The Future of Teleservices:

The ONLY association dedicated exclusively to the Teleservices channel

AMERICAN TELESERVICES ASSOCIATION3815 River Crossing Parkway, Suite 20 • Indianapolis, IN 46240

317.816.9336 (phone) • 317.218.0323 (fax)www.ataconnect.org

A. U.S. Perspective

Congratulations!

The ONLY association dedicated exclusively to the Teleservices channel

AMERICAN TELESERVICES ASSOCIATION3815 River Crossing Parkway, Suite 20 • Indianapolis, IN 46240

317.816.9336 (phone) • 317.218.0323 (fax)www.ataconnect.org

Congratulations!

And Thank You!

Let’s discuss the U.S. market & the world

�State of the marketplace

�Outsourcing and Off-shoring

�Winning business from U.S.

33

�Winning business from U.S. Clients

�What does it mean to you?

State of the MarketplaceMarketplace

In the US, outsourcing will grow from $20.7 billion in 2006

to $27.5 billion in 2013 (33%)to $27.5 billion in 2013 (33%)(Frost & Sullivan, 2008)

A better picture of outsourcing

66

US Growth is slowing

77

Contact Babel - 2006

Onshore vs. Offshore is in flux

88

Contact Babel - 2006

Winning business from U.S. Clients

99

U.S. Clients

�U.S. is 20-25% monthly turnover in outbound and 8-10% in inbound

�Hiring costs are astronomical

What is the reality of US turnover?

1010

�Hiring costs are astronomical

�Training costs are ridiculous

�Burnout the labor markets

What do U.S. buyers tell us that they are looking for

from suppliers?

1111

from suppliers?

Only 3 Economics Things Matter

&% CompleteYes’s

&Total

1212

&Total Contacts

Net Cost Per Order

Of Total

Available

List

&Order

Value/

Call

Balance Economics & Risk

1313

Don’t Focus on Personnel Costs

1414

The Lesson of Ireland

Pick Your Partners Carefully

1515

Onshore Sales and Service

1616

Sell or Pick based on strengths

Unique

� Variety of languages spoken in native style

�Warm, service-

Not Unique

� Low wages

� Strong Spanish skills

� Economic incentives

1717

�Warm, service-oriented culture

� Stability of infrastructure, government and economy

� Truly Bi-lingual

� Economic incentives

� Exciting location

1818

1919

2020

2121

2222

2323

2424

2525

2626

2727

2828

2929

3030

3131

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

3232

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

U.S. Laws Matterbecause . . .

We export bad ideas!

Some Companies Don’t Care!

3434

Some Companies think about “now”

�Do Not Call

�Existing Business Relationship

�Offshore restrictions

3535

�Offshore restrictions

�Time of Day calls

�Disclosure requirements

�Sales calls

- Do Not Call

- Existing Relationship

�Service calls

- Queue times

- IVR’s (including press “0”)

First Call Resolution

The Future is Bigger!

3636

- Relevance

- Technology

- Mobile phones

�Personnel- Unions

- Disabled employees

- First Call Resolution

�All Calls

- Location Disclosure• Re-routing

- Time of day

Money & Regulations

�We have our money

�The government has . . .

- Our money

3737

- Our money

- Everyone’s money

- They can print money

Choices

1. Ignore the realities of consumer need and wait for government interference

3838

interference

2. Recognize consumer need, and government power and self-regulate in cooperation with government

One Solution: Self Regulation

3939

Seal Program

4040

Self Regulatory Organization Diagram

4141

Conclusions

� Total call traffic worldwide is on-balance going to be flat – emerging markets will offset declines in advanced markets

�

4242

�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

Tim Searcy

CEO

American Teleservices Association

4343

American Teleservices Association

+1 317 816 9336

tim@ATAconnect.org

www.ATAconnect.org