TeleTech Holdings, a global provider of onshore, and offshore business process outsourcing (BPO) services says it plans to hire up to 400 customer service positions in the next month in Stockton, California. As of December 31, 2008, the Company provided services from nearly 40,000 workstations across 83 call centers in 17 countries. TeleTech has approximately 100 global clients. The Company provides a variety of BPO services for its clients and support approximately 250 different BPO programs.
Teletech will hold a job fair Wednesday, Jan. 27, and Thursday, Jan. 28. TeleTech is hiring for what’s called “Coverage Follow-Up” or CFU. The CFU campaign will be comprised of mostly outbound telemarketing calls to residents to qualify census data. The customer service representatives will be tasked with providing outbound call center support for the 2010 Census. Teletech is looking for agents who are bilingual in English and at least one other language. The company will pay a starting wage of $15.97 per hour including benefits.
Thursday, January 28, 2010
Wednesday, January 27, 2010
Predictable Profitability
BPO Company discusses 2009, 2010
Convergys Corporation outlined part of its 2010 agenda and reviewed 2009 results on a conference call yesterday. Earlier this week, we noted that Convergys plans to reduce its workforce across its operations. The business process outsourcing company said the job cuts were “not a major staff reduction.”
“We are taking difficult but necessary actions to further streamline costs and pursue operating improvements,” said CEO David Dougherty. “This should result in Customer Management margin expansion, double-digit margins in Information Management and HR Management profitability this year.” Dougherty declared "predictable profitability" to be its primary mission in 2010. The company told investors it plans to boost spending on research and development, and increase its salesforce.
For example, Convergys held a job fair on Jan. 13 to hire more than 100 full-time workers for its Lake Mary, Fla., call center.
Convergys provides customer service and sales support to several companies under contracts that are serviced by the Lake Mary call center.
New hires will be provided with training and benefits, including tuition reimbursement, a 401(k) plan option, and unpaid time off.
On the call, the company also announced that for FY 2010, it expects revenue of around $2.6 billion, EBITDA to be in the range of $330-$360 million and earnings per diluted share (EPS) to be in the range of $1.05-$1.20.
Convergys reversed a year-ago loss for its fourth quarter, partly due to restructuring two contracts and initiating a plan to streamline its operations. The company posted fourth-quarter net income of $41.6 million, or 33 cents per share, compared to a net loss of $29.3 million, or 24 cents per share, in the year-ago quarter. Revenues fell to $684.4 million from $703.7 million. Analyst expectations were an EPS of 31 cents, with top-line revenues of $663.7 million.
Convergys said it restructured the second of two global human resources contracts during the quarter, to eliminate future implementation obligations and liability for services that aren’t yet operational.
In 2009, Convergys reported a loss of $77.3 million, or 63 cents per share, compared to a net loss of $92.9 million, or 75 cents per share, in 2008. Revenues increased slightly to $2.83 billion from $2.79 billion.
Convergys Corporation outlined part of its 2010 agenda and reviewed 2009 results on a conference call yesterday. Earlier this week, we noted that Convergys plans to reduce its workforce across its operations. The business process outsourcing company said the job cuts were “not a major staff reduction.”
“We are taking difficult but necessary actions to further streamline costs and pursue operating improvements,” said CEO David Dougherty. “This should result in Customer Management margin expansion, double-digit margins in Information Management and HR Management profitability this year.” Dougherty declared "predictable profitability" to be its primary mission in 2010. The company told investors it plans to boost spending on research and development, and increase its salesforce.
For example, Convergys held a job fair on Jan. 13 to hire more than 100 full-time workers for its Lake Mary, Fla., call center.
Convergys provides customer service and sales support to several companies under contracts that are serviced by the Lake Mary call center.
New hires will be provided with training and benefits, including tuition reimbursement, a 401(k) plan option, and unpaid time off.
On the call, the company also announced that for FY 2010, it expects revenue of around $2.6 billion, EBITDA to be in the range of $330-$360 million and earnings per diluted share (EPS) to be in the range of $1.05-$1.20.
Convergys reversed a year-ago loss for its fourth quarter, partly due to restructuring two contracts and initiating a plan to streamline its operations. The company posted fourth-quarter net income of $41.6 million, or 33 cents per share, compared to a net loss of $29.3 million, or 24 cents per share, in the year-ago quarter. Revenues fell to $684.4 million from $703.7 million. Analyst expectations were an EPS of 31 cents, with top-line revenues of $663.7 million.
Convergys said it restructured the second of two global human resources contracts during the quarter, to eliminate future implementation obligations and liability for services that aren’t yet operational.
In 2009, Convergys reported a loss of $77.3 million, or 63 cents per share, compared to a net loss of $92.9 million, or 75 cents per share, in 2008. Revenues increased slightly to $2.83 billion from $2.79 billion.
Tuesday, January 26, 2010
Convergys Cutting Jobs
Convergys Corp announced yesterday that it will undertake a global restructuring process which will include layoffs. Convergys operates 82 call centers around the globe, and employs about 70,000. The business process outsourcing company wouldn't specify an exact number of job cuts, but said the layoffs have already begun. Locations that will see cuts were not specified. The news comes as a surprise to some as the BPO industry is expected to show significant growth in 2010, and other companies have outlined plans to increase payroll. Convergys specializes in Customer Management - customer service and telemarketing, Information Management - consulting services, and Human Resources Management - payroll and recruiting outsourcing.
Friday, January 22, 2010
More on Philippines BPO Growth
The BPO sector in the Philippines is expected to generate between $11 and $13 billion USD in revenues in 2010. The Philippines' Department of Trade and Industry said that most of this growth will come from the IT and communications industries. This is significant because it means that employers would hire up to 900,000 agents for their BPO call centers. That would be a sharp increase from the 400,000 new hires in 2009. DTI Undersecretary Elmer Hernandez said the ICT/BPO sector will be top priority, followed by the infrastructure, food production, tourism and mining sectors.
