Call Center World 2003 Twin Call Center - Vortrag Dr. Wilke

© ICOB 02/2008

Business Location Advantages forCall Centers in Frankfurt (Oder)

©

ICOB 02/2008

1

Economy and Market (German Capital and Border Region)

2

Business Location Frankfurt (Oder)

3 Market Situation: Developments and Trends

4

Location Selection Criteria and Process

5

Strategic Option: Twin Call Center

6

Service and Contact Partner: Investor Center

Ostbrandenburg

Contents

1Contents

© ICOB 02/2008

E u r o p e

300 miles

600 miles

1,000 miles

Iceland

Norway

Sweden

SpainPortugal

France

Italy

Ireland

Serbia

Czech Rep.

Poland

Switz.Austria

Hungary Romania

Bulgaria

Turkey Greece

Alb.

Russia

Finland

Denmark

Estonia

LatviaLithuania

Belorussia

Ukraine

Moldova

Russia

Slovakia

Great Britain

Bos.& Herz.

Maz. Mont.

Slovenia Croatia

Liech.

Lux. Belgium FRG

Nether-lands

Business Region Berlin-Brandenburg

2Business Region Brandenburg 1

2 3 4 5 6

Regional Location Advantages

The Berlin - Brandenburg region constitutes a important Metropolitan Area on the national and European scale.

Brandenburg is one of the largest States in Germany, and indeed the largest of the New Federal States in Eastern Germany. The State of Brandenburg is also characterized by the longest external border to Poland with a total length of approximately 250 km.

The Capital Region enjoys excellent international transportationconnections. As a European hub, Berlin / Brandenburg links prominent pan European routes Paris – Warsaw – Moscow and Stockholm – Prague – Vienna.

Over 200 million consumers can be reached within one day travel by road freight. The relationship with the neighboring country Poland plays an important role (i.e. markets, supply networks, raw materials, and production).

Universities in Cottbus, Frankfurt (Oder) and Potsdam, the School for Film and Television Arts and Sciences, five technical colleges as well as 21 technology centers complement the offering in Berlin to make Germany‘s densest network for research and technology. Specializations and competences include technologies and appliedsciences for transportation, microsystems, electronics, optics, energy, construction, chemicals and environment.

© ICOB 02/2008 3

Selected

Call Center in Brandenburg

Business Region Brandenburg 1

2 3 4 5 6

ServicesLocationAgent PositionsFirma

Information, Customer

ServicesPotsdam300

Telemarketing, Customer

ServicesFrankfurt (Oder)830

Computer Help-DeskPotsdam250

Consulting, TelemarketingWittenberge140

Service, Customer-HotlineCottbus580

TelemarketingFrankfurt (Oder)850

Insurance Service, Information Service

Frankfurt (Oder)120

Customer

ServicesEuropark Dreilinden650

http://www.taptel.de/home/index.html

http://www.fonetix.de/index.html

http://pages.ebay.de/

© ICOB 02/2008

Primary Axis for East – West Transport

120 m. consumers in Germany and Poland

350 m. consumers in EU within 24 hours by road

Europe‘s main logistics centers within 1,000 km

Region with diverse culture and recration offering

Industrial Focus: Tourism, plastics and rubber processing, metals, recycling, machinery equipment and installations, food processing, construction, wood and fiber processing, logistics, and services

4

German Polish Border Region

Business Region Brandenburg 2 3 4 5 6

Gate to New European Markets

Germany

Poland

E 36

E 40 E 65

E 30E 30

Frankfurt (Oder)

