Utah Call Center Industry Profile

2009 Utah Call Center Industry Profile www.edcutah.org

Utah Call Center Industry Profile CALL CENTER INDUSTRY OVERVIEW Utah s call center industry continues to grow and play a major role in the development of the state. In addition to this, Utah has many customer service centers for local and national companies. Large call centers also continue to prosper in Utah, with total employment of telemarketers and customer service representatives reaching 31,310 according to the Bureau of Labor Statistics. UTAH CALL CENTER DENSITY 1 1 Source: Intellx, EDCUTAH, Demographics Now T H E E C O N O M I C D E V E L O P M E N T C O R P O R A T I O N O F U T A H 032706 1

UTAH CALL CENTER INDUSTRY STRENGTHS Low cost of doing business and low cost-of-living Developed infrastructure, great bandwidth accessibility and vast selection of business service companies Young, talented, highly educated and growing workforce TELECOMMUNICATIONS INFRASTRUCTURE Internet Backbone The term Internet backbone was once used to describe the central network that linked all parts of the Internet together. Today, the term is used loosely to describe the core of the current Internet. The image below shows the location of the larger networks that inter-connect with each other and serve individual, local ISP s (Internet Service Providers) as clients. The local ISP s connect to one of the larger backbone networks and are then able to provide nationwide or worldwide connections. Salt Lake represents a larger backbone network. WAGE DATA The following tables provide Utah wage data for all regions in the state (where available). Overall, Utah offers very competitive wages for call center employees. Telemarketers Wage Data Region / Location* Average Hourly Wage Hourly Wage Range Average Annual Wage Annual Wage Range Box Elder/Rich/Cache Davis/Morgan/Weber $8.80 $7.40-$10.20 $18,330 $15,340-$21,120 $9.10 $7.90-$10.50 $18,900 $16,480-$21,750 Salt Lake/Ogden Area $9.20 $6.00-$11.00 $19,140 $13,680-$22,990 *Summit, Wasatch, Tooele, Utah, Iron and Washington counties and Central, Southwest and Eastern rural Utah wage data not available. Source: Utah Department of Workforce Services, Standard Occupational Classification 41-9041 2 032706 UTAH CALL CENTER PROFILE

Customer Service Representatives Wage Data Region / Location* Average Hourly Wage Hourly Wage Range Average Annual Wage Annual Wage Range Davis/Morgan/Weber Summit/Wasatch $10.50 $8.10-$11.80 $21,840 $16,800-$24,630 $11.50 $8.80-$13.30 $23,830 $18,290-$27,640 Tooele County $12.80 $10.00-$14.40 $26,670 $20,710-$30,010 Eastern Rural Utah $12.60 $8.90-$13.80 $26, $18,440-$28,700 Iron/Washington $12.90 $9.70-$15.10 $26,740 $20,160-$31,380 Salt Lake/Ogden Area $12.10 $9.70-$13.40 $25,140 $20,120-$27,980 Provo/Orem Area $11.40 $8.90-$13.00 $23,800 $18,500-$27,110 *Box Elder, Rich and Cache counties and Central and Southwest rural Utah wage data not available. Source: Utah Department of Workforce Services, Standard Occupational Classification 43-4051 Office/Administrative s/supervisors Wage Data Region / Location* Average Hourly Wage Hourly Wage Range Average Annual Wage Annual Wage Range Box Elder/Cache/Rich Davis/Morgan/Weber Summit/Wasatch $16.20 $13.00-$19.00 $33,770 $26,970-$39,630 $20.00 $14.00-$24.80 $41,540 $29,110-$51,680 $18.50 $14.30-$20.90 $38,460 $29,660-$43,480 Tooele County $19.60 $14.50-$22.50 $40,650 $30,130-$46,780 Eastern Rural Utah $16.90 $12.00-$20.00 $35,180 $24,980-$41,670 Central/Southwestern Rural Utah Iron/Washington $15.60 $8.30-$19.50 $32,460 $17,-$40,620 $16.70 $13.50-$19.10 $34,800 $28,030-$39,680 Salt Lake/Ogden Area $20.30 $15.20-$23.90 $42,200 $31,600-$49,770 Provo/Orem Area $18.50 $13.80-$21.30 $38,480 $28,780-$44,250 *Central and Southwest rural Utah wage data not available. Source: Utah Department of Workforce Services, Standard Occupational Classification 43-1011 AVAILABLE PROPERTY Available Plug-n-Play Space Location Key Bank Building 1875 South Redwood Road Salt Lake City, Utah Total Available Space (Square Foot) 33,000 S.F. (Divisible) Quoted Lease Rate Available Parking $6.00 NNN 6.8 Spaces per 1,000 S.F. T H E E C O N O M I C D E V E L O P M E N T C O R P O R A T I O N O F U T A H 032706 3

