Firstsource to let go of unprofitable contracts
With the current market slowdown really pinching service providers, Mumbai-based Firstsource Solutions too have been forced to rethink its business strategy. According to a report in the Hindu Businessline, the back-office service provider will not renew current contracts that are not adding to its revenues while also staying away from new businesses that will dilute its margins.
“The financial year will be devoted to consolidation of the company’s topline. We will focus on bottomline and margins and so we will rationalise customers which are not profitable,” its Chairman Sanjiv Goenka said at a recent news conference.
Starting last quarter, the country’s fifth largest BPO company, began conversations with existing clients on this front, the report stated.
“We have requested some of our clients for price hikes. In cases where clients have not agreed, we said that we would transition the work to some of our competitors who are doing working on the same account,” Rajesh Subramaniam, Managing Director & Chief Executive Officer, told the daily.
Earlier in March, Subramaniam told analysts that the company had terminated ‘couple of clients’ in its domestic business. In some cases, the company is continuing with the same client with some lines of business while exiting others.
Recently Firstsource reduced 416 seats during the quarter ended June 30, 2013, across its delivery centres in India. “We gave away some capacity in order to exit non profitable business in the cities of Coimbatore and Bhopal,” said Subramaniam. It also laid off 249 employees.
About 46 per cent of the company’s revenues were derived from the US, while UK and the rest of world accounted for 34 per cent and 20 per cent, respectively.
- Simeio Gains Talent Insight, Improves Retention With Oracle
- How Emerging Tech Is Redefining India's Real Estate
- 10 Questions To Ask Your Cloud Vendor Encryption Solutions
- Role Of Technology In Transforming HR
- 10 Signs Your Analytics Program Will Fail
- Information Management Can Drive Digital Transformation Effort
- Keep Security At The Heart Of Digital Strategy: Unisys
- Which AI Is Best For Customer Engagement, Revenue Generation
- Nine Ways To Ensure Cloud Security In Your Organization
- HCI Makes Software-Defined Data Center Simple