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Convergys Corp. (CVG), TeleTech Holdings (TTEC) May Have Advantage in Contact Center Vendor Consolidation

December 07, 2012

Convergys Corp. (CVG) and TeleTech Holdings (TTEC) are expected to have an advantage over smaller contact center vendors as the industry consolidates to serve customers in a more streamlined manner that also involves more expertise, scalability and global delivery capabilities, says Manish Hemrajani, Executive Director and Senior Analyst at Oppenheimer & Co. Inc.

“Enterprises are now actually starting to look at their contact center vendors and realizing that having six to 10 vendors is counterproductive and looking to consolidate these to two to three vendors with the right expertise, scale and global delivery capabilities,” Hemrajani said.

Hemrajani says that, although these companies have retrenched a bit due to macro overhang, he expects this experience to help with the consolidation of the industry as companies now rethink their outsourcing strategy and make it more unified.

“Vendors are also looking at their global delivery capabilities and are open to M&A to extend their global reach as well as add language skills, especially in Latin America, to expand their reach, or if they see a differentiating service or technology that they want to add to their portfolio. I expect the larger vendors, such as Convergys, TeleTech, Teleperformance (RCF.PA) and others to have a distinct advantage in a consolidation scenario,” Hemrajani said.


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