TeleTech Plans Closures

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TeleTech Holdings Inc. said this week it planned to exit two of its North American call centers after the lease agreements to the facilities expire in the first half of 2006.


Further details about the impending closures were not released. Earlier in July, TeleTech, Denver, said it would exit its call center in Glasgow, Scotland, in the second quarter of 2006, resulting in a $2.5 million profit improvement starting in third-quarter 2006.


The company's growth has been slower than anticipated in the first half of 2005, TeleTech said. However, TeleTech said it was now signing new clients it had expected to bring on earlier this year.


A new agreement with a "large U.S. healthcare company" will bring its call center in Stockton, CA, up to full utilization, TeleTech said. The deal replaces a client that had been expected to terminate TeleTech services during this year due to excess in-house capacity.


TeleTech said it also recently won a multi-year inbound contract with an undisclosed major airline.


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
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