Li Ka-shing company invests in IPVG

PCCW Limited, Hong Kong’s largest telecommunications enterprise and one of Asia’s leading players in information and communications technology, has partnered with the Philippine-based IP-Contact Center Outsourcing Inc. (IPCCO) for the setting up of call center services in the country.

PCCW is owned by Hong Kong tycoon Li Ka-shing, listed by Forbes magazine as one of the richest men in the world.

Based on the agreement, IPCCO will provide call center services in the Philippines to meet the English-language requirements of PCCW Teleservices’ clients in other parts of the world. PCCW Teleservices is an indirect wholly owned subsidiary of PCC Limited.

The cooperation will establish the first PCCW-branded and certified contact centers in the Philippines.

The project will involve US$30 million to US$40 million investments over a period of three to four years. This will be financed through a combination of debt and equity.

The partnership’s first call center will be located at the RCBC Plaza in Makati City.

IPCCO is a wholly owned subsidiary of IPVG Corp., which has the exclusive rights to publish e-games portal of Terra ICT for the Philippine market.

"I am delighted that we have established this cooperation with IPCCO in the Philippines. Together, PCCW Teleservices and IPCCO will address the English-speaking requirements of PCCW Teleservices’ customers in Asia, North America and Europe, and provide IPCCO with a firm operational business foundation," Tommy Chung, head of PCCW’s Contact Center Business, said.

"We expect this cooperation to win a significant share of the call center market, thanks to the Philippine call center industry knowledge brought to the table by IPCCO’s core management team, plus established international IT infrastructure and support, all combined with PCCW Teleservices’ industry-leading expertise and existing client base," IPVG’s Senior Vice-President Eric Paragas said.

"Our cooperation with PCCW Teleservices is a major milestone for our company and for the Philippines. PCCW Teleservices’ entry here amounts to a vote of confidence for both IPVG and the Philippines as a global hub for Business Process Outsourcing (BPO) and contact center services," IPVG’s chief executive officer Enrique Gonzalez said.

"With such an internationally-respected partner making industry best practice available to us, we see IPCCO evolving into one of the leading BPO providers in the country," he added.

"We’re now laying the foundation for growth. The big leap forward will be in 2008 to 2009," Gonzalez said.

"We didn’t want to be a stand-alone call center. The really big ones or those that have managed to grow their business are those affiliated with multinational companies or those that have a presence abroad. Without PCCW, it wouldn’t have made sense for IPVG to go into the call center business. This strategy is consistent with how we set up our other businesses," Gonzalez said.

PCCW Teleservices is the largest networked call center operator in China and currently runs 11 contact centers in Asia, involving more than 5,000 seats.

PCCW’s award-winning innovation, especially in IP-based business services, new generation fixed line services, broadband pay-TV and Internet-access, has enhanced Hong Kong’s image as a center of technology and business excellence.

PCCW employs approximately 14,000 personnel and has presence in the United States, Europe, South America, Japan, South Korea, Thailand, Malaysia, Singapore, Taiwan, India and the Middle East. Its principal shareholders include Li Ka-Shing and his son, Richard Li. PCCW revenues stood at US$3.2 billion in 2006, while its market capitalization amounted to more than US$4 billion.