AT&T & Accenture strike $2.6bn outsourcing deal

Telecoms giant AT&T and consultancy provider Accenture have announced a "co-sourcing arrangement" worth $2.6bn (£1.8bn). The...

Telecoms giant AT&T and consultancy provider Accenture have announced a "co-sourcing arrangement" worth $2.6bn (£1.8bn). The five-year partnership deal aims to reduce AT&T's customer care costs while boosting consumer revenues.

Betsy Bernard, president and chief executive of AT&T Consumer, said 4,300 existing customer care and consumer salespeople would continue to directly support AT&T consumer users.

Joe Forehand, chairman and chief executive of Accenture, said his company would provide technical consulting and implementation of advanced interactive voice response (IVR), Web and customer relationship management technologies for the project.

Bill Stake, currently vice-president of AT&T Consumer's sales and customer care division, is leading the joint operation and will report to an oversight team that includes both AT&T and Accenture managers, Bernard said. "Both companies are contributing talent, technology and people," she said.

Bernard said that her goal during the next five years is to cut the cost of customer service in half while continuing to increase consumer-derived revenue.

AT&T's existing customer support systems will be part of the new infrastructure being developed by the two companies.

According to sources, the $2.6bn is a budget pool to be used during the next five years by AT&T, Accenture and any other vendors that might be called upon to provide a service.

John Harrington, a managing partner with Accenture's communications industry group, said his company's role would be to implement technologies that ensure that customers are directed to the correct service representative and that the interaction between them is as efficient as possible.

"We're hopeful that customers will become excited about using other channels [for service], such as the Web and IVR," Harrington said.

The co-sourcing arrangement is effective immediately, Bernard said.

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