Available Buildings that can be Easily Converted* Total Available Space Location (Square Foot) International Plaza 5416 West Amelia Earhart Drive Salt Lake City, Utah Snow College Business Building 100 North 290 West, 2 nd Floor Ephraim, Utah 132,653 S.F. (Divisible into 30,000 S.F.) 17,000 S.F. (Three Separate Rooms) Quoted Lease Rate Available Parking $9.75 per S.F. 4.27 Spaces per 1,000 S.F. Contact Web Site: http://www.snow.edu/~smartsite 5.82 Spaces per 1,000 S.F. *Other convertible properties may be available. EDCUTAH can help in contacting local brokers for more convertible properties. BUSINESS INCENTIVES 2 Business incentives awarded in the state of Utah are based on job creation and wage requirements. Generally, incentives are awarded for new jobs paying 125% of the county median wage or higher. The financial strength of the company and track record are very important for incentive awards. Business incentives are rarely awarded for call centers locating in urban areas. In fact, the State of Utah has not awarded incentives to a call center in over six years. There are some state incentives that apply to call centers locating in rural areas if the wages meet wage requirements. The following provides a summary of these programs: EDTIF (Economic Development Tax Increment Financing) Approved in 2005, EDTIF is a new state incentive program allowing a partial tax rebate that applies to new state income generated by job growth and capital investment, including payroll tax for new employees, corporate income tax, and sales tax. All EDTIF incentives are evaluated and approved by the Governor s Office of Economic Development (GOED) Board. GOED focuses primarily on companies providing jobs paying 125% of the median county wage. Custom Fit Training Customized training to meet companies needs. State funds are available to subsidize training expenses (five hundred dollar cap per employee). Training conducted at local college campuses, Applied Technology Centers, or business locations. IAF (Industrial Assistance Fund) State of Utah Discretionary Fund IAF is a performance-based cash grant awarded for job creation. Different qualifications exist for urban and rural Utah areas. Urban IAF assistance is tied to the creation of jobs that pay 125% of the county median wage or higher. Companies must create at least 50 new jobs. Companies must be in one of the following target industries: biomedical, finance, technology, aerospace, or be a corporate headquarters. Rural IAF assists companies looking to expand to rural areas in Utah. IAF assistance may be given to companies in rural areas creating any number of new jobs.. Amount of IAF assistance is based on the number of new jobs created. 2 Source: Governor s Office of Economic Development (GOED) 4 032706 UTAH CALL CENTER PROFILE

