Hot Growth Special Report 2006 >



PeopleSupport (PSPT)

Everybody knows about outsourcing technology services to India, but PeopleSupport has found a different source. The Los Angeles-based company keeps the bulk of its workers in the Philippines, where it employs 5,000 college-educated, English-fluent staffers. The company books travel reservations, connects people with Internet access, and provides debt-collection services for large U.S. tech clients such as Expedia and EarthLink. It's a formula that has helped company CEO Lance Rozensweig triple its revenues in the past two years from $19 million to $62 million. Operating at a loss as recently as 2002, the company earned $22 million in 2005. This year PeopleSupport added transcription and captioning services and added a new country, Costa Rica, where its customer-service reps also speak Spanish.

Company Info

2005 Rank


Market Value*
($ Millions)


($ Millions)


Sales Growth
(3-yr. avg. annual)

46.6 %

($ Millions)


Profit Growth
(3-yr. avg. annual)

69.1 %

Return on Inv. Capital (3-yr.)

29.2 %

Share Price
12-Mo. Hi/Lo


Share Price
As of 4/28/06


Return on Equity

26.4 %

P/E Ratio


No. of Employees


Industry Office Services & Supplies


Location Los Angeles
Phone 310 824-6200
*Trailing 12 months
Stock price data as of 4/28/06
DATA: Standard & Poor's Compustat

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Company Snapshot

PeopleSupport provides business process outsourcing services. It provides inbound customer management services, including handling calls and e-mails from clients' customers to order goods and services, making and changing travel reservations, addressing billing questions, submitting warranty claims, and obtaining technical support. The company also offers accounts receivable management services to collect overdue consumer receivables from U.S. debtors. In addition, it offers transcription and captioning services for insurance, entertainment, education, law enforcement, and health-care markets. The company serves customer management and accounts receivable management clients in travel and hospitality, technology, telecommunications, retail, consumer products, and financial services industries based in the U.S.. PeopleSupport was founded by David Nash and Lance Rosenzweig in 1998. The company is headquartered in Los Angeles.

Data provided by Capital IQ
Lance Rosenzweig

Lance Rosenzweig, 43

Chairman, Chief Executive Officer and President

Total Compensation*

$ 563,415

Total Options Value*

$ 585,043

* Fiscal Year 2005

Northwestern University - BS, J.L. Kellogg School of Management, Northwestern University - MBA

Executive Bio

Lance Rosenzweig has been chairman of the board and director of PeopleSupport since 1998. Rosenzweig also has been chief executive officer and secretary of PeopleSupport since 2002 and serves as its president. Prior to joining PeopleSupport, Rosenzweig from 1993 to 1997 was a founder and served as chairman and president of Newcastle Group, a privately held plastics manufacturing company. In 1993, Rosenzweig helped found Unisite, a privately held wireless cell site management company, acquired by American Tower in 2000 for more than $200 million. Prior to 1993, Rosenzweig was a divisional vice-president at GE Capital, a vice-president in the investment banking group of Dean Witter (now Morgan Stanley), and a corporate planning manager of Jefferson Smurfit Group, a multinational packaging company. Rosenzweig has 16 years of executive leadership experience with startups and established companies. Rosenzweig has an MBA from Northwestern University's Kellogg School of Management and a BS in industrial engineering, with Tau Beta Pi honors, from Northwestern University.

Management Team

Key Executives

Lance Rosenzweig; Caroline Rook; Rainerio Borja; George Hines; Rowena Ricafrente

Board Directors

Lance Rosenzweig; George H. Ellis; Michael Edell; C. Larry Bradford; Adam Berger; Joseph Alan Rose; Frank Perna

Executive Data provided by Capital IQ