View source for Arvato

{{short description|German global services company}}
{{Use dmy dates|date=May 2022}}

'''The Arvato Group''' is a global [[Service (business)|services company]] headquartered in [[Gütersloh]], Germany.<ref>{{cite news|language=de|author=Jens Ostrowski|title=Arvato baut aus|newspaper=Neue Westfälische|date=23 March 2016|page=13}}</ref> Its services include customer support, information technology, logistics, and finance.<ref>{{cite news|language=de|title=Arvato positioniert sich als starker B2B-Partner|newspaper=Horizont|date=29 August 2002|page=10}}</ref><ref>{{cite news|language=de|title=Fünf auf einen Streich: Arvato baut Callcenter-Geschäft weiter aus|date=27 March 2007}}</ref><ref>{{cite web|language=de|url=https://www.handelsblatt.com/unternehmen/dienstleister/bertelsmann-tochter-arvato-verstaerkt-sich-mit-it-sparte-von-ibm-/10001990.html|title=Arvato verstärkt sich mit IT-Sparte von IBM|website=Handelsblatt|date=6 June 2014|access-date=10 October 2016}}</ref><ref>{{cite news|language=de|author=Björn Helmke|title=Mit filigraner Logistik kräftig gewachsen|newspaper=Deutsche Verkehrs-Zeitung|date=19 October 2010}}</ref><ref name="Thorsten Gödecker 12">{{cite news|language=de|author=Thorsten Gödecker|title=Arvato macht Geld mit Datenhandel|newspaper=Neue Westfälische|date=14 August 2014|page=12}}</ref> The history of Arvato goes back to the printing and industry services division of [[Bertelsmann]]; the current name was introduced in 1999.<ref>{{cite news|language=de|title=Arvato auf Wachstumskurs|newspaper=Handelsblatt|date=9 June 1999|page=19}}</ref> Today, Arvato is one of eight divisions of [[Bertelsmann]], the media, services, and education group.<ref>{{cite news|language=de|title=Gewinnsprung bei Bertelsmann|newspaper=Börsen-Zeitung|date=23 March 2016|page=8}}</ref> In 2016, Arvato had about 68,463 employees and an overall turnover of 3.84 billion euros.<ref name="Annual Report 2016">{{cite news|author=Gerrit Dinkels|language=de|title=Geschäfte im Kreis Gütersloh stabil|newspaper=Die Glocke|date=29 March 2017|page=17}}</ref>

== History ==

=== Early years of Arvato ===
Bertelsmann was founded as a publishing house by [[Carl Bertelsmann]] in 1835.<ref>{{cite news|language=de|author=Thomas Schuler|title=Erst Drucker, dann Verleger|newspaper=Berliner Zeitung|date=18 June 2010|page=30}}</ref> In the following decades, the company grew steadily. After the [[World War II|Second World War]], it developed from a mid-sized business to a large enterprise.<ref>{{cite news|language=de|title=175 Jahre Bertelsmann|newspaper=Die Presse|date=27 June 2010|page=45}}</ref> To meet the demand from the book club ''Lesering'' and the record club ''Schallplattenring'',<ref>{{cite news|language=de|author=Nikos Späth|title=Der Aufstieg des Bertelsmann-Konzerns|newspaper=Welt am Sonntag|date=3 October 2004|page=34}}</ref> Bertelsmann massively expanded its warehouse and shipping capacities in the mid-1950s.<ref name="2010-07-01">{{cite news|language=de|author=Michael Delker|title=Der größte Arbeitgeber in OWL|newspaper=Westfalen-Blatt|date=1 July 2010}}</ref> In 1959, the ''Kommissionshaus Buch und Ton'' was established to make the production and service infrastructure available for other publishing and printing companies. Bertelsmann benefited from this due to [[economies of scale]].<ref name="175 Jahre Bertelsmann, S. 34">{{cite book|language=en|title=175 Years of Bertelsmann: The Legacy for Our Future|publisher=C. Bertelsmann Verlag|location=München|year=2010|isbn=978-3-570-10175-9|page=34}}</ref> A punch-card index at the Lesering headquarters was acquired from [[Lufthansa]], which later became the basis for the information technology expertise of Arvato.<ref>{{cite news|language=de|author=Stephan Rechlin|title=Bertelsmann schließt Buchclub|newspaper=Westfalen-Blatt|date=18 June 2014}}</ref> During the first years, [[Reinhard Mohn]] was the sole owner of the Kommissionshaus Buch und Ton.<ref>{{cite web|language=de|url=https://www.unternehmensregister.de/|title=Amtsgericht Gütersloh, HRA 2018|website=Unternehmensregister|publisher=Bundesanzeiger Verlag|access-date=10 October 2016}}</ref> In 1968, the company became part of the newly founded ''Vereinigte Verlagsauslieferung'' (VVA).<ref>{{cite news|language=de|title=Immer im Dienst|newspaper=Wirtschaftswoche|date=22 February 1985|page=68}}</ref> Its purpose was the delivery of printed materials and records "in the name and on behalf of its clients."<ref>{{cite web|language=de|url=https://www.unternehmensregister.de/|website=Unternehmensregister|publisher=Bundesanzeiger Verlag|access-date=10 October 2016|title=Amtsgericht Gütersloh, HRB 1133}}</ref>

