The Value of Home-Based Agents for Government Contact Centers

1. The Value of Home-Based Agents for Government Contact Centers Government Contact Center Council Webinar – January 10, 2013

2. Today’s Speakers Christopher M. Carrington SYKES Enterprises - EVP, Global Delivery • Oversees brick-and-mortar and virtual operations across North America, Latin America, and Asia Pacific Alpine Access – President & CEO • Led the largest employee-based virtual contact center outsourcer prior to its sales to SYKES in August 2012 Ivy McChesney • Internal Revenue Service – Director, Accounts Management Wage & Investment Division • Responsible for providing taxpayers assistance with tax and account-related inquiries via telephone, correspondence, and email • Oversees organization of more than 160 headquarter employees and almost 19,0000 field employees located in 10 campus and 15 remote customer contact centers nationwide Dr. M.J. Willard • National Telecommuting Institute - Executive Director • Founded NTI in 1995 as a 501(c)(3) non-profit organization with the mission to identify and develop work-at-home jobs for disabled Americans • Successfully placed thousands of workers with disabilities into careers with a variety of government agencies and corporations

3. At-home agent Insights

4. SYKES & Alpine Access 14+ Years Of At-Home Industry Experience

5. At-Home Market Commentary What The Experts Are Saying “What we’re seeing is the movement of call center agents away from brick-and-mortar facilities to the suburban home office.” “Pressures [cost, need for talent] are impacting the customer care BPO market, and home agent delivery is one way that providers are addressing these issues.” “The use of at-home agents continues to grow, due to the proven effectiveness of this business model in providing lower cost and high quality contact center services.” “When people ask me what is the next Philippines, my answer to them is work at home agents.” “This [at-home] is a very good model which is why it is growing the way it is.” “The timing seems right to bring some agents back on shore, as the growth in home agents by several outsourcers attracts a better educated pool of workers…” Sources: Various analyst reports

6. At-Home Market Commentary What End Users Are Saying “Today’s consumer demands a heightened level of customer service, and [Hilton] delivers with motivated home-based sales and service professionals.” Russ Olivier Senior Vice President “These home-based agents are showing about a 10 percent increase in productivity…so we’ve seen a real reward from our investment.” Shirland Whipple Director “We embarked on a very successful home based worker solution that has paid off handsomely from both a financial and quality standpoint.” Craig Carr Director Reservations Ops. “We reached this decision…to find ways to increase the efficiency and cost-effectiveness of our consumer-banking operations while giving employees flexible work options.” Janis Tarter Spokeswoman “There is no commute [and] DirecTV gets loyal, hardworking customer representatives [and] an incredibly flexible workforce.” Gary Qualls Vice President “Working from home is a great benefit to our employees…[they] have a reduced commute cost [and] a better jobs-life balance.” Andrew Johnson Spokesperson “Even today, I can’t figure out why more companies don’t do it.” David Neeleman CEO “We will take as many people who can do the home-based servicing work as we can.” Robert Garinger Senior Vice President

7. At-Home Adoption By Government Agencies Over 322,000 U.S. government workers, representing 1.6% of the government workforce, primarily work from home • Highest penetration at the state government level with 2.4% The Number And Percent Of Government Home Workers Has Grown Substantially, Nearly Doubling In The Past Five Years Source: American Community Survey; Home-Based Workers in the United States: 2010

8. At-Home Agents In Government Contact Centers 29% of government contact centers currently use at-home agents Of those that do, 4 out of 10 use at-home agents for >75% of their workforce Government Agencies And Departments Are Expanding Their Use Of At-Home Contact Center Agents Source: US GSA 2011 Federal Contact Center Survey

9. At-Home Agent Key Value Considerations Recruiting unencumbered by geographic constraints Find the best and most appropriate talent, including unique skillsets, security clearances, education requirements, licensure/certifications, languages, etc. Unrestricted Access To High-Quality Talent Example of Improved Hiring Selectivity Example of High Volume Recruiting: # of Yearly Applicants by State for SYKES/Alpine Hire 1-2%

