PeopleSupport
Encyclopedia
Aegis Limited is a multinational
Multinational corporation
A multi national corporation or enterprise , is a corporation or an enterprise that manages production or delivers services in more than one country. It can also be referred to as an international corporation...

 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
Los Ángeles
Los Ángeles is the capital of the province of Biobío, in the commune of the same name, in Region VIII , in the center-south of Chile. It is located between the Laja and Biobío rivers. The population is 123,445 inhabitants...

, California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...

, USA, but also holds operations in the Philippines
Philippines
The Philippines , officially known as the Republic of the Philippines , is a country in Southeast Asia in the western Pacific Ocean. To its north across the Luzon Strait lies Taiwan. West across the South China Sea sits Vietnam...

 and Costa Rica
Costa Rica
Costa Rica , officially the Republic of Costa Rica is a multilingual, multiethnic and multicultural country in Central America, bordered by Nicaragua to the north, Panama to the southeast, the Pacific Ocean to the west and the Caribbean Sea to the east....

. It is one of the largest BPO companies in the Philippines, having more than 10,000 college-educated English speaking employees.

Revenue
Revenue
In business, revenue is income that a company receives from its normal business activities, usually from the sale of goods and services to customers. In many countries, such as the United Kingdom, revenue is referred to as turnover....

 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. Net income
Net income
Net income is the residual income of a firm after adding total revenue and gains and subtracting all expenses and losses for the reporting period. Net income can be distributed among holders of common stock as a dividend or held by the firm as an addition to retained earnings...

 for the first quarter of 2006 was US $2.9 million or US $0.15 per diluted share
Earnings per share
Earnings per share is the amount of earnings per each outstanding share of a company's stock.In the United States, the Financial Accounting Standards Board requires companies' income statements to report EPS for each of the major categories of the income statement: continuing operations,...

 compared with the US $2.8 million or US $0.15 per diluted share for the first quarter of 2005. Operating cash flow
Operating cash flow
In financial accounting, operating cash flow , cash flow provided by operations or cash flow from operating activities , refers to the amount of cash a company generates from the revenues it brings in, excluding costs associated with long-term investment on capital items or investment in securities...

 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
Gaap
In demonology, Gaap is a mighty Prince and Great President of Hell, commanding sixty-six legions of demons. He is, according to The Lesser Key of Solomon, the king and prince of the southern region of Hell and Earth, and according to the Pseudomonarchia Daemonum the king of the western region and...

 basis and 13% operating margin
Operating margin
In business, operating margin — also known as operating income margin, operating profit margin and return on sales — is the ratio of operating income divided by net sales, usually presented in percent....

s. From January to September 2006, it reported US $15.0 million in cash flow from operations.

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
, and is going to be delisted from the NASDAQ
NASDAQ
The NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations". It is the second-largest stock exchange by market capitalization in the world, after the New York Stock Exchange. As of...

 stock exchange.

Foundation and initial operations

PeopleSupport was founded on July 2, 1998, by David Nash and Lance Rosenzweig. Its original business model
Business model
A business model describes the rationale of how an organization creates, delivers, and captures value...

 was to provide outsourced web-based customer management services to internet
Internet
The Internet is a global system of interconnected computer networks that use the standard Internet protocol suite to serve billions of users worldwide...

-based companies, or dot-coms
Dot-com company
A dot-com company, or simply a dot-com , is a company that does most of its business on the Internet, usually through a website that uses the popular top-level domain, ".com" .While the term can refer to present-day companies, it is also used specifically to refer to companies with...

, via chat
Online chat
Online chat may refer to any kind of communication over the Internet, that offers an instantaneous transmission of text-based messages from sender to receiver, hence the delay for visual access to the sent message shall not hamper the flow of communications in any of the directions...

 and e-mail
E-mail
Electronic mail, commonly known as email or e-mail, is a method of exchanging digital messages from an author to one or more recipients. Modern email operates across the Internet or other computer networks. Some early email systems required that the author and the recipient both be online at the...

