Outlook Brightens for Teleservices

Share this article:
WASHINGTON -- After years of consolidation and contraction, the teleservices industry's financial future looks more upbeat, Brandon Dobell, senior research analyst for Credit Suisse First Boston, told members of the American Teleservices Association yesterday.


The economy is slowly improving, and teleservices companies are getting better at managing growth, said Dobell, who spoke at the annual ATA Washington summit here.


"The near term looks good for stocks," he said. "Investors don't have too much built up in terms of expectations."


The industry got into trouble in the mid-1990s when it grew too fast, Dobell said. Investors remember the period following the market's peak in 2000 when teleservices companies tumbled due to overcapacity.


Major teleservices providers like West and Convergys are diversified and learned to be more efficient during the lean years, he said. Offshoring has affected domestic call center providers, but the worst may be over.


Nevertheless, industry-related issues remain and stocks have been volatile in the past year, Dobell said. Investors will continue to watch the effect of offshoring and the economy.


Investors worry about the ability of service companies to differentiate themselves, he said. Many companies in the service industry do the same things, so investors will look to companies that stand out from the crowd.


Scott Hovanyetz covers telemarketing, production and printing and direct response TV marketing for DM News and DMNews.com. To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting www.dmnews.com/newsletters


Share this article:
You must be a registered member of Direct Marketing News to post a comment.

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in News

App of the Week: CardsApp

App of the Week: CardsApp

The app lets users select loyalty cards on their phone or smartwatch to display QR codes at check out time.

Rakuten Marketing Moves to a Unified Platform

Rakuten Marketing Moves to a Unified Platform

Omni experience consolidates all channel offerings into a single platform and dashboard to provide better management of the customer funnel.

Hawk Search Widens its Global Reach

Hawk Search Widens its Global Reach

Hawk Search's solution offers support for more than twice as many languages as other site search providers, according to the company.

Copyright © 2014 Haymarket Media, Inc. All Rights Reserved
This material may not be published, broadcast, rewritten or redistributed in any form without prior authorization.
Your use of this website constitutes acceptance of Haymarket Media's Privacy Policy and Terms & Conditions.