1. Consultant • Analyst • Writer Contact Centres Global Trends – Regional Impact Tuesday 20 April 2010 www.rodjones.co.za www.c3africa.com

3. Insights for High Performance into 2010Sources:

5. The SA Contact Centre Industry – An overview

6. Ten Years Down the Line

7. Key Strategic Trends into 2010

8. Staffing & Manpower – “The Winds of Change”

9. The SABS Contact Centre and BPO Standards

10. Major Technology Trends

11. Outsourcing

12. Connectivity

13. Public Sector Service Delivery

14. Social Media – The Social Customer

15. Legislative Issues

17. The South African Contact Centre and BPO IndustrySome High-Level Stats

18. How Many Agents in SA ? 150,000 to 175,000

19. Regional Split of Contact Centres in South Africa • Bloemfontein (Free State) • Johannesburg (Gauteng) • Durban (KwaZulu Natal) Cape Town (Western Cape) • Port Elizabeth (Eastern Cape) • Sample Size = 313

20. Types of Contact Centres in South Africa Sample Size = 313

21. Breakdown of Contact Centre Activity in South Africa Sample Size = 312

22. Main Nature of Contact Centre Activity in South Africa Sample Size = 308

23. 10 Year Comparison – Performance KPIs / Metrics 2008/9 1998 Performance Metric 65% 72% % Calls Answered < 10 Secs Ave. % Calls Abandoned (Agent Queues) 12% 6% 81% 83% 1st Call Resolution Rate 39 secs 23 secs Ave. Speed to Answer Ave. Wait Time Until Call Abandoned 45 secs 53 secs % of Total Agent Capacity Utilized on Speaking to Customers 62% 57% Ave. Time Taken to Respond to Customer Message (voicemail) 20 hrs 11 hrs Source: Global Contact Centre Benchmarking Report 2008, Dimension Data

24. The Global Quest to Increase Operational Efficiencies 2.1 What are the three most important current main commercial drivers of the contact centre ?? Source: Global Contact Centre Benchmarking Report 2008, Dimension Data

25. Typical Contact Centre Costs Source: Dimension Data Global Benchmark Report

27. A time for Introspection

28. Self Analysis – Auditing – Benchmarking

29. Implementation of Operational Standards (e.g. SABS)

30. Changes in the Staffing / Personnel Environment

31. More emphasis on WFM/WFO

32. More focus on Compliance Issues & Liability Protection

33. Sarbanes-Oxley / King III

34. Payment Application Data Security Standard (PA-DSS and PCI )

35. Sector Growth

36. Debtor Management & Collections

37. Sales and Revenue Generation

38. Resurgence of ‘Professional TeleMarketing’

39. Technologies

40. Towards Self-Service

41. Quality Assurance – Outsource QA / WFM

42. Interaction Analytics

43. Home-working agents / remote agents

44. Unified Communications

45. Outsourcing & Hosted Solutions

46. Increase Bandwidth

47. Reduced Telco Costs?

48. Access to applications and functionality https://www.pcisecuritystandards.org

49. Moving Ahead into 2010 > OLD PARADIGM NEW PARADIGM Call center is a support function Call center is a source of value creation Customer service is a company and product differentiator Customer service is a necessary evil Reactive mindset Proactive mindset Play catch-up with customer needs and expectations Stay ahead of customer needs and expectations Goal is customer advocacy and product differentiation Goal is customer satisfaction

51. Unionisation in Contact Centres

52. Chief Learning Officer (CLO)

53. Delivering career-pathing and employee engagement

54. New drive for Learning & Development

55. E-Learning

56. Wellness & Working Environment (Green)

58. SA National Standards for Contact Centre and Back Office Operations www.contactindustryhub.co.za “Resources” Tab www.bpesa.org.za

60. 70 Member Project Development team

61. Consultants and Senior Operational Specialists

62. Developed over 2,500 ‘Best Practice’ Standards

63. Gazetted and Published in October 2008

64. Being assessed by ISO as the Base Standards for Global Use

65. Constantly Expanded and UpdatedCategories Covered by The Standards Leadership and Customer Satisfaction Management Practices Operational Management Practices Human Resource Management Practices Technical Resource Management Practices Compliance soon to be mandatory for certain grants and incentives !