. During that period, PeopleSupport had 100 clients and 400 employees and was essentially a call center taking no calls.

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. The company later reverted to using traditional job titles again when it began 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
Dot-com bubble
The dot-com bubble was a speculative bubble covering roughly 1995–2000 during which stock markets in industrialized nations saw their equity value rise rapidly from growth in the more...

. In response, PeopleSupport made three strategic decisions:
  • To broaden service offerings to more comprehensive CRM
    Customer relationship management
    Customer relationship management is a widely implemented strategy for managing a company’s interactions with customers, clients and sales prospects. It involves using technology to organize, automate, and synchronize business processes—principally sales activities, but also those for marketing,...

     outsourcing services, which included taking calls.

  • To change sales focus away from dot-coms to large enterprises.

  • To cut cost structure significantly by migrating operations to the Philippines
    Philippines
    The Philippines , officially known as the Republic of the Philippines , is a country in Southeast Asia in the western Pacific Ocean. To its north across the Luzon Strait lies Taiwan. West across the South China Sea sits Vietnam...

    .


These decisions were critical to PeopleSupport, as it enabled the company to survive the dot-com crash.

Move to the Philippines

In executing the three strategic decisions, PeopleSupport initially restructured its business model and relocated outsourcing operations to St. Louis, Missouri
St. Louis, Missouri
St. Louis is an independent city on the eastern border of Missouri, United States. With a population of 319,294, it was the 58th-largest U.S. city at the 2010 U.S. Census. The Greater St...

. 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
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...

. 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.

Initial public offering

On May 11, 2004, PeopleSupport filed for an initial public offering
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...

 (IPO) in the National Association of Securities Dealers Automated Quotations system (NASDAQ
NASDAQ
The NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations". It is the second-largest stock exchange by market capitalization in the world, after the New York Stock Exchange. As of...

) in order to raise up to US $86 million; SG Cowen & Co. and Piper Jaffray
Piper Jaffray
Piper Jaffray & Co. , often shortened to just Piper Jaffray or PiperJaffray, is a U.S. middle-market investment banking firm based in Minneapolis, Minnesota, and sells financial advice, investment products, and transaction execution within targeted sectors of the financial services marketplace...

 served as its lead underwriters
Underwriting
Underwriting refers to the process that a large financial service provider uses to assess the eligibility of a customer to receive their products . The name derives from the Lloyd's of London insurance market...

.
It originally estimated an offering price between US $10 and US $12 per share, offering more than 4.5 million shares of stock. On October 1, 2004, PeopleSupport announced that it had priced its IPO at US $7 per share and began trading on NASDAQ as PSPT.

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. 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
    Dot-com bubble
    The dot-com bubble was a speculative bubble covering roughly 1995–2000 during which stock markets in industrialized nations saw their equity value rise rapidly from growth in the more...

     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.
  • 2007: Realigns organizational structure into verticals on June 11; names Richard Bledsoe as COO.
  • 2008: Enters into a definitive merger agreement with Aegis Limited (wholly owned subsidiary of the Essar Group)

Market verticals

PeopleSupport’s BPO solutions are organized according to four business verticals
Vertical market
A vertical market is a group of similar businesses and customers that engage in trade based on specific and specialized needs. Often, participants in a vertical market are very limited to a subset of a larger industry...

. The chief operating officer
Chief operating officer
A Chief Operating Officer or Director of Operations can be one of the highest-ranking executives in an organization and comprises part of the "C-Suite"...

 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
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

PeopleSupport's corporate headquarters was relocated from Suite 1250, Westwood Center, 1100 Glendon Avenue, Los Angeles, California, in 2008, leasing approximately 11000 square feet (1,021.9 m²). to Suite 300, Century Plaza, 2049 Century Park East, Los Angeles, California.

Two other production centers exist in southern California totaling approximately 15000 square feet (1,393.5 m²). PeopleSupport also leases three data centers located throughout the western United States totaling approximately 1000 square feet (92.9 m²).

