Convergys Customer Management Group Inc. at a Glance

Uppers

  • Leading global company in customer relationship management
  • Excellent benefits at all levels of employment

Downers

  • Some communication problems between upper management and individual departments.
  • High turnover rate

The Bottom Line

  • A worldwide leader in relationship management, Convergys offers everything from traditional call centers to multichannel, digital and mobile consumer interfaces.

About Convergys Customer Management Group Inc.

Convergys is conversant in the languages of global customer satisfaction, 58 languages to be exact. The company provides business services designed to maximize customer service, acquisition, and retention from about 140 customer contact centers in more than 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. US customers supply about 75% of Convergys' revenue.

Operations

Convergys' contact centers run on a range of technology that includes digital switching, intelligent call routing and tracking, proprietary workforce management systems, case management tools, proprietary software systems, computer telephony integration, interactive voice response, advanced speech recognition, web-based tools, and relational database management systems.

Geographic Reach

Convergys' US facilities are 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 countries ranging from Brazil to Bulgaria, from Canada to China, from Egypt to El Salvador, from the Philippines to Poland, and from South Africa to Sweden. About two-thirds of its employees work in the Philippines, India, Southeast Asia, China or Latin America.

US customers account for about 75% of Convergys' revenue.

Sales and Marketing

Convergys has depended on a concentrated number of clients for the majority of its revenue. AT&T, including DirecTV, accounts for about 15% of the company's revenue. AT&T and two other customers supply about 30% of the company's revenue. The communications industry accounts for about half of Convergys' revenue.

Financial Performance

Convergys' revenue hit a five-year high in 2015, but has stepped lower in the past two years.

Revenue slipped 4% to about $2.8 billion in 2017 from 2016 as communications revenue (about 50% of total revenue) dropped more than 10% as customers shifted work to lower-cost areas and took more work in-house, as well as industry consolidation. Technology revenue also fell about 10% on lower call volume. Financial revenue rose about 10% because of a new client and higher call volumes. Another revenue booster was a full year of buw sales (acquired in 2016), which added 3%. Sales in the US were 10% lower in 2017 while international sales rose 22%.

Convergys reported a 15% decrease in net income to $121 million in 2017 from 2016 because of lower revenue and higher costs that included a restructuring charge of more than $20 million.

Cash on hand rose to more than $190 million in 2017 from about $140 million the year before.

Strategy

Even has it tries to grow, Convergys wants to make sure it hangs on to its current clients. So far, so good: Its Top 10 clients have been with the company for 15 years or more. But Convergys faces the challenges of industry consolidation making for fewer companies and automation making it cheaper for companies to handle their own customer contact work.

One area where Convergys can't reduce costs is in complying with new privacy laws in Europe and the Philippines that require careful tracking and reporting of customer data and interactions.

The company works to increase work in faster growing businesses such as retail and healthcare. Those industries are covered under Convergys' "other" reporting category, in which revenue rose in 2017 from 2016.

Convergys is investing in a range of technologies that could help reduce costs while expand services. The technologies include chat, social media, mobile interaction platforms, robotic process automation (RPA) and virtual agents, and analytic services. In 2018, Convergys reported that about a third of its work force uses RPA. The software robots have helped reduce customer handle times up to 45% and transaction error rates up to 98%.

Mergers and Acquisitions

In 2016 Convergys acquired buw, a German customer care company, for €123 million. The acquisition expanded Convergys' footprint in Europe and strengthened its German language capabilities. With about €150 million in annual revenue, buw added about 15 sites in Germany, Hungary, and Romania to Convergys' operations.

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Convergys Customer Management Group Inc.

201 E 4th St Bsmt
Cincinnati, OH 45202-4206
Phone: 1 (513) 723-6104
Fax: 1 (513) 397-5267

Stats

  • Employer Type: Public
  • Project Prog Management Consultant: Don Ballish
  • Account Operations Manager: Stacia Foote
  • Project Manager: Conrad Kolis
  • Employees: 20,250

Major Office Locations

  • Cincinnati, OH