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JANUARY 2007

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Tim Searcy is CEO of the American Teleservices Assocation.
Near Shoring Gains Momentum

   Tim Searcy, CEO of the American Teleservices Association, a leading organization dedicated to the industry, says near- shoring was a significant trend in 2006, particularly in Latin America.
   "The contact center outsourcing movement has been most poignantly felt in 2006 in the near- shore locations of the CALA region," Searcy says. "Countries like The Dominican Republic, Brazil, Argentina, Jamaica, Barbados, Guatemala, and others have experienced a tremendous wave of interest. This can be attributed to several major factors. U.S. companies are seeking the labor efficiencies provided by the ample supply of educated labor in the region. Sophisticated users of teleservices are beginning to weigh carefully the travel and logistical difficulties of managing operations which are too far away. A new interest in the Hispanic market within the U.S. has caused companies to open operations to market in the native tongue to U.S. residents. Each of these considerations alone would be enough for a serious look and investment in CALA locations, but the combination has been
irresistible to companies like Stream, Verizon International and Dell."
   Dell announced in early November that it would nearly double the size of its Ottawa Customer Contact Centre over the next few years with a new three- story, 148,222- sq.- ft. (13,800- sq.- m.) facility slated for completion in September 2007. The current Ottawa facility, Dell's 30th call center, opened in February 2006 and employs about 1,200. The new adjacent building will have capacity for 1,000 employees.
   David Frink, Dell spokesman, says the company's site decision process is proprietary, but it's based largely on its customer base and work force considerations.

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