JUAN IGNACIO SADA

Mexico 2021 | TELECOMS & IT | VIP INTERVIEW

TBY talks to Juan Ignacio Sada, CEO of Teleperformance Nearshore Region, about a changing business model, a 25% growth plan, and the “Cloud Campus.”

What have been the biggest changes to your business model that you have implemented to Teleperformance in Mexico?

We are a public company and entered the CAC 40 at the beginning of 2020. We reached EUR12 billion in market cap, which allowed us to get into the elite group CAC 40. Today, we are positioned at approximately EUR16 billion of market cap with 330,000 employees around the world. We have been offering our services in the market for the past forty years. We offer digital integrated business services, with a One Office model that combines three main offers. The first is front office, and this is a service we provide through 400 contact centers handling and managing interactions with the end users of our corporate clients, which are usually Fortune 500 companies. We provide an omni-channel environment with services such as sales, retention, tech support, and customer service. The second offer is back office, where we analyze and seek opportunities to improve and reduce costs for our clients while leveraging our knowledge in front office. Both for the front-office and for the back-office, we have invested in a team of experts in Technology, Analytics, and Process, providing additional value to our clients using tools such as RPAs, RDAs, chatbots, voice-to-text translators, among many others. We service three markets from Mexico: Mexico, LATAM, and the US. In these markets, some of the verticals were hit heavily due to COVID-19. Tourism is a perfect example, as we have hotel chains and airlines as partners, that have seen a significant impact. We have also seen some other verticals that have been impacted on the positive side. Companies like food delivery and e-retail have grown dramatically. We have seen an upset in our market, with slight impact to our business demand. Some of our competitors failed to migrate their business to a work-from-home environment. This created huge demand for such services, that we capitalized significantly. With this, we expect to close 2020 with double-digit growth in revenue while our bottom line will remain flat. While COVID-19 impacted our profitability, we did not see a drop last year. This is a great story to tell from a financial perspective.

What do you forecast when it comes to revenue and growth for 2020 compared to 2019?

Despite COVID-19, we expect to close 2020 with revenue growth of over 10%. The pandemic did have an impact on our business but there were enough positive elements, to upset those that impacted negatively. At the end our growth versus 2019 was strong, and it allowed us to meet our targets for the year, both on revenue and profitability.

What main added value does Teleperformance offer in Mexico compared to other players in the market?

We are a company that is extremely solid from a financial perspective. We are big, we are growing, we are profitable, and we are extremely innovative. We are seeking change; we are extremely dynamic and agile when talking about change and seeking opportunities. This jump from the front office to the middle and back office is one step, and our efforts in the Work-at-Home environment have also been fantastic. We migrated 18,000 jobs from Contact Centers to a Work-at-Home environment in five weeks, seeking to protect the health of our employees, maintain and protect job security, and ensure business continuity for our clients. We are also offering the market: security, dynamism, and agility to protect the businesses of our clients. Today, we are building what we call Cloud Campus Hubs. In Mexico, we are leading the way with the number of Hubs that are being implemented within the Teleperformance world. These are small areas like Contact Centers, though these are specific for coaches, trainers, and middle to high-management leaders of the operation where they can meet, share ideas, and capitalize high-tech tools and equipment in these Hubs to manage people working from home. For example, from one of our hubs in Guadalajara, we manage over 800 people working from home.

What are your main priorities in 2021 to achieve this 25% growth?

Cloud Campus is our main priority. We were offering Cloud Campus since before COVID-19. Our partners were hesitant to move in that direction but had to in the end, and it opened up a window of opportunities for us. Now, our mindset is we cannot operate work from home as if it is a contingency; we have to make this shine in every way with the use of technology, engagement, and processes and thrive in the delivery of the business. We need to prove to our clients now that we can operate better from home than from the Contact Center. The only way to do that is to invest in training, people, and processes as well as technology and innovation. We innovated what we call TP Sentinel in Mexico. It is being deployed worldwide in TP and is a tool that allows us to monitor how our employees are connected from home. We can see what carrier they are using, if they are connected through a wireless network or by cable, we can measure their bandwidth and determine if that works for the program they work for. All these create a great diagnosis to truly understand how we stand from a technology and infrastructure perspective. We will push the carriers so we can have a better network and bandwidth throughout. There are many more things that TP Sentinel can do, but it is a huge innovation. The service was born three months ago and today is in full global deployment, so we are truly pleased and proud about that.