TeleTech (News - Alert), a leader in the field of customer experience management, has recently completed the acquisition of the Integrated Contact Solutions (ICS) business unit and associated assets, including intellectual property, of eLoyalty (News - Alert) Corporation – a move that will prove beneficial for both companies.
The acquisition of ICS, a company with 20 years of business and technical expertise in transforming customer management environments on behalf of large, multinational clients will add 50 clients to TeleTech's existing customer base, bringing its total clients to more than 150. As with prior acquisitions, TeleTech will leverage the sales opportunities provided by eLoyalty to further strengthen its own embedded client base of Fortune 500 companies, contributing to strong future growth, company officials explain.
“For over 20 years, we’ve been designing, implementing, and remotely operating contact center technology for our clients. Today, more and more clients are asking for some or all of that technology to be provided “in the cloud," said Steven Pollema from eLoyalty. "By merging with TeleTech, we can now leverage their capability and proven track record of providing a centralized platform serving a multitude of globally distributed clients and locations. Together we can now offer the full spectrum of customer experience management solutions – from business process outsourcing to cloud solutions to premise-based solutions.”
According to company officials, the portion of business recently acquired by TeleTech is characterized by long-term, recurring relationships which contributed to a fiscal return of $54 million in 2010. ICS will continue to operate under the eLoyalty brand, expanding TeleTech's existing suite of cloud-based solutions with end-to-end capabilities that span from hosted to fully managed customer collaboration environments.
As a result of this acquisition, ICS will benefit from TeleTech's extensive global IP-based infrastructure and its increasing share of the hosted market opportunity.
"The acquisition of ICS furthers TeleTech's revenue diversification strategy into greater consulting and technology-based offerings to optimize the customer experience," said Ken Tuchman, chairman and CEO of TeleTech in a recent statement. "The combination of Peppers & Rogers Group's independent consultative strength, ICS's technological expertise, and TeleTech's operational excellence, each with more than a 20-year operating history, gives us an unparalleled ability to bring strategy, technology and execution together to help our clients seamlessly deliver a truly transformative customer experience.”
“TeleTech recognized the benefits of operating in a cloud-based architecture and pioneered the move to this environment back in 2003,” he added. “As clients increasingly look to TeleTech to provide an array of technology-enabled, customer-centric offerings, ICS is a natural extension of our ability to meet their needs, while at the same time diversifying our revenue into greater technology-based solutions.”
The acquisition is expected to be immediately accretive to TeleTech's earnings. TeleTech plans to provide an updated 2011 business outlook when second quarter results are released in early August.
In other company news, TeleTech was the go-to company when a global consumer electronics company needed a way to decrease internal sales support costs while increasing sales conversion and total order value from online shoppers.
TeleTech was able to create the appropriate solution by augmenting the client’s technology platform with highly skilled sales consultants. The overall goal was to convert an online shopper to a buyer. Sales consultants were encouraged to not only close the sale, but to up-sell and cross-sell additional products and accessories to increase the total order value.
Carrie Schmelkin is a Web Editor for TMCnet. Previously, she worked as Assistant Editor at the New Canaan Advertiser, a 102-year-old weekly newspaper, covering news and enhancing the publication's social media initiatives. Carrie holds a bachelor's degree in journalism and a bachelor's degree in English from the S.I. Newhouse School of Public Communications at Syracuse University. To read more of her articles, please visit her columnist page.
Edited by Jamie Epstein