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Germany’s Back-Office Segment Shows Strong Growth

A BPO provider, Site has 60,000 employees in 27 countries. It currently has 5 sites in Germany with over 3,000 employees. Sitel’s German services are set up as a multi-media center, meaning that services can be provided with the support of all relevant media.

Germany Trade and Invest helped to set up the center where the organization provides market analysis, intelligence and guidance on the right places to set up jobs. Sitel’s Northern EMEA Sales Manager, Janine Woelki tells SSON how operations in Germany have helped build trust and confidence in the market.

SSON: Why did Sitel choose five locations in Germany to set up BPO services?

JW: Looking at EMEA, as a whole, Germany is the strongest market for the BPO business. We wanted to spread German and German citizens. The site is a US-based company, so we wanted to provide the language at the highest level. From a recruitment point of view, Germany is the best place to be. We are in five locations and we are choosing the location according to the project we have found.

For example, where we operate from Dusseldorf/Krefeld, labor costs are high but from a recruitment point of view there is a well-known talent pool. If we have a project where there are a number of sales or technical assistants of two to three people, we can set them up in Dusseldorf/Krefeld where the production skills are very important. If the client wants to lower the operating costs, we set up projects in the east, where we work from Dessau, Wittenberg and Berlin. In Berlin, there is a good mix, because you can combine the east and the west, very high technology but, compared to the western part, a low level of labor costs.

SSON: What services, Janine, does your place offer, across the region?

JW: We specialize in customer care, such as customer visibility, customer booking, and sales and back office services for our customers.

SSON: Can you talk us through the timeline of the site’s establishment?

JW: The establishment has spread over the last 18 years. The first German location was opened in 1992 in Dusseldorf. The company was called Client Logic at the time and in 2007 Client Logic bought Sitel hence our name today. The last location in Germany to open was Berlin in 2008.

SSON: How does the German site fit into your international strategy? I understand you have operations in 27 countries?

JW; That’s right, yes. Germany represents one area or region of the Sitel Global footprint. The site supports pan-EMEA and multi-site solutions, so we can provide multilingual support from Berlin. In the middle of Berlin there are different countries, similar to London, all in one city. This gives us a big advantage. Also, people tend to be more educated in Berlin, because there are many universities there, which is good for us.

We have the highest level of commercial expertise in our midst in Krefeld. And we also have cheap options from Wittenberg or Dessau, for example. Therefore we are very flexible and can react according to the needs and expectations of the customer. Global sourcing or choosing the best option for our customers in 110 plus locations around the world is what we do best. We can offer five options to support our customers: We can offer local, international or local routes in Poland and Bulgaria. We also offer homeshoring and can work directly from the customer’s premises. In general – we search for the most suitable talents and skills from around the world to provide the best service for our clients’ needs.

SSON: Thanks for the briefing, Janine. What challenges, depending on the group, did Sitel face in establishing operations in Germany?

JW: We are facing a lot of competition in Eastern Germany and it is growing every day, so we really need to provide a good service. When we talk about competition, we mean other BPO providers. The nature of the competition, whether it is cost or staff depends on the project. Every job is different and every requirement is different.

Another problem when you have a new location is to create infrastructure, such as telecom or real estate. Also the industry is young so we need to import talent and expertise.

SSON: That’s an interesting point you bring up there, Janine. It is said that 75% of the recruitment industry is under the age of 30. How do you get an interview with that age group? Can you give examples of how you communicate your skills with your employees?

JW: We spend a lot of time, effort and money on our training department. This is part of a system we call the Global Operating System (GOS), which is very unique to the Site, based on 30 years of experience. We provide a toolbox, processes and methods that will ensure that we use the same methods and teaching methods around the world. We want to make sure that we provide the same standard or the same quality standard all over the world to our customers. Every project starts with the training of the assistant so, no matter who we hire, this person will go through the training phase. It is true, most of our employees are young, but this is good, but sometimes it is difficult.

SSON: In terms of infrastructure, labor and competition, I’m sure you’ve learned something, can you share some of them?

JW: When we choose a location, we have something similar to a billboard and we have a great analysis of the market, location and recruitment of local people, so this helps us a lot in the first place to know the best site for Sitel. As for Germany, everything was well organized and we spent a lot of time choosing the place, so there are no complaints or complaints.

SSON: We’re hearing a lot of decisions about moving closer to the countryside, as 2010 comes to a close, what are your thoughts on bringing jobs closer to the customer?

JW: Well, when it comes to local options, it’s going very well for the Site. We operate in two areas; Warsaw and Sofia. We have compared Warsaw and Germany and found that there is no difference in terms of quality and price. However, Sofia is cheaper to use, but the study centers in Poland and Bulgaria also help us a lot to speak Eastern European languages. We have a very strong customer base there and from a pan-EMEA perspective, customers are eager to have one of the local options included on their website. For us, it is possible that we will expand to the Eastern European part of the Baltic soon, because of the beauty of this area.

SSON: I know you can’t talk about the customers you are shipping to, but which countries are you shipping to from Germany?

JW: We are very strong in consumer electronics, where we provide technical support. We are mainly involved in financial and telecommunications services. The two verticals we expect to grow in are utilities and healthcare.

In terms of international coverage, most of our customers are based in Europe. We currently offer 12 different languages ​​from Berlin, spread throughout Europe. For example we have one client in healthcare in Berlin who has a multi-modal approach, so we send this client from Kingston, for example, and the back office service is provided from Sofia. This is the most versatile, multi-page client that we offer.

SSON: How did Germany Trade & Invest support Sitel in establishing operations in Germany?

JW: There are two examples that come to mind where their support is evident. The first time was in 2001 when Sitel was looking for options in the eastern part of Germany, shortly after [Berlin] the wall fell. He provided market analysis, or intelligence, provided guidance on suitable locations and site preparation tours. In the end, we shortlisted two cities – one was Berlin and the other was Dessau, and Sitel chose Dessau at that time, because it was the leading city in terms of price, while Berlin was the leading city in terms of quality. A few years later, we found ourselves settling in Berlin. Germany Trade & Invest helped again in 2005, when we had to choose a second location in the east of Germany: Wittenberg.

SSON: How long does it take you to realize your experience from choosing a location to accomplishing all the tasks there?

JW: It is usually six to nine months. Sometimes it might be too soon, Berlin was easy to do. If you have a plug and play architecture, then it’s easy for us. It really depends on the infrastructure, because this is what we need first.

SSON: Apart from affordability, what are the main factors you consider when looking for a new location? Can you name the main reasons for choosing Germany?

JW: Languages, of course. Multilingual capabilities are what we need. Also, the culture is small and the agents have the best skills. This is the most important thing, if we choose a place.

SSON: Finally, Janine, as we approach 2011, I was wondering what the main points of 2010 were for you in business, and what are the expectations for the Site in 2011?

JW: In 2010, I think everything was about the economic downturn, so some of our clients were having a hard time this year in terms of the economy, so it’s always difficult to be a service provider. I think the good thing about Sitel is that we have a wide range of customers so we don’t rely on a few or just stand on one industry. For 2011, it’s all about growing and becoming a strong player in the market. This means that we will continue to provide our customers with the best Customer Returns (by focusing on reducing costs and increasing revenue while improving customer satisfaction). We are also confident that more and more companies will look to outsourcing customer care as a way to focus on their operations and reduce costs.

SSON: Janine, thank you very much for the briefing.

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