=== Business unit formation ===
Bertelsmann opened its printing business to outside clients in a similar way, forming a new company called ''Mohndruck'' in 1948.<ref>{{cite news|language=de|title=Mohndruck wird Mohn Media|newspaper=Handelsblatt|date=18 October 1999|page=25}}</ref> After purchasing powerful machines that required a high [[capacity utilization]], Bertelsmann acquired more and more orders from other companies in the 1960s.<ref name="175 Jahre Bertelsmann, S. 34" /> In the 1970s and 1980s, Bertelsmann founded and bought several other [[Printing company|printing]] and [[logistics]] companies in France, Great Britain, Spain, and other European countries.<ref>{{cite web|language=en|url=https://www.arvato.com/en/about/history.html|title=History: 1976–1990|publisher=Arvato|access-date=10 October 2016|archive-url=https://web.archive.org/web/20151215060322/http://www.arvato.com/en/about/history.html|archive-date=15 December 2015|url-status = dead}}</ref> These became part of the printing and industry services division of Bertelsmann.<ref name="2010-07-01" /> From 1976, the branch was led by Mark Wössner, who later became Bertelsmann CEO. Under his leadership, the expansion continued. For example, Bertelsmann entered the software and hardware distribution market in 1983.<ref>{{cite news|language=de|title=Bertelsmann vermarktet DV-Produkte|newspaper=Computerwoche|date=1 July 1983}}</ref><ref>{{cite news|language=de|title=Bertelsmann vertreibt Rechner von TI|newspaper=Computerwoche|date=21 October 1983}}</ref> Until the mid-1980s, the printing and industry services division generated more than 20 percent of the sales of the whole Bertelsmann group.<ref>{{cite news|language=de|title=Bertelsmann präsentiert sich in Bestform|newspaper=Handelsblatt|date=7 March 1986|page=20}}</ref> In the late 1980s, the company also expanded its presence in the United States.<ref>{{cite news|language=de|title=Verstärktes Engagement in den USA|newspaper=Handelsblatt|date=22 July 1986|page=10}}</ref> In the 1990s, Bertelsmann introduced the loyalty program [[Miles & More]] on behalf of Lufthansa in 1993.<ref>{{cite news|language=de|author=Thomas Glöckner|title=Auf Kollisionskurs|newspaper=Focus Magazin|date=20 July 1998|page=191|url=http://www.focus.de/finanzen/news/miles-und-more-auf-kollisionskurs_aid_174629.html|access-date=10 October 2016}}</ref> Additionally, the company became responsible for customer support for the launch of Microsoft's [[Windows 95]] operating system in Germany, Austria, and Switzerland.<ref>{{cite news|language=de|author=Heinrich Vaske|title=Windows 95 lässt steigende Nachfrage erwarten|newspaper=Computerwoche|date=14 July 1995|page=4}}</ref>

=== Restructuring and renaming ===
In 1996, Bertelsmann's printing and industry services division was spun off as a legally independent [[joint-stock company]] ([[Aktiengesellschaft (Deutschland)|Aktiengesellschaft]]) named ''Bertelsmann Industrie''.<ref name="Amtsgericht Gütersloh, HRB 3357">{{cite web|language=de|url=https://www.unternehmensregister.de/|website=Unternehmensregister|publisher=Bundesanzeiger Verlag|access-date=10 October 2016|title=Amtsgericht Gütersloh, HRB 3357}}</ref> Bertelsmann wanted to expand its service business even more.<ref>{{cite news|language=de|title=Dienstleistungsbereich soll stark wachsen|newspaper=Handelsblatt|date=30 May 1996|page=15}}</ref> At that time, Bertelsmann Industrie had approximately 12,600 employees worldwide and generated sales of 3.28 billion [[Deutsche Mark|Deutschmarks]] annually.<ref>{{cite news|language=de|title=Stabile Erträge bei wachsenden Umsätzen|newspaper=Deutscher Drucker|date=13 June 1996|page=4}}</ref> In 1999, the company finally was renamed ''Bertelsmann Arvato'' to illustrate the transformation of the printing and industry services division to an international communications and media service provider.<ref>{{cite news|language=de|title=Neuer Name, neue Ziele|newspaper=Darmstädter Echo|date=9 June 1999}}</ref><ref>{{cite news|language=de|author=Ludger Fertmann|title=Bertelsmann Drucksparte setzt verstärkt auf Dienstleistungen|newspaper=Die Welt|date=9 June 1999|page=24}}</ref><ref>{{cite news|language=de|title=Neuer Name soll Wandel dokumentieren|newspaper=Frankfurter Rundschau|date=9 June 1999|page=16}}</ref> The name Arvato was a neologism with no special meaning.<ref>{{cite news|language=de|title=Kunstwort "Arvato"|newspaper=Deutscher Drucker|date=26 August 1999|page=40}}</ref> Under the leadership of Gunter Thielen, who became CEO of Bertelsmann in 2002, the LP and CD pressing plants of [[Sonopress]] and the encyclopedia publishers were integrated with Arvato, too.<ref name="175 Jahre Bertelsmann, S. 334">{{cite book|language=en|title=175 Years of Bertelsmann: The Legacy for Our Future|publisher=C. Bertelsmann Verlag|location=München|year=2010|isbn=978-3-570-10175-9|page=334}}</ref> With the inauguration of Hartmut Ostrowski as CEO of Arvato in 2002, the company laid the prefix Bertelsmann in the company name but continued to use it for its logo (stylized as '''arvato BERTELSMANN''').<ref>{{cite news|language=de|author=Lutz Meier|title=Thielen baut Bertelsmann-Führung um|newspaper=Financial Times Deutschland|date=9 August 2002|page=6}}</ref> Arvato restructured its business into divisions for printing, distribution, and logistics services, as well as storage media and information technology.<ref name="175 Jahre Bertelsmann, S. 334" />

