OFFSHORING SOLUTIONS COST SAVINGS WITH OPERATIONAL IMPROVEMENTS 2014
TABLE OF CONTENTS ONE OPPORTUNITY... PAGE 3 SERVICES OVERVIEW FULL SERVICE MODEL COST COMPARISON TWO WHY PHILIPPINES?... PAGE 6 PERTH TIME ZONE EDUCATED AND LARGE TALENT POOL COST COMPETIVENESS PROVEN TRACK RECORD EXCELLENT INFRASTRUCTURE THREE SMALL SAMPLE OF CLIENTS... PAGE 12 FOUR AREAS OF EXPERTISE... PAGE 13 FIVE WHY SATELLITE OFFICE?... PAGE 14 COST SAVINGS COMBINED WITH OPERATIONAL IMPROVEMENTS EXECUTIVE TEAM SIX PRICING AND TIMING... PAGE 16 SEVEN CONTACT DETAILS... PAGE 17 APPENDIX ONE... PAGE 18 EXAMPLE SKILLS AVAILABLE APPENDIX TWO... PAGE 19 PHILIPPINES ADVANTAGE: COST COMPETIVENESS VOICE SERVICES PHILIPPINES ADVANTAGE: COST COMPETIVENESS IT SERVICES 2
ONE OPPORTUNITY SERVICES OVERVIEW SATELLITE OFFICE OFFERS CLIENTS FLEXIBLE SERVICE OPTIONS TO SPECIFICALLY CATER FOR IR NEEDS. SERVICE OPTIONS BUILD (FULL SERVICE MODEL) INCORPORATE TRANSFER (OWN PREMISES) Initial Assessment Optional Optional Optional Serviced Office Staff Leasing Support Services IT Helpdesk & Technical Support Optional Optional Human Resources Optional Optional Payroll & Compliance Optional Optional Specialised Training Optional Optional Optional Commercial Real Estate Day-to-Day Operations Client Client Client TYPICAL MODEL 3
ONE OPPORTUNITY CONTINUED FULL SERVICE MODEL BUILD YOUR DEDICATED TEAM IN PHILIPPINES - SIGNIFICANT SAVINGS WITH OPERATIONAL IMPROVEMENTS INITIAL ASSESSMENT (OPTIONAL) INITIAL ASSESSMENT Initial assessment of clients needs Cost benefit analysis RECOMMENDATION AND PLAN Recommendation with tailored solution Formulate HR plan, reporting lines, job descriptions and management structure Total implementation plan with timelines END RESULT Significant savings with flexibility Low risk, with no long-term investment and speed to market X X Improved business operations. Examples include: X increased opening hours X improvement in key metrics X reduced project timelines X X Motivated skilled workforce with your culture X X Client retains IP FULL SERVICE MODEL SERVICED OFFICE X X Fully fitted, turnkey office solution XFacilities X management X X IT setup and support X X International telecommunication costs (VoIP and data) STAFF LEASING X X Full service staff leasing solution SUPPORT SERVICES IT Helpdesk & 24/7 Technical Support Recruitment X X On-going HR management X X Payroll, compliance and management of statutory entitlements Optional specialised training to suit requirements ONGOING AUSTRALIAN RELATIONSHIP TO ENSURE CONTINUED IMPROVEMENTS 4
ONE OPPORTUNITY CONTINUED COST COMPARISON SAVINGS VARY FROM $40K TO $70K PER PERSON, DEPENDING ON ROLE ALL-IN SUMMARY COST COMPARISON (AUD) ROLE COMPARISON PHILIPPINES AUSTRALIA SAVING Customer Service Team Leader 25,088 74,800 49,712 Outbound Sales Officer 21,325 64,000 42,675 5 Accounts Officer 22,950 64,000 41,050 Social Media Manager 26,200 74,800 48,600 Graphic Designer 27,825 85,600 57,775 Web Developer 35,950 107,200 71,250 Significant cost savings of between $40K to $70K per employee, across a range of job descriptions (at least 65-70% savings) The best approach is to drive operational and customer facing improvements as part of the process Approach unlocks capital to re-invest in your business 1. The total cost for the Philippines based Leased Staff is an all-inclusive fee including 2 components, being the Direct Costs as well as the Monthly Solution Fee: - Satellite Office does not include any mark-up or generate any fees for the Direct Costs. These costs include Gross Salary, Mandatory 13th Month Pay, Private Medical Insurance and Employer Statutory Costs. These costs can also include optional staff bonuses, or the provision for a free lunch. - The Monthly Solution Fee includes the provision of the complete Managed Solution, including Serviced Office, Staff Leasing, IT Support, HR, Payroll and other Support Services. 2. The total cost for the Australian based staff is the direct costs of employment, including Salary, Superannuation, Payroll Tax, Workers Compensation and other direct costs of employment.