Eisenhüttenstadt

GubenGubin

Cottbus

Forst

Zielona Góra

Glogów

DresdenPrague

Potsdam

HanoverAmsterdam

Munich

HamburgRotterdam

Oder-Spree-Canal

Nysa

Warta

Odra

Oder

Wroclaw

HamburgBremenRostock

Stettin

Szczecin

KostrzynGorzów

Slubice

WroclawKatowice

KryzwaNeiße

Legnica

Polkowice

100 km

BerlinWarsawMoscow

Trans-European road

Major road

Main railway-line

Main waterway

Special Economic Zone

International Airport

Regional Airport

Border crossing

Planned border crossing

Border crossing on waterway

© ICOB 02/2008

Reasons for Location in Frankfurt (Oder)

The Federal Capital Berlin and its airports are all within one hour by car. A high speed rail connection travels every 30 minutes between Frankfurt and Berlin

The students of the Europa-Universität Viadrina(currently 5,000, of which 1,500 are Polish) are available for part time employment

Employment of international native speakers (i.e. Polish) as call center agents

Recent investments have made Germany‘s high performance telecommunications infrastructure among the best world-wide

Prices for rental or purchase of real estate and property are substantially lower than the national average

Financial support for investments and training of personnel is the highest in the EU

5

Regional Potential

Business Location

Frankfurt (Oder) 1

2

3 4 5 6

Motorway

International Airport

Railway

Border Crossing

Fiber optic cable (622 Mbit/s)

B r a n d e n b u r gHamburg

CopenhagenRostock Szczecin

DresdenPrague

PoznanWarsawMoscow

LeipzigMunich

HanoverAmsterdamParis

POLAND

Wroclaw

Potsdam

BerlinFrankfurt (Oder)

Cottbus

Eisenhütten-stadt

© ICOB 02/2008 6

Location Frankfurt (Oder) at a glance

Business Location

Frankfurt (Oder) 1

2

3 4 5 6

Residents

61,500 (City)

263,250 (Region -

50km)

Student Population

5,199 (Winter 2008)

Commercial Tax Rates 350 (conform 15,97 %)

Rental Prices

4.00 –

8.00 Euro / m²

Airports

Berlin Schönefeld, Berlin Tegel, Berlin Tempelhof

(all approx. 80 km)

Expressways (Autobahn)

A 12/ E 30

Railways

European and Regional Express

Unemployment

5,200 City

35,000 District (January 2008)

Unemployment Rate 14,8 % (January 2008)

Highest Investment Grants

50% (40%) or 30% (trade)

Call Center

d+s

europe, DTAG, call

24-getaline, vivento

CS, walter

services, AXA

Largest Employers

Oderland-Brauerei, Märkisches Verlags-

u. Druckhaus GmbH, Deutsche Telekom AG, DB Regio

AG, Kaufland Warenhandel,First Solar, Conergy

Solarmodule

Numbers and Facts

© ICOB 02/2008

Call Center Agent Employment

Low Average High

Mod

est

Aver

age

Hig

h

Market Saturation

Mar

ket

Grow

th 2

001-

2007

Ireland

Netherlands

Switzerland

France

Germany

Austria

Italy

SpainRussia

Czech Rep.

Poland

Turkey Hungary

Belgium

UK

Market Size 2002:

Call Center Markets in EMEA

7

Development of Call Center Markets

Market Situation 1 2

3

4 5 6

Call Center Employment in Relation to Working Population %

2,37

Irelan

d*

2,20

U.K.

1,28Neth

erlan

ds

1,10

Austria

0,90

German

y

0,37

Easter

n Germ

any

0,30

Czech

Rep

.

0,20

Hunga

ry

© ICOB 02/2008

Continuous Growth in German Market

Number of Call Centers

8

Growth Potential


3

4 5 6

Currently approximately 3,000 Call Center with about 200,000 Employed

Double digit market growth forecast through 2005

Approximately 300 independent enterprises,of which ~ 50% fewer than 100 employees

Average 75 positions and 115 agents

Important factor for success in enterprise in previous year: Quality Assurance

Call Centers develop into communication and customer service centers

Liberalization of telecommunication networks

Market Opportunities: Summary

3230

2001

3750

2002

4310

2003

4910

2004

5550

2005

Source: Datamonitor (2003)

