Firstsource - an ‘unusual’ BPO suspect

(By Anthony Miller – Wednesday, 29th April 2009 10:30pm). One of the lesser known India-based BPO players also reported its FY results today (Wednesday), Firstsource. First who? Actually, they started life as ICICIOneSource, a BPO ‘captive’ for ICICI, India’s second largest bank. When I say captive, it would more appropriate to say BPO venture, as OneSource did precious little work for its parent bank. It changed its name to Firstsource in November ’06 and listed on the Mumbai stock exchange. ICICI Bank still owns 27% of the stock, while US banking software player Metavante, which recently announced it is to be acquired by Fidelity National Information Services, owns 20%. Metavante was reportedly trying to sell its stake in Firstsource last September.

I only mention all this because Firstsource plays over here in the UK, mainly in Telecomms/Media and BFSI. Firstsource turned over about $375m in the year to 31st March ’09, and 26% of this was generated from UK customers, albeit down from 35% the prior year. I reckon that puts Firstsource’s UK revenue run rate somewhere in the £50-60m p.a. bracket which certainly puts it on the local radar. It’s been a fair while since I met management so it seems about time I should renew the acquaintance.