Chennai: The city-based Allsec Technologies Limited, a listed call centre company, is focusing on the debt-collections vertical. Collection agencies in US have tripled their income in the past 10 years and also increased their staff levels by 50 per cent in the past five years.
According to Adi Saravanan, founder and president, Allsec Technologies, "India is well positioned to take advantage of the high growth happenings in the US collections market." The US has around 6,500 agencies with combined revenues of around $10 billion. The increasing consumer debt in the US and the continuing trend in outsourcing are the drivers for India-based call centres.
In order to drive this business further, the company has hired Tom Williams as vice president, collections, who will be based in the US. Currently the company earns 7 per cent of the revenue from collections.
Meanwhile, the company is spreading its geographical risk by roping in an Australian telecom client. "We will be doing the client acquisition for this company. This will help in better utilisation of our facilities and human resources," says Jagadish Ramamoorthi, director and CEO.
With this, the number of Allsec Technologies' clients in the voice segment has risen to 11. Nearly 85 per cent of its revenues come from voice services (customer lifecycle management and debt collections) and the balance from non-voice verticals (quality assurance and human resource business process outsourcing).
In line with the business plans, Allsec Technologies intends to hire around 1,110 persons to increase its headcount to just under 1,890. The company had come out with Rs 42 crore public issue earlier this year to finance the cost of putting up a 1,000-seat facility. So far only around 500 seats at this facility are being occupied. "Any need for new facility would be met," says Ramamoorthi.
According to him, the average staff costs continue to be stable and the annual attrition rate is around 31 per cent up from 19 per cent during the quarter ended September 30, 2005.
Meanwhile, the company closed the first half of the current fiscal with a revenue of Rs 42.35 crore and a net profit of Rs 9.77 crore. For the quarter ended September 30, 2005, the revenue was Rs 24.05 crore with a net profit of Rs 5.82 crore.
The company also beefed up its board by inducting A Sankarakrishnan, managing director, Kone Elevators India Private Limited and T Ananthanarayanan, former executive director, Ashok Leyland Limited.