10. At-Home Agent Key Value Considerations Enhanced Security And Data Privacy Through A More Mature And Educated Workforce At-home agent demographics cut crime risk by nearly 2/3 Traditional Agent At-Home Agent Source: FBI Uniform Crime Reports: 2010 Crime in the United States

11. At-Home Agent Key Value Considerations Regardless of where you locate a traditional office, there are inherent and varied BC/DR risks In the at-home model, the geographic diversity of agent locations minimizes the likelihood of widespread disruptions or outages Improved Business Continuity And Disaster Recovery Preparedness

12. At-Home Agent Key Value Considerations Staffing Flexibility And Efficiency To Handle Variable Intraday Contact Volumes

13. At-Home Agent Key Value Considerations Ability to Accommodate Highly Fluctuating Staffing Needs Or Seasonal Patterns Example of Seasonal Staffing: NTI/IRS Actual Headcount For Tax Season 77% reduction 354% expansion

14. Internal Revenue Service Mission: To help taxpayers understand and meet their tax responsibilities by applying tax law with integrity and fairness Call Types • Questions about tax law and responsibilities • Orders for tax forms Volume • Handled31 million live assisted calls and 60 million automated calls (fiscal year 2012) Challenge Increasing demand/volumes for services Finite resources To improve availability to the public An IRS Case Study: Accounts Management, Wage and Investment Division

15. Internal Revenue Service Engaged contractor, National Telecommuting Institute (NTI) for remote agent solution • Separated simple calls for tax forms from complex calls for tax information • Deployed 300 order entry clerks to handle simple tax form calls • Contractor created WebCenter portal to access information and complete all transactions virtually and/or online. The contractor developed a forms ordering system that mirrors the IRS forms ordering system Solution: Deployed Remote Agents

16. Internal Revenue Service Security: • Taxpayer’s information is not retrievable once entered into the WebCenter • Security and Information Protection requirements between IRS, NTI, and SYKES/Alpine Access are covered by an Interconnection Security Agreement and a Memorandum of Understanding • SYKES/Alpine Access has responsibility for all technical infrastructure: Telephone and Form Ordering systems and the WebCenter Solution: Deployed Remote Agents, Continued

17. Internal Revenue Service NTI is required to meet three performance-based targets • 82% Level of Service (weekly) • 180 seconds Average Speed of Answer (weekly) • 96.5% Customer Accuracy (monthly) IRS Centralized Quality Review Staff reviews recorded calls and provides monthly performance results SYKES/Alpine Access also completes internal product and managerial reviews Management of Remote Agents

18. Internal Revenue Service Level of Service performance has exceeded targets for 2009-2012 Average Speed of Answer for 2012 was below 180 seconds Customer Accuracy exceeded targets for 2009-2012 IRS assistors are able to answer more complex tax law and account inquiries, since tax form calls are being handled by order clerks Supports Accounts Management’s demand management strategies Order Entry Clerks are professional and accurate in responding to calls Benefits of Remote Agents – Increased Pool of Available Agents

19. National Telecommuting Institute Non-profit disability organization Specialize in working with people who have physical disabilities such that they need to work from home: • Degenerative joint disease • Epilepsy • Fibromyalgia • MS/MD • Rheumatoid arthritis Federal clients include IRS and 6 VA hospitals Subcontracts on DOL and HHS call center contracts NTI Overview

20. National Telecommuting Institute Tremendous demand for home-based work from people with disabilities • NTI receives 500-1,000 applications per month from all over the country • Many have impressive work histories and credentials prior to becoming disabled, including Masters and Doctoral degrees Clients benefit from high caliber employees and improved tenure • Because these workers NEED to work from home, they show greater loyalty when matched with a reasonable telework job • Example: IRS contract had 64 year-round agents with only two lost through turnover, a 97% retention rate The Benefits of Quality and Tenured Agents

21. National Telecommuting Institute Comparable or better job performance/attrition rates Help your federal agency meet/exceed disability hiring targets (set for each agency) Provide work options for existing employees who become disabled Qualify for flexible and cost-saving procurement options under the Ability One program Assistance provided without charge for agencies interested in exploring use of agents with disabilities If You Go Virtual, Consider Agents With Disabilities

22. Questions?