PeopleSupport Costa Rica
Costa Rica
Costa Rica , officially the Republic of Costa Rica is a multilingual, multiethnic and multicultural country in Central America, bordered by Nicaragua to the north, Panama to the southeast, the Pacific Ocean to the west and the Caribbean Sea to the east....

In February 2006, PeopleSupport signed two leases in Costa Rica totaling approximately 35000 square feet (3,251.6 m²) and could initially support up to 500 seats. 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
Philippines
The Philippines , officially known as the Republic of the Philippines , is a country in Southeast Asia in the western Pacific Ocean. To its north across the Luzon Strait lies Taiwan. West across the South China Sea sits Vietnam...

PeopleSupport has eight facilities in the Philippines. The largest is PeopleSupport Center, spanning approximately 162000 square feet (15,050.3 m²). The other seven facilities, totaling approximately 255000 square feet (23,690.3 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
Ayala Avenue
Ayala Avenue is an avenue in Makati City in the Philippines. It is one of the busiest thoroughfares in Metro Manila, crossing through the heart of Makati's central business district. Because of the many businesses located on the avenue, Ayala Avenue is aptly nicknamed the Wall Street of the...

 corner Senator Gil Puyat Avenue, Makati City
Makati City
The City of Makati is one of the 17 cities that make up Metro Manila, one of the most populous metropolitan areas in the world. Makati is the financial center of the Philippines and one of the major financial, commercial and economic hubs in Asia...

, Metro Manila
Metro Manila
Metropolitan Manila , the National Capital Region , or simply Metro Manila, is the metropolitan region encompassing the City of Manila and its surrounding areas in the Philippines...

.

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
Leasing
Leasing is a process by which a firm can obtain the use of a certain fixed assets for which it must pay a series of contractual, periodic, tax deductible payments....

 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 workstation
Workstation
A workstation is a high-end microcomputer designed for technical or scientific applications. Intended primarily to be used by one person at a time, they are commonly connected to a local area network and run multi-user operating systems...

s for operations, management, and support staff.

The PeopleSupport Center offers a 24/7
24/7
24/7 is an abbreviation which stands for "24 hours a day, 7 days a week", usually referring to a business or service available at all times without interruption...

 network operations center, IT
Information technology
Information technology is the acquisition, processing, storage and dissemination of vocal, pictorial, textual and numerical information by a microelectronics-based combination of computing and telecommunications...

 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
Fast food
Fast food is the term given to food that can be prepared and served very quickly. While any meal with low preparation time can be considered to be fast food, typically the term refers to food sold in a restaurant or store with preheated or precooked ingredients, and served to the customer in a...

 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
SM Prime Holdings
SM Prime Holdings, Inc. or SM Prime is the parent company of the SM Group's shopping malls. It is the largest shopping mall and retail operator in the Philippines...

 Fiesta Strip Building, Harrison Road, Baguio City, and is currently holding three accounts with more than 750 employees involving strike representatives.

Cebu

PeopleSupport opened its second facility in Cebu City
Cebu City
The City of Cebu is the capital city of Cebu and is the second largest city in the Philippines, the second most significant metropolitan centre in the Philippines and known as the oldest settlement established by the Spaniards in the country.The city is located on the eastern shore of Cebu and was...

 on October 13, 2003. 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
Recruitment
Recruitment refers to the process of attracting, screening, and selecting qualified people for a job. For some components of the recruitment process, mid- and large-size organizations often retain professional recruiters or outsource some of the process to recruitment agencies.The recruitment...

 center in Davao City
Davao City
The City of Davao is the largest city in the island of Mindanao in the Philippines. Its international airport and seaports are among the busiest cargo hubs in the Philippines....

 on March 6, 2006, tapping the southern Philippine workforce for deployment in Manila and Cebu. 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.

Current executives

  • Lance Rosenzweig, founder
    Entrepreneur
    An entrepreneur is an owner or manager of a business enterprise who makes money through risk and initiative.The term was originally a loanword from French and was first defined by the Irish-French economist Richard Cantillon. Entrepreneur in English is a term applied to a person who is willing to...

