eTelecare buys US-based Phase 2 to become Asia’s largest call center

eTelecare International, a leading call center company in the Philippines, has acquired privately-held Phase 2 Solutions, one of the fastest growing call center companies in the US, and the leading provider of premium customer relationship solutions to the wireless and telecom industries. The combination creates the largest independent call center company based in Asia.

"As a result of this combination, a Philippine company has emerged as a global leader, in a sunrise industry where Filipinos have proven that we can be the best in the world, " said eTelecare chairman Fred Ayala.

"We are combining our companies to provide our clients with an unparalleled range of cost and location options across a wider variety of industries," said eTelecare president-International Jim Franke. "Our clients will now have the choice of onshore, offshore or a blend of the two; whichever solution or continent customers select, they’ll get the same exceptional quality and superior value," he added.

"Offering the best of both worlds, the US and Asia, will give us a distinct advantage over local firms in the Philippines without a strong US capability, and versus US companies that do not have access to Asia’s high quality and cost-effective professionals," said Arizona-based Phase two President Larry Willett.

The combined entity operates nine call centers on two continents, with an employee base of 5,500. Together, the companies generated revenues of approximately $75 million in 2003, and are projected to achieve $125 million in 2004, which will be split about evenly between the US and Asia.

As a result of the rapid growth, staffing levels are expected to increase significantly in both Asia and the US, according to Benedict Hernandez, general manager of eTelecare’s Philippine operations. "We expect to continue hiring at our current rate of approximately 4,000 per year in the Philippines, and will be opening our fourth Philippine call center in Cebu in the fourth quarter."

Attracting Foreign Investment

eTelecare, which was spun off from listed SPI Technologies in late 2003, has attracted investments from leading foreign private equity firms Crimson, AIG and Electra as well as from well-established local investment house Anscor.

According to Ayala, "We have generated strong investor interest from both domestic and foreign investors because of eTelecare’s market leadership position and strong revenue and profit growth, as well as investors’ wide-spread appreciation that the Philippines is one of the fastest growing and highest quality providers of call center services in the world."

The Department of Trade and Industry (DTI) and the Board of Investments (BOI), which have been strongly supporting the local call center industry, estimate that total employment in the industry has grown from virtually zero in 1999 to over 40,000 today, with projected growth of 70 to100 percent per annum.

For more information, please visit eTelecare’s website at www.etelecare.com. For inquiries, please contact Benedict Hernandez at 02-916-5670 or benedict.hernandez@etelecare.com