| Type | Private (Subsidiary of Essar Group) |
|---|---|
| Industry | Travel and Hospitality Technology Telecommunications Retail Consumer Products Financial Services |
| Founded | Delaware, USA (July 2, 1998)[1] |
| Headquarters | Los Angeles, California, USA |
| Key people | Lance Rosenzweig, Founder, Chairman & CEO Richard Bledsoe, COO Caroline Rook, CFO Rainerio "Bong" Borja, President, PeopleSupport Philippines |
| Services | Business Process Outsourcing Customer management Transcription and captioning Accounts receivable management |
| Revenue | US $110.119 million (2006) |
| Operating income | US $11.730 million (2006) |
| Net income | US $14.152 million (2006) |
| Employees | 9,200 (Q1 2007)[2] |
| Parent | Aegis Limited |
| Divisions | Aegis USA, Aegis Communications Group |
| Subsidiaries | Aegis PeopleSupport Philippines PeopleSupport Costa Rica PeopleSupport Properties (Philippines) |
| Website | http://www.aegisglobal.com |
Aegis Limited is a multinational outsourcing company that provides customer lifecycle management services, technology solutions, Finance and HR outsourcing services, transcription and captioning, and back office support. Headquartered in Mumbai, India, the company serves more than 150 clients in a variety of industries such as travel and hospitality, financial services, technology, telecommunications, consumer products, healthcare and insurance, entertainment and education, and law enforcement. Aegis has more than 50,000 employees across 49 global locations and 12 countries.
PeopleSupport--a subsidiary of Aegis--is based in Los Angeles, California, USA, but also holds operations in the Philippines and Costa Rica. It is one of the largest BPO companies in the Philippines, having more than 10,000 college-educated English speaking employees.[2][3]
Revenue for the first quarter of 2006 was US $23 million, a 64% increase from US $14.1 million reported in the first quarter of 2005.[4] Net income for the first quarter of 2006 was US $2.9 million or US $0.15 per diluted share compared with the US $2.8 million or US $0.15 per diluted share for the first quarter of 2005. Operating cash flow in the first quarter of 2006 was US $5.5 million compared to US $5.1 million in the first quarter of 2005.
In September 2006, PeopleSupport reported revenues of US $30.1 million, an increase of 85% from previous consecutive years. For that quarter, the company reported US $0.18 earnings per share on a GAAP basis and 13% operating margins. From January to September 2006, it reported US $15.0 million in cash flow from operations.[5]
For the year ended 2006, it reported revenues of US $110.119 million, up from US $62.124 million in 2005, an increase of 77.25678%.
In August 2008, PeopleSupport entered into a definitive merger agreement with Aegis Limited (a wholly owned subsidiary of the Essar Group), an outsourcing firm based in Mumbai, India. The merger agreement was approved by a majority of the shareholders and was finally completed on October 31, 2008. The newly merged company is named Aegis PeopleSupport[6] [7], and is going to be delisted from the NASDAQ stock exchange.
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PeopleSupport was founded on July 2, 1998, by David Nash and Lance Rosenzweig. Its original business model was to provide outsourced web-based customer management services to internet-based companies, or dot-coms, via chat and e-mail. During that period, PeopleSupport had 100 clients and 400 employees and was essentially a call center taking no calls.[8]
In order to attract prospective employees, and partly because of the nature of its clients, PeopleSupport and other call centers made novel changes to their traditional job titles. To convey team spirit and a fun atmosphere, titles such as gladiator, crusader, and marketing mechanic were given to employees who were otherwise known as call center agents.[9] The company later reverted to using traditional job titles again when it began to accommodate larger, better-established companies.
