James Orr

The call center business has more cycles than a 1200-hertz test tone and more ups and downs than a poorly configured network. So an economic downswing is nothing out of the ordinary for a company like Convergys. “That doesn't mean we are immune to downturns and changes. We still have to respond to them, but in our Customer Management Group we are used to ups and downs and swings,” says James Orr, president and CEO of Convergys.

The economy has affected Convergys' CMG in ways that appear to negate each other, keeping the business on somewhat of an even keel. “Sometimes you have 1000 people working in a customer service center and sometimes you might have 600. Those changes take place in a matter of weeks either way,” Orr says.

That's the downside. The upside is that “tough economic times also cause people to rethink the status quo, which can lead to decisions around outsourcing. So that would be more favorable to us now than in a time when things are glowing and rosy,” Orr says.

The more stable side of Convergys is its billing business. Convergys' Information Management Group rang up $205.6 million in revenue in the first quarter, an 18% jump from the previous year. The group recently inked multiyear deals with Sprint PCS, Telepak Networks, AT&T Broadband and WideOpenWest.

The revenue figures do not reflect the performance of newly acquired Geneva Technology, which is generally perceived by analysts to be a good move regardless of the state of the economy.

“They can assimilate the Geneva product and make it into their next generation of billing solution,” says Karl Whitelock, program director of OSS competitive strategies at Stratecast Partners.

The acquisition is just one example of the momentum Convergys has been able to maintain. “We haven't slowed down,” Orr says. “We have actually increased our spending for sales and marketing by 75% over a two-year period. It's all focused on driving incremental revenue.”