Central New Zealand Contact Centre and Business
Transcription
Central New Zealand Contact Centre and Business
Central New Zealand Contact Centre and Business Process Outsourcing Contents Key benefits Locate in Central New Zealand Key statistics for Central New Zealand Why New Zealand? 4 5 6 8 Appendix 16 Hawke’s Bay Manawatu Wellington 18 20 22 Need more information? 24 Contents | 3 Key benefits Significant cost savings For a 200 seat contact centre: Time zone advantages Australia 28% UK 25% Savings of AUD $4.075m per annum or savings over 10 years of AUD $40.754m are forecast. Savings of £1.711m sterling per annum or savings over 10 years of £17.111m sterling are forecast. Provide opportunities for extended services. Outsourced solutions can provide 24 hour service and flexibility. Cultural similarity and English speaking Central New Zealand can offer significant cost savings of 25% vs the UK and 28% vs Australia with improved customer service. Better service levels and greater customer satisfaction. High quality workforce, skilled labour and low attrition rates Reduced staff turnover, recruitment and training costs, higher performing employees and improved productivity. World class infrastructure Simple tax system Reliable and efficient transportation, fibre telecommunications and electricity networks. Less tax paid and administration relatively simple. Liberal labour laws Cost effective management and remuneration of staff. Contingency planning Disruption can be minimised in the event of outages or a disaster. 4 | Key benefits Small number of seats to large, outsourced or in-house Opportunities to trial new programmes such as 24 hour cover overflow calls, authorised calling and social media response to increase your service levels. Locate in Central New Zealand 35mins Palmerston North Central New Zealand is the home of many ‘greats’, the great All Blacks, the Hurricanes, world class wines, scenery and the producers of award-winning movies such as Lord of the Rings. The region, which incorporates the cities of Palmerston North, Hastings and Wellington is also a great place to locate contact centre and business process outsourcing operations. 3 35mins Hastings 55mins Wellington n In addition to key New Zealand advantages, Central New Zealand has unique advantages in terms of locating BPO or call centre operations, and local authorities that support new business. The region has a population of close to one million and an international airport in Wellington. 2 hrs Wellington Palmerston North 2 hrs Hastings 4 hrs 4 hrs 2 hrs 2 hrs Locate in Central New Zealand | 5 Key statistics for Central New Zealand NZ$ NZ$ billion per capita 48.4 8 GDP value 2015 48,889 8 GDP per capita 2015 (regional average) NZ$ 8 0,825 80,825 Total regional population Census 2013 NZ$ 845,166 per household people Average household income 2015 vs. national average of $93,880 18.7 7% Combined regions of Manawatu, Hawke’s Bay and Wellington. * For all people over 15 years old, the national figure is $28,500 qualified Tertiary qualifications of region (regional average) Census 2013 NZ$ 27,933 27 7 median income Regional average 2015* Source: Statistics NZ 6 | Key statistics for Central New Zealand *For all people over 15 years old, the national figure is $28,500 High quality, affordable workforce (USD/NZD exchange rate of 1.46) Source: Colliers 1Q 2016 Research The cities in this region have a high quality, available and educated workforce traversing all age groups and backgrounds. Large tertiary institutions and private education providers specialising in ICT and other growth industries provide a highly educated workforce and pipeline of future labour. More affordable commercial real estate options $185.17 $140.99 $92.27 $76.22 A regional labour force is often a more affordable option and has lower staff turnover rates. $65.40 $60.34 Outsourced or in-house options $60.00 $55.51 $54.99 Central New Zealand offers options for contact centres and business process outsourcing, including in-house operations. There are also many excellent outsource providers in the region, from small and boutique to large, who offer unique and bespoke services to a variety of clients. Size in this instance doesn’t matter. $52.86 $50.40 $39.29 $31.63 7.3 $26.42 Da OECD life satisfaction score $23.19 $16.54 g is i fe ra e $14.31 sc ve ale O EC Central New Zealand residents generally have a great quality of life. The region has a moderate climate, affordable houses and access to great beaches and forest parks. There are fewer transportation issues compared to other major cities, where congestion is a problem. For employers this results in happier employees, better staff retention and lower staff turnover than other parts of New Zealand. $27.64 0 -1 0 Quality of life and labour retention 6.6 -g e n era l s atis f a c w tio n it h l Key statistics for Central New Zealand | 7 Why New Zealand? 