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Vocativ Systems, Inc.
ePLDT's Vocativ Systems taps FPI to install IT and telephony equipment for its call center business
The Philippine government has constantly marketed the Philippines as the premier investment site for Customer Contact Centers in Asia. Leveraging primarily on its highly competitive labor, both in cost and in quality, the strategy has gained headway and has attracted a number of offshore investments.
One of which is TeleTech Holdings, Inc. (Nasdaq: TTEC), a leading global provider of integrated customer relationship management (CRM) services and solutions firm that lists Microsoft, Sun Microsystems, Sony, and Singapore Airlines as some of its major clients.
TeleTech currently operates in 11 countries including the U.S., Australia, Singapore, and China and employs approximately 27,000 people worldwide. It offers a full spectrum of voice and Internet communications including custom e-mail response, chat, and web co-browsing facilities, which it provides for global 1000 clients.
A recent survey of top executives conducted by Hong Kong's Political and Economic Risk Consultancy rated the Philippines better than virtually any other country in Asia on the quality, cost, and availability of skilled labor.
Customer Interaction Center
With this in mind, TeleTech announced an exclusive agreement with Philippines Long Distance Company (PLDT), through its wholly owned Internet arm ePLDT, to fund and build customer interaction centers in Manila exclusively for TeleTech's use. This partnership handles telephone calls and e-mail inquiries originating from TeleTech's clients in the US and other English speaking countries.
e-PLDT, in turn, formed Vocativ Systems, Inc. (VSI) to manage the facility and has tapped Fujitsu Philippines, Inc. (FPI) to supply the necessary IT and telephony equipment for its Call Center facility housed at Hatchasia Globalcenter City in Fort Bonifacio, Makati City.
The new venture uses PLDT-International's robust and resilient Global Point of Presence (GPOP) network, which spans 8 countries worldwide, to haul voice and data call center traffic. Customer calls are managed and handled by directing all calls to the GPOP infrastructure. Directing calls up to this point will be the responsibility of TeleTech's customer. From this point, VSI takes over and hauls all call traffic to Fort Bonifacio facility. Teletech also capitalizes on ePLDT's array of Internet and Data Center services to deliver a superior technological solution to the Call Center Market. Meanwhile, TeleTech brings in its strong global marketing and call center account management expertise.
Exceptional Customer Service
"Our global clients are increasingly interested in leveraging international labor to deliver exceptional customer service at significantly lower costs and we have been very successful executing this labor arbitrage strategy in both Canada and Mexico," stated Ken Tuchman, TeleTech's Chairman and Chief Executive Officer in a press statement. "Partnering with PLDT, the largest telecommunications provider in the Philippines, gives us the ability to further strengthen our offshore, English-language CRM offering and we believe this positions TeleTech as the largest provider of labor arbitrage in the industry."
Mr. Tuchman added, "We reviewed the best locations for TeleTech to expand its English language capabilities and felt the Philippines offered tremendous advantages. The key attraction to the Philippines is its technologically advanced telecom infrastructure combined with its highly educated, customer-service oriented, English speaking workforce."
"We are excited to be TeleTech's exclusive provider of customer interaction center Infrastructure in the Philippines," said ePLDTs Managing Director Ray Espinosa. "TeleTech is the premier global provider of CRM services and has a proven reputation for providing complex, fully integrated CRM solutions to some of the most prestigious companies in the world. TeleTech was an ideal partner given the scale, scope and complexity of their CRM offerings."
"This new call center initiative is a positive step for ePLDT and for the Philippines as a base for backroom operations. We believe there is a huge potential for revenues and profits in this business area. The new call center is expected to generate significant inbound call traffic through PLDT's international network," added Mr. Espinosa.
The Business Model
Mr. Ken Brian P. Lamzon, PLDT's Assistant Vice President for Multi-Channel Contact Center, said, "The VSI call center facility is a world-class facility. It is so because it can cater to a broad range of functionalities. This happens because each customer (of TeleTech) has its own specifications as to what technology will be used to handle its customer calls. Due to this, we need to come up with a call center that can cater to the various demanded functionalities specified by the highly diversified customer base."
Ms. Julie Baker, Teletech's General Manager in the Philippines, added, "And for our part, TeleTech brings its proven management expertise to run the centers along with its strong global marketing capability. As a result of this initiative, TeleTech offers its global clients a highly cost-effective, English-language CRM solution from the Philippines. This solution is offered to clients in the United States, Canada, Europe, Australia, New Zealand, and other English-speaking countries."
Fujitsu Solution
"Fujitsu actually was one of the late entries in the bidding process. But when we saw what was offered, we knew we found our IT partner. For one, the business value of the offered call center solution was superb. It was a technology fit as well as a business fit." Mr. Lamzon said.
