Profiting From Established Offshore Contact Center Locations

Content

• Catalyst
• Summary
• Methodology
• Executive Summary
  • Introduction
  • Mexico: A solution for the US Hispanic market? (Market Focus)
  • Selling Canada as a Nearshore Option (Market Focus)
  • Philippines: Balancing risk through diversification (Market Focus)
  • India: Still the king of offshore (Market Focus)
  • Contact Center Outsourcing Trends in Canada, India, Mexico and the Philippines (Databook)
• Mexico: A Solution For The Us Hispanic Market? (Market Focus)
  • Summary
  • Contact center outsourcing in Mexico is projected to grow through 2010
  • Why Mexico is a logical destination of choice for US customer service
  • Growth of the US Hispanic market
  • US Hispanic economic advancement
  • US Hispanic country of origin is predominantly Mexico
  • Lower business costs than in the US
  • Labor arbitrage favors Mexican agents
  • Property costs in Mexico fall below those of the US
  • Minimal exchange rate risk strengthens Mexico's competitive positioning
  • Mexico's proximity is an advantage relative to other Latin American countries
  • Mexico's long-term growth is limited due to emerging competition
  • Growth in regional competition
  • Mexico's comparatively higher costs
  • Labor
  • Real Estate
  • Mexico is becoming a saturated market for contact center outsourcing
  • Step one: migrate to high-end US Hispanic customer care over the long term
  • Step two: examine the possibility of providing domestic outsourcing services in Mexico
  • Step three: work to keep costs down in Mexican operations
• Selling Canada As A Nearshore Option (Market Focus)
  • Summary
  • Contact center outsourcing in Canada is slowing
  • Total outsourced Canadian APs
  • Canada's domestic outsourced industry
  • Canada's offshore outsourced industry
  • Canada is becoming a costlier prospect for US outsourcers
  • Appreciation of the CAD versus the USD
  • Canadian domestic inflation
  • Canadian outsourced contact center agent costs
  • Canadian property costs
  • Canada lacks sufficient Spanish-speakers to meet projected US demand
  • US Hispanic population explosion
  • Canada's Spanish challenge
  • Contact center saturation is becoming an issue in key Canadian locations
  • Step one: target value-add US customer care
  • Step two: attack secondary urban centers
  • Step three: attack the Canadian domestic market
• Philippines: Balancing Risk Through Diversification (Market Focus)
  • Summary
  • The Philippines presents a strong outsourcing opportunity in its domestic market
  • Expanding total outsourcing market but slowing overall growth
  • Limited offshore prospects offset by growing domestic outsourced segment
  • Vertical outsourcing opportunity - financial services, telcos, technology and retail
  • Solid sophistication in the Philippines means good customer interactions
  • US cultural affinity means opportunity in Canada and Australia
  • The Philippines is cost effective and shows little sign of escalating overheads
• India: Still The King Of Offshore? (Market Focus)
  • Summary
  • India's offshore outsourcing market is still a viable offshore location for English speaking services
  • India's domestic market presents real revenue opportunities in this expanding market
  • Why Indiastill offers investors avery low-cost business environment in the medium term
  • India has a lower cost-per-agent than western locations.
  • India also compares favorably on price with many offshore locations
  • India has a sizeable pool of labor from which outsourcing investors can draw
  • Investors can profit from low property and facilities costs in India
  • India's ongoing stability isa major advantage for investors
  • India's continued economic reform means investor confidence
  • Ongoing political stability means limited risk for investors
  • Beware of potential erosion of India's value proposition over long term
  • India is susceptible to rising contact center agent costs
  • Incentives are slowly disappearing in India
  • Global offshore competition is likely to hurt India's value proposition
  • Inter-industry competition for labor means increased wage escalation
  • Infrastructure concerns abound in many of India's commercial centers
• Maturing Contact Center Outsourcing Locations (Databook)
  • Introduction
  • Definitions
  • Canada
  • India
  • Mexico
  • Philippines
• Appendix
  • Ask the analyst
• List of Tables
  • Table 1: Mexican outsourced APs, 2005 -2010
  • Table 2: Travel time from New York City to various Latin American cities
  • Table 3: Canadian outsourced APs - domestic versus offshore, 2005 2010
  • Table 4: Demand for Canadian outsourced offshore APs, 2005 - 2010
  • Table 5: Outsourced Philippine APs, 2005 - 2010
  • Table 6: Philippine outsourced APs - domestic versus offshore, 2005 - 2010
  • Table 7: Indian outsourced APs, 2005 - 2010
  • Table 8: Key Indian economic indicators, 2003 - 2005
  • Table 9: Contact Center definitions
  • Table 10: Total Canadian outsourced agent positions (000s) 2005 - 2010
  • Table 11: Vertical distribution of offshore outsourced APs in Canada (000s) 2005 - 2010
  • Table 12: Vertical distribution of domestic outsourced APs (000s) in Canada 2005 - 2010
  • Table 13: Outsourced offshore APs (000s) in Canada by contact center sizeband 2005 - 2010
  • Table 14: Outsourced domestic APs (000s) in Canada by contact center sizeband 2005 - 2010
