CALL CENTER LOCATION TREND REPORT

C A L L C E N T E R LO C AT I O N T R E N D R E P O R T - 2 0 1 8CALL CENTERLOCATIONTREND REPORT20188300 Douglas Ave., Suite 700, Dallas, TX 75225 (866) 938-SITE siteselectiongroup.com

C A L L C E N T E R LO C AT I O N T R E N D R E P O R T - 2 0 1 8CALL CENTERLOCATION TRENDREPORT 2018IntroductionThe call center industry continuesto expand globally as companiesseek the optimal balance of laboravailability, labor costs, geopolitical stability and business climate.The Call Center Location TrendReport provides an analysis ofglobal location trends to help youunderstand the onshore, nearshore and offshore geographiesthat might be the best locationfor your next call center.As companies seek to find the optimal location for their callcenter operations, understanding historic growth trends canhelp to develop onshore, nearshore and offshore locationstrategies. In 2017, Site Selection Group identified 376 new andexpanding call center projects that created 166,990 jobs as wellas 94 call center projects involving 18,171 jobs that weredownsizing or closing their facilities. By analyzing this data, SiteSelection Group has identified regional location trends that aresummarized in this report.8300 Douglas Ave., Suite 700, Dallas, TX 75225 (866) 938-SITE siteselectiongroup.com

C A L L C E N T E R LO C AT I O N T R E N D R E P O R T - 2 0 1 8# OF JOBS CREATEDGlobal Call CenterIndustry GrowthContinues AcrossAll 0E. Europe12,930290W. EuropeMiddle East16,42966,231LACAUnited StatesThe call center industry continues to shift jobs toand from onshore, nearshore and offshoregeographies. With the current trend ofonshoring taking center stage, the United Statesled overall growth with 215 projects announcedwith 66,231 jobs due to strong economicconditions and corporate reshoring initiatives.India and the Philippines led in job creation inthe offshore regions. India reported 19 projectscreating 30,950 jobs and the Philippines had 28projects involving 24,805 jobs. Nearshoredestinations in Latin America and the Caribbeanalso incurred significant growth by creating16,429 jobs at 36 announced projects. Thefollowing pie charts summarize the growth ofcall centers across the world:24,805Philipines30,950India# OF SITES OPENED OR EXPANDED1418Canada9E. Europe5AfricaAsia-Pacific3Middle East19India28Philipines36LACA215United States44W. Europe8300 Douglas Ave., Suite 700, Dallas, TX 75225 (866) 938-SITE siteselectiongroup.com

C A L L C E N T E R LO C AT I O N T R E N D R E P O R T - 2 0 1 8# OF JOBS CREATEDU.S. Call Center GrowthRemained Stable andCreated Over 66,000 JobsThe expansion of onshore call center operationsin the United States continued during 2017. Asin years past, many companies reshoredoperations from the Philippines, India and otheroffshore markets as they sought to improvequality levels despite higher costs. Site SelectionGroup estimates that 215 call centers openedor expanded within the United States. Thesecenters created 66,231 total jobs, which hascaused many labor markets to become tighterand put wage pressure on employers. TheSoutheast and Southwest regions of the U.S.accounted for the majority of the growthgenerally due to more attractive labor conditions,lower operating costs and availability ofeconomic incentives. The following pie chartsprovide a summary of expansion data within theUnited utheast17,213Southwest# OF SITES OPENED OR outheast8300 Douglas Ave., Suite 700, Dallas, TX 75225 (866) 938-SITE siteselectiongroup.com

C A L L C E N T E R LO C AT I O N T R E N D R E P O R T - 2 0 1 84# OF JOBS CREATEDThe Closure andDownsizing of Call CentersContinues to Slow AcrossThe United StatesDespite the expanding economy and continuedreshoring initiatives, the United States continuesto see call center operations close and downsizefor a variety of reasons. The total job loss in thecall center industry in the United States wasapproximately 18,171 jobs. Since 66,231 jobswere added in opening and expansions, theUnited States had an estimated net gain of48,060 jobs in this sector in 2017.The following charts provide a summary ofcontraction data within the United States.639LACA245150Canada Middle East87Asia-Pacific3,895W. Europe60Philippines13,368United States# OF SITES OPENED OR EXPANDED12W. Europe2LACA2Canada1Asia-Pacific1Middle East1Philippines79United States8300 Douglas Ave., Suite 700, Dallas, TX 75225 (866) 938-SITE siteselectiongroup.com