Urban Utah Median Wage Requirements County 2005 Median Wage 125% of 2005 Median Wage Davis $23, $29,125 Salt Lake $28,600 $35,750 Utah $22, $27,875 Weber $21,500 $26,875 Source: Governor s Office of Economic Development (GOED) Rural Utah Median Wage Requirements County 2005 Median Wage 125% of 2005 Median Wage Beaver $17,800 $22,250 Box Elder $18,900 $23,625 Cache $18,000 $22,500 Carbon $18,600 $23,250 Daggett $21,500 $26,875 Duchesne $20, $25,375 Emery $19,600 $24,500 Garfield $16,400 $20,500 Grand $16,900 $21,125 Iron $18,700 $23,375 Juab $18,600 $23,250 Kane $16,900 $21,125 Millard $18,400 $23,000 Morgan $20,400 $25,500 Piute $13,100 $16,375 Rich $17,000 $21,250 San Juan $18,400 $23,000 Sanpete $19,900 $24,875 Sevier $19,000 $24,875 Summit $26,200 $32,750 Tooele $21,500 $26,875 Uintah $21,200 $26,500 Wasatch $23,800 $29,750 Washington $20, $25,375 Wayne $15,100 $18,875 Source: Governor s Office of Economic Development (GOED) Enterprise Zones Designated on a countywide basis for counties meeting specified criteria. Eligible businesses locating or expanding to Enterprise Zones may receive the following corporate income tax credits: o $750 for the creation of each new job during the tax year. o An additional $500 credit for the creation of each new job paying at least 125% of the county s median wage. o An additional $750 credit for the creation of each new job adding value to agricultural commodities through manufacturing. T H E E C O N O M I C D E V E L O P M E N T C O R P O R A T I O N O F U T A H 032706 5

o 25% credit on the first $200,000 invested in rehabilitating a vacant building. o Annual 10% credit on the first $250,000 investment and 5% on the next $1 million investment in plant, equipment or other depreciable property. All businesses are eligible for tax credits except construction, retail businesses and public utilities. The following counties have designated Utah Enterprise Zones: Box Elder, Carbon, Duchesne, Emery, Garfield, Grand, Iron, Juab, Kane, Millard, Morgan, Piute, Rich, San Juan, Sanpete, Sevier, Tooele, Uintah and Wayne. Designated Enterprise Zones in Utah 6 032706 UTAH CALL CENTER PROFILE

Property Tax Inducements (Tax Increment Financing) EDA/RDA (Economic Development Area/Redevelopment Area) districts are determined by local municipalities. This incentive offers a partial property tax rebate for new construction projects. Available increment 80% over 15 years. New property tax monies are returned to the developer/owner in the form of infrastructure development, land cost write down, or other appropriate means. RECENT CALL CENTER ECONOMIC ACTIVITY 3 Call Center Expansions Organization Location # of New Jobs Year of Expansion Alorica, Inc. Magna 100+ 2003 Alpine Access Home-based 100+ 2003 Compucredit Call Center Salt Lake City 100+ 2002 Delta Airlines Salt Lake City 100+ 2003 eco.marketing Inc. Kaysville 100+ 2002 Qwest North Logan 100+ 2006 Qwest Salt Lake City 100+ 2004 Sento Corporation American Fork 50+ 2004 Teleperformance USA Lindon 100+ 2005 Verizon Wireless West Valley City 50+ 2004 Call Center Contractions Organization Location # of Lost Jobs Year of Contraction American Express Salt Lake City 100+ 2002 Convergys Corporation Salt Lake City / Ogden 100+ 2003 Call Center Relocations Organization Location # of New Jobs Relocation Date Millenium Teleservices Salt Lake City 100 May 2005 L3 Communications Salt Lake City 400 June 2004 Qwest Salt Lake City 175 August 2003 Verizon Wireless West Valley City 600 February 2003 Call Center Closures Organization Location # of Lost Jobs Year of Closure JC Penney Telemarketing Bountiful 100+ 2003 Providian Salt Lake City 100+ 2002 Southwest Airlines Salt Lake City 100+ 2004 3 Source: Economic Report to the Governor, 2005 edition, 2004 edition, 2003 edition Source: EDCUTAH, Fiscal Report 2004-2005, 2005-2006 T H E E C O N O M I C D E V E L O P M E N T C O R P O R A T I O N O F U T A H 032706 7

