Some of our UK customers experienced short-term impacts. In fact, we have a plant in the US with 120 workers that was affected by the Brexit. We have other plants in other locations in Europe and other plants in the UK. But it is not the case that we have lost any business as a result of Brexit. The one we lost was delayed in terms of its timing. But for the other one, we have managed to pick up additional business from customers that have delayed their decisions until the time is more specific. We see Brexit as a short-term effect.
When it comes to capacity and growth, how are your plans taking shape?
We have been continuously putting additional investments in the US and Europe. But the focus right now is on the company-specific thing. We have been under a lot of pressure to get sales and growth. That is one of the key issues we are dealing with right now. It’s a good problem to have, but it’s definitely an issue. We are focusing on that. We believe our sales force will benefit from that effort.
What is the opportunity you see in the Indian market?
India is a huge market. It is one of the most exciting marketplaces in the world and the pace of change is far quicker. We see opportunities for Convergys to grow from here. We have a very solid position in all the major verticals we are in the process of expanding. But our future growth is also in several different marketplaces such as technology and outsourcing.
What do you look forward to in terms of expansion and acquisition in India?
We would like to increase our footprint in India. But it would be premature to comment on the size of acquisitions. We will just follow the strategy which we have in place in India and there is always a lot of discussions going on. But we are not in a hurry to make any announcements at this point. We are very interested in India and see that it is an important market for Convergys. It has a huge population with great demographics and it is a growing market.
What are the key takeaways from the recent changes to the US tax code?
I think that there will be a lot of benefits from the tax code changes. But this is not a stock exchange where the stock prices will react. Our customers will benefit as the economy gets better. There are some upfront costs that are related to the changes, but the benefits are long-term. It’s a good thing.
Quarterly results are beginning to take the shape of a turnaround. How much longer can this last?
We had a great quarter. It is not as if we have been waiting for this quarter. We are definitely moving in the right direction. I can’t say there will be a lot of quarter-to-quarter consistency in our results. But I am pretty confident that we will have continued improvement in our results going forward.
What do you think of IT hiring plans in the US?
We are seeing some pull-in from prior years.
The CIOs that are in the process of hiring are looking to optimize their cost structure.
In general, IT professionals have not seen great hiring trends. Most of our customers are shifting their priorities from IT, to data and cybersecurity. They are looking at strategies to modernize their core infrastructure, with some degree of cloud implementation. This is an encouraging sign for us.
Should IT professionals worry about a lack of job security?
There are two reasons why IT is growing. The first is that most companies are becoming more global. They need global talent, whether it is in tech and management. The second reason is cybersecurity and the threat of cyberattacks. Companies are becoming more concerned about this. Also, IT professionals are facing difficulties to get the skills they need. This is changing the industry structure and it is creating opportunity for the IT pros. We are seeing a lot of deals in this space.
If US citizens had the option of studying overseas, would they take up that option
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