After Stream acquisition, Convergys sees more consolidation in BPO biz

After gobbling up smaller rival Stream Global Services, BPO giant Convergys said it expects more consolidation in the outsourcing industry as customer requirements become more varied and extensive.

Convergys CEO Andrea Ayers (left) and Convergys PH chief Ivic Mueco during the press briefing in Makati City

Convergys CEO Andrea Ayers (left) and Convergys PH chief Ivic Mueco during the press briefing in Makati City

Speaking at a press conference where it announced the acquisition of Stream Global for $820 million, Convergys chief executive Andrea Ayers said Ayers mergers will become more frequent in the coming months as compared in the past.

“Larger companies are in a better position to offer scale and more services to customers,” said Ayers in a briefing in Makati City on Tuesday. “Smaller BPOs will have a hard time keeping up with the requirements of customers.”

With Stream now under its wings, Ayers said Convergys has widened its lead as the biggest private employer in the country with a combined total headcount of 55,000 workers.

Even after the acquisition, the company said it would still be hiring about 6,000 workers this year.

Ayers said they won’t be combining offices in the same cities – at least not yet. “We do not have plans to consolidate locations at this time. Should this change, as a result of client request, lease expirations, or capacity needs, we will communicate the information as quickly as possible,” she said.

Ivic Mueco, Convergys Philippines country manager, said Convergys and Stream have complementary footprints.

“Our ability to offer clients locations globally is a key facet of our combined competitive advantage in the marketplace. Where we have overlap, especially in the Philippines, the joint leadership teams will, through integration, look for best operating practices from both teams,” Mueco said.

Convergys also now has 125,000 employees working out of more than 150 locations in 31 countries, speaking 47 languages.

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