VCustomer: Optimizing a Global Footprint Christian Bonneau Daniel Byrne Stefanie Jones Lindsay...

vCustomer: Optimizing a

Global

FootprintChristian Bonneau Daniel ByrneStefanie JonesLindsay Rosenthal

Objective

• Establish the most attractive market for:• Offshore operations • Potential clients

• Design the implementation plan for the international expansion

• Recommend additional services

Objectives

Key Issues

Decision Overview

Off-Shoring

End Market

Implementation

Additional Recommendations

Q&A

Key Issues

• Changing customer demands• Near-shoring• Single sourcing• Higher value-added BPO

• Changing cost structures• Rising wages in traditional low cost regions

• vCustomer’s goals & competencies• Commitment to quality• Best-in-class technology• Low cost structure

Objectives

Key Issues

Decision Overview

Off-Shoring

End Market

Implementation


Q&A

Recommendation

End marketOffshore Country

United States

India

Malaysia

JapanChina

Thailand

Western EuropeBulgaria

Objectives

Key Issues

Decision Overview

Off-Shoring

End Market

Implementation


Q&A

Offshore CriteriaFinancial Attractiveness -Compensation-Infrastructure

-Tax & Regulatory

People skills & availability -Labour force-Education

-Attrition Risk

Business Environment -Infrastructure-Cultural exposure-Initiatives in intellectual property-Ease of doing business

36%

28%

36%

AT Kearney “Building the Optimal Global Footprint”

World Bank “Doing Business Economy Rankings”

India

Malaysia

China

Thailand

Bulgaria

Objectives

Key Issues

Decision Overview

Off-Shoring

End Market

Implementation


Q&A

Drivers of Offshore Demand

Objectives

Key Issues

Decision Overview

Off-Shoring

End Market

Implementation


Q&A

-High wage

costs-Inefficient

labour

High Potential Economic

Gains FromOutsourcing

High Outsourcing Demand

End-market Analysis

Wages

(high wages)

(low wages)

Efficiency

(high output) (low output)

Market size:

$ 50 B USD

$ 100 B USD

$ 200 B USDUS department of Labor

US$277 B

EU $ 127 B

Japan $ <42 B

Objectives

Key Issues

Decision Overview

Off-Shoring

End Market

Implementation


Q&A

Most Attractive End Market: Western Europe

• Europe is the fastest growing consumer of BPO servicesObjectives

Key Issues

Decision Overview

Off-Shoring

End Market

Implementation


Q&A

0%

20%

40%

60%

80%

UnitedStates

Europe Asia-Pacific

Europe Grabbing Market ShareBPO + ITO Market

2002

2006

Top 5 Offshore Countries

Thailand

Malaysia

China

India

Bulgaria

Objectives

Key Issues

Decision Overview

Off-Shoring

End Market

Implementation


Q&A

Western

Europe

UnitedStates

Japan

Fit with vCustomer’s Competencies

• IT Infrastructure risk is moderate but improving

• Privatization of BTC should lead to improved telecom network

• Internet connection per capita has more than tripled over the past two years

• Wages similar to India

• Inflation is moderate (<10%)

• Educated in Sofia, speak many languages

• Excellent transportation time to market

Objectives

Key Issues

Decision Overview

Off-Shoring

End Market

Implementation


Q&A

Commitment toQuality

Best in Class Technology

Low CostStructure

Recommendation

End marketOffshore Country

United States

India

Malaysia

JapanChina

Thailand


Objectives

Key Issues

Decision Overview

Off-Shoring

End Market

Implementation


Q&A

Critical Implementation Issues

• Issues related to maintaining vCustomer’s core competencies• Maintaining low-cost structure as

Bulgaria’s labour market becomes more mobile

• Best in class technology – guarantee reliable access to broadband

• Dedication to quality

Objectives

Key Issues

Decision Overview

Off-Shoring

End Market

Implementation


Q&A

Low Cost Structure Implementation

• Very limited short-term wage pressures

• Labour force mobility effecting long-term wage pressure• EU labour mobility agreements (2011)

