Asia StatusAsia Status

Contact Centers Portugal 2007

AgendaAgenda

High level results from Contact Centre Benchmark Study Published in January 2007 696 interviews of 1368 managers Study has been going since 1999 www.callcentres.net

Country by country snapshot

What is happening in Asia?

Contact Centre Contact Centre Industry Benchmarking Industry Benchmarking Study –Study –

Australia, New Zealand & Australia, New Zealand & Asia-Pacific ResultsAsia-Pacific Results

78%

89%

91%

27%

91%

92%

70%

94%

81%

22%

11%

9%

73%

9%

8%

30%

6%

19%

OVERALL (N=696)

Australia (N=140)

New Zealand (N=55)

India (N=107)

China (N=105)

Malaysia (N=98)

The Philippines (N=67)

Thailand (N=65)

Singapore (N=59)

In-house (captive) Outsourced

In-house (captive) versus outsourced contact centres

Where do they live?Where do they live?

Country Top 3 industries

OVERALL (N=696) Outsourced contact centre (22%), Manufacturing (10%), Gov’t (9%)

Australia (N=140) BFI (20%), Gov’t (20%), Outsourced contact centre (11%)

New Zealand (N=55) Gov’t (42%), BFI (11%), Telco/ Utilities (7%)

India (N=107) Outsourced contact centre (73%), Business Service (6%), IT (5%)

China (N=105) Manufacturing (37%), Telco/ Utilities (16%), Transport/ Freight (11%)

Malaysia (N=98) BFI (21%), Hospitality/ Tourism (18%), Retail/ Wholesale (14%)

The Philippines (N=67) Outsourced contact centre (30%), BFI (18%), Transport/ Freight (13%)

Thailand (N=65) Transport/ Freight (25%), Telco/ Utilities (14%), Retail/ Wholesale (14%)

Singapore (N=59) Outsourced contact centre (19%), BFI (15%), Telco/ Utilities (12%)

Industry breakdown

ProfilesProfiles

Country Seats 2006Seats 2007 (estimated)

2006-2007 Growth Rate

OVERALL 759,220 931,180 23%

Australia 180,000 198,000 10%

New Zealand 25,000 27,500 10%

India 270,000 312,500 16%

China 130,000 158,000 22%

Malaysia 28,000 37,000 32%

The Philippines 105,000 140,000 33%

Thailand 24,000 32,000 33%

Singapore 19,000 25,000 32%

Market size estimates by country

How big?How big?

25%

32%

31%

8%

17%

20%

21%

40%

39%

26%

21%

36%

20%

16%

33%

30%

34%

27%

16%

17%

11%

27%

23%

9%

7%

11%

14%

34%

29%

22%

45%

44%

38%

42%

15%

20%

OVERALL (N=696)

Australia (N=140)

New Zealand (N=55)

India (N=107)

China (N=105)

Malaysia (N=98)

The Philippines (N=67)

Thailand (N=65)

Singapore (N=59)

<20 seats 20-49 seats 50-99 seats 100+ seats

Mean Median

253 48

249 34

145 25

522 80

149 70

90 40

676 48

65 24

60 22

Number of seats per organisation

Seats per companySeats per company

72%

76%

75%

67%

71%

71%

54%

97%

63%

28%

24%

25%

33%

29%

29%

46%

37%

3

OVERALL (N=696)

Australia (N=140)

New Zealand (N=55)

India (N=107)

China (N=105)

Malaysia (N=98)

The Philippines (N=67)

Thailand (N=65)

Singapore (N=59)

Local International

Local versus international servicing

Servicing who?Servicing who?

64%

70%

67%

81%

42%

56%

57%

75%

66%

14%

12%

16%

22%

22%

13%

9%

11%

11%

9%

9%

19%

10%

14%

10%

8%

11%

7%

7%

8%

17%

11%

16%

15%

5 6

4

OVERALL (N=696)

Australia (N=140)

New Zealand (N=55)

India (N=107)

China (N=105)

Malaysia (N=98)

The Philippines (N=67)

Thailand (N=65)

Singapore (N=59)

Contact centre - phone Branch/ retail network

Contact centre - Web based/ Email Sales force

Mean % of customer contacts per channel

Voice is still kingVoice is still king

Country Mean costs ($USD*)

Annual Cost per Seat

Hourly Cost per Seat

Cost per Transaction

Australia (N=140) 124,248 33.19 2.76

New Zealand (N=55) 104,648 27.95 2.33

India (N=107) 15,872 4.24 0.35

China (N=105) 13,543 3.62 0.30

Malaysia (N=98) 34,779 9.29 0.77

The Philippines (N=67) 18,086 4.83 0.40

Thailand (N=65) 18,527 4.95 0.41

Singapore (N=59) 66,998 18.46 1.54

Cost per Seat and Optimised Cost per Transaction

*Information was collected in local currency and converted into US dollars with the following exchange rates:

Australia: 1 USD = 1.24 AUDNew Zealand: 1 USD = 1.41 NZDIndia: 1 USD = 44.74 INRChina: 1 USD = 7.82 CNYMalaysia: 1 USD = 3.55 MYRThe Philippines: 1 USD = 49.23 PHPThailand: 1 USD = 36.01 BHTSingapore: 1 USD = 1.55 SGD

