Convergys is conversant in the languages of customer satisfaction. The company provides business services designed to maximize customer service, acquisition, and retention. 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. All total it has nearly 70 customer contact centers and other operations in the US, Canada, Latin America, Europe, India, and the Philippines. Convergys was formed as a division of Cincinnati Bell and spun off in 1998.
Convergys has been working to restructure and streamline its operations to improve efficiency and reduce costs. Previously it operated through three segments: Customer Management, Information Management, and Human Resources Management. However, within the last two years it has made major divestitures in order to focus on its primary Customer Management operations, which accounted for approximately 85% of total revenues in 2011.
In 2012 the company sold its Information Management business -- which included solutions for cable, satellite, and telecommunications operators -- for $449 million in cash to Japan's NEC. The previous year AT&T bought Convergys' interests in two wireless operations in the Cincinnati, Ohio area for about $320 million in cash. And in 2010 Convergys sold its HR unit, which provided human resources BPO services, to NorthgateArinso for about $85 million at closing and another $15 million over three years.
Such efforts appear to be helping the bottom line. In 2011 the company's net income shot up to nearly $335 million, up from a loss of about $53 million in 2010. Its revenues also received a modest bump of about $60 million. That year its Customer Management unit reported an increase in call volumes, expansion with existing and new clients, and a continued focus on quality delivery and client account management.
However, while Convergys also reported new business signings in 2011, the company continues to depend on a concentrated number of clients for the majority of its revenue. Its top three customers -- AT&T, Comcast, and DIRECTV -- collectively accounted for more than 40% of its sales in 2011. – less