Ian Gilyeat

TeleTech Holdings, Inc. Business Update Call Transcript

It's great to see the detail of the call. Reading between the lines, as is always the case in outsourcing, while some companies perform well others take it in the shorts. This is one of the core challenges of the BPO space - and the opportunity; growth and decline of companies occur within the same industry during the same economic events (downturn), at the same company (TTEC). Example only for illustration - Sprint could be doing great while AT&T could be in decline - both with the same service provider. The real task is to manage the total business, even while there is tremendous churn inside of the BPO company. Over the last ten quarters - TTEC has done this well. Droping the top line growth from 10%+ to 6-8% is a clear admission that their ability to bring new clients onboard is not keeping up with the softness they are experiencing in their embedded base customers. As they move to higher margin offerings (Tier 2 & Tier 3 tech support) this will continue to be a challenge.