Convergys Corp (NYSE:CVG)
CAPS Rating:
The Company is engaged in providing customer care, human resource and billing services. It has three segments: Customer Care, Employee Care, and the Information Management Group.
The Company is engaged in providing customer care, human resource and billing services. It has three segments: Customer Care, Employee Care, and the Information Management Group.
Recs
These guys have barely kept pace with the S&P 500 for the last 5 years. Plus, they're directly competing with leaner and meaner firms in India. Considering their high P/E, extremely low insider holdings and dwindling market share, there seem to be far better deals elsewhere.
They did just open three call centers in the Philippines. Several companies are outsourcing call center jobs there as Americans can understand the accent much better than Indian. This could be a good long-term move for CVG, but it continually trails the S&P. Disclaimer: I worked for Convergys while in college and fortunately sold all my shares for $33 back in 2002. They have a very hard time maintaining talent at any level. The department I worked for had nearly 80% annual turnover in management, let alone the high turnover of call center employees.