New $150 Million Contract to Provide U.S. Federal Agencies with Contact Center Solutions
DENVER, August 3, 2004 –TeleTech Government Solutions, LLC, a wholly-owned subsidiary of TeleTech Holdings, Inc. (NASDAQ:TTEC), announced today that it was awarded a contract with the U.S. General Services Administration (GSA). In a unique five-year contract, estimated at $150 million and allocated at the discretion of GSA, TeleTech Government Solutions is one of five vendors to provide a wide range of contact center solutions that will help government agencies serve citizens more effectively. As one of President Bush's E-Government initiatives, the program is designed to be citizens' front door to government information and services.
The contract is for one year with four one-year options. Selected companies are expected to deliver high quality contact center solutions at competitive prices, adding significant value to federal agencies taking advantage of the program. For the first time, agencies will have access, through GSA, to a contract vehicle designed to provide fully managed contact center solutions. These solutions facilitate citizen inquiries via phone, fax, email, TTY/TDD for the hearing-impaired, chat, and postal inquiries. They are intended to establish a seamless citizen information network that fosters efficient use of resources to deliver government information and services.
“TeleTech was selected for its experience in the government sector as well as its ability to develop and implement customer management solutions scalable to any client's requirements,” said Troy Cromwell, TeleTech Government Solutions senior vice president. “For this contract, we will utilize small businesses across the United States to deliver strategic contact management services to U.S. federal agencies throughout the country. This approach makes us truly responsive to American citizens.”
ABOUT TELETECH GOVERNMENT SOLUTIONS, LLC
TeleTech Government Solutions, LLC, a wholly-owned subsidiary of TeleTech Holdings, Inc. dedicated to government services, offers business process management, end-to-end business solutions, and customer management services to federal, state, and local agencies throughout the United States and supports agency applications internationally in 12 countries.
TeleTech Holdings, Inc. (NASDAQ: TTEC), a leading global provider of customer management and business process outsourcing solutions, strengthens customer relationships for its clients by providing a combination of technologies, processes, and professional services. Headquartered in Denver, Colo., TeleTech's worldwide capabilities are supported by more than 33,000 professionals in North America, Latin America, Asia-Pacific, and Europe. For additional information about TeleTech Holdings, Inc., visit www.teletech.com.
FORWARD LOOKING STATEMENTS
This press release may contain certain forward-looking statements relating to future results. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. These forward-looking statements are subject to risks and uncertainties that may cause TeleTech's and its subsidiaries' actual results to differ materially from those expressed or implied by such forward-looking statements, including but not limited to the following: under U.S. generally accepted accounting principles, the revenues, expenses, and profits associated with the launch of new client agreements may be expensed up front or deferred over the life of the client contract, and, accordingly, the profitability of these agreements may be disproportionately skewed toward later periods; the possibility of the company's Database Marketing and Consulting segment not returning to historic levels of profitability; greater than anticipated competition in the customer care market, causing adverse pricing and more stringent contractual terms; risks associated with losing or not renewing significant client relationships, or early termination of a client agreement; the company's ability to close new business in 2004 and fill excess capacity; consumers' concerns or adverse publicity regarding the products of the company's clients; higher than anticipated start-up costs or lead times associated with new ventures or business in new markets; execution risks associated with performance-based pricing metrics in certain client agreements; execution risks associated with achieving targeted annualized cost reductions; the company's ability to find cost effective locations, obtain favorable lease terms, and build or retrofit facilities in a timely and economic manner; risks associated with attracting and retaining cost-effective labor at the company's customer management centers; the possibility of additional asset impairments and restructuring charges; risks associated with changes in foreign currency exchange rates; economic or political changes affecting the countries in which the company operates; changes in accounting policies and practices promulgated by standard setting bodies; and, new legislation or government regulation that impacts the customer care industry.
Please refer to the company's filings with the Securities and Exchange Commission, including the company's Annual Report on Form 10-K for the year ended 2003 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2004, for a more detailed discussion of factors discussed above and other important factors that may impact the company's business, results of operations, financial condition, and cash flows. The company assumes no obligation to update its forward-looking statements to reflect actual results or changes in factors affecting such forward-looking statements.