Tuesday, January 19, 2010
US Capital Returning to the Philippines?
The return of American investment into the Philippines BPO sector is expected to boost both employment and office space demand. According to the American Chamber of Commerce of the Philippines (AmCham), American investors see better prospects for the Philippines this year with strong interests in BPOs, infrastructure, agriculture, manufacturing, tourism, and creative industries.
The upcoming May elections are looming large, and the results could dictate future growth. The outcome of the elections could determine the success or failure of initiatives such as the Department of Information Communications and Technology bill. Investors tend to adopt a wait and see attitude during an election year, but AmCham is encouraging investors to come before the elections for their feasibility studies then come back after the elections.
Office leasing rates are expected to bottom out mid-year and begin to rise towards the end of the year. Leasing demand, which has declined by an average of 30 percent since 2008, may accelerate if proper reforms are put in place. Some companies are already looking ahead to growth in the upcoming year. Hit Rate Solutions is hoping that increasing demand for BPO services will lead them to open another call center with Philippines based NLIT Teleservices.
The upcoming May elections are looming large, and the results could dictate future growth. The outcome of the elections could determine the success or failure of initiatives such as the Department of Information Communications and Technology bill. Investors tend to adopt a wait and see attitude during an election year, but AmCham is encouraging investors to come before the elections for their feasibility studies then come back after the elections.
Office leasing rates are expected to bottom out mid-year and begin to rise towards the end of the year. Leasing demand, which has declined by an average of 30 percent since 2008, may accelerate if proper reforms are put in place. Some companies are already looking ahead to growth in the upcoming year. Hit Rate Solutions is hoping that increasing demand for BPO services will lead them to open another call center with Philippines based NLIT Teleservices.
Wednesday, January 13, 2010
Accelerating Call Center Growth in the Philippines?
With the onset of the new year, call centers in the Philippines are becoming increasingly optimistic about accelerating revenue growth in 2010. According to the Contact Center Association of the Philippines (CCAP), call center revenue in the Philippines grew at a rate of about 15% in 2009. While this was the lowest rate since the industry's began to take off 10 years ago, insiders are expecting growth to climb to about 20% in 2010. This rise is expected to come primarily from the United States, but many call centers are taking advantage of growing economies in other countries. While English speaking countries such as Britain and Australia continue to lead the way, a recent CCAP study indicated that about 23% companies polled say they offer services in Spanish. Another 15 percent claimed to offer services in French, and another 12% said they offer Chinese. The survey noted that 80% of call centers serve the telecom industry, 71% financial services, 52% technology, and 52% assisted the business services industry.
Tuesday, January 12, 2010
BPO and LPO Growth Spreading
According to a research report recently released by Duke University, outsourcing demand is rising to new highs. Call centers around the globe are hiring new employees to meet both current and anticipated growth. The study polled providers of business process outsourcing services in 50 different countries. The growth is quickly expanding due to the rising tide of the global economy. Start-up call centers are popping up in new countries and have created a more competitive landscape. Existing outsourcing companies are opening centers of their own in different countries. Assuming prices remain constant, the increase in supply should lead to an increase in the quantity of service, or volume demanded. The growth is coming from centers in countries such as the Philippines, Costa Rica, Poland, and the Eastern Bloc.
These countries, as well as many others, are beginning to take aim at market leader India. India continues to maintain the largest slice of the BPO pie, but governments elsewhere are stimulating their economies by building capacity and incentivizing investment in the sector. Not surprisingly, China has entered the picture and designated 20 cities as business process outsourcing hubs to attract more capital from international investors. The Philippines is also in the mix as the Philippine Economic Zone Authority is increasing its subsidies to BPO office parks after its government declared outsourcing to be a priority industry. The survey mentioned that only 16% of Indian service providers see competitors from other emerging economies as a threat. This may be hubris, or just short-sightedness. Countries like China and the Philippines offer advantages unique to both countries and should continue to eat away at India's lead should they not adapt to accommodate the changing world.
India has shown it is willing to do so by taking the early lead in legal outsourcing. The survey identified legal process outsourcing (LPO) as the potentially hottest sector within the outsourcing industry. Legal process outsourcing includes legal support services such as electronic discovery (ediscovery), document tagging, and document review. LPO growth has been strong and is likely to remain so, particularly in India, the survey found. LPO is growing at a 40% clip annually in India, with about 110 LPO companies identified.
These countries, as well as many others, are beginning to take aim at market leader India. India continues to maintain the largest slice of the BPO pie, but governments elsewhere are stimulating their economies by building capacity and incentivizing investment in the sector. Not surprisingly, China has entered the picture and designated 20 cities as business process outsourcing hubs to attract more capital from international investors. The Philippines is also in the mix as the Philippine Economic Zone Authority is increasing its subsidies to BPO office parks after its government declared outsourcing to be a priority industry. The survey mentioned that only 16% of Indian service providers see competitors from other emerging economies as a threat. This may be hubris, or just short-sightedness. Countries like China and the Philippines offer advantages unique to both countries and should continue to eat away at India's lead should they not adapt to accommodate the changing world.
India has shown it is willing to do so by taking the early lead in legal outsourcing. The survey identified legal process outsourcing (LPO) as the potentially hottest sector within the outsourcing industry. Legal process outsourcing includes legal support services such as electronic discovery (ediscovery), document tagging, and document review. LPO growth has been strong and is likely to remain so, particularly in India, the survey found. LPO is growing at a 40% clip annually in India, with about 110 LPO companies identified.
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