Technology has enabled new ways for organizations to operate and pioneering companies are once again leading the evolution of business with the use of cloud computing and the virtualization of business services. The disaggregation of talent, orchestrated centrally by virtual business process outsourcing (BPO) organizations, enhances productivity and creates a competitive advantage.

Similar to the way e-commerce business models have transformed the retail and video rental industries, the virtualization of business services represents the most significant shift in the structure of business organizations since the original concept of outsourcing introduced by Ross Perot at EDS in the 1960’s. In an intensely competitive market, with significant financial pressures demanding greater productivity at a lower cost, organizations are completely rethinking how to structure their workforce in order to become more nimble and responsive to the market while remaining customer-centric.

Arise Virtual Solutions Inc.3450 Lakeside DriveMiramar, Florida 33027

www.arise.com

Virtualization is Enabling the Workforce of the Future

By John Meyer, CEO & Co-Chairman, Arise Virtual Solutions Inc.

Defining Virtualization:• Virtualization is not simply a work-at-home solution, also known as telecommuting, it is crowd sourcing a network of free agents with highly specialized skills and passion for work.

• Virtualization enables organizations to leverage latent talent pools where the talent resides, not necessarily where the company resides.

• Virtualization leverages technology and minimizes unnecessary fixed costs like real estate.

No Boundaries, Better Results.

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Online Tools ENABLING Virtualization:

• Virtualized Recruitment Services

• Virtual E-Learning & Certification with Award Winning Curriculum

• Workforce Planning & Scheduling in 15 minute Intervals

• PCI Compliant Security Tools

• Objective, Data Based Performance Evaluations

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All Done in the VIRTUAL World

Independent contractors have performed services for years, however the ability to organize and orchestrate independent contractors for the provision of services on behalf of large scale operations has evolved only recently. In our consumer oriented culture, it is no surprise that the customer service industry is leading the way with the adoption of virtualization. Customer service is a function with well defined, highly measured and constantly evaluated results. This is only the start as organizations begin to define the next tier of contact center-like functions such as health claims processing, mortgage servicing and financial planning.

The use of independent contractors enables organizations to leverage highly skilled professionals and match them with customers with similar interests and location. Brand enthusiasts interact with their clients and consumers with passion, resulting in an enhanced customer experience, which often leads to improved up selling and cross-selling of additional products or services. By matching customer service representatives with customers based on geographic location, the customer experience is highly localized, resulting in a high degree of cultural affinity and, again, an improved customer experience compared to far away locations like India and the Philippines.

Arise pioneered the virtualization of customer service in the 1990s, and has continued to innovate and enhance its ability to utilize a vast network of independent businesses with access to over 25,000 Client Support Professionals certified to provide customer care, sales, and technical support services to Fortune 500 companies. A virtual network of certified professionals delivers a higher quality of service at a lower price and with greater flexibility. Customer service professionals ramp up and down quickly to adjust to changing business needs due to seasonal fluctuations or even within a specific day.

Organizations in other industries are also using virtualization to transform their industries. For example, Axiom, the largest and fastest growing provider of managed legal services to Fortune 500 companies, is transforming the legal industry. Axiom organizes over 800 attorneys with specialized skills, all available to provide legal services to a multitude of clients with zero unnecessary overhead.

Virtualization is the next evolution of outsourcing

Arise Virtual Solutions Inc.www.arise.com

In the past, individuals preferred the traditional employee-employer model because it offered the perceived concept of financial stability with a steady income, pension and additional benefits. The Great Recession of 2008 has proven that the traditional worker model has forever morphed, as organizations shift people resources to adapt to changing business needs. Companies endure a great deal of expense to adapt their business using the traditional model, and workers suffer from a lack of an income as “jobs” are reduced. Increasingly, the traditional model is a lose-lose scenario for both employers and workers.

The future of work will consist of organizations establishing business relationships with individuals who bring specific skills to the table. An Independent Business Owner model enables a much more efficient relationship between an organization and an individual or group of individuals. It is the highest form of economic efficiency, allowing the free market to set supply and demand, much like Adam Smith, the author of The Wealth of Nations and father of modern day economics and capitalism first advocated. Organizations and the professional both gain unmatched flexibility and, contrary to conventional wisdom, greater financial stability and security. Independent business owners work when they want, for as many hours as they want, from any location and for multiple companies. Compensation is based on performance, with the best performers receiving the highest compensation.

Due to the flexibility of virtualization, organizations can easily access a latent talent pool of highly intelligent and educated individuals who were not part of the workforce due to location or the demand of a typical full-time job. Stay-at-home moms, bounce back retirees, and college students who typically require flexibility are now accessible. Talented individuals located in rural or remote locations are also becoming more and more accessible as the adoption of high-speed broadband increases. Military families, including military spouses who in the past had difficulty maintaining a career as they moved from base to base and veterans who offer tremendous discipline and passion for meaningful work opportunities, can now become valuable members of the economy as owners of independent businesses and highly trained professionals.

Virtualization changes the dynamics of work. Rather than marching to the tune of a command-and-control culture, people march to their own tune based on their individual needs and desires. Workers who have their own businesses are more accountable, take on more responsibility and are passionate about delivering the best experience possible. By aligning all the incentives from customers to virtual BPO providers to Independent Business Owners, value is maximized across the entire ecosystem with results and rewards being truly transparent. Geoffrey Moore, the author of Crossing the Chasm, a highly respected book on the adoption curve of major business trends, recently remarked, “To prepare for the impact and capitalize on the opportunities introduced by the future of work, enterprises must revisit their internal organizational models and cultures, their external relationship models and commitments, and the IT systems needed to connect all parties together in a productive, responsive ecosystem.”

Virtual Workforce for the FUTURE

An Independent Business Owner model enables a much more efficient relationshipbetween an organization andan individual or group ofindividuals.

• Lack of specialized resources within one geographical region, such as languages or technology skills

• Seasonality of business demand requiring the ultimate flexibility

• Desire to have interaction completed in the home country of the customer

• Improved performance and productivity

A recent study by Stanford University titled, Does Working From Home Work?, found a 12% performance increase from call center agents working from home. Workers also reported substantially higher work satisfaction and psychological attitude scores with job attrition rates falling by 50%. Improved performance and productivity, like those found in the Stanford University report and corroborated by leading growth consulting firm Frost & Sullivan, help explain why virtual call centers are the fastest growing segment of the outsourcing industry.

As business service providers offer more sophisticated approaches to leveraging virtualization, organizations must question what is core to them and what can be virtualized. Social networks and the concept of being in a networked environment have dominated the millennial generation. Virtualization offers a link between the freedom and connectivity we experience using the social web and mobile devices in our personal and professional lives. The future of business is a co-mingled combination of internal and external resources, collaboratively accelerating results. The virtualization of business services is a highly efficient economic system, perhaps the most advanced and evolved system yet. Adam Smith would be proud of his inspiration and the evolution of business.

Why Shift to Virtualization?

No Boundaries, Better Results.

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Smart organizations are already using virtualization to access better talent and drive increased productivity while becoming more cost effective and flexible.

Arise Virtual Solutions Inc.3450 Lakeside DriveMiramar, Florida 33027

US Toll-free: +1.855.274.7301 UK: +44 (0) 795 780 3983 Email: marketing@arise.com

www.arise.com

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