C A L L C E N T E R LO C AT I O N T R E N D R E P O R T - 2 0 1 8Top 20 U.S. Call CenterProject AnnouncementsTo help understand what companies are expanding in the United States, Site Selection Group hasidentified the top 20 largest announcements in the table below.LARGEST UNITED STATES CALL CENTER PROJECT ANNOUNCEMENTS OF 2017Company# of JobsLocationTypeRadial3,000Melbourne, FLExpansionC32,400Tucson, AZExpansionAllstate Insurance2,250Charlotte, NCExpansionInfosys2,000Raleigh, NCNew SiteStrategic Financial Solutions1,500Amherst, NYNew SiteNavy Federal Credit Union1,200Winchester, VAExpansionC31,200McGregor, TXExpansionCognizant1,090Irving, TXNew SiteDiversified Collections Inc.1,000Louisville, KYNew SiteTeleperformance1,000Multiple Sites, FLExpansionAlorica830Owensboro, KYNewRoyal Philips800Nashville, TNNew SiteConduent750Rochester, NYExpansionEmpereon Marketing750Waco, TXNew SitePaychex625Henrietta, NYNew SiteBookings.com600Toronto, ONNew SiteRadial600Eau Claire, WIExpansionAlorica600High Point, NCExpansionAlta Resources600Fort Myers, FLExpansionLowe's600Wilkesboro, NCExpansion8300 Douglas Ave., Suite 700, Dallas, TX 75225 (866) 938-SITE siteselectiongroup.com

C A L L C E N T E R LO C AT I O N T R E N D R E P O R T - 2 0 1 8Nearshore Latin America Region Continues To Grow DueTo Low Cost Structure, Accessibility, Bilingual Skills AndPolitical StabilityLatin America has now become a serious contender in the site selection game over the last decade.Companies are actively setting up operations in the region. Most of these projects stem from the need toconsolidate pan-Latin America operations or serve customers in high-cost locations such as the UnitedStates. Within Latin America, Central America countries such as Costa Rica, Guatemala, Nicaragua andHonduras along with the South American country of Colombia has been very active while similar activityhas been seen in Caribbean countries such as Jamaica and the Dominican Republic.Top 20 Nearshore Call Center Project AnnouncementsTo help understand what companies are expanding in these offshore and onshore destinations, SiteSelection Group has identified the top 20 largest announcements in the table below.LARGEST NEARSHORE CALL CENTER PROJECT ANNOUNCEMENTS OF 2017Company# of JobsLocationTypeAlorica4,500St. Catherine, JamaicaNew SiteAmazon2,500San Jose, Costa ston, JamaicaExpansionTeleperformance500Lima, PeruNew SiteSitel450Managua, NicaraguaExpansionTek Experts450San Jose, Costa RicaNew SiteSmile Direct Club400San Jose, Costa RicaExpansionIBEX Global350Managua, nder300San Juan, Puerto RicoNew SiteMicrosoft280San Jose, Costa RicaExpansionAtento200Chaco, ArgentinaNew SiteCollective Solution200Montego Bay, JamaicaNew SiteIqor200Trinidad & TobagoExpansionFeuji150San Jose, Costa RicaExpansionTransperfect120San Jose, Costa RicaNew SiteAstraZeneca100San Jose, Costa RicaNew SiteRoche100San Jose, Costa RicaNew SitePortmore, JamaicaNew SiteAdvantage Communications508300 Douglas Ave., Suite 700, Dallas, TX 75225 (866) 938-SITE siteselectiongroup.com