=== Change in the business model ===
Due to lower volumes of newspapers, magazines, and catalogs, Arvato, [[Axel Springer SE|Axel Springer]], and [[Gruner + Jahr]] founded a [[joint venture]] for parts of their printing business; it was named ''Prinovis''.<ref>{{cite news|language=de|title=Prinovis stellt sich auf|newspaper=Darmstädter Echo|date=27 July 2005}}</ref><ref>{{cite news|language=de|title=Der heimliche Star|newspaper=Handelsblatt|date=14 December 2005|page=13}}</ref> In 2005, all rotogravure printing activities of the three founding partners became part of the company, which was the market leader in Europe from its very beginning.<ref>{{cite news|language=de|author=Mark Böschen|title=Druckkonzern Prinovis startet aggressiv|newspaper=Financial Times Deutschland|date=27 July 2005|page=6}}</ref><ref>{{cite news|language=de|title=Neuer Tiefdruckriese hat hohe Ziele|newspaper=Neue Westfälische|date=27 July 2005}}</ref> At the same time, Arvato entered the market for public sector services.<ref>{{cite web|language=en|url=https://www.arvato.com/en/about/history.html|title=History: 2005|publisher=Arvato|access-date=10 October 2016|archive-url=https://web.archive.org/web/20151215060322/http://www.arvato.com/en/about/history.html|archive-date=15 December 2015|url-status = dead}}</ref> One of the first clients was the district of [[East Riding of Yorkshire]] where Arvato managed local taxes and welfare payments, for example.<ref>{{cite news|language=de|title=Arvato verwaltet Yorkshire|newspaper=Neue Westfälische|date=17 February 2005}}</ref><ref>{{cite news|language=de|author=Martin Krause|title=In Yorkshire alles im Griff|newspaper=Neue Westfälische|date=11 November 2006}}</ref> In the following years, distribution and logistics became more and more important: Arvato Direct Services and Logistics Services were merged into Arvato Services.<ref>{{cite news|language=de|title=Rückkehr zu Bertelsmann|newspaper=Neue Westfälische|date=2 February 2007}}</ref> Especially in Germany, Arvato won more clients for this division, including publishing houses as well as companies in the high-tech and information technology industry.<ref name="175 Jahre Bertelsmann, S. 334" /> At the turn of 2007/2008, Hartmut Ostrowski succeeded Gunter Thielen as CEO of Bertelsmann,<ref>{{cite news|language=de|title=Ostrowski soll Thielen an der Bertelsmann-Spitze nachfolgen|newspaper=Deutscher Drucker|date=25 January 2007|page=7}}</ref> so [[Rolf Buch]] moved to the helm of Arvato.<ref>{{cite news|language=de|title=Rolf Buch wird Arvato-Chef|newspaper=Handelsblatt|date=22 January 2007|page=13}}</ref> Under his leadership, Arvato started the loyalty program ''DeutschlandCard'', for example.<ref>{{cite news|language=de|title=Deutschlandcard macht Payback Konkurrenz|newspaper=Berliner Zeitung|date=4 March 2008|page=10}}</ref><ref>{{cite news|language=de|author=Steffen Fründt|title=Spione im Portemonnaie|newspaper=Welt am Sonntag|date=16 March 2008|page=34}}</ref> While Ostrowski focused on international expansion, Buch strengthened Arvato's presence in its home market Germany.<ref>{{cite news|language=de|title="Ein riesiger Markt vor der Haustür"|newspaper=Handelsblatt|date=4 April 2008|page=16}}</ref><ref>{{cite news|language=de|title=Vorstand krempelt Arvato um|newspaper=Neue Westfälische|date=25 January 2011}}</ref>