LARGE UTAH CALL CENTERS Rank Organization Contact # of Call Center Employees Convergys Corporation 1 1400 West 4400 South Ogden, Utah 84405 ACS Business Process Solutions 2 510 West Parkland Drive Sandy, Utah 84070 Teleperformance USA 3 1991 South 4650 West Salt Lake City, Utah 84104 Discover Financial Services, Inc. 4 2500 Lake Park Boulevard West Valley City, Utah 84120 Discover Financial Services, Inc. 5 8475 South Sandy Parkway Sandy, Utah 84070 Wells Fargo / MCI 6 299 South Main Street, 10 th Floor Salt Lake City, Utah 84111 JetBlue Airways 7 P.O. Box 17435 Salt Lake City, Utah 84117 Fidelity Investments 8 175 East 400 South, Suite 200 Salt Lake City, Utah 84111 Verizon Wireless 9 2777 South Corporate Parks West Valley City, Utah 84120 ebay, Inc. 10 173 West Election Road Draper, Utah 84020 American Express Service Center 11 4315 South 2700 West Salt Lake City, Utah 84184 Sento Corporation 12 420 East South Temple, #400 Salt Lake City, Utah 84118 Delta Air Lines Reservation Center 13 3842 West 1200 North Salt Lake City, Utah 84122 Alorica, Inc. 14 8285 West 3500 South Magna, Utah 84044 Focus Communications, Inc. 15 457 East 26 th Street Ogden, Utah 84405 InterContinental Hotels Group 16 1275 West 2240 South Salt Lake City, Utah 84119 Western Watts 17 701 East Timpanogas Parkway, #M Orem, Utah 84097 Tahitian Noni 18 333 Riverpark Way Provo, Utah 84604 Feature Films for Families 19 5286 South 320 West, Suite A116 Murray, Utah 84107 Kevin Mansfield HR Director (801) 629-6800 Mark Heugly V.P. Teleservices (801) 567-5000 Roy J. Prasad V.P. HR (801) 257-5800 Linda Llewelyn HR (801) 902-4203 Mike Farris VP (801) 542-5500 Robert Hatch President/CEO (888) 624-5622 Frankie Littleford Executive Director (800) 538-2583 Ed McCartney CEO (801) 537-2000 Robert Wadman HR (801) 952-6519 Carol Dombrowski Corp. Comm. (801) 545-2400 Henry Autry President (801) 945-5000 Patrick O Neal President/CEO (801) 492-2000 Norm Andrews Director (801) 575-3017 Luanne Simmons (801) 907-0 Don Markland Director of Marketing (801) 369-6999 Chuck Kruvanic HR (801) 975-9 Greg Graul COO (801) 375-6373 Mike Fitzsimmons (801) 234-1000 Forrest Baker President/CEO (801) 263-8555 7,000 3,000 3,000 2,400+ 1,500 1, 1,029 1,000 1,000 850 800 800 745 720 700 700 700 675 650 8 032706 UTAH CALL CENTER PROFILE

