Contact Center Solutions Featured Article

Stream, eTelecare Merge

August 14, 2009

Stream Global Services has acquired EGS Corp., the indirect parent company of eTelecare Global Solutions in a stock-for-stock exchange in what may be the biggest business process outsourcing (BPO) teleservices industry deal since the ClientLogic/Sitel merger.

The combined firm, which will retain the Stream Global Services name, expects projected revenues approaching $1 billion for the year ending December 31, 2010.  It will generate this from approximately 30,000 employees located at 50 contact centers in North America, Europe, the Philippines, Latin America, India, the Middle East and Africa.  
The expanded Stream is a merger of complementary companies. The deal meshes a diversified Fortune 1000 customer base in the technology, retail, entertainment, media telecommunications and financial service sectors. It pulls together a very experienced executive team and a comprehensive BPO services portfolio. It also gives the ‘old’ Stream a stronger foothold in The Philippines, where eTelecare started out from, and which has become the key English-language alternative to India for high-touch offshore customer care programs.
The new firm will benefit from eTelecare’s growing home agent program that it had launched last year. Home agent offerings are rapidly becoming a popular option to domestic and offshore bricks-and-mortar-provided services thanks to increased flexibility, greater access to higher quality workers, environmental sustainability, and disaster (including pandemic) survivability.
As a result of this combination, Stream Global Services expects to:
*          Make future investments in technologies, new service offerings for its clients, and new geographic locations such as China, Brazil, and Japan thanks to a strong balance sheet
*          Broaden its services offerings to include a full portfolio of sales and revenue generation, warranty management, customer loyalty and brand management, customer care, technical support as well as customer life cycle management
*          Expand and diversify its blue chip client base across multiple vertical markets

*          Extend the company’s reach into new industry segments such as financial services, retail and consumer products.  In addition, the combination will significantly expand our market share in the technology, telecommunications and broadband industries

*          Leverage the combined company’s investment in technology to provide the highest level of business performance and enhance operating efficiencies in the business
*          Create a strong platform for future growth in geographies, service offerings and market segments.  The company will continue to be one of the premier providers of sales and revenue generation, customer care, technical support and warranty service offerings in the industry.

*          Be led by a very experienced group of management executives with a proven track record of creating value for clients, employees and stockholders.

*          Create significant new and exciting career advancement and opportunities for its employees globally

 “This combination brings together two great businesses that are extremely complementary,” said Stream’s Chairman and Chief Executive Officer, Scott Murray. “Since its inception, the vision for Stream Global Services has been to be a highly differentiated BPO provider that offers our clients services designed to promote and build their brands and customer loyalty, while maintaining an efficient cost model. This combination enables us to fulfill our vision by leveraging eTelecare’s strength in the Philippines, where it is a market leader and has approximately 10,000 employees and its depth in service offerings and client diversity.”  
“This is a very exciting time in the evolution of eTelecare to be able to deliver a truly global service offering for our clients, “ says John Harris, president and CEO of eTelecare. “This combination fulfills our strategic vision of extending our delivery capability throughout Europe, Asia and Latin America.  The eTelecare team is extremely excited about joining Stream to create a leading global BPO company.”  

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Brendan B. Read is ContactCenterSolutions’s Senior Contributing Editor. To read more of Brendan’s articles, please visit his columnist page.

Edited by Tim Gray