24/7 Enters Europe With $30 M Deal

Financial Express--June 16, 2003

Bangalore:City-based business process outsourcing (BPO) player 24/7 Customer hopes to get 25 per cent of its revenue from Europe during the current year after it bagged a $30 million contract from a leading insurance firm on the continent.

Speaking with eFe 24/7 CEO PV Kannan said the company would spearhead its foray into the European market from its recently opened office in UK.

The order from Europe is significant as it will help the company establish a presence in the region. It will also enable a thrust into new areas of non-voice operations such as claims processing.

24/7 currently has 1,500 seats and will open a second centre with 500 seats in Hyderbad by July. It also plans to hire around 1,200 people in the next 12-18 months. As of now, the company has 15 clients.

Mr Kannan said further expansion of the company will be decided in due course of time. In the current fiscal it hopes to generate a revenue of $35 million. “We closed the last fiscal with $15 million but we are hoping for significant improvement this year,” he added.

Mr Kannan also ruled out any threat to the existance of pure play BPO companies following the entrance of big IT services companies or MNCs in the sector.

According to Mr Kannan, business is getting consolidated on three levels: captive centres by companies such as GE at one level, top IT services companies like Infosys, Wipro and TCS and, finally, pure play companies.