• Offer programs to retain employees

Objectives

Key Issues

Decision Overview

Off-Shoring

End Market

Implementation


Q&A

Best in Class Technology

• Bulgaria Telecom being privatized• Long-term increase in quality of

infrastructure

• Meet with Mayor of Sofia and Telecom head to reach access agreement• Potential for 1000+ job creation

powerful bargaining tool

Objectives

Key Issues

Decision Overview

Off-Shoring

End Market

Implementation


Q&A

Commitment to Quality

• Critical to client relationships

• Competence of employees key to consistent service• Large # unemployed university grads

• Continual training and quality monitoring

Objectives

Key Issues

Decision Overview

Off-Shoring

End Market

Implementation


Q&A

Implementation Timeline – Functional Analysis

Objectives

Key Issues

Decision Overview

Off-Shoring

End Market

Implementation


Q&A

Logistics

Human Resources

Marketing

Logistics

• Timeframe: 0-6 Months• Analyze and execute entry method

• Continued partnership, acquisition, go it alone

• Site identification and secure leasing• Starting with 11,500 sq. ft, • Expandable to 23,000 sq. ft.

• Regulatory Approval (32 days)• Establishment and testing of telecom services• Install first 200 workstations

Objectives

Key Issues

Decision Overview

Off-Shoring

End Market

Implementation


Q&A

Logistics

• Timeframe: 6-12 Months• Install 450 workstations• Evaluate operations

• Timeframe: 18-24 months• Install 450 workstations (total 1100)• Increase proportion of BPO trained

CSRs

Objectives

Key Issues

Decision Overview

Off-Shoring

End Market

Implementation


Q&A

Human Resources Strategy

• Sales consultants(20 initial, 5 annually subsequent)• On-campus recruitment of European MBA-

graduates • Headhunting of established professionals

• CSRs, BPO clerks, admin staff (1100 by year 3)• Recruit through universities• Screen for language, personality and aptitude

Objectives

Key Issues

Decision Overview

Off-Shoring

End Market

Implementation


Q&A

HR Strategy Continued

• Hands-on training for sales consultants in India• Work in service centres and on site

with clients

• CSRs and BPO clerks will receive language and technical training• Career evolution

• CSR → BPO Clerk → Sales Consultant

Objectives

Key Issues

Decision Overview

Off-Shoring

End Market

Implementation


Q&A

Marketing Plan

• Pitch Euro divisions of current clients

• Target market for sales staff:• Medium sized international companies• European based multinationals

• France, Germany and Spain

• Concentrate on established verticals

• Upsell CRM customers to BPO

Objectives

Key Issues

Decision Overview

Off-Shoring

End Market

Implementation


Q&A

Timeline

Logistics

Marketing

HR

Financial Projections

2006 2007E 2008E 2009EProduct MixCall Centre 85% 80% 75% 70%BPO 15% 20% 25% 30%

Sales (in millions of $)India 50 60 72 86Growth rate 20% 20% 20%Bulgaria 0 0 12 24Growth rate 100%Total sales 50 60 84 110

EBITDA MarginsCall Centres 8.75% 8.75% 8.75%BPO 15.24% 15.24% 15.24%

Forecasted EBITDA 6.0 8.7 11.8Growth rate 45% 36%

Objectives

Key Issues

Decision Overview

Off-Shoring

End Market

Implementation


Q&A

Product Differentiation Strategies

Billing

Present situation

CRM

Payment services

CRM

Process Specialization

Vertical Specialization

HealthTele TravelRetail

Capitalizing on customer demand for a single source solution

Objectives

Key Issues

Decision Overview

Off-Shoring

End Market

Implementation


Q&A

CRM

IT

Vertical Analysis

• Present verticals: • Telecom• Retail/ eCommerce• Technology (IT)• Travel & Hospitality• Health

