a multitude of business models and services; and, (iv) focus on margin enhancement and profitability to compete as non-revenue products continue to be outsourced and larger companies realize economy of scale cost savings.20 The CCM sector abounds with transformation and opportunities as large industry players grow and consolidate the market. Currently, the top four industry players are Convergys (7.9%), TeleTech(6.7%),Sykes(4.7%),andAlorica(4.5%)withacombined market share of 23.8% in 2015. According to International Data Corporation (IDC), current global CCM revenues are expected to grow from ~$64 billion to $81 billion by 2018 with a four-year CAGR of 6.1%.1 The majority (80%) of all call center agents are still located in-house, with an expected growth rate of 2.9%. However, outsourced agent positions are expected to grow at 5.1% as companies realize the cost saving benefits.1 In the past, the CCM industry has suffered as a result of automation and offshoring with recent growth spurred from government intervention. In 2011, the FCC announced a goal of creating 100,000 call center jobs in the US and the industry is still feeling the effects of that legislation today. The jobs were generally created by larger industry players, as a way to increase customer satisfaction compounded with technological opportunity. Now, onshoring is a maturing business model with agents taking customer service calls and web chats during specific times in their homes.19 However, it is uncertain how much longer this will last with the upcoming election.1 According to IBIS, the industry's contribution to the overall economy is expected to grow at an average annual rate of 1.2% -- slightly lower that the projected US GDP growth of 2.5% over the same period. When the average annual industry growth rate is below that of the overall economy this indicates that the industry is in the mature phase of its life cycle.1 KEY INDUSTRY DRIVERS CUSTOMER CONTACT MANAGEMENT INDUSTRY WITH M&A OPPORTUNITIES HOMESHORING • Cheap tech and freelance staff supplying their own tech reduces home-based call center costs • Residual effects of 2011 FCC U.S. job creation via “virtual call centers” 5 CONSUMER SPENDING • Consumer spending continues to strengthen with economy • Consumer spending means business will invest in call centers to increase sales and gain market share 1 PRIVATE INVESTMENT IN TECHNOLOGY • High sensitivity to technological innovation • Recent technological innovation may mitigate cost disadvantages for US operators 1 CORPORATE PROFIT • CCM is sensitive to changes in corporate profit • Increases in corporate profit results in increases in CCM • Profit is expected to rise in 2015 and 2016 1 NUMBER OF BUSINESSES • New businesses are more likely to outsource CCM • Business growth increases demand for CCM services • Outlook is positive for new business creation 1 OFFSHORING • Offshoring reduces labor costs and resulted in industry contraction • Lowers labor costs result in lower prices to clients • Outsourcing remained steady in 2015 1
  • 5. U.S. MARKET 5 YEAR PERFORMANCE 2011-2016 2015 CUSTOMER MANAGEMENT SPEND BY VERTICAL (%) (TOTAL MARKET = ~$63B) Source: NelsonHall, June 2015; Convergys Strategic Positioning Report 'Other' Includes: Retail, healthcare, manufacturing, government, utilities, transportation Source: Convergys Strategic Positioning Report 2012 Source: Convergys Strategic 2012 Positioning Report IBISWorld OD4878 Services North America Services Multi-Shore Services Home Agent Services Technology Global Infrastructure Technology-Based Services Analytics Experience Analytics Consulting Services 38% 15% 6% 41% C O M M U N I C A T I O N S F I N A N C I A L S E R V I C E S T E C H N O L O G Y O T H E R $31 $39 2 0 1 1 2 0 1 6 4.6% ASPECTS OF CUSTOMER MANAGEMENT 5 Customer service touches all sectors but is most developed in the communication sector, which includes telecom, cable and media. Other industries with sizeable exposure are the financial sector, technology, retail and healthcare. Call centers are seeking to grow capacities by moving up the value chain with technical support, sales, collections and analytics service offerings. The industry continues to grow at a moderate pace. In the last five years, the CCM industry has recorded an annualized growth rate at an estimate of 1.1% and industry revenue at ~$8.9 billion. The signs of growth indicates renewed life and vigor for the call center markets.1 THE VALUE CHAIN?
