JUAN IGNACIO SADA

Mexico 2020 | TELECOMS & IT | INTERVIEW

With change on the horizon, the group plans to transform itself from being a leading global group in customer experience outsource management to one in digitally integrated business services.

Juan Ignacio Sada
BIOGRAPHY

Based in Monterrey, Juan Ignacio Sada leads Teleperformance's nearshore region operations, consisting of over 30,000 employees in Mexico, El Salvador, Costa Rica, the Dominican Republic, and Guatemala. With more than 23 years within the company, Sada holds an MBA from the McDonough School of Business from Georgetown University and an engineering degree from Instituto Tecnológico y de Estudios Superiores de Monterrey (ITESM).

What does the nearshore market represent for Teleperformance?
Locally, the nearshore market represents more than 80% of our revenue and is close to being the highest growing market globally in this sector. The nearshore region represents one of the largest footprints for the group in providing services to the US market. The US market represents just below 50% of the global market. In the Latin American market, Mexico is second after Brazil. Therefore, the domestic market in general is certainly valuable. We tend to seek opportunities through nearshore and offshore solutions because of labor arbitration, which leads to a more profitable service; however, local markets around the globe are also huge for the group. Speaking of the whole group, roughly 57% of our front-office (CEM) services are generated by local markets. Therefore, the Mexican market is extremely relevant, as we see numbers growing there despite a contracted economy. Part of our strategy is smart shoring, combining a wide variety of location offers, so we can better match our clients' needs with our solutions.

What are Mexico's advantages and challenges compared to other competitive countries in the region developing this sector?
Mexico is a huge country compared to other countries in Central America, which is an advantage from a labor availability perspective and thus, an operational scalability perspective. In addition, larger cities such as Mexico City, Monterrey, and Guadalajara are attractive markets for our industry. However, Mexico as a country relies more on other sectors and industries than other countries such as El Salvador, Honduras, and Guatemala, which have all grown in the last five years in our industry because they have payed significant attention in it. All things being equal, there would not be a reason for us or our competitors to invest in Mexico, given the difference in government incentives. We have over 20,000 employees in Mexico, a country with over 20 times the population of El Salvador, and yet, we employ over 5,000 people in San Salvador. This proves how well incentives work to create jobs. The government is not paying attention to addressing the legal or regulatory changes required to make the industry thrive. Some laws are outdated and do not embrace or address digital transformation. Law changes must also consider the present work-at-home environment.

What are your goals and targets for the remainder of 2020?
The number-one priority will be to keep working from home, making it simpler, faster, and safer. Currently, we have more than 20,000 employees working at home in Mexico, Central America, and the Caribbean. In general, 2020 is going to be a tough time, not only because of COVID-19, but also because the GDP is trending downward. From the local market perspective, it will be complicated. But we will continue to provide a premium service. We will focus on increasing our footprint in the back office, as we want to penetrate more of that market. As the economy tightens more, companies will need to make their processes more efficient, so there is an opportunity. We will also deploy assistant technology as much as possible in front office operations. We want to reduce costs for our clients and improve the experience of their customers. Given the pandemic, we are now looking to grow a high single digit in the Mexican market. We are increasing our offering in knowledge solutions such as analytics, showing our commitment to growth in that market. We already leverage our technology in processing and security. Given the amount of cyber attack incidents globally, companies will become more concerned. It is a complicated world from a security perspective. We will also continue our strong focus on our employees' satisfaction and happiness. Our strategy for the next three years is to accelerate our transformation from being a leading global group in customer experience outsource management to a leading global group in digitally integrated business services.