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The Future of Teleservices:

   A. U.S. Perspective


                AMERICAN TELESERVICES ASSOCIATION
     3815 River Crossing Parkway, Suite 20 • Indianapolis, IN 46240
              317.816.9336 (phone) • 317.218.0323 (fax)
                          www.ataconnect.org
    The ONLY association dedicated exclusively to the Teleservices channel
Congratulations!
And Thank You!

             AMERICAN TELESERVICES ASSOCIATION
  3815 River Crossing Parkway, Suite 20 • Indianapolis, IN 46240
           317.816.9336 (phone) • 317.218.0323 (fax)
                       www.ataconnect.org
 The ONLY association dedicated exclusively to the Teleservices channel
Let’s discuss the U.S. market & the
world
 State of the marketplace
 Outsourcing and Off-shoring
 Winning business from U.S.
 Clients
 What does it mean to you?



                                      3
State of the
Marketplace
In the US, outsourcing will
grow from $20.7 billion in 2006
 to $27.5 billion in 2013 (33%)
         (Frost & Sullivan, 2008)
A better picture of outsourcing




                                  6
US Growth is slowing




                       Contact Babel - 2006

                                              7
Onshore vs. Offshore is in flux




                       Contact Babel - 2006

                                              8
Winning business from
      U.S. Clients




                        9
What is the reality of US turnover?


 U.S. is 20-25% monthly turnover in
 outbound and 8-10% in inbound
 Hiring costs are astronomical
 Training costs are ridiculous
 Burnout the labor markets




                                      10
What do U.S. buyers tell us
 that they are looking for
      from suppliers?




                              11
Only 3 Economics Things Matter



   Yes’s             % Complete           Total
                 &     Of Total       &   Order
Total Contacts
                      Available           Value/
                         List              Call
                 Net Cost Per Order

                                                   12
Balance Economics & Risk




                           13
Don’t Focus on Personnel Costs




     The Lesson of Ireland
                                 14
Pick Your Partners Carefully




                               15
Onshore Sales and Service




                            16
Sell or Pick based on strengths
        Unique              Not Unique
Variety of languages   Low wages
spoken in native       Strong Spanish skills
style
                       Economic incentives
Warm, service-
oriented culture       Exciting location
Stability of
infrastructure,
government and
economy
Truly Bi-lingual
                                               17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
5 Keys for Market Success

1. Strong relationship between government,
     academic system and business
2.   Strong association to market the country as a
     good location for contact centers and to
     advocate for assistance in key areas
3.   An internal country need for contact centers
     in addition to an external offshoring
     proposition – emerging middle class
4.   Infrastructure and stability
5.   A goal which is stated by the leaders of the
     country


                                                     32
U.S. Laws Matter
  because . . .

We export bad
    ideas!
Some Companies Don’t Care!




                             34
Some Companies think about
“now”
 Do Not Call
 Existing Business Relationship
 Offshore restrictions
 Time of Day calls
 Disclosure requirements



                                  35
The Future is Bigger!
Sales calls            Service calls
- Do Not Call          - Queue times
- Existing             - IVR’s (including press
  Relationship           “0”)
- Relevance            - First Call Resolution
- Technology           All Calls
- Mobile phones        - Location Disclosure
Personnel                • Re-routing

- Unions               - Time of day
- Disabled employees

                                                  36
Money & Regulations
 We have our money
 The government has . . .
 - Our money
 - Everyone’s money
 - They can print money


                            37
Choices


1. Ignore the realities of consumer
   need and wait for government
   interference
2. Recognize consumer need, and
   government power and self-
   regulate in cooperation with
   government


                                      38
One Solution: Self Regulation




                                39
Seal Program




               40
Self Regulatory Organization Diagram




                                       41
Conclusions

 Total call traffic worldwide is on-
 balance going to be flat – emerging
 markets will offset declines in
 advanced markets
 Outsourcing and offshoring will
 increase
 There are ways to secure business from
 U.S. companies, but the focus has to be
 there
 Government regulation is a clear and
 present danger all over the world
                                           42
Tim Searcy
             CEO
American Teleservices Association
        +1 317 816 9336
     tim@ATAconnect.org
     www.ATAconnect.org




