Thursday, August 8, 2019
Sykes Enterprises Essay Example | Topics and Well Written Essays - 1000 words - 14
Sykes Enterprises - Essay Example Convergys Corporations and TeleTech Holdings Inc. have been the major players in the industry that have captured a larger segment of the market leading to small companies like Sykes Enterprises focusing on cost-competitive strategies rather than quality competitiveness. The mission of Sykes is to provide its customers with competitive rates so that it can provide its customers with the lowest rates. SykesÃ¢â¬â¢ strategy is to compete with the industry leaders on cost. It has to thus ensure that its operations stay profitable for it to continue its operations. Its mission and objectives are aligned with the amount of competition in the market and allow Sykes to target the same companies its competitors are targeting, however, offering the lowest rates in town. There is no need to review the mission and objectives, but the strategy needs re-working. It is obvious that Sykes can take more than one action to improve its revenues and build a profitable business. The closure of its operations in India has resulted in the consolidation of its costs in the United States. The competitors of Sykes have resorted to opening up call centers in South East Asian nations such as the Philippines to counter the high turnover costs and possible wage rises in Indian cities due to growing economies. One of the strategic alternatives for Sykes could be to introduce a culture of hiring fresh graduates and providing them training and binding them with contracts to serve Sykes for a period of two years. This would result in a significant drop in turnover for a temporary period. Reduction in the hiring and firing costs will result in lower running costs that will allow Sykes to offer lower rates to its customers. It would be wise for Sykes to continue its contracts with various towns and cities and gather benefits in taxation and other utilities offering employment in return. The reduction in taxes would result in lower deductions in the revenues. The reduction would improve the profitability, though not necessarily the revenues.