Everest Group PEAK Matrix TM for CCO Service Providers

Transcription

1 Everest Group PEAK Matrix TM for CCO Service Providers Focus on Teleperformance September 2015 Copyright 2015 Everest Global, Inc. This document has been licensed for exclusive use and distribution by Teleperformance

2 Introduction and scope Everest Group recently released its report titled Contact Center Outsourcing (CCO) Service Provider Landscape with PEAK Matrix Assessment This report analyzes the changing dynamics of the CCO landscape and assesses service providers across several key dimensions. As a part of this report, Everest Group updated its classification of 25+ service providers on the Everest Group Performance Experience Ability Knowledge (PEAK) Matrix for CCO into Leaders, Major Contenders, and Aspirants. The PEAK Matrix is a framework that provides an objective, data-driven, and comparative assessment of CCO service providers based on their absolute market success and delivery capability. Everest Group also identified six service providers as the 2015 CCO Market Star Performers based on the strongest forward movement demonstrated on the PEAK Matrix year-on-year. Based on the analysis, Teleperformance emerged as a Leader and a Star Performer. This document focuses on Teleperformance s CCO experience and capabilities and includes: Teleperformance s position on the CCO PEAK Matrix Teleperformance s year-on-year movement on the CCO PEAK Matrix Detailed CCO profile of Teleperformance Buyers can use the PEAK Matrix to identify and evaluate different service providers. It helps them understand the service providers relative strengths and gaps. However, it is also important to note that while the PEAK Matrix is a useful starting point, the results from the assessment may not be directly prescriptive for each buyer. Buyers will have to consider their unique situation and requirements, and match them against service provider capability for an ideal fit. 2

3 Everest Group s definition of the CCO market is centered on the delivery aspects of customer interaction Contact center pyramid Strategy Value-added services Operational services Strategy Channel management Customer analytics Customer retention management Performance management & reporting Outbound sales services Inbound sales services Order fulfillment and transaction processing Payment collections Customer service Customer interaction technology Traditional CCO primarily focused on individual operational services Now, value-added services are increasingly being included in CCO Everest Group defines the CCO market to include engagements that primarily support all forms of direct and indirect (or in support of direct) interactions with customers, external and internal to the buyer organization, involving a structured multichannel and remote communication environment CCO does not include contact center services embedded within the scope of outsourcing engagements targeting processes other than customer care, such as IT Outsourcing (ITO) or Human Resources Outsourcing (HRO) Source: Everest Group (2015) 3

4 25 th percentile Market success 75 th percentile Everest Group PEAK Matrix 2015 CCO market standings Performance Experience Ability Knowledge Everest Group Performance Experience Ability Knowledge (PEAK) Matrix for CCO 75 th percentile High Leaders Low CGI EXL Low Major Contenders Contax Sykes Atento TeleTech Transcom Serco Webhelp Alorica Dell HP HGS Aegis Firstsource Wipro Minacs Tech Mahindra Genpact Infosys HCL Aspirants 25 th percentile TCS WNS Convergys Concentrix CCO delivery capability 1 (Scale, scope, technology solutions & innovation, delivery footprint, and buyer satisfaction) Leaders Major Contenders Aspirants Star Performers 1 Service providers scored using Everest Group s proprietary scoring methodology given on page 14 Note Assessment for Atento, Contax, Convergys, and Transcom excludes service provider inputs on this particular study, and are therefore based on Everest Group estimates, which leverages our proprietary Transaction Intelligence (TI) database, service providers ongoing coverage, public disclosures, and interaction with buyers Source: Everest Group (2015) Xerox Sitel Teleperformance Sutherland Global Services High 4

5 Market success Teleperformance is a CCO Star Performer based on strong forward and upward movement over time on the Everest Group PEAK Matrix Change in Teleperformance s position on the Everest Group PEAK Matrix for CCO Major Contenders Leaders Teleperformance Market success in 2014 Posted close to US$ 300 million growth in CCO revenue in 2014 Increased the number of clients served by 58, to current tally of over 778 Publicly-announced wins in 2014 includes BookIt.com CCO delivery capability Capability enhancements in 2014 Teleperformance acquired Aegis USA, Inc., strengthening its position in that market Expanded across existing and new offices in the United States. Made new investments in countries across South America and Middle East & Africa Built up on its language capabilities to now support 75 languages and dialects across 62 countries Invested in analytics capabilities through its customer research arm gnresearch High buyer satisfaction driven by operational excellence, flexibility, and execution capabilities 5