    , chairman, and chief executive officer
    Chief executive officer
    A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...

  • Richard Bledsoe, chief operating officer
    Chief operating officer
    A Chief Operating Officer or Director of Operations can be one of the highest-ranking executives in an organization and comprises part of the "C-Suite"...

  • Caroline Rook, chief financial officer
    Chief financial officer
    The chief financial officer or Chief financial and operating officer is a corporate officer primarily responsible for managing the financial risks of the corporation. This officer is also responsible for financial planning and record-keeping, as well as financial reporting to higher management...

  • 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 affairs
  • Jennifer Sherry, vice president for human resources

Recognition and awards


See also

  • Business process outsourcing
    Business process outsourcing
    Business process outsourcing is a subset of outsourcing that involves the contracting of the operations and responsibilities of specific business functions to a third-party service provider. Originally, this was associated with manufacturing firms, such as Coca Cola that outsourced large segments...

  • Business process outsourcing in the Philippines
    Business process outsourcing in the Philippines
    Business process outsourcing or BPO is an emerging industry in the Philippines.-Overview:The business process outsourcing industry in the Philippines has grown 46% annually since 2006. This boom is led by demand for offshore call centers...

  • Call center
    Call centre
    A call centre or call center is a centralised office used for the purpose of receiving and transmitting a large volume of requests by telephone. A call centre is operated by a company to administer incoming product support or information inquiries from consumers. Outgoing calls for telemarketing,...

  • Call center industry in the Philippines
    Call center industry in the Philippines
    Call centers began in the Philippines as plain providers of email response and managing services, these have industrial capabilities for almost all types of customer relations, ranging from travel services, technical support, education, customer care, financial services, and online business to...

  • Offshore outsourcing
    Offshore outsourcing
    Offshore outsourcing is the practice of hiring an external organization to perform some business functions in a country other than the one where the products or services are actually developed or manufactured. It can be contrasted with offshoring, in which the functions are performed in a foreign...


External links

Official website
Business data
  • PeopleSupport, Inc. at Businessweek
    BusinessWeek
    Bloomberg Businessweek, commonly and formerly known as BusinessWeek, is a weekly business magazine published by Bloomberg L.P. It is currently headquartered in New York City.- History :...

  • PeopleSupport, Inc. at Google Finance
    Google Finance
    Google Finance is a website launched on March 21, 2006 by Google. The service features business and enterprise headlines for many corporations including their financial decisions and major news events. Stock information is available, as are Adobe Flash-based stock price charts which contain marks...

  • PeopleSupport, Inc. at NASDAQ
    NASDAQ
    The NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations". It is the second-largest stock exchange by market capitalization in the world, after the New York Stock Exchange. As of...

  • PeopleSupport, Inc. at Reuters
    Reuters
    Reuters is a news agency headquartered in New York City. Until 2008 the Reuters news agency formed part of a British independent company, Reuters Group plc, which was also a provider of financial market data...

  • PeopleSupport, Inc. at Yahoo! Finance
    Yahoo!
    Yahoo! Inc. is an American multinational internet corporation headquartered in Sunnyvale, California, United States. The company is perhaps best known for its web portal, search engine , Yahoo! Directory, Yahoo! Mail, Yahoo! News, Yahoo! Groups, Yahoo! Answers, advertising, online mapping ,...

  • PeopleSupport, Inc. SEC filings at EDGAR Online
    EDGAR
    EDGAR, the Electronic Data-Gathering, Analysis, and Retrieval system, performs automated collection, validation, indexing, acceptance, and forwarding of submissions by companies and others who are required by law to file forms with the U.S. Securities and Exchange Commission...

  • PeopleSupport, Inc. SEC filings at the United States Securities and Exchange Commission
    United States Securities and Exchange Commission
    The U.S. Securities and Exchange Commission is a federal agency which holds primary responsibility for enforcing the federal securities laws and regulating the securities industry, the nation's stock and options exchanges, and other electronic securities markets in the United States...

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
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