© ICOB 02/2008

Regionalization of large Call Center Operations

9

International Developments & Trends


3

4 5 6

Coordinated regional operationsCentralized pan-european

operations supported by regional operations

Centralized pan-european

operations

© ICOB 02/2008

Size

of

Call

Cent

ers

< 75 Agents

75-150 Agents

Service Level

Low Intermediate / Demanding High Caliber / Professional

Romania

GermanyFrankfurt (Oder)

Slovenia

PolandCzech

Hungary

> 150 Agents

Austria

Frankfurt (Oder) offers the potential for larger Call Center operations with high level of quality

10

Decisive Factors for Business Location


3

4 5 6

©

ICOB 02/2008 11

Location

analysis

Location Analysis 1 2 3

4

5 6

Critical Factors for Successful Location

Sufficient workforce availability

Competitive labor costs

Neutral accent-free language

Low competition

Labor cost support

Real estate availability and costs

LocationTransport Connections / InfrastructureFunctionality

Market and Customer Proximity

Competitive LandscapeCodeterminationQuality of LifeLocal Support

Personnel CostsReal Estate PricesFinancial Incentives

AvailabilityQualificationsLinguistic expressiveness Flexibility and energyMotivation, Commitment and Low TurnoverService Mentality

Real Estate

CostsOther

Workforce

12

Consideration of relevant location criteria


4

5 6©

ICOB 02/2008

© ICOB 02/2008 13

Availability of Highly Motivated Workforce


4

5 6

Unemployed

Total Employment 2)

Region (100 km)1)

Office and Administrative

Unemployment Rate

Commercial and Retail

Students

Call Center Employees in Training

Call Center Employees seeking employment

Hospitality

Service and Commercial

Locations -

Recommendations

0

14

298

1,725

148

18.7%

18,706

Oder-Spree

46,05619,7877,563

200,271

Region

6,6121,6631,942

19.5%19.7%19%

4,444

4777

0

17

115

85

Frankfurt City

0

63

912

439

District*

0

12

268

154

Märkisch

Oderland

78,746Unemployed

1)

Labor Market District Frankfurt (Oder) and Barnim

County and Uckermark

County 2)

Excluding self-employed. Data collected: February 2005

© ICOB 02/2008

Frankfurt (Oder) Offers High Development Potential

14

Advantageous Labor Market Situation


4

5 6

Competitiveness Situation

Neub

rand

enbu

rg

2.60%

Fran

kfur

t (od

er)

0.80%

Dess

au

1.20%

0.60%

Magd

ebur

g

1.60%

1.90%

Greif

swald

1.80%

2.10%

Potsd

am

2.30%2.10%2.10%

Rosto

ck

2.20%

1.60%

Schw

erin

2.00%1.90% 1.80%

2.00%

Wism

ar

11%

16%

18%

15%

19%

17%

19%19%

18,00% Unemployment Rate

© ICOB 02/2008

Europa-Universität

Viadrina

Business and Economics

Cultural and Social Sciences

Law

Foreign Languages focusing on 8 European Languages

Telemarketing

Questionnaire and Interview techniques in cooperation with other professional training

International Management and Marketing

Approximately 5,300 students, of which 20% Polish

Students (Academic Year 2005)

15

Advantages in University City


4

5 6

Collegium

Polonicum

Operated cooperatively by the Republic of Poland and the State of Brandenburg

Primary objective is academic, scientific and cultural cooperation between Poland and Germany

© ICOB 02/2008

650English

Italian300

450

language ability1)

Spanish

French

16

Language

competence

Students

of Europa-Universität:

Language

competence

depends

on nationality

and language

ability

1)

Sprachenzentrum: 2.038 students

from

75 countries, here: students

with

upper

level. Foreign

language: Deutsch, Englisch, Finnisch, Französisch, Niederländisch, Polnisch, Russisch, Schwedisch, Spanisch