1. Safe political and economic environment $ Transparency International in 2015 named New Zealand the 4th least corrupt nation in the world The Heritage Foundation Index of Economic Freedom ranked New Zealand 3rd in 2015, behind Hong Kong and Singapore 2015 Global Peace Index ranked New Zealand as the 4th most peaceful country in the world NZ is ranked 16th for global competitiveness in the 2015-16 World Economic Forum Global Competitiveness Report New Zealand is recognised globally as being a safe place to invest and do business. New Zealand has a mixed economy which operates on free market principles and a democratic parliamentary government. It has sizeable manufacturing and service sectors which complement a highly efficient agricultural sector. New Zealand has pro-competitive regulation, a network of bilateral and multilateral Free Trade Agreements that offer enormous benefits for exporters and a stable and internationally competitive economy. New Zealand welcomes foreign business and investment and the Government is proactive in providing an environment that enables investors and business to relocate and or collaborate with New Zealand companies. 8 | Why New Zealand? NZ$ 93,880 93 NZ$ 53,496 53 Average household income Year ending June 2015 GDP per capita December 2015 2. Economic overview 0.1 1 inflation infla fl 4.65 5 % million rate Population December 2015 5.3 % Unemployment December 2015 quarter 30.43 % Public debt/GDP December 2015 January 2016 2.3 % GDP Growth rate January 2016 Source: Statistics NZ and OECD 2016 Why New Zealand? | 9 1st in the world for ease of starting a business (World Bank) ‘Doing Business’ 3. Great business environment 2nd in Forbes’ ‘Best Country for Business’ report, just behind Denmark (December 2015) New Zealand is consistently ranked highly by the World Bank as an easy place to start a business and an easy country to do business. Extensive deregulation over several decades has reduced many regulatory burdens and created one of the world’s most efficient, competition-friendly business environments. There are few restrictions on establishing, owning and operating a business here. In fact, by using the Government’s online portals the official paperwork to set up a business can be completed in a matter of hours. 2nd in the world for ease of doing business (World Bank) ‘Doing Business’ 2016 4th in the world for attractiveness to foreign investors Milkin Institute ‘Global Opportunity Index’ 2015 10 | Why New Zealand? SAVE SAVE 25.19% 28.92% NZ$ 50,297 NZ$ 67,233 NZ$ 70,763 AU$ 45,412 AU$ 60,703 AU$ 63,891 US$ 34,083 US$ 45,559 US$ 47,951 GB₤ 24,249 4 49 GB₤ 32,414 3 4 4 GB₤ 34 34,116 4. Cost of doing business – operating costs As an example, New Zealand offers a cost saving of 28.92% on average on total costs per annum for a 200 person Contact Centre vs Australia or 25.19% vs the UK. Source: NZTE 2016 Right: New Zealand’s annual cost saving per seat per annum compared with other major markets. Why New Zealand? | 11 Source: NZTE 2016 New Zealand has relatively low business operating costs compared to other developed countries. Its labour costs are extremely competitive. 5. Simple tax system New Zealand has a straightforward, business-friendly, low-compliance taxation system that supports capital development, research and development (R&D) and international investment. New Zealand has a recoverable Goods and Services (GST) tax (similar to VAT), and tax-deductible business expenses (including R&D) and depreciation. Corporate income tax rate is 28% No payroll tax Staff opt-in superannuation rate of only 3% No capital gains tax No healthcare tax apart from minimal accident compensation tax 12 | Why New Zealand? High-capacity submarine fibre-optic e-optic cables such as the Southern Cross Cable connect New Zealand digitally. 6. World class infrastructure New Zealand is a strongly trade-oriented society that has developed sophisticated infrastructure and policies to support companies that do business internationally. Large investments have been made in the electricity transmission network, the roll out of ultra-fast broadband and major transport projects including the roads of national significance. New Zealand is well connected by efficient technology and logistics. Internationally, New Zealand connects to the world through high-capacity submarine fibre-optic cables, efficient ports, international airports serviced by a wide range of global airline services. Source: submarinecablemap.com 8. New Zealand’s positive economic outlook New Zealand’s economic growth has been faster than most other developed countries in recent years. The OECD commented in 2015 that: “inflation and inflation expectations are well anchored... Strong fiscal monetary policy frameworks and a healthy financial sector have yielded macroeconomic stability, underpinning growth. Employment is high, in large part thanks to flexible labour markets and ample immigration, business investment is robust and households and firms are optimistic.” 