6 Teleperformance (page 1 of 5) CCO overview Company overview Teleperformance is a global customer service, technical support, call center, debt collection, and social media company with 270 contact centers in 62 countries. The company conducts programs in more than 75 different languages and dialects in various industries. Key leaders Daniel Julien, Chairman of the Board Paulo César Salles Vasques, WW Chief Executive Officer Brent Welch, WW Chief Operations Officer Yannis Tourcomanis, Chief Executive Officer of the CEMEA region Jeff Balagna, Chief Executive Officer of the English-speaking and Asia-Pacific region Headquarter: Paris, France Website: Recent developments Acquired Aegis USA, Inc., having offices in Philippines, United States, and Costa Rica, with the deal covering 19,000 employees across 16 centers Established a customer experience lab in Lisbon, Portugal. The lab will conduct multi-cultural research related to changing customer behaviors, preferences, and key satisfaction drivers Source: Everest Group (2015) CCO revenue In US$ million Scale of CCO Number of FTEs CCO client base Number of clients 3,236 3, , ,

7 Teleperformance (page 2 of 5) CCO capabilities Split of CCO FTEs Number of FTEs By location Data not available By language Dutch (3%) Others Italian German (3%) Nordic languages 3% 6% 4% French 8% 9% Portuguese 14% Spanish 49% English By process VAS 1 + other services Order fulfillment and transaction processing Inbound sales services 5% 3% 8% 10% Outbound sales services (4%) 70% Payment collections Customer service Key CCO Investments Description Investment type Year of investment Comments GN Research Analytics Capabilities Internal Ongoing Client research & analytics multi-channel solutions U.S. Market expansion Merger & acquisitions 2014 Aegis acquisition 1 Includes channel management, customer analytics, customer retention management, and performance management & reporting Source: Everest Group (2015) 7

8 Teleperformance (page 3 of 5) CCO client portfolio CCO revenue mix US$ million By geography Data not available By industry Government / public sector (3%) Retail Travel & Healthcare6% 5%4% hospitality Others 10% Media & 12% entertainment 13% Technology Energy & utilities (3%) 30% 14% Communications/ telecom BFSI By buyer size <US$1 billion US$1-5 billion US$5-10 billion 15% 25% 10% 50% >US$10 billion Key contact center engagements Client name Region Client since France Telecom Europe 1998 Vodafone Group Europe 1999 AT&T U.S DIRECTV U.S Itau-Unibanco Latin America 2009 Source: Everest Group (2015) 8

9 Teleperformance (page 4 of 5) CCO location landscape CCO delivery location France Germany Italy Netherlands Portugal Spain Switzerland Sweden Canada U.S. Mexico El Salvador Costa Rica Colombia Jamaica Dominican Republic Guyana Suriname Morocco Norway UK Western Europe Algeria Tunisia Finland Russia Denmark Central & Eastern Europe Turkey Albania Greece Lebanon China Egypt UAE India Thailand Singapore Philippines Indonesia Czech Republic Poland Romania Slovakia Ukraine Brazil Argentina South Africa Chile Source: Everest Group (2015) 9

