From the majority in the industry, April marks a significant month for the most companies as it usually marks the end of the first quarter of the financial year. The results are usually released during April or May to show that how they fared during the first few months of the year. April was also a disappointing month for the company employees as lay-offs were announced. The outsourcing companies particularly those in the call center business were no exception to some lay-offs were announced amid good results. In the number of clients, recent news on Teleperformance reflects the typical reason for the lay-off, which is decrease in the number of clients. In overall the positive Q1 results of teleperformance, the biggest lay-off in Florida, in the US since 2003’s credit card issuer MBNA layoff of 950 employees is to happen at the end of May with Teleperformance announcement of the layoffs. The French contact center management firm is letting go of 860 of the employees in Boca Raton due to the surplus of the employees. The teleperformance is also laying off 360 employees in Orlando. The reason for the lay-offs is they will no longer be providing support to certain clients.
The another contact center that has locations around the globe providing customer and technical support to its clients is Sykes Enterprises Inc. It is also made an announcement recently that they will laying off 76 employees at the end of the month. The due to Sykes loss of a contract, The President and CEO of Northwest Kentucky Forward stated that the lost a contract and the employees working on the contract are the ones being laid off. The economic development official has said that the company is trying to snag a new business to make up for the loss and to avoid the lay offs although the employees being let go will be consolidated into the other contact centers.
The challenges in the industry due to lay offs that have happened that are bound to happen. The outsourcing industry remains strong as shown by the first quarter results published recently. This is with many companies attracting more business along the different verticals allowing the outsourcing hubs including the India and the Philippines, to further strengthen their position in the global space.
REFERENCE:
http://www.blog.infinit-o.com/despite-strong-first-quarter-results-contact-centers-face-lay-offs/