7. Sophisticated telecommunications New Zealand’s telecommunications infrastructure includes international broadband submarine cable systems and competitive onshore mobile networks. The Southern Cross cable alone delivers 240 Gbit/s of fully-protected bandwidth to the United States mainland, Hawaii, Australia and Fiji. As demand increases capacity can be doubled to 480Gbit/s. Soon New Zealand’s data capacity will be further doubled with a new Trans Pacific cable. The New Zealand Government has initiated a $1.5 billion programme to deliver fibre broadband capacity throughout much of New Zealand. 4G mobile networks are operating in New Zealand’s main centres including Hastings, Wellington and Palmerston North. 9. Accessibility Direct flights to New Zealand are available from many international destinations and domestic airports make the country very accessible. Depending where you are coming from, you can fly directly to Auckland or Wellington in the North Island. Driving between cities is very easy with a modern roading network. Why New Zealand? | 13 64.8% 10. High quality workforce New Zealand is a developed nation with a motivated, creative and skilled workforce. We have leading educational institutions, and a well-educated workforce. 40% of the workforce holds a tertiary qualification compared to the OECD average of 30%1. English is the main language and around 17 percent of New Zealanders speak two or more languages such as Mandarin, Hindi and Korean. New Zealanders are known for being open and friendly people with a good work ethic and a can-do attitude. Generally New Zealand has low attrition rates and has great cultural affinity to Australia and other English speaking countries. In addition there is greater labour flexibility than in Australia where the workforce is more unionised. 1 Source: OECD Economic Survey 2015. Labour force participation rate measures the proportion of the working-age population that is in the labour force. 2 14 | Why New Zealand? 68.4% orce Labour fo force participation n rate* Employmentt rate e Unemploymentt rate e 5.3% Employment at a glance (seasonally adjusted) Dec 2015 quarter Statistics NZ Feb 2016 Northern Hemisphere customers. New Zealand is 2-4 hours ahead of Australia depending on daylight savings. New Zealand is geographically ideally positioned to give a time zone advantage. It is 12 hours ahead of Greenwich Mean Time (GMT) so is perfectly positioned to service night requirements for 11. Follow the sun Los Angeles New York Beijing London 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 YESTERDAY | TODAY 2 3 Sydney Melbourne Brisbane 4 5 6 7 8 New Zealand 9 12. Ease of employment New Zealand has some of the most flexible employment legislation. Trial period Employers can make an offer of employment that includes a trial period of up to 90 days (subject to criteria). Deductions PAYE (Pay As You Earn) is the basic income tax taken out of an employee’s wages whenever they are paid. PAYE includes an accident compensation levy. Superannuation (KiwiSaver) The existing scheme is voluntary for employees. If an employee chooses to opt-in then an employer is required to contribute 3% of their gross salary or wages to their KiwiSaver account or complying fund. Holidays At the end of each year of employment with a company, an employee becomes entitled to four weeks paid annual holiday. Employees are also entitled to 11 paid public holidays, if they are days the employee would normally work. Parental leave Employees may be eligible for paid and unpaid parental leave if they meet certain criteria. Government, not employers, funds the paid leave. Unions There is greater labour flexibility than in Australia where the workforce is more unionised. Every employee must have a written employment agreement, either individual or collective (through a union). Employees have the right to decide whether to join a union and if so, which union. Sick leave Employees are entitled to five days paid sick leave annually (after 6 months employment). Why New Zealand? | 15 Appendix Cost comparison for a 200 person shared services operation Labour New Zealand average Salary GBP Salary AUD Business Unit Manager 65,537 135,347 Customer Service Rep 30,365 62,710 Customer Services Manager 75,556 156,038 4 Facilities/Office