Quelle: Europa-Universität Viadrina, Immatrikulationsamt, Sprachenzentrum

Standort 1 2

3

4 5 6

Australia -

1

Great Britain -

6

Irland

-

3

Italy –

10

Switzerland -

3

Belgium -

1

France -

16

Kamerun

-

3

Argentina -

5

Ecuador -

2

Colombia -

4

nationality

Jamaica -

1

Canada -

2

USA -

14

Canada -

2

Luxemburg -

1

Switzerland -

3

Mexiko

-

5

Spain -

18

Uruguay -

2

Polish Poland -

1331

© ICOB 02/2008

Source: OECD, Education at a glance, October 2002, State of Brandenburg Office for Statistics and Information Processing

17

Advantage Through Qualified Personnel


4

5 6

27 45 28Netherlands

27 59 13Germany

13 78 9Czech Rep

13 67 20Poland

31 63 6Brandenburg

Qualification of Employment in Comparison

0,5%Unskilled

Workers

38%Specialists & Skilled Workers1)

34%University

Degree2)

18%Polytechnical

Colleges

9%Professional and Technical

Schools

2,5%Master

1)

Specialist and skilled workers according to professional and vocational schools 2001/2002.

2)

Students and graduates according to universities / polytechnical

colleges

2001/2002.

Availability of Qualified Personnel

Below Secondary Education

Secondary Education

Tertiary & Higher Education

© ICOB 02/2008

2,710 € - 3,200 €Project Director

1,790 € - 3,000 €Team Leader

2,250 € - 2,660 €Quality Management

1,200 €Call Center Agent

Monthly Salary (gross)based on 40 hour WeekPosition

N.A.Hospitality

N.A.Commercial / Retail

N.A.Office Support

2,100 € - 2,600 €IT and Data Processing Specialists

Monthly Salary (gross)Category

Salaries in Service Professions

Personnel Costs

18

Low Wages Reduce Your Costs


4

5 6

© ICOB 02/2008

Frankfurt/O Germany (West)

3.988 €

2.710 €

1.227 €

2.199 €2.301 €

4.678 €

3.477 €

2.710 €

1.892 €

3.349 €

Agent EDP/Technician Supervisor Project Director Manager

Average Salaries

19

Labor Costs in Comparison


4

5 6

© ICOB 02/2008

5.20

7.20

8.20

108,000

Rostock

155,00043,000Total Market Size m2

in 2004

4.105.00/8.00 2)Average Rent Suburbs

€ / m2

p.m. in 2004

5.00/6.00 1)

7.00

Frankfurt (Oder)

5.50

8.50

MagdeburgCity

Average Rent Downtown CBD

€ / m2

p.m. in 2004

395,000

12.00

Düsseldorf

19.20

14.20Average Rent City € / m2

p.m

in 2004

20

Rental Prices


4

5 6

Excellent Value Office Space

1)

Outlying location: Modern existing construction standards

2)

Surrounding Areas: Oder-Spree County (Beeskow) / Märkisch-Oderland

County (Strausberg)

Source: VDM State Service Center –

Brandenburg, www.vdm.de

© ICOB 02/2008

1)

Based on actual investment projects in Frankfurt (Oder) and in East Brandenburg / West Poland.Investment costs (without consideration of subsidies and grants)and the running general business costs do not vary substantially

within Germany..

2)

Same number of agents and employees (215); thus the same operation scale..Average personnel costs in western Germany drawn from a study by Kienbaum

Human Resources Consulting.

