PeopleSupport

Infobox Company
name = PeopleSupport, Inc.

type = Public (NASDAQ: [http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PSPT&selected=PSPT PSPT] )
foundation = Delaware, USA (July 2, 1998) [cite web
last =
first =
authorlink =
coauthors =
title = Form of Amended Certificate of Incorporation
work =
publisher = SEC Info
date = 2006
url = http://www.secinfo.com/dsvRu.1518.c.htm
format =
doi =
accessdate = 2007-07-27 ]
location_city = flagicon|USA Los Angeles, California
location_country = USA
location =
locations =
key_people = Lance Rosenzweig, Founder, Chairman & CEO
Richard Bledsoe, COO
Caroline Rook, CFO
Rainerio "Bong" Borja, President, PeopleSupport Philippines
area_served =
industry = Travel and Hospitality
Technology
Telecommunications
Retail
Consumer Products
Financial Services
products =
services = Business Process Outsourcing
Customer management
Transcription and captioning
Accounts receivable management
revenue = profitUS $110.119 million (2006)
operating_income = profitUS $11.730 million (2006)
net_income = lossUS $14.152 million (2006)
num_employees = 9,200 (Q1 2007)cite web
last =
first =
authorlink =
coauthors =
title = Corporate Information
work =
publisher = PeopleSupport
date = 2006
url = http://investors.peoplesupport.com/index.cfm
format =
doi =
accessdate = 2007-07-27 ]
parent =
divisions =
subsid = PeopleSupport Philippines
PeopleSupport Costa Rica
PeopleSupport Properties (Philippines)
slogan = "High performance outsourcing for the global enterprise"
homepage = http://www.peoplesupport.com
dissolved =
footnotes =
intl =

PeopleSupport Inc. (nasdaq|PSPT) is a US-based offshore multinational business process outsourcing (BPO) company that provides customer management services, transcription and captioning, and back office support. The company serves 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.

PeopleSupport is based in Los Angeles, California, USA, but it also holds operations in the Philippines and Costa Rica. It is one of the largest BPO companies in the Philippines, having more than 8,600 college-educated, English speaking employees.

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. [Citation
last =
first =
author-link =
last2 =
first2 =
author2-link =
title = PeopleSupport Q1 Revenue of $23 million
newspaper = Business Mirror
pages =
year = 2006
date = May 29, 2006
url = ] 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.cite web
last =
first =
authorlink =
coauthors =
title = Company History and Overview
work =
publisher = PeopleSupport
date = 2006
url = http://www.peoplesupport.com/history.aspx
format =
doi =
accessdate = 2007-07-27 ]

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%.

History

Foundation and initial operations

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, 400 employees, and was essentially a call center taking no calls.

In order to attract prospective employees, and partly due of the nature of its clients, PeopleSupport and other call centers made novelty changes to its traditional job titles. To convey team spirit and a fun atmosphere, titles such as "gladiators", "crusaders", and "marketing mechanic" were given to employees who were otherwise known as call center agents. [cite press release
title = Goodbye, "Guru of Fun"
publisher = BusinessWeek
date = 2001-08-27
url = http://www.businessweek.com/magazine/content/01_35/b3746647.htm
format =
language =
accessdate = 2007-08-21
quote = ] The company would later revert to using traditional job titles again when it would begin to accommodate larger, better-established companies.

The dot-com bubble bursts

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:

*Broaden service offerings to more comprehensive CRM outsourcing services, which included taking calls.

*Change sales focus away from dot-coms to large enterprises.

*Cut cost structure significantly by migrating operations to the Philippines.

These decisions were critical to PeopleSupport as it enabled the company to survive the dot-com crash.cite web
last =
first =
authorlink =
coauthors =
title = Interview with Lance Rosenzweig
work =
publisher = SocalTECH.com
date =
url = http://www.socaltech.com/fullstory/0003741.html
format =
doi =
accessdate = 2007-07-25 ]

Move to the Philippines

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 out of 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 lower costs.Citation
last = Nam
first = Suzanne
author-link =
last2 =
first2 =
author2-link =
title = Dial Manila
newspaper = Forbes Asia
pages = 24-25
year = 2007
date = January 8, 2007
url = http://members.forbes.com/global/2007/0108/024a.html]