  • 6. U.S. REVENUE BY SEGMENT Sykes Enterprise, Inc. (SYKE ) Convergys Corporation (CVG) TeleTech (TTEC) Source: Company Reports, 2015 SEC Filings 10k 'Other' Includes: Retail, manufacturing, government, utilities UNIQUE RISK OBSERVATIONS FROM INDUSTRY LEADERS 6 Healthcare Legislature Healthcare businesses are subject to many regulatory requirements and changes in current regulations, which can significantly increase the cost of doing business. A substantial portion of operating costs consist of labor costs, changes in governmental regulations relating to wages, healthcare and healthcare reform - all of which could have a material adverse effect on the business.7 Macroeconomic Trends To mitigate the impact of any negative economic and product cycles on growth rates, the industry continues to seek ways to diversify into verticals andservicelinesthathavecountercyclicalfeatures and healthy growth rates.8 The majority of revenue in 2015 was received from customers operating in the global communications industry. At times, the industry has experienced significant fluctuations in growth rates and capital investment, and predicting future performance in this industry is challenging.7 Digital Media Evolution Unfavorable regulation and negative public perceptionaboutdigitalmarketingcouldadversely affect the business and results of operations. With the continued growth of the online marketplace, there is increasing awareness and concern among the general public, privacy advocates, mainstream media, and government bodies regarding the reach of digital marketing and its potential impact on individual privacy interests.9 THE TOP PLAYERS: A BREAKDOWN 38% Communications 23% Financial Services 20% Technology/Consumer 7% Transportation & Leisure 5% Healthcare 7% Other 58% Communications 9% Financial Services 10% Technology/Consumer 22% Other 35% Communications 20% Financial Services 6% Technology/Consumer 14% Transportation & Leisure 11% Healthcare 14% Other
  • 7.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       VALUATION METRICS: PUBLICLY TRADED CUSTOMER CONTACT MANAGEMENT COMPANIES (AS OF AUGUST 8, 2016; FIGURES IN USD MILLIONS) OPERATING METRICS: PUBLICLY TRADED CUSTOMER CONTACT MANAGEMENT COMPANIES (AS OF AUGUST 8, 2016; FIGURES IN USD MILLIONS) PROFITABILITY Values in millions of USD, except per share data ratios. Values converted at spot rate on 08/12/2016 Source: Capital IQ 08/12/2016 7 Industry profitability has been variable due to a confluence of technological change, relocation of operations, government assistance and the increasing number of remote workers.1 Industry margins are driven by several factors: (1) offshore vs. onshore work; (2) size and scale of projects; (3) productivity & training; and (4) vendor consolidation. • Margins improve as the industry migrates offshore because it reduce client's costs with lower labor inputs, and favoring provider margins. • Margins typically follow the scale of projects and companies, e.g. the larger the project the better the margins. Larger companies and projects with increased scope of work are able to improve operating leverage with additional revenues and efficiencies. • Training and productivity of workers boosts efficiency and reduces turnover through experience, technology, and more advanced management systems. • Larger players in the industry are benefitting from vendor consolidation at the expense of smaller players because of recent market volatility and the desire to simplify cost Source: S&P Capital IQ; 2015 Company Reports
  • 8. AnnouncedAnnouncedAnnouncedAnnounced DateDateDateDate TargetTargetTargetTarget AcquirerAcquirerAcquirerAcquirer Deal SizeDeal SizeDeal SizeDeal Size Target LTMTarget LTMTarget LTMTarget LTM RevenueRevenueRevenueRevenue Target LTMTarget LTMTarget LTMTarget LTM EBITDAEBITDAEBITDAEBITDA EV/RevenuesEV/RevenuesEV/RevenuesEV/Revenues EV/EBITDAEV/EBITDAEV/EBITDAEV/EBITDA 07/06/2016 buw Holding GmbH Convergys Corporation      06/10/2016 Allus Global BPO Center S.A. Grupo Konectanet S.L.      12/21/2015 Comdata S.p.A. The Carlyle Group LP      11/26/2015 Webhelp SAS KKR & Co. L.P.      10/14/2015 Fulfillment Technologies, LLC Singapore Post Enterprise Private Limited      09/30/2015 Gemma Communications LP DealNet Capital Corp.      09/01/2015 BPO Management Sp. z o.o. Arteria S.A.      07/10/2015 Sitel Worldwide Corporation Groupe Acticall SAS      07/06/2015 Contact Center sp. z o.o. Arteria S.A.      06/30/2015 MsourcE (India) Pvt. Ltd. Hinduja Global Solutions Limited      06/10/2015 ETS Group Limited Million Top Enterprises Limited      03/10/2015 H1 Communication AB Panoster Investment AB      02/03/2015 avocis AG Capita plc      01/07/2015 West At Home, LLC Alorica Inc.      01/07/2015 West Direct II, Inc. Alorica Inc.      12/03/2014 Volt Delta Resources, LLC NewNet Communication Technologies      09/21/2014 Contact Centres Australia Pty Ltd