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Convergys to Spin Off Info Management Business?

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Convergys to Spin Off Info Management Business?

September 05, 2008
By David Sims
TMCnet Contributing Editor
Outsourcing services provider Convergys (News - Alert) has announced that it is considering separating its information management business into an independent company, Datamonitor has reported.

Convergys, a vendor of call center, billing and employee care outsourcing, has about 75,000 employees in 85 customer contact centers, data centers, and other facilities worldwide.
Datamonitor says Convergys officials will "make a final decision in the fourth quarter about the separation, which it said has no bearing on its recent $335 million acquisition of Intervoice (News - Alert) that is scheduled to close this week."
Dave Dougherty, president and chief executive at Convergys, said the evaluation is "a part of our plan to align the company's assets and capabilities with our leadership in relationship management," according to Datamonitor. "We believe the separation is a means of enhancing the strength and focus of each of our businesses to better serve our clients and bolster each business's competitive position."
The company's information management revenue fell 12 percent to $324 million in the first half of 2008.
In early July, Convergys announced the appointment of Max Tennant as senior account executive for Convergys' business in Australia and New Zealand.
Tennant will focus on "enhancing support for the telecommunications, financial services, travel and tourism and other vertical sectors through Convergys' outsourcing, consulting and billing & CRM products.
"Customer service management is high on the agenda for businesses across all industries and maximizing customer lifetime value is a key driver for growth," said Tennant. "Following our recent announcement of the Convergys Multi-channel Automation Solutions, a new version of the Convergys Customer Service Management product will roll out in the next few months."
According to Tennant, offshore contact center services will remain the company's key business focus in Australia and New Zealand. "Contact centers will always play a major role in services based organizations. The need will increase as services such as telephone banking and home shopping become further adopted in Australia," he said.
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David Sims is a contributing editor for TMCnet. To read more of David's articles, please visit his columnist page. He also blogs for TMCnet here.

Edited by Stefania Viscusi
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