=== Reintegration of staff functions ===
In the 2010s, Arvato restructured its activities again: First of all, the company acquired the remaining shares of Prinovis from Gruner + Jahr.<ref>{{cite web|language=de|url=http://www.horizont.net/medien/nachrichten/-Arvato-uebernimmt-Anteile-des-Druckkonzerns-Prinovis-von-Gruner--Jahr-104062|title=Arvato übernimmt Anteile des Druckkonzerns Prinovis von Gruner + Jahr|website=Horizont|date=23 November 2011|access-date=10 October 2016}}</ref> Subsequently, Bertelsmann merged most of its printing plants into a new division called ''Be Printers''.<ref>{{cite web|language=de|url=http://www.horizont.net/medien/nachrichten/-Bertelsmann-nennt-Drucksparte-Be-Printers-111035|title=Bertelsmann nennt Drucksparte Be Printers|website=Horizont|date=31 October 2012|access-date=10 October 2016}}</ref> Arvato increased its focus on high-tech, information technology, and e-commerce services, three rapidly growing markets, while printing stagnated.<ref>{{cite news|language=de|author=Juliane Paperlein|title="E-Commerce ist weltweit ein Thema"|newspaper=Horizont|date=5 April 2012|page=14}}</ref> At the end of 2012, Rolf Buch was surprisingly replaced by {{ill|Achim Berg|de}},<ref>{{cite news|language=de|author=Heidi Rohde|title=Microsoft-Manager Berg wird Arvato-Chef|newspaper=Börsen-Zeitung|date=1 December 2012|page=16}}</ref> an expert for the said focus areas.<ref>{{cite news|language=de|url=http://www.spiegel.de/wirtschaft/unternehmen/achim-berg-wechselt-zur-bertelsmann-tochter-arvato-a-870249.html|title=Bertelsmann wirbt Microsoft-Manager ab|newspaper=Spiegel Online|date=30 November 2012|access-date=10 October 2016}}</ref> Under his leadership, Arvato acquired the insolvent e-commerce company Netrada in 2014,<ref>{{cite news|language=de|author=Michael Gassmann|url=https://www.welt.de/wirtschaft/article123755464/Bertelsmann-steigt-gross-in-den-Onlinehandel-ein.html|title=Bertelsmann steigt groß in den Onlinehandel ein|newspaper=Die Welt|date=10 January 2014|access-date=10 October 2016}}</ref> which led to a massive expansion in Arvato's market position in fashion logistics.<ref>{{cite news|language=de|author=Edgar Fels|title=Jetzt auch in Sachen Mode vorn|newspaper=Westfalen-Blatt|date=11 January 2014}}</ref><ref>{{cite news|language=de|author=Bert Rösch|title=Arvato kauft E-Fashion-Dienstleister Netrada|newspaper=Textilwirtschaft|date=13 January 2014|page=20}}</ref> After two years, Berg left Arvato in mid-2015.<ref>{{cite news|language=de|url=http://www.spiegel.de/wirtschaft/unternehmen/arvato-achim-berg-verlaesst-bertelsmann-tochter-a-1042954.html|title=Achim Berg verlässt Arvato|newspaper=Spiegel Online|date=9 July 2015|access-date=10 October 2016}}</ref><ref>{{cite web|language=de|url=https://www.handelsblatt.com/unternehmen/it-medien/bertelsmann-tochter-arvato-bekommt-neuen-chef/12035868.html|title=Arvato bekommt neuen Chef|website=Handelsblatt|date=9 August 2015|access-date=10 October 2016}}</ref> Bertelsmann appointed Fernando Carro as CEO of Arvato;<ref>{{cite news|language=de|author=Stefan Schelp|title=Neuer Chef für Arvato|newspaper=Neue Westfälische|date=10 July 2015|page=4}}</ref> he also became a member of the Executive Board of Bertelsmann.<ref>{{cite web|language=de|url=https://www.boersenblatt.net/artikel-stuehleruecken_bei_bertelsmann_.992013.html|title=Stühlerücken bei Bertelsmann: Achim Berg geht, Fernando Carro rückt auf|website=[[Börsenblatt]]|date=9 July 2015|access-date=10 October 2016}}</ref> As part of the restructuring, Arvato dissolved its [[Board of directors|Board of Directors]] and replaced it with an executive management team.<ref>{{cite news|language=de|author=Kai-Hinrich Renner|title=Turbulenzen bei Arvato|newspaper=Handelsblatt|date=10 July 2015|page=21}}</ref><ref>{{cite web|language=de|author=Bert Rösch|url=http://www.textilwirtschaft.de/business/unternehmen/Arvato-Vorstand-aufgeloest-98017|title=Arvato: Vorstand aufgelöst|website=Textilwirtschaft|date=10 July 2015|access-date=10 October 2016}}</ref> The Bertelsmann corporate center took over some [[staff function]]s of Arvato, while some are provided from within the Arvato divisions independently.<ref>{{cite web|language=de|url=https://www.bertelsmann.com/divisions/arvato/|title=Arvato|publisher=Bertelsmann|access-date=10 October 2016}}</ref><ref>{{cite web|language=de|url=http://prreport.de/home/aktuell/article/10342-gunnar-bender-geht/|title=Bertelsmann übernimmt Arvato-PR|website=PR Report|date=16 December 2015|access-date=29 November 2016}}</ref> In 2016, the Arvato AG was merged into the parent company Bertelsmann SE & Co. KGaA and deleted from the [[German Trade Register|commercial register]].<ref name="Amtsgericht Gütersloh, HRB 3357" />

== Organization ==
Arvato is one of eight divisions of [[Bertelsmann]].<ref>{{cite news|language=de|author=Kai-Hinrich Renner|title=Bertelsmann sortiert sich neu|newspaper=Handelsblatt|date=23 March 2016|page=24}}</ref> Together with the ''Bertelsmann Printing Group'', founded in 2016, it forms the services divisions of the group.<ref>{{cite news|language=de|title=Bertelsmann vereinigt seine Drucksparte|newspaper=Deutscher Drucker|date=12 November 2015|page=4}}</ref><ref>{{cite news|language=de|title=Drucken im Spiegel der Zeit|newspaper=Neue Westfälische|date=29 June 2016|page=12}}</ref> Based on sales of 4.8 billion [[euro]]s in the fiscal year 2015, Arvato was the second-largest division of Bertelsmann after [[RTL Group]].<ref>{{cite web|language=en|url=https://www.bertelsmann.com/media/investor-relations/annual-reports/annual-report-2015-financial-information.pdf|title=Annual Report 2015|publisher=Bertelsmann|page=13|access-date=10 October 2016}}</ref><ref>{{cite news|language=de|title=RTL und Arvato Gewinnbringer|newspaper=Die Glocke|date=1 September 2016|page=6}}</ref> Countries outside Germany generated more than half of the revenue, with France and the United States being the most important foreign markets.<ref>{{cite web|language=en|url=https://www.bertelsmann.com/media/investor-relations/annual-reports/annual-report-2015-financial-information.pdf|title=Annual Report 2015|publisher=Bertelsmann|page=23|access-date=10 October 2016}}</ref> In 2015, exactly 230 individual companies as well as five joint ventures and associated enterprises belonged to Arvato, many of them for local business operations.<ref>{{cite web|language=en|url=https://www.bertelsmann.com/media/investor-relations/annual-reports/annual-report-2015-financial-information.pdf|title=Annual Report 2015|publisher=Bertelsmann|page=49|access-date=10 October 2016}}</ref><ref>{{cite web|language=en|url=https://www.bertelsmann.com/media/investor-relations/annual-reports/annual-report-2015-financial-information.pdf|title=Annual Report 2015|publisher=Bertelsmann|page=120|access-date=10 October 2016}}</ref>