Telekomunikasi Indonesia International      High      Low      Median      Mean      8 Source: S&P Capital IQ CUSTOMER CARE M&A TRANSACTIONS (LAST 24 MONTHS) (AS OF AUGUST 8, 2016; FIGURES IN USD MILLIONS) Source: S&P Capital IQ 2016; Company Reports According to data provided by S&P Capital IQ, there were more than 40 M&A transactions completed in 2015 for 'Outsourced Client Support and Customer Services' and 'Telemarketing and Telephone Soliciting Services'. This represents a slight increase from the 38 M&A deals completed in 2014. The average transaction size of $147 million was skewed by a few largedeals,includingGroupeActicallSAS$830millionacquisition of Sitel Worldwide Corp; KKR's $679 million acquisition of Webhelp SAS; and The Carlyle Group's $262 million acquisition of Comdata S.p.A. However, the median transaction size was a more modest $25 million. EV/EBITDA Valuation multiples reflected the volatility of the market with ranges from 4x to 19x, and an average of 4-7x. Lookingahead, clientscontinuetofocusonvendorconsolidation to manage their outsourcing relationships. This should drive more M&A activity as vendors seek to improve their competitive position, diversify product offerings, and improve profitability. MERGERS & ACQUISITIONS
  • 9. 9 ACTIVE BUYERS LARGEST M&A CCM TRANSACTIONS 2014-2016 Source: S&P Capital IQ 2016 • In 2015, Acticall acquired 100 percent of Sitel Worldwide from Onex Corporation. 10 , 11 • Groupe Acticall is highly respected for its business growth and innovation, with over 7,500 employees and over 65 million customer contacts managed annually. 10 , 11 • Sitel is advancing its position as a world leader in outsourced customer care innovation with a global platform and client base and will benefit significantly from Acticall's capital structure and digital vision. 10 , 11 "With a leading international footprint, a blue chip customer base, a very talented management team and great technology, Sitel is already a world leader." - Laurent Uberti, CEO of Groupe Acticall • In 2015, the Webhelp management team will now become controlling shareholders, alongside KKR, while Charterhouse Capital Partners will step back. 12 , 13 • During Charterhouse ownership, Webhelp improved revenues from $200 million to a forecast $725 million in 2015, the number of contact centres has increased from 12 to more than 80 while the number of employees globally has risen from 7,000 to in excess of 30,000. 12 , 13 • Webhelp specializes in comprehensive customer experience management services across a range of digital, social, mobile and traditional voice channels to an international client base. 12 , 13 “We believe that Webhelp's commitment, ability to execute and proven track record of success, coupled with the experience, enthusiasm and resources that will be contributed by KKR, will enable us to become a world leading independent business process outsourcer”. - Frederic Jousset, Co-Founder of Webhelp • In 2015, The Carlyle Group acquired a majority participation in Comdata. 14 • Comdata, the leading Italian company for outsourcing of contact center, help desk, back office, credit management and document management services. 14 • Comdata Group’s Executive Chairman Enrico Saraval, said: “Comdata aspires to become a relevant European player. structure and digital vision." 14 “We are delighted to welcome Comdata to our European portfolio. Comdata’s strong business model offers further potential for international growth. Using Carlyle’s extensive international network, we hope to assist Mr Canturi and his team in accelerating their growth plan.” -Marco De Benedetti, MD Carlyle Europe Partners RANK TARGET BUYER SIZE (USDM) 1 Sitel Worldwide Grupo Acticall SAS 830 2 Webhelp SAS KKR & Co. 680 3 Comdata S.p.A The Carlyle Group 262
  • 10. 10 RANK TARGET BUYER SIZE (USDM) 4 Avocis Capita plc 241 5 Allus Global BPO Center Grupo Konectanet 192 6 buw Holding GmbH Convergys Corporation 133 • In 2015, avocis has a strong position in the German speaking regions of Europe serving similar sectors to Capita’s UK-based customer management business, with high quality, long term clients particularly in telecoms and utilities. 15 • Acquisitions, alongside generating profitable organic growth, are a key part of Capita’s business model to both build its capabilities and increase its market reach and penetration across a growing number of sectors. 15 "The acquisition of avocis provides us with immediate scale and further capabilities in this territory. avocis has a strong position in the German speaking regions of Europe with long term and growing relationships with quality private sector clients." - Andy Parker, CEO of Capita • Konecta plans to strengthen their strategic position in the Latin American Market. 