Buffalo Niagara Region Shared Services Opportunities

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1 Buffal Niagara Regin Shared Services Opprtunities Western New Yrk State has ver 50 cmpanies with ver 16,000 emplyees in custmer cntact centers and back ffice peratins. Based n the success f ur emplyers and their cntinual expansin in the area, we have the right resurces and business envirnment t make yur peratin a success. In additin t ur well-develped telecm and transprtatin netwrks, diversity f clleges and universities prducing 20,000+ graduates annually is ur peple. Their reputatin fr high wrk ethic, cmpany lyalty and custmer service fcus, places us high n many lcatin search lists. Air fare and Airprt Accessibility Buffal Niagara Internatinal Airprt ranks amng the five cheapest airprts frm which t fly in the cuntry, accrding t the U.S. Bureau f Transprtatin Statistics. The average cst f a rund-trip ticket in the Buffal Niagara is $ fr the furth quarter f last year. The U.S. average is $ Back Office and Custmer Cntact Center Segments in Western New Yrk State Operatin Number f Operatins Number f Emplyees Cllectin Agencies 11 3,250 Custmer Cntact Centers 26 1,530 Financial, Back Office and Shared Service Centers 8 5,670

2 Wrkfrce and Ppulatin Emplyers frm thrughut the area cnsistently give psitive feedback n the available supply f qualified labr, even when the ecnmy is tight, due t the large number f tw and fur-year clleges in the area and the restructuring f manufacturing emplyers in the area. They have als fund that the lcal high schl graduates have excellent custmer service and cmputer skills and are ften hired after tw r three years in sme retail r ther custmer riented jb. The favrable wrk envirnment, gd benefits and reasnable wages (in-line with lcal cst f living) prvided by the emplyers has made recruiting relatively easy. Entry Level Wrkfrce: 30 clleges and universities, with a ttal enrllment f 100,000 students and 20,000 graduates students yearly, prviding an abundance f educated and talented wrkers. Statistics Ttal Ppulatin: 1,142,277 Ppulatin 18+ (Wrkfrce): 852,831 % Ppulatin with High Schl Diplma: 32.5 Lw Turnver: Buffal Niagara basts turnver rates that are half the natinal average % Ppulatin with Sme 2-yr Cllege: 14.5 in such industries as call centers - rates ranged % Ppulatin with 4-yr Cllege: 14.3 frm less than 10% t arund 25% (depending n jb situatin) with the majrity f attritin due t spuse relcatin, life stage issues and prmtin. In additin, the regin is knwn fr a wrkfrce that basts incredibly lw absenteeism rates. There is a relatively lw incidence f jb-hpping except at the lwest pay levels (<$10/hur). Emplyers described wrk frce as having a high lyalty and wrk ethic. In general, the lcal rates were significantly lwer that emplyers experience in ther regins f the cuntry. Reasnable Wages: Existing prfessinal supprt services have cmpetitive but reasnable wages. The average custmer service jb pays $10-$12/per hur based n the survey and the published average fr the area is $ $10.92/hur. A significant attractin t the custmer service jbs is the benefits package ffered and shuld be cnsidered in estimating the verall cmpensatin required t cmpete in the area. Internatinal Familiarity: Due t its clse lcatin t Canada, the wrkfrce here is culturally sensitive and ften multilingual. Strng Training Supprt: A variety f training prgrams exist t supprt specific industries. Advanced Training Center ffers classrm facilities fr cmputer service firms Custmer Outsurcing Perfrmance Center (COPC) ffers COPC-2000 certificatin standard fr fulfillment and technical supprt call service centers Niagara Cmmunity Cllege ffers a Call Center management prgram and Call Center Service Representative prgram Cntinued n next page