In the fiscal year 2015, Arvato had 72,457 employees worldwide, an increase of 1,804 employees compared to the previous year.<ref>{{cite news|language=de|author=Austria Presse Agentur|title=Bertelsmann-Unternehmensbereiche 2015 in Zahlen|date=22 March 2016}}</ref> Since 2014, Arvato has been organized in so-called solution groups, which were introduced during the era of Achim Berg.<ref>{{cite news|language=de|title=Arvato hat die Lösung|newspaper=Westfalen-Blatt|date=18 September 2013}}</ref><ref>{{cite news|language=de|title=Auf sieben Säulen ruht Arvato|newspaper=Neue Westfälische|date=4 April 2014}}</ref> These operate largely autonomously not for products and technology, but according to client requirements and operations.<ref>{{cite news|language=de|author=Kai-Hinrich Renner|title=Selbstdemontage?|newspaper=Handelsblatt|date=9 July 2015|page=46}}</ref> Each solution group is led by the [[chief executive officer]]. Currently, there are four solution groups for [[customer relationship management]], [[supply chain management]], [[financial services]], and [[Information technology|information technology services]].<ref>{{cite web|url=https://www.arvato.com/en/business-units.html|publisher=Arvato|title=Business Units|access-date=25 July 2017}}</ref> The Arvato management board consists of [[Thomas Rabe (manager)|Thomas Rabe]], Bernd Hirsch, Immanuel Hermreck, Thomas Mackenbrock, Rolf Hellermann, Andreas Krohn, Frank Schirrmeister, and Matthias Moeller.<ref>{{cite web|language=en|url=https://www.arvato.com/en/about/managementboard.html|title=Management|publisher=Arvato|access-date=24 July 2017}}</ref>

== Services ==
{{advert section|date=June 2019}}
; Aftersales Solutions
Arvato provides services needed after the sale of third-party products to end users, such as the repair and preparation of devices.<ref>{{cite web|language=en|url=https://www.arvato.com/en/solutions/after-sales-solutions.html|title=After Sales Solutions|publisher=Arvato|access-date=10 October 2016}}</ref> Since the 2000s, Arvato has helped fixing mobile phones, including devices<ref>{{cite news|language=de|title=Arvato kümmert sich um streikende Handys|newspaper=Neue Westfälische|date=12 July 2005}}</ref><ref>{{cite news|language=de|author=Uwe Pollmeier|title=4.000 Reparaturen am Tag|newspaper=Neue Westfälische|date=16 April 2010}}</ref> from [[HTC Corporation]].<ref>{{cite news|language=de|title=Arvato AG baut 100 Stellen ab|newspaper=Westfalen-Blatt|date=13 November 2014}}</ref>

; Corporate Information Management
Arvato provides many services related to the logistics of marketing and sales materials and other documents.<ref>{{cite news|language=de|title=Köpfe und Karrieren|newspaper=Deutsche Verkehrs-Zeitung|date=21 September 2010}}</ref> The company organizes the production, storage, and distribution of these. In recent years, the connection between digital and printed works has become more important.<ref>{{cite news|language=de|author=Boris Scholz|title=Infoprozesse im Wandel|newspaper=Deutsche Verkehrs-Zeitung|date=18 October 2011}}</ref>

; CRM & Customer Services
Arvato offers customer relationship management services.<ref>{{cite news|language=de|title=CRM als echte Initialzündung|newspaper=Medianet|date=28 June 2006|page=28}}</ref><ref>{{cite news|language=de|title=Renaissance der Kundenbindung|newspaper=Medianet|date=3 September 2008|page=19}}</ref> The company operates call centers and manages digital communication channels for its customers, for example. Also, [[data mining]] processes and some solutions{{buzzword inline|date=October 2020}} for the [[public sector]] are offered in this area.<ref>{{cite web|language=en|url=https://www.arvato.com/en/solutions/crm-and-customer-services.html|title=CRM & Customer Services|publisher=Arvato|access-date=10 October 2016}}</ref>

; E-Commerce Solutions
[[E-commerce]] has been a strategic growth area for Arvato and for Bertelsmann,<ref>{{cite web|language=en|url=https://www.bertelsmann.com/news-and-media/news/netrada-group-takeover-arvato-strengthens-growth-platform-ecommerce.jsp|title=Netrada Group Takeover: Arvato Strengthens Growth Platform eCommerce|publisher=Bertelsmann|date=10 January 2014|access-date=10 October 2016}}</ref> at least since 2014.<ref>{{cite web|language=de|author=Bert Rösch|url=http://etailment.de/news/stories/Netrada-Arvato-macht-den-Deal-perfekt-und-behaelt-wichtige-Kunden-2105|title=Netrada: Arvato macht den Deal perfekt und behält wichtige Kunden|website=Etailment|date=10 January 2014|access-date=10 October 2016}}</ref> The company's services range from the establishment and operation of websites and related infrastructure to the logistics of goods.<ref>{{cite web|language=en|url=https://www.arvato.com/en/solutions/e-commerce-solutions.html|title=E-Commerce Solutions|publisher=Arvato|access-date=10 October 2016}}</ref> One client of Arvato in this field is the fashion house ''Ahlers''.<ref>{{cite web|language=de|author=Sandra Lehmann|url=http://www.logistik-heute.de/Logistik-News-Logistik-Nachrichten/Markt-News/15404/Arvato-uebernimmt-Logistikdienstleistungen-fuer-Modehersteller-Ahlers-E-Comm|title=E-Commerce: Full Service für Herrenmode|website=Logistik Heute|date=6 September 2016|access-date=10 October 2016}}</ref>