Services Specialist 35,933 74,208 1 102,210 211,083 Head Of Customer Services Staff UK average Cost AUD Salary GBP Salary AUD 2 270,694 77,369 159,782 20 1,254,210 31,671 65,408 624,152 89,197 184,209 74,208 40,687 84,026 2 422,166 131,963 Australia average Staff Cost AUD Salary GBP Salary AUD Staff Cost AUD 2 319,565 90,683 187,278 2 374,555 20 1,308,155 41,627 85,967 20 1,719,348 4 736,836 104,546 215,908 4 863,630 1 84,026 49,259 101,730 1 101,730 272,530 2 545,060 141,426 292,073 2 584,145 Help Desk Controller/Team Leader 28,583 59,029 2 118,059 29,812 61,568 2 123,137 39,183 80,921 2 161,842 It Support Assistant 22,281 46,014 1 46,014 22,462 46,388 1 46,388 30,235 62,441 1 62,441 It User Support Analyst 32,784 67,706 1 67,706 39,645 81,875 1 81,875 44,943 92,817 1 92,817 104,925 216,691 3 650,074 135,469 279,771 3 839,312 145,183 299,833 3 899,498 161,769 Project Manager Receptionist 19,242 39,738 3 119,213 20,789 42,934 3 128,801 26,110 53,923 3 Technology Engineering Specialist 40,687 84,027 1 84,027 46,070 95,144 1 95,144 55,776 115,189 1 115,189 15,011 31,000 80 2,480,018 17,818 36,798 80 2,943,813 20,444 42,221 80 3,377,688 16,060 33,167 80 2,653,397 18,936 39,106 80 3,128,460 21,793 45,007 80 3,600,542 200 8,863,938 200 10,380,572 200 12,115,195 Telesales - Inbound Telesales - Outbound Total labour costs Total labour costs plus payroll tax (4.75%) Overhead costs 8,863,938 10,380,572 Units Units AUD Staff Cost Units Office area per person (1,500 sqm) 319 659 200 988,109 Electricity (KwHr) 192 397 200 79,457 Telecommunication ($/min) 205 422 200 84,493 Total overhead costs Total costs 12,690,666 Units AUD Staff Cost Units Units AUD Staff Cost 884 1,826 200 2,738,703 511 1,056 200 211,220 351 724 200 1,086,106 674 1,392 200 140 290 200 57,969 88 278,433 181 200 36,150 1,152,059 3,007,893 1,400,689 10,015,997 13,388,465 14,091,356 Annual cost per seat p.a 200 50,080 200 66,942 200 70,457 Average property cost per seat 200 4,941 200 13,694 200 5,431 Average telecommunication cost per seat 200 422 200 290 200 181 Average electricity costs per seat 200 397 200 1,056 200 1,392 Cost savings compared with UK: 25.19% Cost savings compared with Australia: 28.92% Appendix | 17 Hawke’s Bay Hawke’s Bay is located on the East Coast of the Lower North Island. The major urban areas in the Bay are centred around the cities of Hastings and Napier, which are just 20 km apart. The local Eastern Institute of Technology provides tailored training and a steady stream of graduates looking for employment opportunities. Hawke’s Bay’s ready supply of skilled labour, commercial property and very low commercial rental costs make it a very attractive place for international firms to establish, or relocate their office. Its desirable climate and lifestyle make it easy to attract and retain staff. Hastings is fast becoming the region’s favoured call centre location. Kiwibank is a large New Zealand owned bank who recently decided to locate a regional office in Hastings. One hundred staff are employed in 18 | Hawke’s Bay the bank’s new regional office. The new office performs back office tasks including mortgage and settlements, and a call centre function. Kiwibank chose to locate in Hastings for a number of reasons including cost (more economical than expanding in Auckland), a desirable location for staff to live and work, and to provide an alternative site for disaster recovery. Other companies located in the region are ABB (Switzerland), BayWa (Germany), Oji Holdings (Japan) and Pernod Ricard (France). Getting there Hawke’s Bay’s airport in Napier is located approximately 20 minutes’ drive from Hastings. Air New Zealand and Jetstar provide frequent daily direct services to Auckland and Wellington. The economy Hawke’s Bay is a major contributor to New Zealand’s horticulture sector and is the largest viticulture area in New Zealand. These sectors are forecast to grow significantly. Investment in infrastructure, particularly the installation of fibre optic communication technology, has opened the doors for many different types of companies looking for a new location. New and diverse businesses are growing up around the region’s traditional strength of primary production. There is a robust environment of innovation, research, development and creativity. The growth in commerce means there is a network of professional services clustered in the region. Case studies Kiwibank Richard Wiley, Hastings-based Service Excellence Manager for Kiwibank, says “I jumped at the opportunity to move to Hastings in Hawke’s Bay when Kiwibank chose to set up a second contact centre. The lifestyle here is wonderful. “We employ over 100 staff across the site and as the Service Excellence Manager, I have been