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Contact Centers Determined To Expand, Looks At Acquisitions

|Includes:Xerox Corporation (XRX)

The contact center industry continues to work its way towards the core of other industries, making it now an essential part of a company's processes. As the contact centers today seem like an essential part of a company, especially for those in the retail industry, outsourcing companies that provide call center services now look at ways how to capture the growing demand for contact centers.

One way as to how outsourcing companies try to cope with the ever changing demand for contact center solutions would be to expand their service offerings. However, expanding one's service offerings, through the modification of internal company components, would mean that they need to invest on a new set of talents, software and other operational necessities, which is why companies today seem to prefer to turn to acquisition to expand their current service offerings. With acquisitions, outsourcing companies have the option to operate immediately once all the documents and the agreement has been finalized, allowing them to fully maximize the opportunity.

Recently, ACS, which is a Xerox (NYSE:XRX company, made an announcement that it is to acquire Education Sales and Marketing to further their service offerings in the higher education market. Kent Schnacker, the group president of the financial group of ACS, pointed out that Education Sales and Marketing will provide voice support to attend to the inquiry calls ACS has been receiving and to provide assistance in "managing the complexities of the entire student lifecycle from enrollment to alumni relations."

The acquisition mentioned above shows that companies, such as those offering business process and IT outsourcing solutions, are looking to widen their service offerings by incorporating the business of a contact center with their own processes. This way, the acquiring company would be able to expand their client portfolio or extend their global reach, tapping those locations where the acquired company is based. However, this is not always the case, as contact center solutions providers are also looking at opportunities that will make room for company expansion.

Last June 27, just as the first half of the year comes to a close, Chatter Box (OTC:CXLL), a contact center based in Hong Kong, made an announcement that it has acquired Humsay | Global Service Ltd., a call center solutions provider based in India. This acquisition will lead Chatter Box to add five additional clients in its book, including Britisth Telecom. Chatter Box's Chief Operating Officer has mentioned in the press release that the company is still eyeing a number of acquisitions in the future. One of the acquisitions in the works took place just a few weeks later, when it was announced that Chatter Box has acquired the assets of I1 connect. I1 connect handles accounts on video and press distribution, and having Chatter Box acquire its assets, it is expected that Chatter Box will be able to provide the company assistance "towards an e-presence and an internet portal for business service and video/press distribution."

Companies today are being driven towards the goal of becoming a one-stop shop for their clients. To achieve this, they open their doors to options available to them; one of those is by performing acquisitions. But it is important for companies, not only contact centers, to think things through, especially if your company really needs this, because not all acquisitions generate the same results.
Author: Jamee C.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Stocks: XRX