• Recommended to expand one vertical at a time

Objectives

Key Issues

Decision Overview

Off-Shoring

End Market

Implementation


Q&A

Vertical market decision criteria

• How many process within the vertical does vCustomer currently serve?• Ex: 80% of Healthcare processes

• Employee compatibility• In-house expertise

• Client evaluation• Client characteristics, company size• Survey current clients to establish needs

Objectives

Key Issues

Decision Overview

Off-Shoring

End Market

Implementation


Q&A

Additional Consulting Services:General Off-shoring

Determine optimal entry strategy• Require more in-depth information about partner

and current agreement

Contract Design• Termination and buy-out clauses

Off-shore location monitoring • Labour mobility and rapid wage adjustment • Bi-Annual tailored reporting indicating trends

Objectives

Key Issues

Decision Overview

Off-Shoring

End Market

Implementation


Q&A

Decision Overview

End marketProduction Country

United States

India

Malaysia

JapanChina

Thailand


Product Differentiation

Process Specialization

VerticalSpecialization

Objectives

Key Issues

Decision Overview

Off-Shoring

End Market

Implementation


Q&A

Key Issues Revisited

• Changing customer demands• Near-shoring• Single sourcing• Higher value-added BPO

• Changing cost structures• Rising wages in traditional low cost regions

• vCustomer’s goals & competencies• Commitment to quality• Best-in-class technology• Low cost structure

Objectives

Key Issues

Decision Overview

Off-Shoring

End Market

Implementation


Q&A

LindsayStefanie

DanielChristian

Question & Answer

Appendix slides

Appendix: End Market Analysis

End-Market Analysis – Raw Numbers

Wages

(high wages)

(low wages)

Efficiency

(high output) (low output)

Market size:

$ 50 M USD

$ 100 M USD

$ 200 M USD

US$277 M

EU $ 127 M

APAC $ 42 M

95125127129131133 123 121 119

97

99

101

93

91

89

US Japan EULabour Unit Cost $90 $92 $104Output $135 $126 $122

BPO Overall Market Size

BPO contracts by region

% Growth in contracts % Growth in $ Value of Contracts2004 2005 2006 2004 2005 2006

Americas 36% -4% 4% 68% -21% -28%Europe 59% 0% 56% 63% -26% 15%Asia/Pacific 100% 30% 38% 250% 21% -41%

Based on BPO deals worth greater that $25 million in contract value

Source: PwC, Morgan Stanley

Appendix: Financial Analysis

vCustomer’s Financial Projections2006 2007E 2008E 2009E

Product MixCall Centre 85% 80% 75% 70%BPO 15% 20% 25% 30%

Sales (in millions of $)India 50 60 72 86Growth rate 20% 20% 20%Bulgaria 0 0 12 24Growth rate 100%Total sales 50 60 84 110

EBITDA MarginsCall Centres 8.75% 8.75% 8.75%BPO 15.24% 15.24% 15.24%

Forecasted EBITDA 6.0 8.7 11.8Growth rate 45% 36%

EBITDA Margins of Comparable Companies

EBITDA Margins of Comparable Companies

BPO 2006 2007 2008 AverageEXLS 17.51% 15.76% 16.30% 16.52%WNS 14.06% 13.42% 14.40% 13.96%Average 15.24%

Call Centres 2006 2007 2008 AverageTeletech 10.24% 12.37% 14.02% 12.21%ICT Group 4.20% 3.50% 5.10% 4.27%Convergys 9.10% 9.70% 10.50% 9.77%Average 8.75%

Sample BPO Contract Lengths & Value

Source: Merrill Lynch

Vendor Client Industry Contract length Value Rev/Month TypeAccenture Unilever Manufacturer 84 1000 11.9 BPOCapita Group Havant Bourough Council Government 84 26.1 0.3 BPOGeosoft Tech Medquist Services 60 24.5 0.4 BPOTata Consultancy Transantiago Travel & Transport 60 20 0.3 BPO