Initial public offering

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. [cite press release
title = PeopleSupport files for $86M IPO
publisher = SocalTECH.com
date =
url = http://www.socaltech.com/peoplesupport_files_for_86m_ipo/s-0000526.html
format =
language =
accessdate = 2007-07-25
quote = ] cite press release
title = PeopleSupport Press Releases
publisher = PeopleSupport
date = 2006
url = http://investors.peoplesupport.com/releases.cfm
format =
language =
accessdate = 2007-07-30
quote = ] It originally estimated an offering price between US $10 and US $12 per share, offering more than 4.5 million shares of stock. [cite press release
title = PeopleSupport estimates offering price
publisher = SocalTECH.com
date = 2004-07-28
url = http://www.socaltech.com/peoplesupport_estimates_offering_price/s-0000789.html
format =
language =
accessdate = 2007-07-25
quote = ] On October 1, 2004, PeopleSupport announced that it had priced its IPO at US $7 per share and began trading on NASDAQ as PSPT. [cite press release
title = PeopleSupport prices IPO offering
publisher = SocalTECH.com
date = 2004-10-01
url = http://www.socaltech.com/peoplesupport_prices_ipo_offering/s-0001023.html
format =
language =
accessdate = 2007-07-25
quote = ]

Addition of transcription and captioning services

On January 9, 2006, PeopleSupport acquired Rapidtext, Inc., a provider of transcription and captioning services, and its subsidiary, The Transcription Company. [cite press release
title = PeopleSupport buys transcription and captioning firm
publisher = SocalTECH.com
date =
url = http://www.socaltech.com/peoplesupport_buys_transcription_and_captioning_firm/s-0002907.html
format =
language =
accessdate = 2007-07-25
quote = ] [cite press release
title = PeopleSupport acquires transcription and captioning firm
publisher = Lexdon.com
date =
url = http://www.lexdon.com/article/PeopleSupport_Acquires_Transcription_and_Captioning/27264.html
format =
language =
accessdate = 2007-07-25
quote = ] 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.

Timeline

*1998: Founded by David Nash and Lance Rosenzweig on July 2 in Delaware, USA.
*2000: Dot-com bubble bursts.
*2004: Files for US $86M IPO on May 11.
*2004: Estimates offering price on July 28.
*2004: Prices IPO offering on October 1.
*2006: Acquires transcription and captioning firm Rapidtext on January 9.
*2006: Opens facilities in Costa Rica on March 2.cite press release
title = PeopleSupport opens facilities in Costa Rica
publisher = SocalTECH.com
date = 2006-03-02
url = http://www.socaltech.com/peoplesupport_opens_facilities_in_costa_rica/s-0003374.html
format =
language =
accessdate = 2007-07-25
quote = ]
*2007: Realigns organizational structure into verticals on June 11; names Richard Bledsoe as COO. [cite press release
title = PeopleSupport Realigns Organizational Structure for Next Wave of Growth and Innovation
publisher = Reuters.com
date = 2007-06-11
url = http://today.reuters.com/news/articleinvesting.aspx?view=PR&symbol=PSPT&storyID=36407+12-Jun-2007+BW
format =
language =
accessdate = 2007-07-25
quote = ] [cite press release
title = PeopleSupport Names Bledsoe COO
publisher = Associated Press
date = 2007-06-11
url = http://biz.yahoo.com/ap/070612/peoplesupport_coo.html
format =
language =
accessdate = 2007-07-25
quote = ]

Market verticals

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:

*Travel and Hospitality

*Emerging Markets > Emerging Markets - Communication > Emerging Markets - Healthcare > Emerging Markets - Media and Publication > Emerging Markets - Retail and Construction > Emerging Markets - Tech

*Banking and Financial Services

*Healthcare and Insurance

Offices and locations

United States

PeopleSupport's corporate headquarters is located at Suite 1250, Westwood Center, 1100 Glendon Avenue, Los Angeles, California, leasing approximately convert|11000|sqft|m2.

Two other production centers exist in Southern California, totaling approximately convert|15000|sqft|m2. PeopleSupport also leases three data centers located throughout the western United States, totaling approximately convert|1000|sqft|m2.

PeopleSupport Costa Rica

In February 2006, PeopleSupport signed two leases in Costa Rica totaling approximately convert|35000|sqft|m2, and could initially support up to 500 seats. [cite press release
title = PeopleSupport Expands Its BPO Services To Support The Spanish Language Market
publisher = PeopleSupport
date = 2006-03-01
url = http://investors.peoplesupport.com/releasedetail.cfm?releaseid=189081
format =
language =
accessdate = 2007-08-10
quote = ] The facility opened on March 2, 2006. It is located in Buildings 7B and 3A, Ultrapark Free Zone, 800 m East of Real Cariari Mall, La Aurora Heredia.

PeopleSupport Philippines

PeopleSupport has eight facilities in the Philippines.cite web
last =
first =
authorlink =
coauthors =
title = Form 10K - Annual Report
work =
publisher = PeopleSupport
date = 2007-03-16
url = http://investors.peoplesupport.com/secfiling.cfm?filingID=950148-07-57
format =
doi =
accessdate = 2007-07-30 ] The largest is PeopleSupport Center, spanning approximately convert|162000|sqft|m2. The other seven facilities, totaling approximately convert|255000|sqft|m2, are located in three other cities. The three largest facilities are: PeopleSupport Baguio; PeopleSupport Cebu; and PeopleSupport Davao.

