Convergys signs major outsourcing deal with Postal Service

By Linda Rosencrance

February 3, 2003 12:00 PM ET

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Computerworld - Convergys Corp. has signed a multiyear outsourcing deal, which could be worth $700 million, to manage call center operations for the U.S. Postal Service.
The four-year contact, which could be extended for six additional years, will reduce costs and enhance customer service at the Postal Service, according to a statement late last week from Convergys.
With tight budgets and scarce resources, federal agencies have been seeking ways to scale back costs without diminishing services. To that end, many agencies have turned to outsourcing.
A Postal Service spokesman said the agency doesn't comment on its contracts.
Jim Boyce, senior vice president of sales at Cincinnati-based Convergys, said his company will be supporting the Postal Service's Contract Center Network Solution project from facilities in Denver and Orem, Utah. About 500 Postal Service employees now handle a variety of questions via the telephone and the Internet at the Postal Service's customer contact facilities in Denver, where Convergys will take over operations beginning next month.
Boyce said those employees will have the opportunity to transfer to Convergys.
Brian Bingham, an analyst at IDC in Framingham, Mass., said the deal, which he estimated could be worth as much as $700 million over 10 years, makes sense for the Postal Service. Convergys could save money for the Postal Service while providing its customers with better and more efficient service, he said.

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