16 • They completed two important acquisitions in the Region: including, 49% of B-Connect, Mexican Market leader contact centre with >4,000 employees, and 100% of Allus Global BPO Centre, Latin American Leader with more than 22,000 employees.16 • These acquisitions allow Konecta to play a major role in BPO industry and strengthen their position in Iberia and Latin America becoming the top 3 BPO services providers in Peru and Argentina, with a prominent position in Chile, Mexico and Brazil. 16 "Konecta acquires Latin American Allust Global BP. These operations allow Konecta to play a major role in the BPO industry in Latin America." - José María Pacheco, President of Konecta • By adding buw’s geographic footprint, complementary client base, and German language capabilities, Convergys expects the acquisition to expand its presence in the growing EUR 3 billion German outsourced customer management services industry. 18 • buw is a growing and profitable business which generates approximately EUR 150 million annual revenue, providing end- to-end business process outsourcing (BPO) services to leading companies across a wide breadth of industries. 18 "This accretive transaction will increase our capacity to serve the customer management BPO market in Germany, further diversify our marquee client base, and strengthen our relationships with the multinational clients we share.” -Andrea Ayers, Convergys President and CEO LARGEST M&A CCM TRANSACTIONS 2014-2016 ACTIVE BUYERS Source: S&P Capital IQ 2016
  • 11. 11 The CCM sector experienced significant transformation over the last few years. Government policies have spurred larger volumes of the domestic business and higher customer quality services by onshoring call centers, but congruently created issues by increasing costs through legislative complexity. Despite government intervention, M&A volumes have steadily increased from both strategic and financial sponsors, and are expected to continue to grow via acquisition of technology enabled service and SaaS providers (cite BAIRD). The Customer Contact Center will continue to evolve from a cost center to a superior customer experience creator, providing customers the omni-channel offerings they expect.6 The key industry players have identified a multitude of issues on the horizon, but specifically there are concerns about healthcare legislation, macroeconomic trends, and the digital media evolution. Legislation increases costs, profitability is directly influenced by macroeconomic cycles, and digital media is critical to industry marketing. The global CCM sector will grow at 4.5% per year driven by consolidation from larger players to diversify and enhance capabilities, and secure larger, multisite contracts.1 As a result, the CCM industry will move up the value chain and encompass a multitude of business models and services. Technology, Consolidation, and Diversification Create a Superior Customer Contact Center CONCLUSION
  • 12. 12 ENDNOTES 1 Blau, Gavan. Customer Care Centers in the US Market Research. Rep. no. OD4878. IBISWorld, 01 June 2015. Web. 12 Aug. 2016. 2 Tuchman, Kenneth. "TeleTech Summary Q3 2015." SUMMARY Q3 2015 (2015): n. pag. TeleTech. TeleTech, 1 Oct. 2015. Web. 12 Aug. 2016. 3 https://www.capitaliq.com 4 Weborg, Rich. "Year in Review: Customer Service Trends in 2015 and What They Mean for 2016." Year in Review: Customer Service Trends in 2015 and What They Mean for 2016. ICMI, 05 Jan. 2016. Web. 12 Aug. 2016. 5 "Call Centers." Encyclopedia of Emerging Industries. Farmington Hills, MI: Gale, 2016. Business Insights: Global. Web. 2 Aug. 2016. 6 Sirohi, Niren, and Jim Dickey. "The Omnichannel Evolution of the Contact Center." TeleTech. Consulting Services, 1 Oct. 2014. Web. 12 Aug. 2016. 7 Convergys 2015 10k. 8 Sykes 2015 10k. 9 Teletech 2015 10k. 10 http://www.sitel.com/news/groupe-acticall-completes-acquisition-of-sitel-worldwide/#sthash.fNNefjCl.dpuf 11 http://www.businesswire.com/news/home/20150710005574/en/Groupe-Acticall-Announces-Agreed-Acquire-Sitel-Largest 12 http://www.webhelp.com/en-us/news-insights/news/webhelp-partners-with-kkr/ 13 http://www.reuters.com/article/kkr-webhelp-idUSFWN13L08S20151127 14 https://www.carlyle.com/news-room/news-release-archive/carlyle-group-acquires-majority-shareholding-comdata-leading-italian- 15 http://www.capita.com/news/news/2015/european-contact-centre-specialists-avocis-to-be-acquired-by-capita.aspx 16 http://www.grupokonecta.com/en/espanol-konecta-compra-al-gigante-latinoamericano-allus-global/ 17 http://www.grupokonecta.com/wp-content/uploads/2016/06/Konecta-crece-con-la-compra-de-la-empresa-mexicana-B-Connect_ABC- Sevilla-07.06.2016.pdf 18 http://www.businesswire.com/news/home/20160706006368/en/Convergys-Acquire-buw 19 Wissink, Jeff. "Why Onshoring Your Call Center Make Sense." Driving Business Success with Technology. Baseline, 07 Mar. 2012. Web. 23 Aug. 2016. 20 BAIRD. "Business Process Outsourcing." Transformation of Business Process Outsourcing (2015): n. pag. RWBAIRD. RWBAIRD, 01 Mar. 2015. Web. 23 Aug. 2016.
