Technology, New Service Models, Vertical Expansion to Drive BPO

StarTek CEO and President Identifies Three Outsourcing Mega-Trends
MANILA, Philippines--(Business Wire)--
Technology, not only the search for talent, is emerging as one of three
megatrends that will change the character of the business process outsourcing
(BPO) industry, according to StarTek CEO and President Larry Jones. Suggesting
that "agents will be turbocharged on technology," Jones envisions services
delivery through multiple emerging technologies including social networking.

In recent years, BPO services providers have built service centers around the
world, often in emerging nations, that provide a plentiful supply of educated
but low-cost workers. While talent availability will remain an important concern
for the industry, according to Jones, new communications technologies are likely
to relieve some pressure on services providers to leverage far-flung, low-cost
labor markets.

Jones made his forecast in remarks delivered at the International Outsourcing
Summit: Global Market Leaders Addressing Global Issues (IOS) last month.
Industry luminaries from the United States, China, Malaysia, Canada, India,
Australia, Europe, Singapore, and South Africa attended the Summit, and many
participated as speakers for the influential meeting held in the world`s
second-largest offshore outsourcing center, after India.

Two other megatrends - the increasing popularity of "at home agents" and new
vertical growth - are also likely to have significant impact on the nature of
BPO services delivery, according to Jones. Virtual contact centers staffed by
part-time agents working at home and connected by high-speed portals will lessen
the need to recruit large numbers of agents in one locale. "They can be
anywhere," Jones said.

Jones said that the BPO industry has traditionally and primarily relied on
demand from just three industries: telecom, finance, and retail. He predicted
that pharmaceuticals, biotech, utilities, clean technology, organic food, and
healthcare will emerge as new sources of revenue as the BPO industry expands,
and demand for value-added services accelerates in the next five years. "These
are global issues, and the BPO industry will find huge opportunity here," he
said.

Technology advances will find BPOs providing truly "friendly technology" for
self-help, enabling clients to address their concerns quickly. When human
interface is necessary, voice assistance is increasingly being supplemented by
e-mail and chat. Social networking, Jones said, is a powerful, emerging tool for
building customer care communities that incorporate client interface in
addressing other client issues. Jones also believes that technology-driven
analytics providing better insight to customers, markets, operations, and sales
is becoming a sought-after service as companies seek to build strategic
partnerships with their customers.

At home agents are already a "hot" strategy for services providers in developed
markets, although connectivity issues in offshore locations such as India and
the Philippines make reliance on at home agents less feasible. Still, Jones
believes that recruiting and training at home agents can and will take place
without applicants ever setting foot in their employers` offices, aside from
performing the work they are hired to do.

Vertical growth, Jones said, could dramatically increase the size of the
addressable BPO market, estimated at between $150-250 billion by industry
analysts.

Jones also said the Philippines can benefit from the technology-driven and
vertical growth megatrends. "The Philippines is already considered the top
offshore outsourcing location for customer care; however, for the country to
catch up with other locations for higher value-added services, the Philippines
must address challenges in the development of talent that have the technical
skills to maximize the use of next-generation technology," he said.

About StarTek

StarTek, Inc. (NYSE: SRT) is a high quality business process outsourcing (BPO)
company dedicated to service. For over 20 years, the company has been committed
to serving the needs of its clients and their customers. StarTek helps its
clients manage the customer experience across the customer life cycle, resulting
in improved customer retention, increased revenue, and greater cost
efficiencies. Its comprehensive suite of solutions includes sales, order
management and provisioning, customer care, technical support, receivables
management, and retention programs. The company also offers clients a variety of
multi-channel customer interaction capabilities including voice, chat, email,
and back-office support. Headquartered in Denver, Colorado, StarTek offers 20
delivery centers located in the Philippines, Costa Rica, Canada, and the United
States, and provides virtual expansion with its StarTek@Home workforce. For more
information, visit www.StarTek.com or call +1 303 262 4500.

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StarTek
Philippines
Louise Ann Laksamana, +63 917 881 3711
Media Relations, TeamAsia
lolaksamana@teamasia.com
or
United States
Mary Beth Loesch, 303-262-4411
Senior Vice President
mb.loesch@startek.com

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