10 Teleperformance (page 5 of 5) Everest Group assessment Best in Class Very High High Medium High Medium Medium Low Low Not Mature Market success assessment Teleperformance Industry average Teleperformance Industry average CCO revenue US$ million 884 YoY growth Percentage 5% CCO clients Number of clients ~4x ~4x 190 9% YoY growth Percentage 1% 8% Delivery capability assessment 1 Assessment dimension Rating Remarks Scale Scope Technology solutions & innovation Delivery footprint Buyer satisfaction Teleperformance is the largest CCO provider with presence across the globe Well-diversified across geographies, languages, and industries Mostly reliant on proprietary tools for CRM, enabler, and communication technologies solutions Balanced delivery model with scale across high-, medium-, and low-cost locations Buyers cite operational excellence, flexibility, and scale as key strengths Key strengths With high market success and robust capabilities across all dimensions, Teleperformance is a Leader and a Star Performer on the CCO PEAK Matrix Teleperformance has a balanced spread and is amongst the largest players across several geographies and industries Has expanded its scale of operations through the opening of multiple new centers in recent years across United States, Europe, and Middle East & Africa, as well as acquisition of Aegis USA, Inc. Areas of improvement Majority of Teleperformance s revenue is generated through the voice channel and the company should consider expanding its operations in non-voice channels as well Buyers expect more consistency in performance across different sites 1 Everest Group estimates based on contractual and operational information till December 2014 Source: Everest Group (2015) 10

11 Appendix 11

12 We break each element into subprocesses of the customer interaction value chain Strategy (in-house) Contact center sourcing strategy Alignment of contact center strategy with corporate strategy Channel management Channel mix Customer data integration and analysis Contact handling and routing Customer analytics Customer profiling and segmentation Big data / social media monitoring and analysis Customer satisfaction tracking Customer interaction technology Technology adoption strategy Solution hosting, maintenance, and support Strategy Channel management Customer analytics Customer retention management Performance management & reporting Outbound sales services Inbound sales services Order fulfillment and transaction processing Payment collections Customer service Customer interaction technology Strategy Value-added services Operational services Customer retention management Customer lifecycle management Customer experience management Loyalty programs Performance management & reporting SLA adherence Key performance metrics Performance optimization Operational and management reporting Outbound sales services Outbound sales Telesales Telemarketing Data management Data collection Data cleansing and refresh Inbound sales services Inbound sales Cross- / up-selling Order fulfillment and transaction processing Order management Order validation Order entry Order processing Order amendment / exception handling Product activation Return/refund/rebate processing Billing and delivery queries Payment collections Early stage collections Channel identification Customer loyalty maintenance Late stage collections Customer-at-risk analysis Customized treatment plan Customer service Outbound service Query resolution / call-backs Inbound service Technology support / helpdesk Service support Complaint handling Call escalation General query handling Schedule-related enquiries General product or service information requests 12

13 25 th percentile Market success 75 th percentile Everest Group classifies the CCO service provider landscape based on its PEAK Matrix Performance Experience Ability Knowledge (PEAK) Matrix Everest Group Performance Experience Ability Knowledge (PEAK) Matrix for CCO High Major Contenders 2 nd or 3 rd quartile performance across market success and capability 75 th percentile Leaders Top quartile performance across market success and capability Low Aspirants 4 th quartile performance across market success and capability Low 25 th percentile High CCO delivery capability 1 (Scale, scope, technology solutions & innovation, delivery footprint, and buyer satisfaction) 1 Service providers scored using Everest Group s proprietary scoring methodology given on page 14 Source: Everest Group (2015) 13

14 Market success Service providers are positioned on the Everest Group PEAK Matrix based on the evaluation of two key dimensions Leaders Measures success achieved in the market. Captured through CCO revenue, number of current CCO clients, and YoY growth Major Contenders Aspirants Delivery capability Measures ability to deliver services successfully. Captured through five subdimensions Scale Scope Technology solutions & innovation Delivery footprint Buyer Satisfaction Measures the scale of operations through: Firm-wide revenue Contribution of CCO revenue Measures the scope of services provided through: Process coverage Channel coverage Geographic scope Industry distribution Language coverage Buyer size Measures the extent of capability in innovation and technology, as evidenced through investments in contact center-related technology and in areas such as analytics, social media, and process automation Measures the global sourcing mix through: Delivery footprint across nine regions 1 Balanced shoring capability Measures the satisfaction levels 2 of buyers across: Goal realization Process delivery Implementation Relationship management Proactiveness Innovation 1 North America, Latin America, Western Europe, Eastern Europe, Australia & New Zealand, India, Philippines, Rest of Asia, and Middle East & Africa 2 Measured through responses from two/three referenced buyers for each service provider 14