50%380465%4955100%7662Total operations costs=

88%785100%894100%894General Business Costs+

45%301960%4061100%6768Personnel Costs 2+

100%89979%709100%895Total effective investment costs 1=

149%293194%382100%196Investment Subsidies and Cash Grants-

82%149100%183100%183Office and Business Equipment+

115%1043100%908100%908EDP and Telecommunications+

%1.000 €%1,000 €%1,000 €

TCCCC-FFOCC-ABL

Comparison between the locations in East Brandenburg and West Poland (TCC) in Frankfurt (Oder) (CC-FFO) and in western Germany (CC-ABL):

21

Cost Comparison

Standortanalyse

1 2 3

4

5 6

Quelle: Eigene

Berechnungen

Reduction of Operations Costs

Public Support

for your Investment Project

Reduction of Capital Costs

Credits and Equity Financing

Support of Research and Development

Wage Cost SubsidiesLoan GuaranteesInvestment Allowance

Professional Qualifications and

Job Training

: Preferred method of support for Call Center Investment Projects

22

Business Support Overview


4

5 6©

ICOB 02/2008

© ICOB 02/2008

Up to 30 % of eligible costs for large concerns (up to 50% for small and medium sized businesses).This program includes 15% tax free investment allowance and up to 20% taxable investment grants for large enterprises (27.5% tax free investment allowance and up to 22.5 % taxable investment grants for small and medium sized businesses.)

Research and Development grants up to 50% of project costs.

Government guaranteed loans (below market interest rates).

Special support and subsidies

Subsidized labor costs for start up period(typically 30% for 6 months)Job training and qualification programsRecruitment and screening of personnel according to specific company requirements

23Location Analysis 1 2 3

4

5 6

Program for the development of regional economic structure. (GA Program)

Business Support for

your

Investment

© ICOB 02/2008 24

Location Example 1: Oderturm


4

5 6

Oderturm

LocationTop downtown location in central business district

Transportation ConnectionsDowntown Light Rail Hub at location

ParkingPlentiful in underground garage

Available SpaceTotal approximately 1,200 m²

in former Telekom Call Center

Rental Prices€

6.00 -

8.00 / m²

per month, negotiable

Building and Location

Frankfurt (Oder)Slubice

Oder

N

Tram No. 4

Oderturm

© ICOB 02/2008

Location

Suburban campus area 5 km southwest of city center on Federal Route 87.

Public Transit Connections

Light Rail Station and Bus Stop on campus

Parking

Plentifully available

Available Space

Example 1: Various facilities 300 m² - 3000 m²

Example 2: From 300 m² with expansion option up to 2000 m²

Rental Prices

€ 4.00 – 6.00 m² per month, negotiable

25

Location Example 2: TeGeCe


4

5 6

Office and Commercial Space in

Techno-

und Gewerbecenter

(TeGeCe)Building and Location


Oder

N

Tram No. 4

TeGeCe

© ICOB 02/2008 26

Location Example 3:


4

5 6

Location

Top downtown location in central business district

Public Transit ConnectionsLight Rail Station and Bus Stop

Parking


Available Space

Total approximately 1.600 m²

Rental

Prices

6,00 - 8,00 EUR/ m² per month, negotiable

Logenstraße

Logenstraße 7


Oder

N

Tram No. 4

Logenstraße

Building and Location

© ICOB 02/2008 27

Location Example 4: Logenstraße 9-10

Standortanalyse

1 2 3

4

5 6

Location

Top downtown location in central business district

Public Transit Connections

Light Rail Station and Bus Stop

Parking


Verfügbare Räume

Total approximately 12.482 m²

Rental

Prices

Ca. 5,00 EUR/ m² per month, negotiable

27Standortanalyse 1 2 3

4

5 6


Oder

N

Tram No. 4

Logenstraße

Building and LocationLogenstraße

Good adaptation to local business conditions from contributions of local talent and management

International and transborder experience

Excellent communications conditions

Very low spatial distance to parent company

Excellent telecommunications conditions through potential use of wireless microwave link

Personnel proficient German – Polish – English

Excellent Quality Control

Possibility of assumption of most management and administrative responsibilities by parent company

Sharing of decision authorities among several individuals with foreign language capabilities

