THIRD QUARTER 2009 FINANCIAL RESULTS

TeleTech reported third quarter and nine months 2009 revenue of $281.5 million and $887.1 million, respectively. This compares to $349.1 million and $1,074.2 million in the year-ago periods. On a constant currency basis, revenue declined 16.0 percent from the third quarter 2008 and 10.5 percent from the first nine months of 2008. These declines were attributable to lower client volumes due primarily to reduced demand for clients' products or services given the weak economic environment, TeleTech's efforts to proactively manage underperforming business out of its portfolio and the increased migration of certain client programs to offshore locations.

Revenue from TeleTech's offshore locations reached a milestone in the third quarter climbing to $140.7 million or 50 percent of total revenue. For the first nine months of 2009 offshore revenue grew to $425.8 million or 48 percent of total revenue.

TeleTech's third quarter 2009 gross margin improved 330 basis points to 30.9 percent from 27.6 percent in the year-ago quarter. This improvement was primarily due to the increased delivery of professional services and technology-based on-demand offerings, the termination of underperforming client programs and lower workforce attrition.

TeleTech's third quarter 2009 income from operations was $28.0 million or 9.9 percent of revenue, representing a 210 basis point improvement from $27.2 million or 7.8 percent of revenue in the year-ago quarter. The increase in operating margin is primarily due to the gross margin improvement outlined above, in addition to lower restructuring and asset impairment charges and proactive management of the Company's operating and workforce-related expenses.

Third quarter 2009 fully diluted earnings per share were 32 cents compared to third quarter 2008 fully diluted earnings per share of 29 cents attributable to TeleTech shareholders.

EXECUTIVE COMMENTARY ON TELETECH'S FINANCIAL RESULTS

"We are pleased with our ability to deliver solid profitability and earnings per share along with record free cash flow," said Ken Tuchman, chairman and chief executive officer. "Our business is operating very efficiently and is a testament to the strength of our leadership team and their in-depth understanding of the key performance levers of our global operations. Our focus remains on improving our topline results. We are encouraged by the pace of new business wins thus far in the fourth quarter as well as the ongoing business discussions we are having with both current and prospective clients. The marketplace is expressing a high level of interest in our revenue generation capabilities, our on-demand suite of offerings, and our ability to help companies simultaneously reduce global delivery risk and overall cost to serve. The breadth of TeleTech's capabilities uniquely positions us to capture additional market share in 2010 and beyond."

THIRD QUARTER 2009 BUSINESS HIGHLIGHTS

Strong Balance Sheet Continues to Fund Operations

--  As of September 30, 2009, TeleTech had cash and cash equivalents of
    $115 million, no borrowings on its credit facility and total other debt of
    $9 million, resulting in a net positive cash position of $106 million.
--  Free cash flow for the third quarter 2009 was $54.0 million,
    representing a 7 percent increase from $50.7 million in the year-ago
    quarter.
--  Capital expenditures in the third quarter 2009 were $4.8 million, down
    from $15.3 million in the year-ago quarter.
--  Return on invested capital was 28 percent as of September 30, 2009.
    

New Business

During the third quarter 2009, TeleTech signed an estimated $55 million in new annualized revenue from both new and existing clients. To date in the fourth quarter, TeleTech has signed an estimated $80 million in new annualized revenue and expects to close several additional new business opportunities before the end of 2009. Several of the new business wins in the fourth quarter included TeleTech's revenue generation and on-demand suite of offerings.

BUSINESS OUTLOOK

TeleTech believes volumes in its base business are beginning to stabilize across its key industry verticals although volumes continue to be soft in certain of its smaller verticals including automotive, logistics, and travel and leisure. Accordingly, TeleTech expects fourth quarter 2009 revenue will approximate third quarter 2009 revenue. The revenue lift from seasonal volumes is expected to offset the absence of approximately $8 million in revenue recognized in the third quarter 2009 related to the completion of the short-term program for the Federal Communications Commission's digital television conversion.

TeleTech expects 2009 full year operating margin excluding unusual charges will range between 9.0 percent and 9.5 percent, an increase from its previous expectation of between 7.5 percent and 8.5 percent.

Consistent with prior years, TeleTech plans to provide its 2010 business outlook in conjunction with its fourth quarter 2009 earnings announcement.

CONFERENCE CALL

A conference call and webcast with management will be held on Thursday, October 29, 2009 at 8:30 a.m. Eastern Time. You are invited to join the live webcast of the conference call by visiting the "Investors" section of the TeleTech website at www.teletech.com. If you are unable to participate during the live webcast, a replay will be available on the TeleTech website through Thursday, November 12, 2009.

NON-GAAP FINANCIAL MEASURES

To supplement the Company's consolidated financial statements presented in accordance with generally accepted accounting principles (GAAP) in the United States, the Company uses the following non-GAAP financial measures: Free Cash Flow, Non-GAAP Income from Operations, Non-GAAP EBITDA and Non-GAAP EPS. TeleTech believes that providing these non-GAAP financial measures provides investors with greater transparency to the information used by TeleTech's management in its financial and operational decision making and allows investors to see TeleTech's results "through the eyes" of management. TeleTech also believes that providing this information better enables TeleTech's investors to understand its operating performance and information used by management to evaluate and measure such performance. The presentation of these financial measures are not intended to be used in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. A reconciliation of these non-GAAP financial measures is available in the financial tables attached to this press release.

ABOUT TELETECH

TeleTech is one of the largest and most geographically diverse global providers of business process outsourcing solutions.