67. Sales and Revenue Generation

68. Outsourcing of QA / WFM

69. Resurgence of ‘Professional TeleMarketing’

70. Growth in Public Sector Contact Centres

71. Attracting International BPO

73. Joburg CBD

74. 3,500 Seats

78. More demanding Customers

79. New ‘Tech-Savvy’ customers

80. More sophisticated technologies

81. Drive for cost reduction (human capital costs)

82. Automated Quality Assurance and Compliance

83. Interaction Analytics / Outsource QA/WFM

84. Security Issues & Liability Protection

85. The Advent of Interaction Analytics and Process Automation

86. Outsourcing & Hosted (On-Demand) Solutions

87. Increase Bandwidth

88. Reduced Costs ? / Easier Access

89. Remote (Home-based) Agents

91. ‘Offshoring’ and outsourcing

92. Self service

94. The Contact Centre into 2010 > Enterprises have cut technology spending Reconsidering Options – ‘Sweat the assets’ Cutting Costs & Customer Retention Customer Service becomes a key differentiator The Challenge of Efficiency versus Effectiveness Drive Costs down, Efficiency up – without compromising Quality Organisations need to understand customers’ reasons for calling Monitor & analyse calls Equip agents with proper tools Analyse calls to find skills gaps The Art & Science of Call Avoidance Drive for Compliance, Liability Protection and Quality Assurance The Virtual Contact Centre & Mobile Agents Adoption of new staffing models and WFM/WFO

95. Key Business DriversWhy Companies Outsource

97. Pressure on tariffs

98. More competition (Telkom, Neotel, IS, MTN, Vodacom etc)

99. Roll-out of the Telkom (and other VARS) wireless network/s

100. Satellite Quality and affordability

101. The impact of WACS

103. Reduce costs – increase efficiencies

104. Track ‘accountability’ / Security / ‘Corruption Management’

105. Influence / Impact of Trade Unions

106. Consolidation (Shared Services)

107. Outsourcing non core services

108. Outsourcing of Government & Parastatal Services

109. SAA Contact Centre / SA Tourism

110. Public-Private-Partnerships

111. Government data pooling / in co-operation with private sector data pools

112. Monitor & Manage productivity

113. Fraud Detection / Risk Management PRIMARY INDUSTRY CHALLENGE Educate government re benefits of Contact Centres and Outsourcing

114. THE SOCIAL MEDIA THE SOCIAL CUSTOMER

115. THE LEGISLATION THAT MOST AFFECTS OUR INDUSTRY The Access to Information Act The Electronic Communications & Transactions Act The National Credit Act The Consumer Protection Act The Protection of Personal Information Bill This legislation WILL impact your business from 2010 onwards !

116. THE PROTECTION OFPERSONAL INFORMATION BILL The aim of the bill is: To give effect to the constitutional right to privacy To regulate the manner of processing personal information To fall in line with international standards for trans-border data flow Status: Now with the Parliamentary Portfolio Committee

117. THE PPI BILLKey issues The bill is based on the EU eight principles of data privacy (and could be in force within 18 months) There are limitations on the right to process consumer data You will have to notify consumers on your databases as to the use of the data and must remove their data on request There are strict data security requirements You will need a person’s permission to send a fax, e-mail, SMS or call using an IVR system (ie call with no human intervention by an agent) You will need to register your databases with the Privacy Regulator, who will be able to enforce criminal sanctions www.dmasa.org

119. Energy management as a powerful cost-save driver

120. Sustainability reporting [Finance + Environment + Social]

121. Increasing personal and collective accountability for action

122. Procurement policies score and monitor vendor responsibility

123. Investment in sustainable energy sources

124. China invests ± USD 9 billion per month on clean energy developmentIn SA to produce and consume 1kWh electricity requires:1.45 litres waterand emissionof 1kg of CO2

126. General trend for some months has been ORANGE / RED

127. The Eskom grid is under strain – all of SA needs to conserve.

129. www.rodjones.co.za rod@rodjones.co.za THANK YOU - Questions - www.c3africa.com