  • 13. 13 WE ACTED AS SOLE ADVISOR TO THE BUYER H A S A C Q U I R E D T H E P U B L I C H E A LT H O P I N I O N A N D S O C I A L S C I E N C E S D I V I S I O N O F INDUSTRY EXPERIENCE W E A C T E D A S F I N A N C I A L A D V I S O R T O T H E B U Y E R H A S A C Q U I R E D A S U B S I D I A R Y O F W E A C T E D A S F I N A N C I A L A D V I S O R H A S R E C E I V E D A S T R AT E G I C I N V E S T M E N T F R O M A S U B S I D I A R Y O F K B R A A n a l y t i c s W E A C T E D A S F I N A N C I A L A D V I S O R T O T H E B U Y E R H A S A C Q U I R E D WE ACTED AS SOLE ADVISOR TO THE SELLER H A S B E E N A C Q U I R E D B Y One Equity Partners Headwaters' transaction in the Call Center Industry was awarded DEAL OF THE YEAR “Headwaters ran an exhaustive search for us and uncovered a variety of interesting operating assets. Their global network of relationships allowed us access to the senior leadership of WPP, a global communications powerhouse. Their deal savvy and market knowledge made this international transaction a reality.” - Marco Villarreal, Qualfon’s CFO Call Center Consolidation Qualfon acquired Center Partners, a United States contact center outsourcing company that over the last 17 years has built an excellent reputation for high performance sales programs for its clients in communications, financial, technology, and retail industries. Center Partners has six contact centers across Idaho, Washington and Colorado with approximately 2,500 employees who will be added to Qualfon's 10,000 employees and 11 contact centers, primarily in near-shore and off-shore locations.
  • 14. 14 Disclosure: This newsletter is a periodic compilation of certain economic and corporate information, as well as completed and announced merger and acquisition activity. Information contained in this newsletter should not be construed as a recommendation to sell or buy any security. Any reference to or omission of any reference to any company in this newsletter should not be construed as a recommendation to buy, sell or take any other action with respect to any security of any such company. We are not soliciting any action with respect to any security or company based on this newsletter. The newsletter is published solely for the general information of clients and friends of Headwaters MB, LLC. It does not take into account the particular investment objectives, financial situation or needs of individual recipients. Certain transactions, including those involving early-stage companies, give rise to substantial risk and are not suitable for all investors. This newsletter is based upon information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such. Prediction of future events is inherently subject to both known and unknown risks and other factors that may cause actual results to vary materially. We are under no obligation to update the information contained in this newslet- ter. Opinions expressed are our present opinions only and are subject to change without notice. Additional information is available upon request. The companies mentioned in this newsletter may be clients of Headwaters MB, LLC. The decisions to include any company in this newsletter is unrelated in all respects to any service that Headwaters MB, LLC may provide to such company. This newsletter may not be copied or reproduced in any form, or redistributed without the prior written consent of Headwaters MB, LLC. The information contained herein should not be construed as legal advice. About Headwaters MB: Headwaters MB is an independent, middle market investment banking firm providing strategic merger and acquisition advice, capital raising and special situations advisory. Named “Investment Bank of the Year” by major industry organizations in 2014 and 2015, Headwaters MB is headquartered in Denver, CO, with six regional offices across the United States and partnerships with 18 firms covering 30 countries. For more information, visit www.headwatersmb.com. To learn more about how the Headwaters MB team can help you grow from opportunities in the Call Center Sector, please contact: Bob Balaban | Managing Director 720.792.9400 bbalaban@headwatersmb.com • 25 years of investment banking and operating experience. • Served as the lead banker on over 75 transactions primarily in the business services marketplace. Chad Gardiner | Vice President 720.310.0403 cgardiner@headwatersmb.com • 14 years of experience in investment banking and capital markets. • Advised on over $6 billion in aggregate transaction value working in investment banking Call Center Coverage Team