TWO WHY PHILIPPINES? PHILIPPINES HAS MANY ADVANTAGES PERTH TIME ZONE EDUCATED AND LARGE TALENT POOL COST COMPETITIVENESS PROVEN TRACK RECORD EXCELLENT INFRASTRUCTURE 6
TWO WHY PHILIPPINES? CONTINUED PERTH TIME ZONE Close proximity to Australia Similar time-zone with Australian Eastern seaboard (2-3 hour difference) Staff performing desired day-shift work Time zone advantage compared to India (5-6 hour difference) Easy access to rest of South East Asia and China Flying time from Sydney to Manila is approximately 8.5 hours. 7
8 TWO WHY PHILIPPINES? CONTINUED EDUCATED AND LARGE TALENT POOL SECTOR PRESENCE ACROSS INDUSTRY VERTICALS Abundant labour force of 41+ million (GDP of c. $230bn) 3rd largest English speaking country 500,000+ college graduates per year BPO Largest private sector job creator Affinity with Western culture Customer service orientation Highly trainable and cost effective Prestigious career and high level of commitment and loyalty SERVICES DESCRIPTION FTE 2012 Voice BPO BFSI 190-195 MDR 150-155 HEALTHCARE 45-50 TELECOM/HI-TECH 35-40 TRAVEL 30-35 ENERGY 10-15 MEDIA 8-13 BFSI = banking, financial services, insurance; MDR = manufacturing, distribution, retail Sources: BPAP database; Everest survey of ~200 firms across the Philippines BPO industry Inbound/Outbound services Technical support, Customer service Non-Voice/KPO Back Office services and other processes 200K ITO/Software Development #FTEs Servicing ( 000s) Programming and software development analysis and design Medical Info/Outsourcing Clinical data management, Legal/Medical transcription 43K Animation/Game Development 75+ 50+ 40+ 40+ 25+ 15+ 25+ #Firms Process of giving illusion of movement to cinematographic drawings/models, IT, creative work 493K 80K 12K
TWO WHY PHILIPPINES? CONTINUED COST COMPETIVENESS LABOUR AND ALL-IN COSTS FOR ENGLISH SPEAKING PROFESSIONALS AMONG LOWEST IN WORLD MARKET AVERAGES NON-VOICE WORK Direct operating cost 1 (US$ 000s per annum) per FTE 2012. (Refer to Appendices for Voice & IT Services examples) 70-75 Reflective of market averages. Range could vary depending upon: Tier-1 vs. Tier-2 cities Scale of operation 9 SYDNEY 33-35 KRAKOW 29-31 KUALA LUMPUR 22-24 CAIRO 18-20 METRO MANILLA STABLE INFLATION OF BETWEEN 2.5-5% WITH STABLE OUTLOOK 15-17 DELHI/NCR Notes: 1. Ongoing costs only; excludes margins/mark ups, centralised corporate overheads, initial investment, set-up costs, and travel costs. 2. Exchange rates for local currencies with respect to the USD have been averaged for 18 months from 1-Jan-2011 to 30-July-2012. Source: 1. Everest Group (2012). 2. Satellite Office calculations for Sydney.