Precedent Transactions in the IT Industry


Average Price/Sales: 1.22

vCustomer’s Profile

• Emphasis on call centres• 85% call centres• 15% BPO

• Several locations in India

• Strategy• High quality, great customer retention• Best-in-class technology• Low cost, but not lowest price

Source: VCustomer case

Target Acquisition Profile

• Emphasis on quality & customer service

• Excellent technology

• Good reputation

• Extension of BPO opportunity

• Small to Mid sized firm within our price range

Source: VCustomer case

WebHelp - Profile

• Located in Algeria & Eastern Europe

• Strong client base in Europe

• Same business model

• Potential candidate for merger

• Average price/sales of precedent transactions: 1.22

Source: Merrill Lynch, VCustomer Case

Appendix: Country Analysis

ATKearney Inc. GSL Metrics

Financial Attractiveness average wages

rental costsCommercial electricity ratesInternational telecom costsTravel to major customer destinationsRelative tax burdencosts of corruptionCurrency appreciation or depreciation

Median compensation costs for relevant positions (Call-centre representatives. IT prorgrammers and local operations managers), as reported in the Mercer Human Resources Consulting Global Pay Summary

compensation costs

Infrastructure costs

Tax and regulatory costs

MetricsCategory Sub-Categories


size of existing IT and BPO services

Contact center and IT center quality certificationsTotal workforceUniversity-educated workforceWorkforce flexibilityScores on standardized education and language tests

Relative IT and BPO sector growth and unemployment rates

Remote service sector experience and quality ratings

Labour Force Availability

Education and Language

Metrics

People skills, and availability

Attrition Risk

Category Sub-Categories


Business Environment Investor and analyst rating of overall business and political enviromentA.T. Kearney Foreign Direct Investment Confidence IndexSecurity RiskRegulatory burden employment rigidtyGovernment support for the information and communication technology (ICT) sectorOverall infrastructure qualityQuality of telecom, internet, and electrictiy infrastructurePersonal interaction score from A.T. Kearney/Foreign Policy Globalization Index

Investor ratings of IP protection and ICT laws

Software piracy ratesInformation security certifications

Infrastructure

Cultural Exposure

Security of intellectual property (IP)

Metrics

Country Environment

Category Sub-Categories

Additional countries to GSL report

• Albania, Belarus, Bosnia & Herzegovina, Croatia, Lithuania, Macedonia, Moldova, Serbia

• People: World Bank indexes difficulty of firing, hiring, etc

• Financial: Tax rate as % of profit, cost as % property value, (world bank)

• Business Environment: Corruption Index

Augmented weighting to Offshore Country Analysis

• GSL categories: Financial (40%), People (40%), Business environment (20%)• Total weight (90%)

• World Bank: Ease of doing business rank• Total weight (10%)

• Overall weights: • Financial 36%• People 36% • Environment 18%• Ease of business 10%

Top Offshore Country rankingsOverall Ranking GSL RANK COUNTRY

World Bank Ranking

total score (GSL 90%, WB 10%)

1 5 Thailand 18 6.3

2 8 Malaysia 25 9.7

3 2 China 93 11.1

4 1 India 134 14.3

5 10 Bulgaria 54 14.4

6 3 Indonesia 135 16.2

7 14 Mexico 43 16.9

8 6 Brazil 121 17.5

9 12 Serbia 68 17.6

10 17 Chile 28 18.1

11 9 Moldova 103 18.4

12 7 Philippines 126 18.9

13 15 Jordan 78 21.3

14 13 Vietnam 104 22.1

15 16 Ghana 94 23.8

16 23 Slovakia 36 24.3

17 20 Uruguay 64 24.4

18 19 Sri Lanka 89 26

19 18 Argentina 101 26.3

20 21 Pakistan 74 26.3

Offshore Country - MalaysiaCategory

Financial Attractiveness

• Offshore salaries are more than double

those found in India and China• Possibility of encountering corruption

costs

People skills & availability

• Limited size/quality workforce impedes

country to gain large share of global

IT business

Business Environment

• Well-developed infrastructure• Attractive business environment• Stable political environment