impressed with the high quality of candidates available for a variety of roles we have recruited for – a wide crosssection of people from customer service professionals wanting to grow their career to those returning to the workforce. In a nutshell, Hastings in Hawke’s Bay was an excellent choice for Kiwibank!” PLP Group Hastings The PLP Group in South Africa, a leading edge and innovative contact centre operator, established an operation in Hastings (PLPNZ) to provide cost effective contact centre services and other BPO activities. PLPNZ provides clients with access to innovative value added initiatives that are not readily available in New Zealand. For example PLPNZ provide local company Mr Apple with an outsourced absenteeism call line service which covers operations over six locations, running both day and night shifts for approximately 600 employees. Jan Flowers, Chief Operations Officer for Mr Apple says “the impact on our business since engaging their services is widespread and outstanding. Our absenteeism levels have reduced by an estimated 50% and this has positively affected efficiencies across many aspects of our operations. “PLPNZ provide personable service and innovative solutions. Their ability to adapt and respond to our changing needs at times is commendable. They provide us with an outstanding service, which has had an impact on our overall business operations in such a short time.” Hawke’s Bay | 19 Manawatu Palmerston North is located in the Manawatu on the southwest coast of the Lower North Island, 140 km north of Wellington. Palmerston North has a ready supply of skilled labour, commercial property availability and very low commercial rental costs. Manawatu has an ideal workforce profile for contact centre work, including a university student population of 8,000 and partners of defence force staff wanting to work flexible hours. There is also excellent telecommunications infrastructure through a Telecom hub, ultrafast broadband with ample data and good choice of Telco providers. Manawatu positioned itself as a centre of excellence for contact centres and has formed a large 20 | Manawatu Contact Centre Cluster with 23 companies and approximately 1200 staff. Members include Toyota NZ, Contact Energy, State Insurance and the nine government contact centres in the region. Cluster members collaborate on a number of initiatives including an award programme. There are also a number of outsourcers available. Getting there Palmerston North Airport is 5 kilometres, or approximately a 10 minute drive from the city centre. The airport has up to 40 scheduled flights per day from all major centres in the country. The economy Manawatu’s traditional economic strengths are in primary production, agricultural research and innovative agritech manufacturing. The region also is a key logistics hub for New Zealand due to its central location and excellent transport infrastructure. Tertiary education, health services and government, including the national defence force, are also key sectors. Case studies Toyota NZ Toyota opened a parts warehouse in Palmerston North in 1977. In 1991 this was expanded to a National Customer Service Centre which included additional service and customer care functions. Toyota now employs around 160 people and occupies more than 20 acres in Palmerston North. Managing Director, Alastair Davis, describes the benefits of locating in Palmerston North. “Land is readily available, operating costs are generally lower than larger centres.” “Staff loyalty is strong as national head office jobs generally are an attractive option in Palmerston North. The city gives a balanced perspective to the pulse of New Zealand.” “It is also an ideal location for conferences and nationwide training as almost all New Zealand locations can get staff into Palmerston North before mid-morning and get them back home to dinner. Regular flights to main centres are an hour or less.” EziBuy Palmerston North EziBuy is a true Australasian success story. The New Zealand mail-order catalogue company has grown into Australasia’s largest multi-channel retailer of apparel and home décor. EziBuy’s Australasian database has now grown to a 1.5 million-strong customer base that generates more than two million orders per year. EziBuy’s customers in Australia now account for more than fifty percent of the company’s revenue, and these customers are very ably serviced from New Zealand. The company has developed a logistics operation involving collaboration between the contact centre, distribution centre and Palmerston North International airport. EziBuy’s 100 contact centre staff work a seven day shift operation. Vicki Nell, Contact Centre Manager, says “the staff in Palmerston North want