Metro Manila

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 non-production seats, increasing PeopleSupport's total seat capacity in all current centers to over 5,000 workstations for operations, management, and support staff.cite press release
title = PeopleSupport Completes Migration to New PeopleSupport Center
publisher = PeopleSupport
date = 2005-07-20
url = http://investors.peoplesupport.com/releasedetail.cfm?releaseid=169245
format =
language =
accessdate = 2007-08-10
quote = ]

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.

Baguio

PeopleSupport Baguio is located at the SM Fiesta Strip Building, Harrison Road, Baguio City and is currently holding 3 accounts with almost 150 employees involving strike representatives.

Cebu

PeopleSupport opened its second facility in Cebu City on October 13, 2003. [cite press release
title = PeopleSupport opens second facility in Skyrise Building
publisher = Cebu Holdings Inc.
date = 2006-10-13
url = http://www.cebuholdings.com/ViewNewsItem.do?newsID=239
format =
language =
accessdate = 2007-08-10
quote = ] 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.

Davao

PeopleSupport Philippines opened a recruitment center in Davao City on March 6, 2006, tapping the southern Philippine workforce for deployment in Manila and Cebu. [cite press release
title = Outsourcing provider opens recruitment center in Davao
publisher = Sun.Star Publishing
date = 2006-03-07
url = http://www.sunstar.com.ph/static/dav/2006/03/07/bus/outsourcing.provider.opens.recruitment.center.in.davao.html
format =
language =
accessdate = 2007-08-10
quote = ] 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.

Corporate affairs

Current executives

*Lance Rosenzweig, founder, chairman, and chief executive officer
*Richard Bledsoe, chief operating officer
*Caroline Rook, chief financial officer
*Rainerio "Bong" Borja, president of PeopleSupport Philippines, vice president of Global Strategic Programs
*Joseph S. Duryea, vice president of sales
*Tim Miller, chief of staff and managing director for travel and consumer
*Jennifer Sherry, vice president for human resources

Recognition and awards

*Named to the 2006 Top 50 Best Managed Global Outsourcing Vendor List in The Black Book of Outsourcing [http://www.clickpress.com/releases/Detailed/15371005cp.shtml]
*2006 Philippine Employer of the Year by the Philippines Economic Zone Authority [http://today.reuters.com/news/articleinvesting.aspx?view=PR&symbol=PSPT&storyID=126358+16-Apr-2007+BW]
*Named to the 2006 'Global Services 100' List of Most Innovative Technology Services Companies by Global Services Magazine [http://www.lexdon.com/article/PeopleSupport_Named_to_the_2006/34797.html]
*Ranked #14 on "Hot Growth Companies to Watch" (2006) by BusinessWeek [http://www.businessweek.com/hot_growth/2006/index.html]
*Recognized Most Outstanding Call Center Company by the Philippine Marketing Excellence Awards [http://www.mywire.com/pubs/PRNewswire/2005/07/21/939096]

ee also

*Business process outsourcing
*Business process outsourcing in the Philippines
*Call center
*Call center industry in the Philippines
*Offshore outsourcing

Notes and references

External links

Official website
* [http://www.peoplesupport.com Official site]
* [http://investors.peoplesupport.com/index.cfm PeopleSupport Corporate Information]
* [http://investors.peoplesupport.com/releases.cfm PeopleSupport Press Releases Archive]
* [http://investors.peoplesupport.com/sec.cfm PeopleSupport SEC Filings] Business data
* [http://investing.businessweek.com/research/stocks/financials/financials.asp?symbol=PSPT.O PeopleSupport, Inc.] at Businessweek
* [http://finance.google.com/finance?q=PeopleSupport PeopleSupport, Inc.] at Google Finance
* [http://www.nasdaq.com/asp/ExtendFund.asp?&kind=&symbol=PSPT&selected=PSPT&FormType=&mkttype=&pathname=&page=full PeopleSupport, Inc.] at NASDAQ
* [http://stocks.us.reuters.com/stocks/fullDescription.asp?symbol=PSPT PeopleSupport, Inc.] at Reuters
* [http://finance.yahoo.com/q?s=PSPT PeopleSupport, Inc.] at Yahoo! Finance
* [http://google.brand.edgar-online.com/?sym=PSPT PeopleSupport, Inc.] SEC filings at EDGAR Online
* [http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=1289001 PeopleSupport, Inc.] SEC filings at the United States Securities and Exchange Commission