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That HTMT Global achieved breakeven in its domestic business in two years is an indicator of the shape of things to come

HTMT Global entered domestic business with a contract from Bharti Airtel, three years back. Since then, while it has taken a number of steps to better margins in that contract by moving to smaller locations like Mysore and Durgapur, it has not really been able to diversify the client portfolio too much, unlike other players such as Intelenet and Aegis. But that was partially due to the restructuring and its demerger from the parent and subsequent listing as an independent company.

The fact that it still ranks among the top five companies in the domestic contact center market just indicates its growing business from Bharti Airtel, which is one of the fastest growing mobile operators in the world. Not surprisingly, telecom accounted for as much as 85% of its revenue of Rs 65 crore in 2006-07. Last year it did diversify though, managing to get clients in BFSI. According to DQ estimates based on the first nine months performance, the company will close the year with a revenue of more than Rs 100 crore, an impressive growth otherwise but a modest growth at best by the domestic industry standards, where most large players expect three digit growth.

However, that may not be the right way to measure HTMT Globals performance. It has added close to 1,500 people and now employs about 6,000. Most of its significant action in the domestic space may be expected this year. According to CEO Partha De Sarkar, the company has a target of reaching Rs 500 crore revenue mark in 2010that is in two years. It is safe to assume that the company is looking at inorganic route as well to get to that kind of numbers. The companys past recordit has not been shy of acquisitionsalso points to that.

Starting its domestic delivery center in Hyderabad, it has expanded that to Chennai, Mumbai, Mysore, and Durgapur with an eye on the available talent pool, low cost, and lower attrition in those locations. The new domestic business of HTMT achieved break-even status by the first quarter of the year 2007. The Mysore center, developed as a Center of Excellence will be a 1,000-seater and the plan is to double that in 2 years time. Initially, this will be a dedicated center for the domestic business. The Vashi center in Navi Mumbai also services domestic clients.

HTMT Global Rank 5

Partha De Sarkar, CEO, HTMT Global

According to the Annual Report 2007, HTMT Globals domestic business from October 2006 to March 2007 formed a good 15% of the overall business which is almost equal to the amount of business done in the Philippines during that period.

Bharti continues to be one of largest customers of HTMT Globals domestic business. In fact, Bharti recently presented HTMT Global the Value Partner Award for outstanding performance in Customer Support Service category.

HTMT, despite entering early into the market, has so far been slower to ramp up; but ambitious targets, that too as a listed company, means that the vision to grow this business is for real.

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