In 2000, many of PeopleSupport's clients began to go out of business because of the bursting of the dot-com bubble. In response, PeopleSupport made three strategic decisions:
These decisions were critical to PeopleSupport, as it enabled the company to survive the dot-com crash.[8]
In executing the three strategic decisions, PeopleSupport initially restructured its business model and relocated outsourcing operations to St. Louis, Missouri. Subsequently, the company closed operations in St. Louis and completed migrating operations to the Philippines. PeopleSupport previously considered other countries to find a low-cost location, such as India. However, the BPO industry in India had initially originated from a need for text-based communications, where internet consumers merely click or type their preferences and queries. Compared to India, the Philippines had a much more Americanized workforce and culture. Although salaries in India were about 15% lower than in the Philippines (US $3 an hour), PeopleSupport selected the Philippines based on the familiarity with the American accent rather than on lower costs.[3]
On May 11, 2004, PeopleSupport filed for an initial public offering (IPO) in the National Association of Securities Dealers Automated Quotations system (NASDAQ) in order to raise up to US $86 million; SG Cowen & Co. and Piper Jaffray served as its lead underwriters.[10] [11] It originally estimated an offering price between US $10 and US $12 per share, offering more than 4.5 million shares of stock.[12] On October 1, 2004, PeopleSupport announced that it had priced its IPO at US $7 per share and began trading on NASDAQ as PSPT.[13]
On January 9, 2006, PeopleSupport acquired Rapidtext, Inc., a provider of transcription and captioning services, and its subsidiary, The Transcription Company.[11][14][15] Rapidtext, based in Newport Beach, provided voice-to-text services for entertainment, education, medical, law enforcement, and insurance markets. This acquisition marked the beginning of PeopleSupport's transcription and captioning service offerings.
PeopleSupport’s BPO solutions are organized according to four business verticals. The chief operating officer is responsible for managing all four business verticals, each of which is led by its own managing director.
The four business verticals are:
> Emerging Markets - Communication > Emerging Markets - Healthcare > Emerging Markets - Media and Publication > Emerging Markets - Retail and Construction > Emerging Markets - Tech
PeopleSupport's corporate headquarters was relocated from Suite 1250, Westwood Center, 1100 Glendon Avenue, Los Angeles, California, in 2008, leasing approximately 11,000 square feet (1,000 m2).[20] to Suite 300, Century Plaza, 2049 Century Park East, Los Angeles, California.
Two other production centers exist in southern California totaling approximately 15,000 square feet (1,400 m2). PeopleSupport also leases three data centers located throughout the western United States totaling approximately 1,000 square feet (93 m2).
In February 2006, PeopleSupport signed two leases in Costa Rica totaling approximately 35,000 square feet (3,300 m2)[20] and could initially support up to 500 seats.[21] The facility opened on March 2, 2006.[16] It is located in Buildings 7B and 3A, Ultrapark Free Zone, 800 m East of Real Cariari Mall, La Aurora Heredia.
PeopleSupport has eight facilities in the Philippines.[20] The largest is PeopleSupport Center, spanning approximately 162,000 square feet (15,100 m2). The other seven facilities, totaling approximately 255,000 square feet (23,700 m2), are located in three other cities. The three largest facilities are PeopleSupport Baguio, PeopleSupport Cebu, and PeopleSupport Davao.
PeopleSupport's Metro Manila operations are headquartered at the PeopleSupport Center, located in Ayala Avenue corner Senator Gil Puyat Avenue, Makati City, Metro Manila.
On July 20, 2005, PeopleSupport Philippines announced the completion of its operational migration to its newly constructed regional headquarters in the Philippines, the PeopleSupport Center. Previously only leasing office spaces along Ayala Avenue, the PeopleSupport Center is one of the first facilities built specifically for BPO services. The building is on a long-term lease and has a capacity for approximately 3,400 total production and nonproduction seats, increasing PeopleSupport's total seat capacity in all current centers to over 5,000 workstations for operations, management, and support staff.[22]
The PeopleSupport Center offers a 24/7 network operations center, IT helpdesk, and workforce management. It features numerous employee benefits, such as modern break rooms on each floor, ergonomic workstations, a 24/7 medical clinic, free gym, shower rooms, and an employee lounge. It is also home to PeopleSupport University, housing a number of training rooms. Several fast food outlets and retail establishments can be found on the first level of the PeopleSupport Center, some of which also operate 24/7.[22]
PeopleSupport Baguio is located at the SM Fiesta Strip Building, Harrison Road, Baguio City, and is currently holding one account with more than 500 employees involving strike representatives.
PeopleSupport opened its second facility in Cebu City on October 13, 2003.[23] The new expansion covers three floors of the new Skyrise Building at the Asiatown IT Park in Apas, Cebu City, across the existing facility at the e-Office building. PeopleSupport initially occupied the first of the three floors with around 450 seats.
PeopleSupport Philippines opened a recruitment center in Davao City on March 6, 2006, tapping the southern Philippine workforce for deployment in Manila and Cebu.[24] This temporary recruitment site was located at A-301 Plaza de Luisa, 140 Ramon Magsaysay Avenue, Davao City. It has since been replaced by a permanent office located at Luisa Avenue Square along Jacinto Extension in Davao City.
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