Microsoft, the global information technology major, has taken a stake in 24/7 Customer, a provider of back-office support and services.
Microsoft’s interactive self-service assets (client, people and technologies) are to be merged with 24/7 Customer, to be now known as 24/7 Inc. The agreement also includes a research and development partnership and long-term IP licensing for speech-related technologies.
The quantity of stake Microsoft would be holding could not be ascertained. Industry sources say it is estimated to be less than 26 per cent. Despite having an equity stake, Microsoft won’t get representation on the board of directors, S Nagarajan, founder and chief people officer of the company, told Business Standard.
The 24/7 Customer board now comprises five members, including Michael Moritz, representative of its investor firm, Sequoia Capital; Ram Sriram, also an investor in the company, and co-founders
S Nagarajan and P V Kanan. Kanan is now the CEO of 24/7. In 2003, Sequoia Capital had invested $22 million for around 25 per cent stake.
“We will get their (Microsoft’s interactive self-service) people, clients and the technologies. By merging their technologies with ours, which is into big data, we will be able to serve our customers better,” said Nagarajan, founder and chief people officer of 24/7. “We will also change the name as 24/7 Inc and reposition it as a technology solutions company for the customer service industry.”
Microsoft’s speech self-help and IVR technology is a part of the Microsoft Speech division which comes under its Natural User Interface (NUI) bouquet of products. Both technologies, to now be a part of 24/7 Customer, have at least 40 clients, fetching anualised revenue of $50-60 million. The technologies will also complement 24/7’s proprietary predictive interactive technologies, for which the companies have been granted some patents, A few more patent applications are pending in the US and India.
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With this merger, all the customers and about 100 R&D engineers working for these technology platforms at Microsoft’s California centre in the US would move to 24/7 Customer. This merger will also catapult 24/7 to become a $250-mn company, with a majority of its revenue coming from technology-led business. 24/7’s present revenue is estimated at $180 million.
24/7 employs about 10,000 people globally, about 4,000 in India, 5,000 in Philippines and the rest in Latin America (Guatemala and Nicaragua). The company derives 60 per cent of its revenue from the US and 20 per cent each from Europe and Australia.