; Financial Solutions
Arvato's financial solutions{{buzzword inline|date=October 2020}} include [[payment processing]], [[Factoring (finance)|factoring]], and debt collection services.<ref>{{cite web|language=en|url=https://www.arvato.com/en/solutions/financial-solutions.html|title=Financial Solutions|publisher=Arvato|access-date=10 October 2016}}</ref> Furthermore, the company's credit rating and risk management activities, as well as insurance services, are offered in this field.<ref>{{cite web|language=de|author=Andreas Toller|url=https://www.handelsblatt.com/finanzen/steuern-recht/recht/bonitaet-und-schufa-wann-verbraucher-kreditwuerdig-sind-/14006616.html|title=Wann Verbraucher kreditwürdig sind|website=Handelsblatt|date=14 August 2016|access-date=10 October 2016}}</ref><ref>{{cite news|language=de|author=Massimo Bognanni|title=Die Rasterfahndung|newspaper=Handelsblatt|date=30 October 2014|page=30}}</ref> Financial services have been one of the most profitable Arvato businesses and are also a strategic growth area for Bertelsmann.<ref name="Thorsten Gödecker 12"/> Arvato was revealed, by a Times investigation to have obtained warrants to break into the home of vulnerable customers, and to have executed those warrants. This resulted in an investigation by the Financial Conduct Authority (FCA).<ref>{{cite news|url=https://www.thetimes.com/article/who-arvato-debt-collectors-force-fitting-energy-prepay-meters-p6chxmhvj#:~:text=Arvato%3A%20debt%20collector%20reviewed%20by%20watchdog%20over%20gas%20meter%20break%2Dins,-Mario%20Ledwith&text=The%20debt%2Dcollection%20company%20used,to%20force%2Dfit%20energy%20meters|title=Alexander Kuch|work=[[The Times]] |date=February 2, 2023|author=Mario Ledwith}}</ref> Subsequently, suppliers who have previously worked with Arvato have ceased trading with the company.<ref>{{cite web|url=https://utilityweek.co.uk/suppliers-pause-forced-ppm-installs-following-british-gas-scandal/|title=Suppliers pause forced PPM installs following British gas scandall|website=utilityweek.co.uk}}</ref>

; IT Solutions
Arvato Systems provides [[Information technology|information technology services]] of many kinds.<ref>{{cite news|language=de|title=Arvato Systems baut 40 Arbeitsplätze ab|newspaper=Neue Westfälische|date=26 July 2003}}</ref> Primarily, the company is heavily involved in [[cloud computing]].<ref>{{cite news|language=de|title=Best in Cloud 2012: Arvato Systems|newspaper=Computerwoche|date=12 November 2012}}</ref> Arvato provides solutions{{buzzword inline|date=October 2020}} for media, commerce, and several other industries.<ref>{{cite news|language=de|title=Arvato Systems mit Callcenter on Demand|newspaper=Medianet|date=19 February 2009|page=21}}</ref><ref>{{cite news|language=de|title=Arvato Systems führt MAM-System bei Verlagsgruppe Oldenbourg ein|newspaper=Deutscher Drucker|date=30 June 2011|page=27}}</ref>

; SCM & Logistics
Arvato helps its clients with supply chain management, i.e. the provision of materials and products from manufacturing to the consumers.<ref>{{cite news|language=de|author=Bert Rösch|title=Arvato: SCM-Chef rückt in den Vorstand|newspaper=TextilWirtschaft|date=28 August 2014|page=69}}</ref> The portfolio of the company includes various solutions{{buzzword inline|date=October 2020}} tailored to different industries, e.g. trade and fashion companies, information technology, and high-tech companies or [[publishing house]]s. An example of the latter is the ''Vereinigte Verlagsauslieferung'' (VVA). This area also includes [[Business intelligence|business intelligence services]].<ref>{{cite web|language=en|url=https://www.arvato.com/en/solutions/scm-and-logistics.html|title=SCM & Logistics|publisher=Arvato|access-date=10 October 2016}}</ref>

== Criticism ==

=== Human resources and wages ===
The human resources and compensation policies of Arvato have repeatedly been discussed: In 2005, Arvato Direct Services built a [[Call centre|call center]] in [[Cottbus]], Germany.<ref>{{cite news|language=de|title=Arvato sieht Standort Cottbus als großen Glücksgriff|newspaper=Lausitzer Rundschau|date=20 August 2005}}</ref> The company was criticized for seeking more than usual financial support from the local employment agency. The trade union [[Ver.di]] and others shared this view.<ref>{{cite news|language=de|title=Schattenseite einer Erfolgsgeschichte: Cottbuser Bertelsmann-Tochter Arvato in der Kritik|newspaper=Lausitzer Rundschau|date=27 July 2005}}</ref> 2007, Ver.di criticized the reintroduction of the [[40-hour working week]] with Arvato Services.<ref>{{cite news|language=de|title="Vollmacht für weitere Verschlechterungen"|newspaper=Neue Westfälische|date=13 March 2007}}</ref> In 2012, employees had to accept lower wages because of job cuts at ''[[Arvato Entertainment]]''. Arvato rejected criticism in this particular case because decisions have been discussed with Ver.di previously.<ref>{{cite news|language=de|author=Stefan Schelp|title=Umbau sorgt für Unruhe bei Arvato|newspaper=Neue Westfälische|date=14 October 2011}}</ref><ref>{{cite news|language=de|author=Stephan Rechlin|title=Arvato-Mitarbeiter riskieren Einbuße|newspaper=Westfalen-Blatt|date=4 September 2012}}</ref>

