TeleTech’s Overseas Operations Generate Revenue Growth

Business process outsource firm TeleTech Holdings Inc. (Nasdaq: TTEC) reported this week fourth quarter revenues of $373 million, up from $336.7 million a year ago. Full year revenue was nearly $1.4 billion, up 13 percent from 2006. 

Englewood, Colo.-based TeleTech generated $153 million, or 41 percent, of its fourth quarter revenues from services performed for clients in offshore locations. For the year, the firm generated revenues of $549 million, or 40 percent, from services performed for clients in offshore locations. TeleTech currently provides offshore services from Argentina, Canada, Costa Rica, Malaysia, Mexico, the Philippines and South Africa.

TeleTech projected offshore revenue in 2008 will grow to approximately 50 percent of total revenue and represent more than 70 percent of its total delivery capacity.

TeleTech added 7,700 workstations in during 2007 bringing the total workstations in its global delivery network to 38,400 as of year-end.

TeleTech counts approximately 300 BPO programs serving more than 100 global clients in the automotive, communications and media, financial services, government, healthcare, retail, technology and travel and leisure industries.

TeleTech completed last week its internal investigation of its backdating of stock options, reporting it had used incorrect measurement dates for certain stock grants from 1996 through August 2007. The company reported it will have to restate its financial statements for fiscal 2005 and 2006 and the first two quarters of 2007.

Backdating refers to options that are issued retroactively to coincide with low points in the stock price, increasing the likelihood of profits for the recipient. Backdating must be disclosed to investors though it may not be illegal.