Simple personal face to face contacts among organization members

28

Twin Call Center Concept

Twin Call Center 1 2 3 4

5

6

Call Center Operation on both sides of German / Polish International Border

©

ICOB 02/2008

A Twin Call Center operates with locations on both sides of the German-Polish border

The communication is completed via a wireless microwave link that allows data, speech and images to be transmitted in large volumes at the highest quality

The TWIN Location Concept helps streamline the execution and combination from:

Market analysis of two countries from one location

German and Polish services on a large scale

Optimise the cost portfolio (wage/business costs)

Improve the business support

29



5

6

Function

©

ICOB 02/2008

Frankfurt (Oder)

Slubice

Oder

© ICOB 02/2008

Calculation Example : 1000 Calls Each

30



5

6

Operation Cost ComparisonStandard Call Center and Twin Call Center

Outbound from Germany to Poland

(Basis: Average Call Duration -

7 Min.)

Standard Call Center

€

0.63

Twin Call Center

€

0.34

Outbound from Poland to Germany (Basis: Average Call Duration -

7 Min.)


€

1.04

Twin Call Center

€

0.26

in €

0

500

1.000

1.500

2.000

2.500

€

631.47

€

311.11

€

1,037.04

€

263.40

Sources: www.telekom.de, www.telekomunikacja.pl

Standard Call Center Twin Call Center

Poland to Germany

Germany to Poland

© ICOB 02/2008

25.40%49.27 %

100 % 100 %

0

20

40

60

80

100

in %

Cost AdvantageTwin Call Center

Calculation Example : 1000 Calls Each

31

Twin Call Center ConCept


5

6

Operation Cost ComparisonStandard Call Center und Twin Call Center

Outbound from Germany to Poland

(Basis: Average Call Duration -

7 Min.)


100 %

Twin Call Center

50.73%

Outbound from Polen

to Germany (Basis: Average Call Duration -

7 Min.)


100 %

Twin Call Center

74.60 %

Sources: www.telekom.de, www.telekomunikacja.pl

Standard Call Center Twin Call Center

Poland to Germany

Germany to Poland

© ICOB 02/2008

Our services available free of charge include:

Accompaniment of your project from idea to realization

Preparation of business case models and plans considering tax advantages, financial support, investment grants and the possibilities of the border location

Recommendations of suitable business space and real estate

Recruitment and selection of appropriate candidates for management and workforce

Business intelligence for German and Polish Call Center markets

Coordination with municipal, state and federal institutions partners

32

Service & Support

ICOB 1 2 3 4 5

6

The Investor Center Ostbrandenburg is your competent local partner.

Call Center Specialist:

Michael Witte

Tel: +49/ 335 557-1300

Fax +49/ 335 557-1310

E-mail: [email protected]

www.icob.de

Contact

© ICOB 02/2008

Investor Center Ostbrandenburg is located immediately

at Autobahn A12 Berlin -

Warsaw. The Investor Center

Ostbrandenburg is in the Technologiepark Frankfurt

(Oder) and can be reached from the Frankfurt (Oder)-

West and Frankfurt (Oder)-Mitte

Autobahn exits and the

Federal route B87.

33

How

to find us

ICOB 1 2 3 4 5

6

Directions

Berlin

Frankfurt (Oder)

Berlin Szczecin

Leipzig Cottbus Eisenhüttenstadt, Cottbus, Dresden

TeGeCe

TrainStation

Tram No. 4

Exit Frankfurt (Oder)West

Warsaw

Slubice

Oder

A 12

B 112B 5

B 87

40

E 302

E 30

Motorway

Country Road

Railway

Border Crossing

Main Road

B 112

Industrial EstateMarkendorf

Investor Center

N

Call Center World 2003 Twin Call Center - Vortrag Dr. Wilke

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Transcript of Call Center World 2003 Twin Call Center - Vortrag Dr. Wilke