Startek Reports Q4 and Yearly Numbers -Improves Numbers by Shutting Down Canadian (Sudbury) Facility and Moving Services Offshore – February 23, 2011 – Cornwall Ontario

Startek Reports Q4 and Yearly Numbers -Improves Numbers by Shutting Down Canadian (Sudbury) Facility and Moving Services Offshore  – February 23, 2011 – Cornwall Ontario

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.

LINK

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.

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11 Comments on "Startek Reports Q4 and Yearly Numbers -Improves Numbers by Shutting Down Canadian (Sudbury) Facility and Moving Services Offshore – February 23, 2011 – Cornwall Ontario"

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Garfield
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Sad when companies are forced overseas to maintain profit margins, however it is the reality of modern day economics. Without profit, there is no company and no employees. If a company such as Startek does not look after its bottom line with options such as offshore, then obvious a competitor shall. In North America we have high overhead, high wages, high taxes, high standards. We shall not sacrifice any of this and so we must adapt to global realities. We are with choices and corporations are with choices… each wants to survive and to succeed best as we can. The… Read more »
Grimalot
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Its like using children to make Nike shoes as far as I’m concerned.. we should throw these backstabbing companies out, that get their starts here and then go to cheap labor elsewhere and foreign companies instead of supporting the people that helped them get started in the first place…

antagonizer
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The problems with Startek have little to do with economic downturns and more to do with mismanagement on the part of it’s higher ups. The facility in Cornwall saw the firing of it’s branch manager, which hints at the ineptitude of it’s leaders and the attempts being made to rectify it. However issues of micromanagement and employee misuse continues to run rampant throughout the facility as can be seen by numerous sites on the internet, including facebook, and various blogs that supply a profoundly huge amount of negative feedback from past and current staff. Losing a company, such as Startek,… Read more »
smee
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Grimalot
I was wondering how much responsibility you take for this business venture carried out by star tek. Are you willing to have your family and friends surrender their cell phones to show how much you care…or will you just blame someone for trying to make sound business decisions.

Grimalot
Guest
Smee lives.. 😉 I take 100 percent responsibility for my actions Smee. In fact, I do not carry a cell phone or PDA or anything that requires me to give money to Bell, Rogers, or any of the mega monopoly phone companies that outsource their work. Once upon a time, you used to actually work for the company instead of in an outsourced call center. That company used to pay you more than the outsourced call center as well. But while I was working for certain businesses, directly or in outsourced call centers, and when I started seeing more and… Read more »
Grimalot
Guest

I also agree with Antagonizer on their views.

antagonizer
Guest

That brings up a caveat. Folks that work for Startek should refrain from posting comments that speak negatively (truthfully) about them. They tend to creep facebook pages and blog posts of reps. and fire accordingly. It’s not hearsay, and in fact a policy made public to all staff.

On another note, I can name half a dozen local employers who will not hire a person based on their past experience with Startek employees. It’s a sad state, but their reputation as a negative influence is indeed harming job prospects as a whole.

smee
Guest

Grimalot, do you have a landline or perhaps an internet providor? Seems you do use in some way services from people you claim not to support.

Star Tek is just a small portion of the bigger picture

The management in Star Tek are promoted from with in. I guess it is another nail in our ability coffin.

Grimalot
Guest
No one said management isn’t promoted from within. Its the big companies, posting record profits, that are squeezing blood from stones from within the country, as they are forcing these outsourced companies to find work from outside of the country in order to meet their demands. I go back to my original statement, that if a company operates within Canada or the US, then they should keep the jobs here and support from within the country. If not, and they keep on posting record profits while trying to gouge their customers, both on money and time, then they should not… Read more »
Grimalot
Guest

And actually any landline or internet provider I do use, are independents. They would have been gouged over this whole UBB thing. I’m so glad that didn’t go through! Yet.. but we’ll see how much our government cares about Canadians after 60 days..

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