Problems at Teleperformance (TEP)
Teleperformance (Paris: TEP — 6.18 billion euros) describes itself as “a global leader in digital business services that consistently seeks to deliver enhanced customer care that is simpler, faster, and safer for the world’s biggest brands and their customers.” In reality, Teleperformance largely operates outsourced call centers in developing countries. The company is accused of “modern-day slavery,” has a heavy debt burden, and is facing rapidly growing competition from AI-powered phone agents. In sum, The Bear Cave concludes Teleperformance is on a collision course with irrelevance.
Founded in 1978, Paris-based Teleperformance employs around 500,000 call center workers across nearly 100 countries, with annual revenues exceeding 8 billion euros. Teleperformance is led by Daniel Julien, the company’s 71-year-old founder, Chairman, and CEO, who currently works from Miami Beach, Florida.
The company’s cost-effective workforce in markets like India (~87,000 employees), the Philippines (~64,000 employees), and Colombia (~44,000 employees) provides phone support, chat support, social media customer response, bill collection, telemarketing, content moderation, and more for large corporations like Uber, TikTok, and Google, among others.
A persistent and growing problem for Teleperformance are allegations of worker mistreatment. For example, a February 2024 investigation into Teleperformance by Inkyfada, a Tunisia-based non-profit investigative media outlet, begins:
“It’s simple: Teleperformance owns us.”
The Inkyfada investigation continues:
“Inkyfada surveyed some 100 Tunisians working at Teleperformance Hellas through a call for testimonials. One expression, in particular, was repeatedly used by the respondents: ‘Modern slavery.’”
Among the concerns raised by Inkyfada were low wages, misleading employment statuses, and work visas that essentially left workers trapped at the company or facing deportation.
Other international publications have raised similar concerns.
For example, in 2020 the Financial Times reported that Teleperformance employees who provide customer service for Amazon Ring camera systems would often sleep in the Teleperformance office in Cebu, Philippines and complained of “subhuman conditions.”
The FT also found that “Teleperformance employees face severe penalties for talking to the media or sharing information about their work in any way. A contract seen by the FT suggested that workers would be considered liable for ‘damages’ of ‘at least’ 500,000 pesos — roughly two years’ salary — for breaking confidentiality agreements, on top of losing their job.”