Convergys Snags USPS From TeleTech

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Convergys yesterday said it won a four-year contract to provide call center services for the U.S. Postal Service, apparently wresting the USPS from rival firm TeleTech.

The announcement came a day after TeleTech, Denver, said that the USPS had decided not to renew its contract for inbound teleservices.

Convergys did not disclose the financial value of the deal, though TeleTech said the USPS contract represented $56 million in annual revenue, or about 5.5 percent of TeleTech's 2002 revenue.

Convergys call centers in Denver and Orem, UT, will handle the USPS contract. The Denver facility, with 500 employees, begins taking calls for the USPS in March.

TeleTech did not say whether any employees would be cut as a result of the lost contract. However, according to the Atlanta Journal-Constitution, the company has announced plans to close a center in Duluth, GA, by March 28, with a loss of 566 employees.

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