Convergys is conversant in the languages of global customer satisfaction. The company provides business services designed to maximize customer service, acquisition, and retention from about 130 customer contact centers in about 30 countries. Convergys' call center agents handle customer service interactions such as account service, billing inquiries, and technical support. The company targets customers in industries such as communications, financial services, technology, retail, healthcare, and government. Convergys was formed as a division of
and spun off in 1998.
Convergys has been working to restructure and streamline its operations to improve efficiency and reduce costs. It has two business segments: Customer Management, Agent Services; and Customer Management, Customer Interaction Technology (CIT). Previously it operated through three segments: Customer Management, Information Management, and Human Resources Management.
The company's US facilities are located in Arizona, Colorado, Florida, Georgia, Idaho, Iowa, Kansas, Kentucky, Massachusetts, Minnesota, Missouri, Nebraska, New Mexico, New York, North Carolina, Ohio, Oregon, Tennessee, Texas, Utah and Wisconsin. International facilities are located in Brazil, Bulgaria, Canada, China, Colombia, Costa Rica, Dominican Republic, Egypt, El Salvador, France, Germany, Honduras, India, Indonesia, Ireland, Italy, Malaysia, the Netherlands, Nicaragua, the Philippines, Poland, Singapore, Spain, South Africa, Sweden, Tunisia, the UAE, and the UK.
Convergys gets about 79% of its sales from North American clients.
Sales and Marketing
The company continues to depend on a concentrated number of clients for the majority of its revenue. Its top three customers --
-- collectively account for almost 40% of its sales. Convergys' largest customer (AT&T) accounted for about 21% of total sales in 2015, while Comcast contributed 10%.
In 2015, Convergys' revenue increased by 3% to $2.9 billion due to higher revenue from technology and financial services clients.Revenue from technology clients increased by 18% due to two additional months of revenue related to the Stream acquisition, volume increases, and new programs with existing clients, partially offset by unfavorable currency exchange rates. Financial services' sales increased by 3% thanks to new clients and new programs with existing clients, partially offset by program completions and volume decreases with other clients.
Net income increased 41% in 2015 to $169 million due to higher revenue and a drop in transaction and integration costs from $37.7 million in 2014 to $11.3 million in 2015.
Cash flow from operating activities decreased by 4% to $249.3 million in 2015.
The addition of Datacom's contact center operations is in line with Convergys' acquisition strategy, allowing it to expand its language capabilities and global footprint.
Part of the company's four key drivers for growth is to maintain strong partnerships with its largest clients (it has retained its top 10 clients for more than 15 years). Convergys is also focused on expanding its client base in higher growth verticals like the retail and healthcare industries, where the company is forecasting double digit growth. Combined, these industries spend nearly $63 billion for outsourced customer care services.
Mergers and Acquisitions
In 2014 the company made a significant move when it acquired
Stream Global Services
for about $820 million. As a result of the deal, Convergys nearly doubled in size and scope, making it the second-largest customer management services provider.