  • Table 15: Geographic markets served by Canadian outsourced APs 2005 - 2010
  • Table 16: Total Indian outsourced agent positions (000s) 2005 - 2010
  • Table 17: Vertical distribution of offshore outsourced APs (000s) in India 2005 - 2010
  • Table 18: Vertical distribution of domestic outsourced APs (000s) in India 2005 - 2010
  • Table 19: Outsourced offshore APs (000s) in India by contact center sizeband 2005 - 2010
  • Table 20: Outsourced domestic APs (000s) in India by contact center sizeband 2005 - 2010
  • Table 21: Geographic markets served by Indian outsourced APs 2005 - 2010
  • Table 22: Total Mexican outsourced agent positions (000s) 2005 - 2010
  • Table 23: Vertical distribution of offshore outsourced APs (000s) in Mexico 2005 - 2010
  • Table 24: Vertical distribution of domestic outsourced APs (000s) in Mexico 2005 - 2010
  • Table 25: Outsourced offshore APs (000s) in Mexico by contact center sizeband 2005 - 2010
  • Table 26: Outsourced domestic APs (000s) in Mexico by contact center sizeband 2005 - 2010
  • Table 27: Geographic markets served by Mexican outsourced APs 2005 - 2010
  • Table 28: Total Philippine outsourced agent positions (000s) 2005 - 2010
  • Table 29: Vertical distribution of offshore outsourced APs (000s) in Philippines 2005 - 2010
  • Table 30: Vertical distribution of domestic outsourced APs (000s) in Philippines 2005 - 2010
  • Table 31: Outsourced offshore APs (000s) in Philippines by contact center sizeband 2005 - 2010
  • Table 32: Outsourced domestic APs (000s) in Philippines by contact center sizeband 2005 - 2010
  • Table 33: Geographic markets served by Philippine outsourced APs 2005 - 2010
• List of Figures
  • Figure 1: Mexican outsourced APs, 2005 - 2010
  • Figure 2: US Hispanic population relative to total population, 2000 & 2004
  • Figure 3: US Hispanic household income, 1992 - 2004
  • Figure 4: US Hispanic ancestry
  • Figure 5: Outsourced agent pricing, 2005
  • Figure 6: Commercial real estate rents - Selected North American cities, 2005
  • Figure 7: Mexican peso versus USD, 2004 - 2006
  • Figure 8: Latin American comparative urban commercial real estate
  • Figure 9: Total Canadian outsourced APs, 2005 - 2010
  • Figure 10: CAD versus USD, 2001 - 2006
  • Figure 11: Canadian domestic inflation growth, 2004 - 2006
  • Figure 12: Outsourced contact center agent price per agent per hour, 2005
  • Figure 13: Commercial gross real estate rents in selected cities, 2005
  • Figure 14: US Hispanic population relative to total population, 2000 & 2004
  • Figure 15: Outsourced Philippine APs, 2005 - 2010
  • Figure 16: Philippine outsourced APs - domestic versus offshore, 2005 - 2010
  • Figure 17: Selected Philippine economic indicators, 2005 - 2007
  • Figure 18: Philippine contact center outsourcing - vertical analysis, 2005 & 2010
  • Figure 19: Philippine outsourced contact center demand by country, 2005 - 2010
  • Figure 20: Offshore contact center location price / agent / hour, 2005
  • Figure 21: Indian outsourced APs, 2005 - 2010
  • Figure 22: Indian outsourced offshore APs, 2005 - 2010
  • Figure 23: Indian offshore outsourced demand, 2005 - 2010
  • Figure 24: Indian domestic outsourced APs, 2005 - 2010
  • Figure 25: Global agent pricing survey, 2005
  • Figure 26: Labor force and unemployment levels - selected offshore locations, 2005
  • Figure 27: Gross office rents - selected cities, 2005
  • Figure 28: Total Canadian outsourced agent positions 2005 - 2010
  • Figure 29: Vertical distribution of offshore outsourced APs in Canada 2005 - 2010
  • Figure 30: Vertical distribution of domestic outsourced APs in Canada 2005 - 2010
  • Figure 31: Outsourced offshore APs in Canada by contact center sizeband 2005 - 2010
  • Figure 32: Outsourced domestic APs in Canada by contact center sizeband 2005 - 2010
  • Figure 33: Geographic markets served by Canadian outsourced APs 2005 - 2010
  • Figure 34: Total Indian outsourced agent positions 2005 - 2010
  • Figure 35: Vertical distribution of offshore outsourced APs in India 2005 - 2010
  • Figure 36: Vertical distribution of domestic outsourced APs in India 2005 - 2010
  • Figure 37: Outsourced offshore APs in India by contact center sizeband 2005 - 2010
  • Figure 38: Outsourced domestic APs in India by contact center sizeband 2005 - 2010
  • Figure 39: Geographic markets served by Indian outsourced APs 2005 - 2010
  • Figure 40: Total Mexican outsourced agent positions 2005 - 2010
  • Figure 41: Vertical distribution of offshore outsourced APs in Mexico 2005 - 2010
  • Figure 42: Vertical distribution of domestic outsourced APs in Mexico 2005 - 2010
  • Figure 43: Outsourced offshore APs in Mexico by contact center sizeband 2005 - 2010
  • Figure 44: Outsourced domestic APs in Mexico by contact center sizeband 2005 - 2010
  • Figure 45: Geographic markets served by Mexican outsourced APs 2005 - 2010
  • Figure 46: Total Philippine outsourced agent positions 2005 - 2010
  • Figure 47: Vertical distribution of offshore outsourced APs in Philippines 2005 - 2010
  • Figure 48: Vertical distribution of domestic outsourced APs in Philippines 2005 - 2010
  • Figure 49: Outsourced offshore APs in Philippines by contact center sizeband 2005 - 2010
  • Figure 50: Outsourced domestic APs in Philippines by contact center sizeband 2005 - 2010
  • Figure 51: Geographic markets served by Philippine outsourced APs 2005 - 2010