TWO WHY PHILIPPINES? CONTINUED PROVEN TRACK RECORD PHILIPPINE BPO INDUSTRY SIZE 2006 2011; US$ BILLION X% = YOY GROWTH 6.1 CAGR ~ 28% 7.1 8.9 11.0 LEADING OFFSHORING EVOLUTION VOICE Established leader for voice services 30% share of U.S. and 15-20% of APAC X X $5.7 billion revenues in 2010, higher than India s projected $5.6 billion 10 3.2 4.8 ~50% ~26% ~16% ~25% 2006 2007 2008 2009 2010 2011 Notes: 1. Philippines IT-BPO market as percentage of global offshore services market, in revenue terms Sources: BPAP, Everest analysis ~24% #FTES (~ 000) 240 300 370 423 525 638 GLOBAL SHARE 1 5% 6% 6% 7% 8% 8% NON-VOICE 10% share that is rapidly growing Large industry-specific opportunities Significant value enhancement IT/SOFTWARE DEVELOPMENT Highly penetrated applications market Emerging opportunities to penetrate and innovate 3rd largest pool of qualified resources in APAC
TWO WHY PHILIPPINES? CONTINUED EXCELLENT INFRASTRUCTURE Lowest rental rates in the region High quality real estate Reliable, redundant, low-cost telecommunication and power infrastructure Dedicated IT parks in the centre of business districts Satellite Office is located in premium-grade office facilities in the 2 prime locations of Makati City and Bonifacio Global City 11 Quezon City Makati City Muntinlupa City METRO MANILLA Mandaluyong City/ Pasig City Bonifacio Global City, Taguig City McKinley Hill, Taguig City
THREE SMALL SAMPLE OF CLIENTS SMALL SAMPLE OF CLIENTS ACROSS SATELLITE OFFICE GROUP COMPANY Travel and Tourism E-Commerce, Global Online Market Place FUNCTIONS PERFORMED Customer Service, Ticketing and Travel Consultants. Business Analysts and Data Entry Team managing local operations, across variety of functions Energy Retailer Global Multi-media Education and Training B2B Managed Services Provider Note: Specific examples of clients relevant to a potencial client can be provided Customer Service, Collections, Sales, Digital Marketing and IT Development Digital Analytics and Support Technical Instructional Designers, Digital Marketing Team and Student Support Officers (Customer Support) Digital Marketing roles including SEO, SEM, Community (Social Media) Manager, Web Design and Web Development 12
FOUR AREAS OF EXPERTISE ACCESS TO HIGHLY SKILLED AND EXPERIENCED PHILIPPINES EMPLOYEES With our founder having been the CEO of leading global and domestic e-commerce businesses and over 8 years of offshoring and global sourcing experience within our team, we have considerable expertise across a wide range of disciplines, including: AREAS OF EXPERTISE CURRENT OPEN POSITIONS CUSTOMER SERVICE & SALES Call Centre Team Supervisor, Call Centre Customer Service Officer, Lead Verification Specialist, Helpdesk Support, Outbound Sales Agent, TeleSales Agent, Japanese Speaking Agent DIGITAL MARKETING CREATIVE & DESIGN CONTENT MANAGEMENT IT AND SOFTWARE DEVELOPMENT FINANCE AND BACK OFFICE PROCESSING SEO Manager, SEO Specialist, Business / Data Analyst, Social Media Manager, Affiliate Marketing Manager Senior Web Designer, Web Designer, Graphic Designer, CAD Design Team Leader, CAD Designer Variety of Content Management responsibilities are included within the roles in Creative & Design, as well as Software Development Netsuite Developer, Web Developer, Web Developer / Programmer, Front End Developer (Facebook), Front End Developer (Wordpress), Back End Developer (PHP), Infrastructure Engineer, Call Centre IT Technician, Junior Python Developer Finance Clerk, Admin and Finance Manager, Compliance and Audit Executive, Finance and Admin Manager, HR Manager, Senior Executive Recruiter, Offshore Recruiter 13
FIVE WHY SATELLITE OFFICE? COST SAVINGS COMBINED WITH OPERATIONAL IMPROVEMENTS WHY SATELLITE OFFICE? Strength in understanding of business drivers, managing execution and achieving a successful outcome Unique business model providing: X Cost advantage of the Philippines X Dealing with an Australian based company X Effective direct employment, with access to talent X Retention of staff and IP X Value added benefits Complete offshoring solution, providing end-to-end support COMMERCIAL PARTNERS Provide local Philippine based professional services and operations Over 8 years experience in the Philippines Fully fitted, turnkey office solution and facilities management HR, payroll, technology support, compliance, legal services ONGOING AUSTRALIAN RELATIONSHIP TO ENSURE CONTINUED IMPROVEMENTS 14