EziBuy to be a success and are prepared to go further for that to happen. You’d be amazed by their enthusiasm for the company, and their willingness to achieve what’s necessary for the customer’s requests to be met. They’re great to work with, it makes for an enjoyable work life.” Manawatu | 21 Wellington Wellington is located in the centre of New Zealand and is the country’s capital city. It is home to New Zealand’s stock exchange, government departments and offices of numerous banks and corporations. It has three universities, three large tertiary institutes and the most highly educated workforce in the country. Companies such as Datacom, Fujitsu, Call Centres New Zealand, Powershop and ANZ run large call centres in the region. Wellington is also a great place to live and work, has excellent large commercial real estate options, in both urban and regional locations, at globally competitive rates. Wellington is a compact city with a well-developed and highly utilised public transport system 22 | Wellington which makes it easy for people to commute. Other major companies headquartered in Wellington include Contact Energy, The Cooperative Bank, Infratil, Meridian Energy, Weta Digital, Trade Me and Xero. Getting there Wellington’s International and Domestic Airport is 6 kilometres or approximately a 20 minute drive from the city centre. As well as frequent, direct flights to cities in Australia, many domestic locations can also be reached. Wellington is a one hour flight from Auckland. The economy Wellington’s economy is strong with a higher GDP per capita than other major New Zealand cities. More than half of employment in Wellington is based in medium and high-skilled work. Traditionally the economy in Wellington has been highly influenced by the government sector. In recent years, tourism, arts and culture, film, and ICT have played a much larger role in the region. Wellington’s economy is definitely a knowledge-based economy. Case studies ANZ Bank ANZ is the oldest and largest bank in Wellington, having been established in 1840. It is the region’s second-largest employer, (after the Government) with almost 3000 staff in the city. “Wellington is a great place to live and work and we have a strong commitment to the region,” says Chief Operating Officer, Michael Bullock. In 2014, ANZ opened their worldclass shared services hub in Tory St, which houses 1400 people from IT, customer care and data processing teams, including award-winning contact centres servicing customers in both New Zealand and Australia. “The Tory St hub has facilitated more effective collaboration driving productivity and maximising scale for ANZ, allowing staff to concentrate on delivering great customer service.” Datacom Datacom is New Zealand’s largest IT service provider, with revenues of $937 million, a staff of more than 4000, and 25 offices spread across four countries. Wellington Kirsty Hunter, Managing Director Datacom Direct, says “the organisation is headquartered on Wellington’s waterfront and is deeply committed to the region. “The company’s contact centre business, Datacom Connect, is booming, with over 600 employees across Australia and New Zealand. Business process outsourcing, customer experience and contact centre platform technology are what Datacom Connect does best. The business seamlessly handles more than three million multi-channel customer interactions every year. “Datacom’s commitment to service improvement, and its extensive experience in designing, building and operating contemporary customer contact centres, is why some of Australasia’s largest organisations use Datacom.” Wellington | 23 Need more information? Curious about locating your business in Central New Zealand? The following agencies will help you to gain further information to build your business case, make those critical introductions essential to get things moving and assist with access to potential funding assistance. General enquiries Palmerston North New Zealand Trade and Enterprise Phone: +64 29 8168224 Email: nick.dobson@nzte.govt.nz www.nzte.govt.nz/en/invest/ Spearhead Manawatu Phone: +64 21 356499 Email: craig@spearhead.nz. www.manawatunz.co.nz/work-invest/invest/ Hastings Wellington Hastings District Council Phone: +64 21 939593 Email: tonyg@hdc.govt.nz www.greatthingsgrowhere.co.nz Wellington Economic Development Agency Phone: +64 4 3820099 Email: business@growwellington.co.nz www.WellingtonNZ.com/business Disclaimer. The information in this document and any attachment does not constitute professional advice and we are not liable if you act on it. Please seek professional advice before acting on any of this information. The information is correct to our knowledge at the time of publishing May 2016.