15 Market success Additionally, Everest Group confers the Star Performers title on the providers that demonstrate the strongest forward movement over time on the PEAK Matrix Methodology Everest Group selects Market Star Performers based on the relative YoY movement of each service provider on the PEAK Matrix Year 1 Service provider Year 0 In order to assess advancements on market success, we evaluate the performance of each service provider on the PEAK Matrix across a number of parameters including: Yearly revenue growth Number of new clients added Capability In order to assess advancements on capability, we evaluate the performance of each service provider on the PEAK Matrix across a number of parameters including: Annual growth in scale Increase in scope of services Expansion of delivery footprint Technology- / domain-specific investments The top quartile performers on each of the specified parameters are identified and the Star Performer rating is awarded to the service providers with: The maximum number of top quartile performances across all of the above parameters and At least one area of top quartile performance in both market success and capability advancement 2015 CCO Star Performers The Star Performers title relates to YoY performance for a given service provider and does not reflect the overall market leadership position. Those identified as Star Performers may include Leaders, Major Contenders, or Aspirants Atento, Contax, Concentrix, Convergys, Dell, Sykes, and TeleTech were not accounted for in the Star Performer analysis due to their first-time participation in the PEAK Matrix analysis 15

16 FAQs (page 1 of 2) Does the PEAK Matrix assessment incorporate any subjective criteria? Everest Group s PEAK Matrix assessment adopts an objective and fact-based approach (leveraging service provider RFIs and Everest Group s proprietary databases containing providers deals and operational capability information). In addition, these results are validated / fine-tuned based on our market experience, buyer interaction, and provider briefings Is being a Major Contender or Aspirant on the PEAK Matrix, an unfavorable outcome? No. PEAK Matrix highlights and positions only the best-in-class service providers in a particular functional/vertical services area. There are a number of providers from the broader universe that are assessed and do not make it to the PEAK Matrix at all. Therefore, being represented on the PEAK Matrix is itself a favorable recognition What other aspects of PEAK Matrix assessment are relevant to buyers and providers besides the PEAK Matrix position? PEAK Matrix position is only one aspect of Everest Group s overall assessment. In addition to assigning a Leader, Major Contender or Aspirant title, Everest Group highlights the distinctive capabilities and unique attributes of all the PEAK Matrix providers assessed in its report. The detailed metric level assessment and associated commentary is helpful for buyers in selecting particular providers for their specific requirements. It also helps providers showcase their strengths in specific areas 16

17 FAQs (page 2 of 2) What are the incentives for buyers and providers to participate/provide input to PEAK Matrix research? Participation incentives for buyers include a summary of key findings from the PEAK Matrix assessment Participation incentives for providers include adequate representation and recognition of their capabilities/success in the market place, and a copy of their own profile that is published by Everest Group as part of the compendium of PEAK Matrix providers profiles What is the process for a service provider to leverage their PEAK Matrix positioning status? Providers can use their PEAK positioning rating in multiple ways including: Issue a press release declaring their positioning/rating Customized PEAK profile for circulation (with clients, prospects, etc.) Quotes from Everest Group analysts could be disseminated to the media Leverage PEAK branding across communications ( signatures, marketing brochures, credential packs, client presentations, etc.) The provider must obtain the requisite licensing and distribution rights for the above activities through an agreement with the designated POC at Everest Group 17

18 About Everest Group Everest Group is a consulting and research firm focused on strategic IT, business services, and sourcing. We are trusted advisors to senior executives of leading enterprises, providers, and investors. Our firm helps clients improve operational and financial performance through a hands-on process that supports them in making well-informed decisions that deliver high-impact results and achieve sustained value. Our insight and guidance empowers clients to improve organizational efficiency, effectiveness, agility, and responsiveness. What sets Everest Group apart is the integration of deep sourcing knowledge, problemsolving skills and original research. Details and in-depth content are available at and research.everestgrp.com. Dallas (Headquarters) info@everestgrp.com New York info@everestgrp.com Toronto canada@everestgrp.com London unitedkingdom@everestgrp.com Delhi india@everestgrp.com Stay connected Websites research.everestgrp.com Blog