C A L L C E N T E R LO C AT I O N T R E N D R E P O R T - 2 0 1 8India And The Philippines Dominate Offshore Region ButGrowth Is SlowingyIndia and the Philippines continue to dominate offshore industry growth. In India, there have been a pushfor more rural call center expansion due to lower cost and marketing efforts of the government to createjobs in rural India. While in the Philippines, the region has successfully attracted higher-end non-voiceoperations such as software development, shared service centers and other knowledge processingoperations. The growth of these back-office operations in the Philippines is creating new challenges forcompanies trying to attract the best talent, reduce employee attrition and control labor costs, not tomention the recent impact of changes to the PEZA economic incentive program and the Chinese sportsbetting companies.Top 20 Offshore Call Center Project AnnouncementsTo help understand what companies are expanding in these offshore and onshore destinations, SiteSelection Group has identified the top 20 largest announcements in the table below.LARGEST OFFSHORE CALL CENTER PROJECT ANNOUNCEMENTS OF 2017Company# of JobsCity, State/CountryTypeTata Consulting pansionTata Consulting Services3,000Patna, IndiaNew ew SiteAegis2,000Ranchi, IndiaNew SiteiSonBPO1,200Kwara State, NigeriaNewPatra Corporation1,000IndiaNew SiteTata Consulting Services1,000Patna, IndiaNewAccenture1,000Cebu, PhilipinnesExpansionAlorica1,000Makati, PhilippinesNew SiteFintru1,000PhilippinesNew SiteAccenture800Cebu, PhilippinesNew SiteSitel800Baguio, PhilippinesNew SiteMerck675PhilippinesExpansionPMAX Global600Cebu, PhilippinesNew SiteMattsenkumar550Jaipur, IndiaNew SiteTeleperformance500Penang, MalaysiaNew SiteUber500Hyderabad, IndiaExpansionSykes500Cebu, PhilippinesNew Site8300 Douglas Ave., Suite 700, Dallas, TX 75225 (866) 938-SITE siteselectiongroup.com

C A L L C E N T E R LO C AT I O N T R E N D R E P O R T - 2 0 1 8Business ProcessOutsourcing, FinancialServices andTelecommunicationsSectors Lead The CallCenter Industry’s GrowthThe call center sector’s growth has been fueledby growth industries such as business processoutsourcing (BPO), financial services andtelecommunications. Other industries such asretail, which has shifted heavily to e-commerceas well as healthcare are also contributing to theindustry’s growth. The BPO sector had thegreatest market activity with 122,122 jobsannounced during 2017. The BPO sector wasfollowed by financial services (12,880 jobs),telecommunications (11,341 jobs) and retail(6,967 jobs). The following chart provides asummary of the industry’s growth trends.JobsProjectsBusiness processoutsourcing122,122221Financial Travel1,310105503Automotive8300 Douglas Ave., Suite 700, Dallas, TX 75225 (866) 938-SITE siteselectiongroup.com

C A L L C E N T E R LO C AT I O N T R E N D R E P O R T - 2 0 1 8ConclusionsFinding the optimal location for expansion continues to be acomplicated question and requires extensive analysis tofigure out the right answer. Based on the analysis conductedby Site Selection Group, it is clear that the United States,India, the Philippines and Latin America have beenestablished as the dominate geographies for an onshore,nearshore and offshore global footprint for U.S.-basedcompanies; however, Eastern Europe and to some extent,Africa, continue to serve a role for companies needingadditional languages or other skills sets beyond voice-relatedcall center operations. To help you develop a call centerlocation strategy aligned to your goals and objectives,contact one of our global call center site selection experts tofind the optimal location for you.8300 Douglas Ave., Suite 700, Dallas, TX 75225 (866) 938-SITE siteselectiongroup.com

8300 Douglas Ave., Suite 700, Dallas, TX 75225(866) 938-SITE siteselectiongroup.com

Tata Consulting Services 1,000 Patna, India New Accenture 1,000 Cebu, Philipinnes Expansion Alorica 1,000 Makati, Philippines New Site Fintru 1,000 Philippines New Site Accenture 800 Cebu, Philippines New Site Sitel 800 Baguio, Philippines New Site Merck 675 Philippines Expansion PM