Convergys considering spinning of information management business
SOURCE: Forbes
DATE: September 2nd, 2008
Mohit Soapbox:
www.corrystone.com
Convergys has over 75,000 employees in 85 centers across the world and was spun off from cincinnati bell ten year back. The firm has had trouble growing the last few quarters. There was also a recent announcement of Convergys shutting down their center in Malad, Mumbai (Convergys shuts down Mumbai facility). The convergys location in Gurgaon, India used to be a shiny beacon of the beginning of the ITES promised land. Over the last number of years the construction in Gurgaon has grown manyfolds and the building is now one of the many on the new shining toll road in Gurgaon.
A recent report by Call Center magazine has rated Convergys as one of the top five call center providers in the world
(The others being: Teleperformance, TeleTech, Sitel, EDS – LINK)
Convergys Management team:
President and Chief Executive Officer
Earl C. Shanks
Chief Financial Officer
Clark D. Handy
Senior Vice President, Human Resources
Karen R. Bowman
Senior Vice President, General Counsel and Corporate Secretary
Outsourcing company Convergys Corp. said Tuesday its board of directors and senior management team are considering separating its information management business into its own publicly traded company.
The company expects to make a decision in the fourth quarter of 2008.
“We believe it’s prudent to consider separating information management into an independent entity as a means of enhancing the strength and focus of each of our businesses to better serve our clients, provide more opportunities for our employees, and bolster each business’ competitive position,” said Dave Dougherty, Convergys’ chief executive and president.
The board has retained Centerview Partners as its financial adviser to assist with the evaluation.
Cincinnati-based Convergys has about 75,000 employees in 85 customer contact centers, data centers and other facilities worldwide. The company offers call-center, billing and employee care outsourcing.
In its last earnings report for the three months ended June 30, the company’s profit climbed 4 percent even as revenue inched lower. It also lowered its financial outlook for the year due to the effects of the softening economy.
Shares rose 93 cents, or 6.4 percent, to $15.68 in morning trading.
Convergys was spun off 10 years ago from Cincinnati Bell Inc.
The company’s information management business includes providing billing services for telecommunications companies such as AT&T Inc. and Cincinnati Bell.
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