=== Irregular credit scores ===
In 2005, Arvato acquired the credit agency ''Infoscore'', headquartered in [[Baden-Baden]], Germany.<ref>{{cite news|language=de|title=Arvato kassiert Infoscore|newspaper=Neue Westfälische|date=18 February 2005}}</ref> Its data, information, and receivables management was merged with Arvato's subsidiary to form Arvato Infoscore, a company with a total of 1,700 employees.<ref>{{cite web|language=de|url=https://www.handelsblatt.com/unternehmen/it-medien/dienstleistungsgeschaefte-werden-zusammengelegt-arvato-und-infoscore-fusionieren-datenmanagement/2475390.html|title=Arvato und Infoscore fusionieren Datenmanagement|website=Handelsblatt|date=17 February 2005|access-date=10 October 2016}}</ref> It became an object of repeated criticism because of allegedly dubious [[credit rating]]s.

2012, for example, the public broadcaster [[Norddeutscher Rundfunk|NDR]] reported the case of a consumer who was refused to pay by invoice. This decision was taken by a mail-order company based on a credit rating by Arvato Infoscore.<ref>{{cite web|language=de|url=http://www.ndr.de/der_ndr/presse/mitteilungen/pressemeldungndr10145.html|title=Bertelsmann-Tochter Infoscore: Fragwürdige Bonitätsbewertungen von Millionen Verbrauchern|publisher=Norddeutscher Rundfunk|date=23 April 2012|access-date=10 October 2016}}</ref> Although the company hardly knew more than the name and address of the consumer and had no other adverse information, it gave a low score based on [[Demography|socio-demographic]] characteristics. According to a report by the State Commissioner for Data Protection in the German state of Baden-Württemberg, outdated data were used for this credit rating.<ref>{{cite web|language=de|author=Andreas Wilkens|url=http://www.heise.de/newsticker/meldung/Bericht-Infoscore-nutzt-veraltete-Daten-bei-Bonitaetsberechnung-1545563.html|title=Bericht: Infoscore nutzt veraltete Daten bei Bonitätsberechnung|website=Heise Online|date=23 April 2012|access-date=10 October 2016}}</ref> In 2013, another public broadcaster, [[Westdeutscher Rundfunk|WDR]], made similar allegations: The television magazine ''Markt'' checked the credit reports of 80 test consumers.<ref name="Presseportal WDR">{{cite web|language=de|url=http://www.presseportal.de/pm/7899/2451247|title=Bonitätsauskünfte von Schufa & Co. oft unvollständig und nicht nachvollziehbar|website=Presseportal|publisher=Westdeutscher Rundfunk|date=15 April 2013|access-date=10 October 2016}}</ref> The magazine concluded that credit ratings issued by Arvato Infoscore often were not comprehensive.<ref>{{cite web|language=de|author=Alexander Kuch|url=http://www.teltarif.de/schufa-auskunft-bonitaet-fehlerhaft/news/50704.html|title=Schufa-Auskunft ist oft fehlerhaft und unvollständig|website=Teltarif|date=16 April 2013|access-date=10 October 2016}}</ref> There was a "significant gap" in the quality of information. Furthermore, Markt pointed out that complaints about scoring providers like Arvato Infoscore were rising.<ref name="Presseportal WDR" />

Besides the credit ratings, data protection at Arvato Infoscore was the object of media coverage several times. 2015, the NDR criticized the self-service website for tenant self-disclosures showed sensitive personal information of one entered the name, address, and date of birth. Without any further verification, Arvato Infoscore made available information on debt, seizure, and mortgage payments, for example.<ref>{{cite web|language=de|url=http://www.ndr.de/der_ndr/presse/mitteilungen/Datenleck-bei-grosser-Auskunftei-Kritik-an-Bertelsmann-Tochterfirma-Infoscore,pressemeldungndr15596.html|title=Datenleck bei großer Auskunftei – Kritik an Bertelsmann-Tochterfirma Infoscore|publisher=Norddeutscher Rundfunk|date=23 March 2015|access-date=10 October 2016}}</ref> Critics said that this opened the door for abuse.<ref name="2015-03-23">{{cite web|language=de|author=Stefan Krempl|url=http://www.heise.de/newsticker/meldung/NDR-Mangelhafter-Datenschutz-bei-Bertelsmann-Auskunftei-Infoscore-2583029.html|title=NDR: Mangelhafter Datenschutz bei Bertelsmann-Auskunftei Infoscore|website=Heise Online|date=23 March 2015|access-date=10 October 2016}}</ref> Arvato Infoscore instead argued that obtaining a self-disclosure for third parties was not permitted.<ref name="2015-03-23" /> Nevertheless, the disputed website was shut down.<ref>{{cite news|language=de|url=http://www.spiegel.de/wirtschaft/unternehmen/infoscore-online-mieterselbstauskunft-vom-netz-genommen-a-1025181.html|title=Mieter-Selbstauskunft Infoscore nimmt Angebot vom Netz|newspaper=Spiegel Online|date=23 March 2015|access-date=10 October 2016}}</ref>