20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 America Online (AOL) 2261 Grant Avenue Ogden, Utah 84401 MyFamily.com 360 West 3800 North Provo, Utah 84601 Ingenix 2525 Lake Park Boulevard Salt Lake City, Utah 84120 NuWays 2089 Neways Drive Springville, Utah 84663 Marriott Guest Services (MVCI) 310 West Bear Cat Drive Salt Lake City, Utah 84115 Dentrix 727 East Utah Valley Drive, #500 American Fork, Utah 84003 Musician s Friend 180 West Election Road Draper, Utah 84020 1-800-Contacts 65 East Wadsworth Park Drive Draper, Utah 84020 Alamo Rent-A-Car 155 North 400 West, Suite 200 Salt Lake City, Utah 84103 Advanta Bank Corporation 11850 South Election Road Draper, Utah 84020 Continental Airlines 2445 West Jetway Avenue Salt Lake City, Utah 84116 Nu Skin Enterprises, Inc. 1278 South 250 East Provo, Utah 84605 O Currence Teleservices 1785 South 4130 West, Suite 0 Salt Lake City, Utah 84104 PGM, Inc. 581 West 1600 North Orem, Utah 84057 Sundance R.R. #3 Box 1-A Provo, Utah 84604 Twinlab Corporation 600 East Quality Drive American Fork, Utah 84003 Discovery Research Group 6975 Union Park Center, Suite 450 Midvale, Utah 84047 Novell, Inc. 1800 South Novell Place Provo, Utah 84606 Comcast 9602 South West Sandy, Utah 84070 IOMEGA Corporation 1821 West Iomega Way Provo, Utah 84067 Mike Stitzmiller General (801) 622-7800 Christo Tracy V.P. Member Services (801) 705-7000 Kevin Pearson CEO (801) 982-0 Michael Cunningham CEO (801) 418-2000 Ron Essing V.P. Owner Services (801) 468-4002 Kimball (801) 763-9 Rob Eastman Founder (800) 391-8762 Jonathon Coon President (801) 924-9800 Louis Givvons HR (801) 539-7758 Greg Munsen President (801) 523-0858 Marion Mason Regional Director (801) 238-4900 Mike Theuker Senior Director N.A. Ops (801) 345-2860 Carla Meine President/CEO (801) 736-0500 Bill Gammell Client Services (801) 434-9546 Eric Cather General (801) 225-4107 Tim Schaafsma Operations Officer (800) 437-2257 Vaughn Mordecai (800) 678-3748 Geoff Sackman Organization (781) 464-8233 Steve Proper (801) 401-3250 William Lesko (801) 332-4700 600 600 500 500 400 377 350 325 325 250 234 200 200 T H E E C O N O M I C D E V E L O P M E N T C O R P O R A T I O N O F U T A H 032706 9

UCN Incorporated 40 14870 South Pony Express Bluffdale, Utah 84065 BurrellesLuce 41 1687 West 820 North Provo, Utah 84601 Clarke American 42 1141 West 2400 South West Valley City, Utah 84119 Franklin Covey Corporation 43 2200 West Parkway Boulevard Salt Lake City, Utah 84119 Trend West 44 1132 East Draper Parkway Draper, Utah 84020 IKANO Communications 45 124 North Charles Lindbergh Drive Salt Lake City, Utah 84116 USANA Health Sciences 46 3838 West Parkway Boulevard Salt Lake City, Utah 84120 The Marketing One 47 5899 South State Street Salt Lake City, Utah 84107 McLeod USA 48 2055 East Cottonwood Parkway Salt Lake City, Utah 84121 Nature s Sunshine Products 49 P.O. Box 19005 Provo, Utah 84605 Questar Gas Company 50 P.O. Box 45433 Salt Lake City, Utah 84145 Source: Intellx, EDCUTAH Tim McMullin V.P. (801) 521-0200 Anne Soumphonphakdy VP (801) 374-6920 Cynthia Tai Director (801) 977-8860 Chris Mansfield (801) 817-4220 John Wilkinson (801) 816-2742 Todd Krause Director (801) 415-8010 Mark Wilson V.P. Customer Relations (801) 954-7200 Sam Hooper V.P. Operations (801) 892-2800 Cathy Joiner HR (801) 363-9600 Douglas Faggioli President/CEO (801) 342-4 Craig Wagstaff President/CEO (801) 324-8824 200 150 150 150 150 125 125 100 100 100 100 FOR ADDITIONAL INFORMATION The Economic Development Corporation of Utah 201 South Main Street, Suite 2010 Salt Lake City, Utah 84111 Phone (801) 328-8824 Fax (801) 531-1460 www.edcutah.org 10 032706 UTAH CALL CENTER PROFILE

201 South Main Street, Suite 2150 Salt Lake City, Utah 84111 Phone 801-328-8824 Fax 801-531-1460 www.edcutah.org