CINCINNATI -Convergys Corp., a business services outsourcing provider, said Wednesday that former Alltel Corp. executive Jeff Fox will take over as president and CEO.
David Dougherty, who led the company less than three years, will stay on as a consultant, the company said.
Fox, 47, has agreed to head Convergys at least one year, the company said. The former chief operating officer of wireless provider Alltel became a Convergys board member one year ago.
Convergys chairman Philip Odeen said the board decided it was time for a new leader.
"The board believes we need greater focus on effective execution, revenue growth, and improved profitability," Odeen said in a statement.
Convergys provides call-center, billing and other customer relations services. It has seen its growth falter during the recession.
It recently reported a 2009 profit of $77.3 million, down from $92.9 million a year earlier. Revenue edged up to $2.83 billion from $2.79 billion.
The company has forecast 2010 sales will fall to about $2.6 billion.
Convergys recently eliminated an undisclosed number of jobs among other changes Dougherty had described as "difficult but necessary actions to further streamline costs and pursue operating improvements." Convergys has 70,000 employees in 30 countries. Its largest overseas operation is in the Philippines.
An industry expert said the CEO switch wasn't surprising.
"They obviously wanted to make a change, because they've had a hard time," said Donna Fluss, president of DMG consulting.
Fluss said Dougherty, 53, headed the company during a tough economy, but she said some competitors such as India-based Genpact, formerly owned by General Electric Co., have been increasing revenues at the same time.
Convergys says its clients include more than half of the Fortune 50 companies. It made its biggest mark in outsourcing call center operations, and has expanded into human resources outsourcing and other services.
During 13 years with Alltel, Fox held a number of roles before becoming COO in 2007. Verizon Wireless bought Alltel, based in Little Rock, Ark., in 2008.
Fox earlier worked in investment banking at Stephens Inc. and Merrill Lynch, and is president of The Circumference Group, a consulting and investment firm for technology and telecommunications.
In 2007, Dougherty succeeded retired CEO James F. Orr, who had led the company from its inception. It was spun off from Cincinnati Bell in 1998.
Both Orr and Dougherty formerly worked for consumer products giant Procter & Gamble Co., based in Cincinnati
Convergys shares fell 1 cents to $10.87. They have traded between $5.49 and $11.97 in the past 52 weeks.
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