Convergys employees safe, says new owner

Terry Roberts
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Employment

The United Kingdom-based company purchasing a line of business from Convergys Corporation is assuring 500 employees they will not be negatively impacted by the deal in St. John's.

Convergys is one of the major players in the province's contact centre industry, and employs about 950 people in the capital city.

Convergys call centre in St. John's. -Telegram file photo

The United Kingdom-based company purchasing a line of business from Convergys Corporation is assuring 500 employees they will not be negatively impacted by the deal in St. John's.

Convergys is one of the major players in the province's contact centre industry, and employs about 950 people in the capital city.

The company announced Thursday it has signed an agreement to sell its human resources management (HRM) line of business to NorthgateArinso, a leading global human resources software and services provider.

The deal is worth approximately $85 million in cash at closing, and $15 million in cash over three years.

NorthgateArinso has promised to offer employment to the approximately 2,300 employees of Convergys' HRM line of business, including the 500 who work in St. John's.

"We operate in a very stable business. We want to offer our customers that same stability, and obviously that will be reflected in not changing anything to the location of the workforce," NorthgateArinso spokesman Michael Custers told The Telegram Friday.

Both companies believe this transaction represents a unique opportunity for Convergys' HRM clients and employees to become part of a company with a strong record of accomplishment in the human resources sector.

"We only see changes for the good in the sense we will be an entirely HR focused group right now," Custers said.

The deal will be finalized in the next couple of weeks, he added.

NorthgateArinso has offices in 31 countries and delivers services in over 70 countries through a network of eight service delivery centers.

The company employs approximately 5,000 people and serves more than 20 per cent of the FORTUNE Global 500 companies. It is one of the five largest HR service providers in the world.

"This transaction with NorthgateArinso provides an opportunity for Convergys to focus our investments and efforts on growing our customer management and information management businesses," Jeff Fox, president and CEO of Convergys, said in a news release.

Fox said Convergys will look to further streamline the company as other opportunities are identified.

The company's human resources management line of business represents about $250 million in revenue for Convergys.

The deal comes at a time when the contact centre industry in this province is streamlining, squeezed by a global economic recession.

A spokesperson for the provincial government said the industry employs between 2,500 and 3,000 people in communities such as Stephenville, Marystown, Placentia, Carbonear, Grand Falls-Windsor, Corner Brook and St. John's.

In 2008, the local sector employed between 4,000 and 5,000 people.

troberts@thetelegram.com

Organizations: Convergys Corporation

Geographic location: St. John's, Stephenville, Marystown Corner Brook

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Recent comments

  • Frank
    July 02, 2010 - 13:23

    I know Convergys has already had a number of Layoffs this past year. So this will mean less employes working for them as they will be transfered to a New company.
    ICT has been sold to another company, Sykes and Teletech pulled out last summer.

  • Frank
    July 01, 2010 - 20:08

    I know Convergys has already had a number of Layoffs this past year. So this will mean less employes working for them as they will be transfered to a New company.
    ICT has been sold to another company, Sykes and Teletech pulled out last summer.