CostsCosts

Country Mean annual base salary ($USD*)

Full-time agentsTeam Leaders/

SupervisorsContact Centre

Managers

Australia (N=140) 30,997 40,705 60,746

New Zealand (N=55) 25,661 34,824 55,102

India (N=107) 3,334 4,794 6,937

China (N=105) 2,558 3,780 6,106

Malaysia (N=98) 5,442 8,592 12,786

The Philippines (N=67) 3,348 5,470 9,665

Thailand (N=65) 3,656 6,336 11,222

Singapore (N=59) 13,677 21,476 34,203

Annual base salary of employees

*Information was collected in local currency and converted into US dollars with the following exchange rates:

Australia: 1 USD = 1.24 AUDNew Zealand: 1 USD = 1.41 NZDIndia: 1 USD = 44.74 INRChina: 1 USD = 7.82 CNYMalaysia: 1 USD = 3.55 MYRThe Philippines: 1 USD = 49.23 PHPThailand: 1 USD = 36.01 BHTSingapore: 1 USD = 1.55 SGD

SalariesSalaries

16

13

18

15

16

9

20

28

18

7

8

8

11

9

2

7

5

7

OVERALL (N=696)

Australia (N=140)

New Zealand (N=55)

India (N=107)

China (N=105)

Malaysia (N=98)

The Philippines (N=67)

Thailand (N=65)

Singapore (N=59)New recruits (training days prior to working in the centre)

Experienced agents (external/ internal classroom training days per annum)

Mean agent training days

TrainingTraining

10

8

8

15

11

8

11

10

8

OVERALL (N=696)

Australia (N=140)

New Zealand (N=55)

India (N=107)

China (N=105)

Malaysia (N=98)

The Philippines (N=67)

Thailand (N=65)

Singapore (N=59)

Mean days taken in sick leave per agent per annum

Unplanned absenceUnplanned absence

20%

16%

21%

38%

17%

18%

18%

15%

16%

21%

15%

11%

32%

29%

24%

24%

16%

21%

OVERALL (N=696)

Australia (N=140)

New Zealand (N=55)

India (N=107)

China (N=105)

Malaysia (N=98)

The Philippines (N=67)

Thailand (N=65)

Singapore (N=59)Full-time agents Part-time agents

Mean agent attrition

Staff turnoverStaff turnover

Country Mean scores

Average speed of answer

(seconds)

Average abandonment rate

(%)

First call resolution

(%)

Occupancy rate

(%)

OVERALL 20 8% 77% 78%

Australia 34 4% 77% 78%

New Zealand 22 6% 78% 72%

India 30 9% 67% 74%

China 7 12% 83% 84%

Malaysia 19 10% 73% 74%

The Philippines 26 10% 73% 75%

Thailand 12 9% 75% 79%

Singapore 29 6% 81% 74%

Key contact centre metrics

MeasuresMeasures

Country by CountryCountry by CountryThe big guns!The big guns!

IndiaIndia

POSITIVES Seen as the leader in

offshore location Educated population Room to expand Cheap!

NEGATIVES Cheap! Brand degradation Repeat calls Soaring human costs High staff attrition

PhilippinesPhilippines

POSITIVES Outstanding English

skills Educated population Good customer service

culture

NEGATIVES Over promising Unstable political and

social scene Trying to be everything

to everyone Lack of other

languages

ChinaChina

28,000

50,000

140,000

China Telecom

China Unicom

China Mobile

ChinaChina

POSITIVES Outstanding English

skills HUGE pent up

domestic demand Have money

Don’t always spend it the way we want them too

NEGATIVES Industry simply growing

too fast! 500,000 NEW seats in next 5

yrs

Difficult to enter MUST understand ‘face’

Time is the biggest weapon

Lack of English

MalaysiaMalaysia

POSITIVES Best mix of language

skills in Asia English is ‘passable’

Educated population Top level Govt support

NEGATIVES Best kept secret

They don’t know what they have

Need to understand Muslim culture

Limited human resource

Cyberjaya limited access to transport

What is happening in Asia?What is happening in Asia?

MovingMoving

Hong Kong pushing across to South China Shenzhen, Guangzhou, etc

Japan / Korea pushing across to North China Dalian

Singapore pushing across to South Malaysia Jahor Bahru

Many are using a ‘split’ approach

Indian outsourcers reaching into Philippines & China

LegalLegal

DNC lists growing Australia, India Under consideration by Hong Kong & Singapore

Privacy law confusion Who, where, how … Vicarious liability

Ownership & Control Ownership in China, Thailand, etc… Profit repatriation In house outsourcer catchments

UseUse

Telemarketing is growing into an epidemic China has 5m new mobiles EVERY MONTH!

Banks: 1 Inbound service agent = 2 Telesales agents 1 Inbound service agent = 1.2 Collections agents

Questions??Questions??

Asia StatusAsia Status

Contact Centers Portugal 2007