PHILIPPINES FIRM BUYS PHASE2
eTelecare vows to create 500 jobs for U.S. workers

Erica Sagon
The Arizona Republic, June 2004

The leading call center company in the Philippines has bought Scottsdale's Phase 2 Solutions, but it promises to create 500 jobs in the United States, bucking the industry trend to move jobs overseas.

Many domestic call centers are shrinking, but eTelecare International saw Phase 2 Solutions as a growing company with clients clamoring for cheaper services overseas, said Derek Holley, eTelecare president.

The acquisition will "take the discussion of location out of our sales pitch," Holley said. Clients will have a choice among domestic, offshore or a combination of services, which has been one of Phase 2 Solutions' recent initiatives.

"We've been looking for ways to grow our business. We've been seeking strategic partners that would help us create some global presence," said Dave Ammons, Phase 2's vice president of administration and resources.

"To be further more competitive, we need to understand how we can offer our clients . . . blended pricing solutions."

The deal closed May 26 for an undisclosed amount. Holley said the company will add another domestic center to accommodate 500 new employees within 18 months at an undecided location.

For now, Phase 2's brand and clients in the telecommunications and cable industries will remain, but the umbrella of services will expand to include eTelecare's expertise in financial services, technology, and travel and leisure.

"We really don't anticipate much change at all," Ammons said, and the company is ready to provide offshore services.

The sale boosts eTelecare to the largest independent Asia-based call center, with projected revenues of $125 million in 2004. The company will operate nine centers in the United States and Asia and staff 5,500 people.

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