Source: http://news.com.com/Outsourcings+next+big+thing--Malaysia/2100-1011_3-5344618.html

Offshore Country - ThailandCategory


• Slightly higher offshore salaries than

India and China• Higher level of corruption = higher costs


•Low literacy rate (92%) •Growing services labour force (37%)


•Strong growth rates in 03-04 (~6%) •Separatist movements causes unstable government

https://www.cia.gov/cia/publications/factbook/geos/th.html

Offshore Country - ChinaCategory


•Cost effective solution, similar to India


•Huge labour force•Difficulty with English language


•Difficulty in establishing the necessary connections•Early stages of call centre development

Offshore Country - PhilippinesCategory


• 1/3 Higher offshore salaries in

comparison to India and China•Wage Inflation & attrition is a concern


•Excels in high quality call centres•Strong labour force


• High corruption rate = Higher costs

Offshore Country - PolandCategory


• Higher wage costs


• Skilled Labour force


• Stable

Offshore Country - MexicoCategory


• Higher wage costs


•Large labour force •Rigid labour laws•Poor education


• Reasonably stable

• Proximity to the US• Poor infrastructure

Offshore Country - BrazilCategory


• Wage costs almost double India


• Large population

• Strong technical skills


• Reasonably Stable

Appendix: BPO Trends

BPO Industry Mix (by Vertical)

BPO Market by Industry (by Vertical)

Manufacturing13%

Other25%

Healthcare6%

Telecom13%

Retail6%

BFSI37%

Source: PwC, Morgan Stanley

BPO Segment Mix (by Process)Segment Mix

Sales & Marketing34%

Human Resources3%

Finance & Accounting

4%

Customer service10%

Logistics42%

Product engineering

7%

Source: PwC

BPO Segment Growth Rates

2005 2006E 2007E 2008E 2009E 05-09 CAGRHuman Resources 13,009 15,128 17,651 20,614 23,915 12.9%Finance & Accounting 14,358 16,405 18,770 21,673 25,328 12.0%Customer service 40,619 46,357 52,165 59,321 66,843 10.5%Logistics 178,731 198,769 221,494 248,129 280,034 9.4%Sales & Marketing 146,526 156,836 165,967 175,131 187,781 5.1%Product engineering 27,313 32,789 38,819 45,424 53,037 14.2%Procurement 583 708 862 1,056 1,291 17.2%Training 1,333 1,738 2,160 2,725 3,002 17.6%

Total 422,472 468,730 517,888 574,073 641,231 8.7%

Source: Morgan Stanley

Top 25 BPO Service Providers

Source:

Top 10 BPO Providers & Mkt Share

Source: Gartner

Global Players in Offshore Outsourcing

Source: Business week

Offshore Salaries by Region

Source:

General Regional Trends

• Philippines – focus on customer service/call centres

• Eastern Europe – focus on finance & accounting

• Russia – focus on embedded software/product development

• South America – Spanish Language skills• China – interest slowing rising for

outsourcing (0% in 2004 vs. 8% now)

Source: Morgan Stanley

BPO Trends in India

• Current trends:• Explosion of growth• Entry of big players• Declining pricing & margins• Trend towards near shoring

• Conclusion: Indian companies must become more global to survive & thrive

Source: PwC, Wachovia

India: BPO Industry Trends

Source: PWC Report: The Evolution of BPO in India – April 2005

Trends What can vCustomer do?Location Changes - Find near shore opportunities for end user markets

Structural Changes - Focus more on domain/industry specialized BPO process

Product Offering - Create higher-end processes (Value-added)

Cost Structure Changes

- Offer customers

Client Relationships

- Partnership-based

Cost of Manpower & Infrastructure

- Need to diversify geographically

Deal Structure - BOT / Joint Venture / Captive Model

Migrations Strategies

- Offer value-added services throughout all processes

Risk & Contracts - Create process that mitigate risk - Continue to maintain strong customer relationships to stray

from exit-clauses

India – HR Related IssuesTrends What can vCustomer do?

