Teleperformance

Teleperformance, the world's largest CX outsourcing company with €8.2 billion in 2022 revenue and over 410,000 employees across 91 countries, had historically generated the majority of its revenue through its Core Services segment — traditional contact center operations sold on per-agent or per-hour pricing with 1-3 year contract terms. While Core Services provided scale and market leadership, it faced structural margin pressure from wage inflation in delivery markets, client procurement pressure on hourly rates, and volume volatility tied to client business cycles. The company's Specialized Services segment — encompassing LanguageLine Solutions (interpretation), TLSContact (visa and consular services), and other niche offerings — represented approximately 11% of total revenue in 2020 (€652 million of €5.73 billion total) but operated on fundamentally different contract structures: multi-year exclusive arrangements with government agencies and regulated industries, often with built-in volume floors and annual price escalators. Note: 2020 Specialized Services revenue was depressed by COVID-19, particularly the near-shutdown of TLSContact visa processing from April 2020; 2019 Specialized Services revenue was €705 million.

Between 2020 and 2023, Teleperformance deliberately shifted its revenue mix toward Specialized Services by investing in contract structures that provided longer duration, higher margins, and more predictable revenue:

• LanguageLine Solutions expansion: Accelerated investment in LanguageLine, acquired in 2016, expanding its over-the-phone and video interpretation services from healthcare and government into financial services and insurance. LanguageLine contracts typically run 3-5 years with minimum monthly volume commitments and per-minute pricing that scales with usage, providing both a revenue floor and upside participation.
• TLSContact government contracts: Won and renewed multi-year exclusive visa processing contracts with sovereign governments, including UK, French, and Swiss consular services. These contracts feature 5-10 year terms with built-in volume-based pricing and CPI-linked annual adjustments, insulating revenue from inflation.
• Outcome-based pricing pilots: Launched outcome-based pricing models in select Core Services accounts, shifting from per-hour to per-resolution or per-outcome billing. While still a small portion of Core Services revenue, these contracts carried 200-400 basis points higher margins than traditional time-and-materials arrangements.