FIVE WHY SATELLITE OFFICE? CONTINUED EXECUTIVE TEAM MICHAEL MCRITCHIE FOUNDER AND CEO YVES LUETHI MARKETING & BUSINESS DEVELOPMENT DIRECTOR NICOLA KER SALES & PR DIRECTOR LIBERTY CABARDO HR DIRECTOR CLINTON MARSH CHIEF TECHNOLOGY OFFICER MICHAEL MCRITCHIE (FOUNDER AND CEO) 15 PROJECT DIRECTOR OMNI-CHANNEL LEADING CONSUMER ELECTRONICS RETAILER Interim role managing omni-channel strategy and project directing key strategic initiatives FORMER CEO OF DEALS DIRECT AUSTRALIA S LARGEST ONLINE DEPARTMENT STORE Managed group restructure, including offshoring of 40 seat customer service operations to the Philippines FORMER MANAGING DIRECTOR OF CENTREBET ASX LISTED LEADING GLOBAL ONLINE WAGERING AND GAMING OPERATOR (7+ YEARS) Operations and satellite offices across 8 countries CORPORATE FINANCE AND INVESTMENT BANKING EXPERIENCE WITH KPMG, IN BOTH SYDNEY AND LONDON (10 YEARS) International business and advisory experience, working in London with KPMG Chartered Accountant
SIX PRICING AND TIMING PRICING INITIAL ASSESSMENT (OPTIONAL) Daily Rate depending on scope of work FULL SERVICE MODEL Direct costs for staffing, without any mark-up Monthly Management Fee per staff member for the full turnkey Serviced Office, Staff Leasing, HR & Payroll Support Services TIMING DESCRIPTION TIMING Commence recruitment process Advertise, prepare candidate Long-list, conduct first interviews Conduct 2nd Interviews Letter of Offer and finalise terms of employment Notice Period (Standard) Set-up of client secure office and facilities Performed in parallel Commence cost savings and operational improvements 2 weeks 1 week 1 week 0-4 weeks 0 weeks 3-8 weeks 16
SEVEN CONTACT DETAILS CONTACT DETAILS MICHAEL MCRITCHIE Chief Executive Officer Satellite Office PtyLtd direct: +61 2 9206 8856 mobile: +61 402 222 448 email: mmcritchie@satelliteoffice.com.au 17
18 APPENDIX ONE EXAMPLE SKILLS AVAILABLE SOFTWARE DEVELOPMENT, MAINTENANCE, INTEGRATION AND TESTING C/C++ HTML XML PHP Actionscript Java J SE J EE JSP EJB C# Visual Basic VB.NET ASP.NET AJAX RPG/400 FILENET COBOL CICS WSAD Rational BROADER IT SKILL SETS CSP Symbian WML J2ME OMA WURFL Sharepoint DRMCIMD2 UCP Linux Ruby on Rails My SQL Elipse Apache SAS Natural SQL Reports Crystal Easytrieve Oracle BI EE Systems Infrastructure and Architecture Systems Integration Systems and Network Administration Business Analysis, Project Management and Consulting Database Administration IT Managed Services and Support Data Centre and Hosting Services Quality Assurance and Testing EXAMPLES OF OR SKILLS AVAILABLE Call Centre roles across inbound and outbound voice, email and live chat support E-Commerce, Digital Marketing, SEO, CRM, Social Media Graphic Design and Creative Content Management Finance and Back Office Processing Payments Processing Education, Training and E-Learning Research and Development SECTORS Banking & Finance Insurance Government Health Telecommunications Manufacturing Education Real Estate Retail Supply Chain CRM Wireless and Mobile Media and Publishing Aviation Architecture and Engineering Logistics Hospitality GIS Business Analytics
APPENDIX TWO PHILIPPINES ADVANTAGE COST COMPETIVENESS VOICE SERVICES MARKET AVERAGES VOICE WORK Direct operating cost 1 (US$ 000s per annum) per FTE for non-voice transactional work 2012 64-69 Reflective of market averages. Range could vary depending upon: Tier-1 vs. Tier-2 cities Scale of operation 19 SYDNEY 29-32 MEXICO CITY 26-28 26-28 KRAKOW KUALA LUMPUR CAIRO METRO MANILLA DELHI/NCR Notes: 1. Ongoing costs only; excludes margins/mark-ups, centralised corporate overheads, initial investment, set-up costs, and travel costs 2. Exchange rates for local currencies with respect to the USD have been averaged for 18 months from 1-Jan-2011 to 30-July-2012 Source: 1. Everest Group (2012). 2. Satellite Office calculations for Sydney. 20-22 15-16 12-14
APPENDIX TWO PHILIPPINES ADVANTAGE CONTINUED COST COMPETIVENESS IT SERVICES MARKET AVERAGES IT SERVICES Direct operating cost 1 (US$ 000s per annum) per FTE for non-voice transactional work 2012 Reflective of market averages. Range could vary depending upon: Tier-1 vs. Tier-2 cities Scale of operation 47-49 42-44 41-43 37-39 20 MEXICO CITY KUALA LUMPUR BEIJING KRAKOW CAIRO METRO MANILLA DELHI/NCR Notes: 1. Ongoing costs only; excludes margins/mark-ups, centralised corporate overheads, initial investment, set-up costs, and travel costs 2. Exchange rates for local currencies with respect to the USD have been averaged for 18 months from 1-Jan-2011 to 30-July-2012 Source: 1. Everest Group (2012). 27-29 22-24 19-21