Convergys Expects No Growth in Call Center Revenue

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Customer relationship management firm Convergys said the performance of its outsourced call center division is lagging behind the growth of its information management group, which drove most of the profits that the company announced yesterday.


The company reported that its net income for the second quarter, which ended June 30, increased to a record $53.6 million, up from $45.9 million during the same period last year.


Operating income for the information management group, which includes the company's billing services operation, increased to $46.6 million in the second quarter, representing a 21 percent increase over the same period last year. In contrast, the call center group's operating income increased 6 percent to $43.8 million during the second quarter.


While information management group revenue is expected to show strong growth through the remainder of the year, the call center group's revenue will likely finish flat compared with last year, Convergys said.


Convergys will take a one-time charge of $35 million to $45 million during the third quarter to fund its plan to restructure its call center group and reduce less efficient, higher-cost call center capacities, the company said.


Convergys, Cincinnati, employs more than 45,000 and operates 50 customer contact centers worldwide.


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