Cornwall ON – Call Centre Giant Startek reported their Q4 and year end numbers for 2011. The company cited it’s improved profits by moving more services off shore.
Here in Cornwall Ontario the Giant employs hundreds of people. With the need to service Bell’s French services the local and nearby Bilingual population fills the corporations needs.
Some worry what would happen locally if that contract were lost.
The Company continued to execute on its three point strategy: expanding offshore, rationalizing U.S. operations, and reducing its Canadian exposure. Fourth quarter revenue from offshore facilities grew 22% vs. the third quarter of 2010 and 155% vs. the fourth quarter of 2009. The offshore operations also returned to profitability with a gross margin of 6% in the fourth quarter of 2010. During the quarter, the Company consolidated two U.S. sites in Greeley and Grand Junction, Colorado, and announced the ramp-down of its Alexandria, Louisiana facility, which will result in future utilization and margin improvements. Also in the quarter, the Company completed the closure of its Sarnia, Ontario site announced earlier in 2010 leaving only three sites in its Canadian operation. All three of these initiatives are intended to increase offshore delivery capacity and restore profitability through utilization and margin improvements.
Sounds like the more the company uses low dollar labor offshore the higher their profits. That certainly doesn’t bode well for their North American staff.
What do you think about companies that move offshore? You can post your comments below.