Increased Attrition

- Focus on more stable work environments (value-added)

- Locate in Tier II or III

- Reinforce company brand image

- Continue more process-based not person-based

Retention

Strategies

- Continue HR initiatives

- More emphasis on career planning and cross-training

- Support anti-poaching agreements

- Leadership initiatives

- Recognition/Remuneration strategies

Recruitment

Strategies

- Use competency approach (skill tests)

- Use realistic job-previews

- Join NASSCOM skill registry

Industry

Repositioning

- Support initiatives for “long-term career” projects

- Create career track within own company

Appendix: Bulgarian Market

Bulgaria – Key Strengths

• Stable• Part of the EU• Currency pegged to the Euro• BB+ rating

• Innovative• Ranked #2 in the EMEA in IT

• Best time to market • According to World bank report on

business climate

Source: Invest Bulgaria Agency, World Bank

Bulgaria – Key Strengths

• Set up time: • Average of 32 days with 9 processes

• Prices of goods are declining

• Recently invested a significant amount in transportation infrastructure

• Average annual wage in Bulgaria in 2006 was 4,255 leva (2,175.55 euro)

http://www.sofiaecho.com/article/expectations-for-bulgarias-economic-growth-in-2007-reach-58-per-cent/id_22042/catid_67

http://www.sofiaecho.com/article/world-bank-grants-bulgaria-409m-euro-for-trade-and-transportation-projects/id_22039/catid_67

Bulgaria - Trends

Source: Invest Bulgaria Agency

Bulgaria - Critical HR Issue

• Specific recruiting considerations:• Creating brand recognition to attract

potential candidates• Ensuring “fit” between new hire and

company• Essential to evaluate employee

competencies

Objectives

Key Issues

Decision Overview

Industry Analysis

Country Analysis

Product Analysis

Implementation

Source: http://www.goaleurope.com/main?p=30&more=1&c=1

Skill Competencies for BPO Employees in Bulgaria

• 7 distinct skills sets:• Keyboard skills• Verbal ability• Spoken English/French/German/Spanish• Comprehension & writing ability• Office software usage• Numerical analytical skills• Concentration & accuracy ability

• All employees should be tested on these competences prior to being hired

Source: http://www.nasscom.in/Nasscom/templates/NormalPage.aspx?id=2374

Sofia - Infrastructure

• Strong infrastructure

• Centre for international railway & automobile routes

• Public transit is well-developed

• 500,000 cars in Sofia

• Centrally heated

Source: Wikipedia

Sofia - Education

• 16 Universities• Largest university

enrolls 14,000 students per year

• Large share of unemployed people with higher education• 27% vs. 7% for rest of the

country

Source: Wikipedia, Sofica investor presentation

Sofia - Language

Source: Sofica investor presentation

Sofia - Wages

• Average annual wage in 2006 was 4,255 leva (3000 USD)

• BPO wages similar to India: 7,500-8,000

• Relatively low inflation: approx 10% (versus mid-teens for India)

Source: Bulgarian News Net

Sofia - Government

• Mayor - Boyko Borisov• Founder of GERB

• New political organization• Stated goal is to fight crime & corruption• Preserving family as cornerstone of society• Becoming energy independent• 2nd in popular polls

