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Intelenet has finally managed to find its future in the domestic market

One of the first few companies to get into the offshoring space, Intelenet, which started as a 50-50 JV of HDFC and TCS, changed ownership multiple times while remaining a frontline player but never really making it to the absolute top tier in offshore BPO. And then, it took a decision to make a new beginning with a lot more focus on India. In 2005, it acquired Sparsh, one of the leading domestic call center players, to make a full-fledged entry into the emerging Indian call center services market. This decision was endorsed when Blackstone, one of the most respected private equity players, decided to take stake in Intelenet in a management buyout. It signaled that entering the domestic market was a faster way of creating value.

With the #1 position in Dataquest Domestic Call Center Survey 2008, the first ever study of the industry, Intelenets new stature is now official.

While many offshore players have decided to enter the Indian domestic market, none has been as focused and clear as Intelenet. While many others still bank on one or two clients, Intelenet has completely realigned itself. Today the domestic business accounts for nearly 37% of the overall revenue pie.

It has chosen the path of a mix of organic and inorganic means to grow in this space. When the company had acquired Sparsh, there were some 5,000 agents. Today the domestic arm of Intelenet has over 15,000 people and facilities spread across 10 locations in Mumbai, Pune, Gurgaon, Mohali, Chennai, Bangalore, and Kolkata.

Intelenet Global Rank 1

Susir Kumar, CEO, Intelenet Global

Intelenets revenue mix is also healthier than many. While financial services and insurance together account for 50% of its revenue, telecom accounts for 45%. The service lines break-up also throws a balanced picture; customer service accounts for 40% while telemarketing accounts for 45%. Its client portfolio is also fairly diverse: BSNL, Vodafone, and Airtel Broadband in telecom; Air India in travel; Citibank, ABN Amro, PNB in banking, and Tata AIG, and ICICI Prudential in insurance are some of its marquee clients. Bringing its international expertise to play Intelenet is able to command a premium from its clientele for its better service.

Buoyed by its success on the domestic front, the company seems to be hungry for more. It is on the lookout for acquisitions that will suit its needs. It is looking at companies of size anywhere upwards of 300-400 agents that will fill some distinct gaps. The fact that the company is majority owned by Blackstone now means that it will move fast on its planned strategy. The industry grapevine suggests that it is in talks with one of the companies in our Top 10 list for acquiring it.

It seems Intelenet has been third time lucky. After changing hands twice earlier but failing to move fast enough, the domestic thrust has given Intelenet the much needed boost in its profile. Going forward, it plans to focus on the emerging areas like retail and consumer goods.

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