Nextel Will Shutter Major Call Center

The call center, which occupies much of the Meadows Office Complex on Route 17, will be closed in the wake of an agreement by Nextel to outsource its customer service operations. The company has just signed a $1.2 billion, eight-year agreement with IBM to take over those operations, which IBM will turn over to partner TeleTech Holdings, based in Englewood, CO.

Essentially, TeleTech was signed by IBM to manage a half-dozen Nextel call centers employing more than 4,500 people. After taking a look at those operations, "we determined that there was more capacity built into the system than we need," according to a TeleTech spokesman. "It was purely a business decision relating to operating costs."

The casualties are the Rutherford operation and another Nextel call center in Colorado, which combined employ nearly 2,000 people. Of the 900 staffers in Rutherford, only about 150-200 are expected to be offered jobs elsewhere in the outsourced operation. Officials would not disclose the specific numbers or the timeline for making the cuts, although staffers are said to have been told by TeleTech management that the operation will close by mid-spring, according to one report.

Nextel's agreement with IBM, while costing $1.2 billion, is expected to reduce the company's costs by more than $1 billion over the term of the deal, according to Nextel COO Jim Mooney. The company is also looking for some revenue enhancements through the deployment of new wireless data services being developed by IBM.

"Our key priorities are to drive greater operating efficiencies while continuing to provide our customers with superior customer care," Mooney said in a written statement. "This strategic alliance positions Nextel to achieve both goals."

Officials would offer no information as yet on the disposition of Nextel's space in Rutherford.