ICT Restructures and Loses Market Research

In the US, CRM outsourcing firm ICT Group has announced that it will no longer be providing market research services, and that it will be closing or partially closing six of its contact centers in the US and Canada, and offshoring much of the work from those in Europe and Australia.

Instead, the firm will be focusing on building its customer care, technology and BPO (business process outsourcing) services, while limiting its telesales activities.

The announcement follows Monday's news of the closure of its Erie, Pennsylvania call centre which resulted in 100 interviewers and managers being made redundant without notice.

Chairman and CEO John Brennan explained that during 2008, the firm had shifted much of its domestic business to lower-cost offshore operations, which led to improved operating margins.

The company is now replicating this strategy in Europe and Australia by moving business away from these regions to lower-cost offshore facilities, while maintaining an in-country sales presence and reducing in-country contact center operations.

As a result of these actions, the group anticipates annual cost savings of $6m to $7m in 2009. Restructuring charges of $5m to $7m related to facility closings, severance costs and other charges are expected in the fourth quarter of 2008.

Web site: www.ictgroup.com.

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.