• Karate expert – coach of national team

Source: Wikipedia

Bulgarian Competitors

• Sofica• Approx. 40 agents• Serves IT, telecom, transport, utilities

and financial sector customers• Differentiating on service quality,

foreign language fluency, cultural and business compatibility

Source: Sofica


• Call Centre Bulgaria• Approx. 75+ agents• Use VOIP technology• Provides inbound and outbound

services for European, East European and domestic (Bulgaria) clients

• Multi-language low cost platform

Source: Call Centre Bulgaria


• Aii Data Processing• Approx. 250+ agents• Focused on information and editorial

services, data processing and business services

• Provides BPO activities in credit management, billing, telemarketing & telesales

Source: Aii data processing

Contingency Plan - Slovakia

• Capital city – Bratislava• Economy based on:

• Services from high tech firms (e.g. IBM, Dell, Accenture)

• Engineering • Chemical and electrical industries

• Recent trends:• Service and high-tech oriented businesses

are thriving• Many global companies are building their

outsourcing and service centres or have plans to build in the near future here

Source: Wikipedia

Appendix: Implementation Plan

Implementation – Facility Size

• 1 employee per $21K in sales• $24M in sales → 1150 Employees

• 20 sq. ft. per employee• 1150 Employees → 23K sq. ft.

Implementation – Labour Force

• 1 employee per $21K in sales*• $24M in sales → 1150 Employees

• 93% staff billable, 7% support and sales**• 1150 Employees → 80 support and

sales → 40 sales and consultants

*Benchmarked from Tata and WNS**Benchmarked from WNS

Bulgaria IT Infrastructure

• Infrastructure risk is moderate • The main risk arises from the unreliable

quality of the telephone network that can make access to the Internet slow

• The quality of telecoms infrastructure is likely to improve now that the privatisation of the fixed-line telecoms operator, BTC, has been completed

• Although historically low, the total international connection per capita has more than tripled for the past two years

Vertical initial analysis:

• Present verticals: • Telecom

• Small addressable market, high offshore penetration

• Retail/ eCommerce• Largest addressable market

• Technology (IT)• Many large clients

• Travel & Hospitality• Lowest addressable market, do it yourself trend

• Health• High level of trust, two tier systems

Sources

• Morgan Stanley – IT Services – Outsourcing & Consulting – 2007 Outlook & Trends Report, January 22, 2007

• Businessweek feature on outsourcing - http://www.businessweek.com/magazine/toc/06_05/B39690605outsourcing.htm

• Merrill Lynch – Mid-Quarter IT outsourcing Review – September 7, 2006

• Price Waterhouse Coopers – The Evolution of BPO in India – April 2005

• Wachovia – Global Delivery of IT/BPO Outsourcing – November 16, 2006

• A.T. Kearney – Building the Optimal Global Footprint – 2005

Sources

• Company websites (vCustomer, Call Centre Bulgaria, Sofica, Aii Data Processing)

• Invest Bulgaria Agency• World Bank• Wikipedia• Credit Suisse, EXLService Holdings,

March 2, 2007• Credit Suisse, WNS Global Services,

March 2, 2007• Bulgarian news net

Bulgaria

• Reasons for high graduate unemployment rates:• A sluggish market causes periodic

fluctuations in the labour market• Youngest and oldest workers tend to

be the most because firms recruit few young graduates and lay off the oldest workers

Source: http://www.eurydice.org/portal/page/portal/Eurydice/FigurePage?pub=052EN&fig=A7&SizeCode=null&SVG=TRUE

Bulgaria

• Reasons for Bulgarian labour force staying in Bulgaria:• EU15 states are very reluctant to open

labour market to Bulgaria• CE-8 is currently under scrutiny, not

favouring Bulgaria’s labour force• Trends for governments to create

incentives to keep skilled labour force within

Source: http://transitioneconomies.blogspot.com/2006/10/bulgaria-and-romania-green-light.html

VCustomer: Optimizing a Global Footprint Christian Bonneau Daniel Byrne Stefanie Jones Lindsay...

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