World faces new challenges in terms of financial crisis and it affects most of the industries in the world. Stories of business bankruptcies, company losses, employee layoffs and government bailout requests is no longer the issue but the stories of success surprises people. Even in the seemingly untouched outsourcing sector there has been more than enough layoffs and revenue losses this month.
Due to global demand volatility, $686.8 million loss that is higher than last year’s $293.3 million with 22% decline in international sales and 5% in United States. This was reported two days ago by print service provider R.R. Donnelley & Sons Company. Convergys Corporation, which is one of the biggest company when it comes to business process outsourcing (BPO), faces difficulties in terms of financial crisis. A total of $92.9 million loss in year 2008, also the revenue has fall to $2.79 billion from last year to 2007’s $2.84 billion.
In 2008, net loss of $23.3 million has announced by ICT Group, Inc., $428.2 million for last years’ total revenue has lost and lower than estimated $432.19 million. But there are also stories of success in the times of failure. Some companies are able to pass all the challenges they encountered. According to Trading Markets, the largest business process outsourcing provider Teletech, their revenue increases from the record of $1.4 billion to $2.2% in 2007. Despite of having a lower fourth quarter revenue of 2008 compared in the year 2007, earnings per share increases 15% to $1.21 from $1.05 non-GAAP EPS in 2007.The revenue this year was 45% that came from offshore operations, said by Kenneth Tuchman, CEO of Teletech.
Accenture also surpass all the problems they encountered in times of the crisis. They beat market expectation higher than Street EPS expectation for $0.74. Accenture enjoys the success they experiences, their revenue for worldwide operations still grows and develop to be better in the industry. The highest growth is in Asia with 22%, while 11% for Americas and EMEA gets 4%. Obtaining liquidity and operational excellence intends to apply this similar strategies by both struggling and succeeding companies to overcome the global crisis. Laying off employees and closing non-core businesses or simply focusing resources to core business attaining liquidity in the form of cost cutting. Due to redundancy, Accenture lays off 500 workers last month. Core business revenues reflect the realignment of our services, it involved ceasing our market research service offering. Our North American financial telesales business limits to accommodate demand from large strategic clients and by extending our right-shore service delivery strategy to our international markets, said by John J. Brennan ICT GROUP CEO.
The important role of the company’s $99 million free cash flow in sustaining growth has emphasizes by Tuchman, CEO of Teletech. It plans to expand the global sales force to win new client relationships by using its free cash that invested in both technology and people to achieve operational excellence. Teletech is planning to open two delivery centers this year and plans to make another opportunities to job seekers in the Philippines. The company also help consumers with the broadcast digital television transition that adds another 600 temporary workers at its Fairfield call center.
REFERENCE:
http://www.blog.infinit-o.com/succeeding-in-a-failing-economy/
http://www.entrepreneurship.org/en/policy-forum/succeeding-through-failure.aspx
