Talk

The uncertainties of overseas operations

Like many public companies with overseas operations, Sykes Enterprises is vulnerable to what its regulatory filings opaquely refer to as "political uncertainties."

Such caveats warn investors that coups, revolutions and tax grabs are beyond a company's control and could cut into its profits.

For Sykes, a Tampa company that handles customer support for clients such as Microsoft and SBC Communications via a global network of call centers, the boilerplate language recently became reality.

A year ago, Delta Air Lines hired Sykes' Philippines operation to handle some of its lost-baggage calls and SkyMiles questions. Because of unexplained "security matters," however, the airline postponed the Philippines work, Delta spokeswoman Peggy Estes said.

According to a State Department travel alert, "the terrorist threat to Americans in the Philippines for kidnapping and bombings remains high and the embassy continues to receive reports of ongoing activities by known terrorist groups." Most of the employees at Sykes' foreign facilities are native-born.

While Delta waits for things in the Philippines to simmer down, Sykes employees in India are taking its calls. More than 200 call-center "seats" there are devoted to the Delta contract.

Sykes spokesman Subhaash Kumar said the company doesn't think its other clients will follow suit and leave the Philippines, where it had 2,800 seats as of June 30.

"If you're asking if this is an inflection point, a bit of a foreboding, I wouldn't say that's the case," Kumar said.