2016, [[Südwestrundfunk|SWR]], another public broadcaster, reported that Arvato Infoscore handles the collection of penalty fares for [[Deutsche Bahn]]. As part of this, information about travelers is passed without their knowledge. The lawyer Karl-Nikolaus Peifer classified this process as a breach of data protection and fair-trade laws.<ref>{{cite web|language=de|author=Alexander Drechsel|url=https://www.tagesschau.de/wirtschaft/bahn-infoscore-101.html|title=Bahn gibt Kundendaten weiter|website=Tagesschau|date=10 May 2016|access-date=10 October 2016}}</ref> The SWR also provided evidence that Arvato Infoscore had used information from such penalty fares for credit ratings of some customers, too.<ref>{{cite web|language=de|url=http://www.zeit.de/digital/datenschutz/2016-05/bahn-kundendaten-infoscore-schwarzfahren|title=Kundendaten der Bahn in fremden Händen|website=Zeit Online|date=10 May 2016|access-date=10 October 2016}}</ref>

=== Facebook content moderation ===
{{see also|Criticism of Facebook#Moderators}}
In December 2016, ''[[SZ-Magazin]]'' reported that Arvato employees in the company's [[Berlin]] office sustained [[psychological trauma]], including [[posttraumatic stress disorder]], as a result of exposure to videos of [[torture]], [[murder]], [[bestiality]], and [[child pornography]] they were required to evaluate as [[content moderators]] for [[Facebook]].{{refn|<ref>{{cite web|first1=Burcu Gültekin|last1=Punsmann|access-date=21 June 2019|title=What I learned from three months of Content Moderation for Facebook in Berlin|url=https://sz-magazin.sueddeutsche.de/internet/three-months-in-hell-84381|date=6 January 2018|website=[[Süddeutsche Zeitung]] Magazin}}</ref><ref>{{cite web|access-date=21 June 2019|title=Inside Facebook|archive-url=https://web.archive.org/web/20161216164115/http://international.sueddeutsche.de/post/154513473995/inside-facebook|url=http://international.sueddeutsche.de/post/154513473995/inside-facebook|archive-date=16 December 2016|date=16 December 2016|first1=Till|last1=Krause|first2=Hannes|last2=Grassegger|translator-first=Valérie|translator-last=Callaghan|website=[[Süddeutsche Zeitung]] International}}</ref><ref>{{cite web|first1=Daniel|last1=Stächelin|first2=Johannes|last2=Hausen|first3=Max|last3=Hoppenstedt|access-date=21 June 2019|title=A Visit to Facebook's Recently Opened Center for Deleting Content|url=https://www.vice.com/en/article/facebook-content-moderation-center/|date=2 January 2018|website=[[Vice Media|Vice]]}}</ref><ref>{{cite web|access-date=21 June 2019|title='Het allerergst waren de dingen die kinderen worden aangedaan': ex-moderator van Facebook klapt uit de biecht|language=nl|trans-title="The worst things were done to children": former Facebook moderator broke out in confession|url=https://www.demorgen.be/tech-wetenschap/het-allerergst-waren-de-dingen-die-kinderen-worden-aangedaan-ex-moderator-van-facebook-klapt-uit-de-biecht~b8757d27|website=[[De Morgen]]|first=Frederick|last=Vandromme|date=28 May 2019}}</ref><ref>{{cite web|access-date=21 June 2019|title=Deze Facebook-moderator trok de eindeloze stroom van schokkende beelden niet meer|trans-title=This Facebook moderator stopped taking the endless stream of shocking images|language=nl|first=Reinier|last=Kist|date=3 June 2019|url=https://www.nrc.nl/nieuws/2019/06/03/ik-was-kanonnenvoer-voor-facebook-a3962439|website=[[NRC Handelsblad|NRC]]}}</ref>}} Inspectors from the {{Interlanguage link|Landesamt für Arbeitsschutz, Gesundheitsschutz und technische Sicherheit|de}} Berlin (LAGetSi), the city's [[occupational safety and health]] department, visited the office in February 2017, but the inspection did not result in formal action.<ref>{{cite web|first1=David|last1=Meyer|access-date=21 June 2019|title=Scouring Facebook for disturbing content: How risk to moderators is raising concerns|url=https://www.zdnet.com/article/mental-health-impact-of-facebook-moderation-raises-concern-in-germany/|website=[[ZDNet]]|date=28 March 2017}}</ref><ref>{{cite news|first1=Fabian|last1=Reinbold|access-date=21 June 2019|title=Berlin: Kontrolleure nehmen Facebooks Löschteam ins Visier|url=https://www.spiegel.de/netzwelt/netzpolitik/facebook-kontrolleure-pruefen-arbeitsbedingungen-bei-arvato-loeschteam-in-berlin-a-1140287.html|newspaper=[[Der Spiegel]]|date=24 March 2017|trans-title=Inspectors are targeting Facebook's firefighting team|language=de}}</ref><ref>{{Cite web|url=https://www.parlament-berlin.de/ados/18/IntArbSoz/protokoll/ias18-004-ip.pdf|title=Ausschuss für Integration, Arbeit und Soziales: 4. Sitzung|trans-title=Committee on Integration, Labor and Social Affairs: 4th meeting|language=de|date=30 March 2017|publisher=[[Abgeordnetenhaus of Berlin]]|access-date=21 June 2019}}</ref>

== References ==
{{Reflist}}

{{Bertelsmann}}
{{Authority control}}

[[Category:Companies established in 1996]]
[[Category:Companies based in North Rhine-Westphalia]]
[[Category:Bertelsmann subsidiaries]]
[[Category:German brands]]