                                    43

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El Futuro de los Teleservicios

  • 1. The Future of Teleservices: A. U.S. Perspective AMERICAN TELESERVICES ASSOCIATION 3815 River Crossing Parkway, Suite 20 • Indianapolis, IN 46240 317.816.9336 (phone) • 317.218.0323 (fax) www.ataconnect.org The ONLY association dedicated exclusively to the Teleservices channel
  • 2. Congratulations! And Thank You! AMERICAN TELESERVICES ASSOCIATION 3815 River Crossing Parkway, Suite 20 • Indianapolis, IN 46240 317.816.9336 (phone) • 317.218.0323 (fax) www.ataconnect.org The ONLY association dedicated exclusively to the Teleservices channel
  • 3. Let’s discuss the U.S. market & the world State of the marketplace Outsourcing and Off-shoring Winning business from U.S. Clients What does it mean to you? 3
  • 5. In the US, outsourcing will grow from $20.7 billion in 2006 to $27.5 billion in 2013 (33%) (Frost & Sullivan, 2008)
  • 6. A better picture of outsourcing 6
  • 7. US Growth is slowing Contact Babel - 2006 7
  • 8. Onshore vs. Offshore is in flux Contact Babel - 2006 8
  • 9. Winning business from U.S. Clients 9
  • 10. What is the reality of US turnover? U.S. is 20-25% monthly turnover in outbound and 8-10% in inbound Hiring costs are astronomical Training costs are ridiculous Burnout the labor markets 10
  • 11. What do U.S. buyers tell us that they are looking for from suppliers? 11
  • 12. Only 3 Economics Things Matter Yes’s % Complete Total & Of Total & Order Total Contacts Available Value/ List Call Net Cost Per Order 12
  • 14. Don’t Focus on Personnel Costs The Lesson of Ireland 14
  • 15. Pick Your Partners Carefully 15
  • 16. Onshore Sales and Service 16
  • 17. Sell or Pick based on strengths Unique Not Unique Variety of languages Low wages spoken in native Strong Spanish skills style Economic incentives Warm, service- oriented culture Exciting location Stability of infrastructure, government and economy Truly Bi-lingual 17
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  • 32. 5 Keys for Market Success 1. Strong relationship between government, academic system and business 2. Strong association to market the country as a good location for contact centers and to advocate for assistance in key areas 3. An internal country need for contact centers in addition to an external offshoring proposition – emerging middle class 4. Infrastructure and stability 5. A goal which is stated by the leaders of the country 32
  • 33. U.S. Laws Matter because . . . We export bad ideas!
  • 35. Some Companies think about “now” Do Not Call Existing Business Relationship Offshore restrictions Time of Day calls Disclosure requirements 35
  • 36. The Future is Bigger! Sales calls Service calls - Do Not Call - Queue times - Existing - IVR’s (including press Relationship “0”) - Relevance - First Call Resolution - Technology All Calls - Mobile phones - Location Disclosure Personnel • Re-routing - Unions - Time of day - Disabled employees 36
  • 37. Money & Regulations We have our money The government has . . . - Our money - Everyone’s money - They can print money 37
  • 38. Choices 1. Ignore the realities of consumer need and wait for government interference 2. Recognize consumer need, and government power and self- regulate in cooperation with government 38
  • 39. One Solution: Self Regulation 39
  • 42. Conclusions Total call traffic worldwide is on- balance going to be flat – emerging markets will offset declines in advanced markets Outsourcing and offshoring will increase There are ways to secure business from U.S. companies, but the focus has to be there Government regulation is a clear and present danger all over the world 42
  • 43. Tim Searcy CEO American Teleservices Association +1 317 816 9336 tim@ATAconnect.org www.ATAconnect.org 43