The Enid News and Eagle, Enid, OK

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January 4, 2012

Lack of clients could force StarTek to close

By Robert Barron, Staff Writer Enid News and Eagle

ENID — If no new client is found, Enid’s StarTek call center will close in March, the company announced Wednesday.

The process of giving employees the required 60-day notice began Wednesday morning. Company spokeswoman Rosemary Hanratty said they would talk to as many people as possible Wednesday. There are 213 employees at the Enid call center, she said. The facility opened in 2000.

“We’re not saying that is our intention. We’re working very hard to replace the business, but if we don’t then we will be closing in early March,” Hanratty said. “We’re doing everything we can to get the business so we can keep those good people. StarTek enjoyed doing business in Enid and we want to stay there.”

Enid is the only company facility affected. If the local call center is closed, the work will go to another StarTek site, Hanratty said. The company did not said which facility the work will be transferred to, but Hanratty said it will be within the United States. StarTek has 9,000  employees in 14 locations in the United States, Canada, the Philippines, Costa Rica and Honduras. Company headquarters is in Denver. StarTek offers a variety of services to clients, including customer service, technical support, inbound sales and back office support. Not all of the centers do the same type of work, Hanratty said.

The current work in Enid will continue until March, with a gradual ramp down over the next couple of months, she said. StarTek has not been hiring in Enid for more than a year, she said, and the average wage is $9.25 per hour.

Last October, Hanratty said some business had shifted away from the Enid center, sparking rumors then the facility was closing.

The city of Enid paid StarTek from economic development funds approved in a vote of residents, said Becky Hodgen, public information officer for the city. The most recent payment was about $281,000 made in 2009. The company took payments in set amounts as it met the criteria tied to employment and payroll outlined in the contract with the city. The company has been drawing down on that account, and city officials said there was about $700,000 left in the account.

StarTek’s payroll at the end of 2009 was $9,373,742.78.

StarTek owns the former Sears Roebuck building on West Randolph, and Hanratty was uncertain what will be done with the building if the center closes.

Brent Kisling, executive director of Enid Economic Development Alliance, said he had spoken to StarTek officials, and his organization will do all it can to make sure the Enid facility is as competitive as possible as StarTek bids for new work for Enid.

“It’s not good news for Enid,” Kisling said.

A letter given to employees Wednesday stated due to “unforeseen business circumstances,” the Enid location would close, resulting in the layoff of all employees. The layoff will be effective March 5. Transfer to other StarTek sites may be made to individuals depending upon business needs and performance, the letter stated. The letter was signed by David Whyburn, site director.

Last year, StarTek selected the Enid call center to represent the company in the 2010 National Call Center Awards. At that time StarTek employed more than 500 people, Kisling said.

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