Expects Annualized Cost Savings and Synergies of Approximately $27 Million
BOSTON, MA. - April 1, 2010 - Stream Global Services, Inc. (NYSE
AMEX: SGS), a premium, global business process outsource (BPO)
service provider specializing in customer relationship management
services for Fortune 1000 companies, today announced that it has
substantially completed the integration of the eTelecare business
with Stream. Stream announced on August 14, 2009 that it had
entered into a definitive agreement to combine with eTelecare. The
combination closed on October 1, 2009. Over the course of the last
several months, Stream completed various integration activities
related to the transaction including:
- Creation of one world-wide Stream Global Services brand;
- Combination of world-class client-centric management
organizations, service marketing, and "go-to-market" sales
teams;
- Implementation of Stream's proven operating processes,
resulting in improvement in gross margin percentages and overall
customer satisfaction;
- Consolidation of global employee incentive, compensation and
benefit programs;
- Creation of a very experienced management team - selection of
the most qualified leaders from across the combined
organization;
- Consolidation and implementation of technology and applications
such as Oracle Human Resource Information Systems, Aspect
Software's PerformanceEdge eWorkforce Management, Taleo applicant
tracking and management, Kronos time and attendance, Oracle
financial reporting and other proprietary web-based applications
and reporting tools. Stream believes that these technology
applications represent the premium applications of choice for the
global BPO industry and position the company for the next
generation of service requirements;
- Consolidation of administrative functions in areas such as
finance, facilities, information systems, human resources, legal
and other executive functions;
- Elimination of approximately 170 overlapping administrative,
management and operations-related employee positions, representing
approximately $12 million of annualized cost savings; and
- Rationalization of certain real estate leases, as a result of
the company creating a dynamic Smart Shore model for its global
clients.
In order to expeditiously integrate the two businesses, Stream
formed more than 40 joint project groups that reported into a
project management office with full time responsibility for the
integration activity, together with strong executive sponsorship
and oversight of the integration process. These groups began to
formulate the integration plan immediately following the execution
of the merger agreement on August 14, 2009, and launched its
implementation after the closing of the transaction on October 1,
2009. In addition, Stream engaged an international tier-one
management consulting firm to review the integration planning and
activity, monitor attainment of cost savings and synergies and
periodically report to the executive team and the Board of
Directors on the progress of the integration. This consulting
engagement allowed Stream to expeditiously and seamlessly complete
the integration of the businesses in record time, while continuing
to win new business and grow the company's existing accounts. As of
March 31, 2010, Stream has completed cost reduction and synergy
savings of approximately $21 million on an annualized basis,
including the employee reductions described above. In addition, the
company expects to generate approximately $6 million further of
annualized savings from compression of certain administrative
offices over the next several months, continued savings from
consolidation of procurement of vendors and services,
telecommunication and other operating costs, as well as
consolidation of certain of our data centers bringing the total
annualized cost savings to $27 million.
Scott Murray, Stream Chairman and CEO said; "Since the
announcement of the merger last August, the respective teams have
been diligently planning the integration and over the past several
months have methodically implemented the steps to combine the two
companies seamlessly to our clients. I am pleased that we were able
to substantially complete the integration in such a short period of
time, while increasing customer satisfaction, winning new business
and expanding our market share with our existing global clients. We
believe the service platform that we have now created is of the
highest quality and well diversified and allows Stream to be a
truly global player across North America, Central America and the
Caribbean, Europe, Africa, the Middle East, India and the
Philippines. In addition, we have been able to leverage the service
offerings of both companies to generate greater opportunities for
growth in our core competencies of revenue generation, sales,
technical support, customer retention, customer care, customer life
cycle management and other back office services for our clients."
Murray went on to say; "The thesis that we had when we combined
these two businesses has proven to be correct, as demonstrated by
the fact that our global clients are constantly seeking service
providers that can deliver services anywhere in the world where
they do business and can provide integrated service offerings to
meet their growing needs. Over the next few months we expect to see
continued expansion in our Asian and South American operations to
meet growing client demand."
Contact Information:
Nancy Finn
Global Marketing Communications
nancy.finn@stream.com
781-304-1846 About Stream Global Services
Stream Global Services is a premium business process outsource (BPO) service provider specializing
in customer relationship management including sales, customer care and technical support for Fortune
1000 companies. Stream is a trusted partner to some of the world's leading technology, computing,
telecommunications, retail, entertainment/media, and financial services companies. Our service programs
are delivered through a set of standardized best practices and sophisticated technologies by a highly
skilled workforce of approximately 30,000 employees based out of 50 solution centers in 22 countries
supporting more than 35 languages. Stream continues to expand its global presence and service offerings
to increase revenue, improve operational efficiencies and drive brand loyalty for its clients. To learn
more about the company and its complete service offering, please visit www.stream.com.
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