3 Wrkfrce and Ppulatin cntinued Average Cmmute Time: 20 minutes is the average cmmute time fr the greater Buffal area. Individuals will cmmute further, particularly in the mre rural areas. The accessible interstate and imprved secndary rad system allws fr relatively smth and shrt cmmute times in cntrast t ther metr areas f its size f ver 1 millin peple. Educatin: The regin is supprted by a bth private and state clleges and universities that prduce a substantial number f annual graduates as summarized belw: Ttal number f Cllege Students: >110,000 Business (Assciates) annual graduates: 695 Business (Bachelrs) annual graduates: 2,014 Business (Masters) annual graduates: 673 Cmputer/IT (Assciates) annual graduates: 133 Cmputer/IT (Bachelrs/Masters) annual graduates: 361 Labr Cst Index Ttal Enrllment - Less Than 4 Year Institutins 31,678 Ttal Enrllment - Fur + Year Institutins 79,863 Ttal Enrllment All clleges and universities 111,541 Human Resurces Manager Summary f Area Wrkfrce Accuntants Financial Analyst Accunting Clerk Custmer Service Rep. Systems Analyst Cmputer Prgrammer U.S. Average 100 $94,910 $60,670 $77,280 $31,780 $30,400 $72,230 $69,500 Bstn $110,480 $63,000 $84,360 $37,220 $38,340 $79,690 $76,570 Buffal $92,340 $59,850 $58,320 $29,660 $28,230 $65,570 $57,660 Charltte $88,860 $58,800 $68,890 $31,810 $32,760 $71,330 $76,910 Dallas 99.2 $107,860 $60,980 $79,180 $32,090 $30,570 $75,070 $74,820 Des Mines 95.3 $81,840 $56,990 $65,620 $31,830 $30,330 $65,230 $58,970 Hartfrd $95,050 $63,060 $66,990 $38,810 $36,420 $76,050 $67,800 Jacksnville $87,250 $55,490 $69,470 $30,710 $28,910 $65,880 $70,850 Milwaukee $95,790 $61,990 $65,970 $32,090 $32,970 $65,150 $66,490 New Yrk City $108,320 $74,700 $94,120 $37,080 $35,900 $84,960 $78,490 Omaha $112,090 $59,750 $59,620 $30,170 $28,620 $66,610 $63,710 Orland $80,430 $56,900 $62,990 $29,530 $27,450 $65,020 $71,400 Philadelphia 126 $105,140 $67,330 $72,850 $34,250 $32,260 $71,740 $70,620 San Antni 94.5 $91,050 $54,130 $50,420 $28,300 $24,590 $64,460 $54,380 Tampa/St. Petersburg $83,250 $54,220 $57,960 $25,670 $28,380 $69,340 $63,220 Surces: Cst f Labr Index frm Ecnmic Research Institute. Based n salary level f $50,000, U.S. Bureau f Labr Statistics (2005)

4 Cmparisn f Average Grss Cst fr Class B Office Space Bstn Buffal Quted Lease Rate Vacancy Rate CBD $ % Suburban $ % CBD $14-$ % Suburban $14-$ % Charltte CBD $ % Suburban $ % Dallas-Frt Wrth CBD $ % Suburban $ % Jacksnville CBD $ % Suburban $ % Nrthern New Jersey Suburban $ % Orland CBD $ % Suburban $ % Philadelphia CBD $ % Suburban $ % Tampa-St. Petersburg CBD $ % Suburban $ % Surce: CB Richard Ellis

5 Cmparing Buffal with ther Metr Areas Ttal Ppulatin Ttal Ppulatin Age 25+ High Schl Graduate Assciates Bachelr's Graduate Unemplyment Rate(4/07) Bstn 4,427,156 3,027, % 7.5% 25.0% 18.6% 4.0% Buffal 1,142, , % 9.9% 17.1% 10.2% 4.5% Charltte 1,542,831 1,003, % 8.7% 23.1% 7.8% 4.4% Dallas-Frt Wrth 5,950,033 3,712, % 6.8% 22.3% 10.1% 3.9% Des Mines 527, , % 10.1% 22.2% 10.2% 3.1% Hartfrd 1,203, , % 8.5% 18.6% 15.3% 4.3% Jacksnville 1,272, , % 8.7% 17.9% 8.3% 3.1% Milwaukee 1,519, , % 10.6% 21.6% 8.3% 5.3% New Yrk-Nrthern New Jersey 18,959,366 12,720, % 6.1% 21.1% 15.1% 3.9% Omaha 819, , % 8.7% 20.8% 10.5% 3.0% Orland 1,966,680 1,298, % 8.4% 21.1% 8.8% 3.1% Philadelphia 5,853,963 3,881, % 6.7% 20.6% 12.4% 3.9% San Antni 1,921,322 1,194, % 5.9% 17.0% 8.4% 3.6% Siux Falls 210, , % 10.1% 21.2% 6.0% 2.8% Tampa-St. Petersburg 2,678,397 1,853, % 7.9% 18.1% 9.0% 3.3% Tulsa 890, , % 8.5% 18.8% 7.0% 3.6% Surce: DemgraphicsNw, U.S. Bureau f Labr Statistics

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