HOV Services may beat its revenue guidance for FY09

After the LASON acquisition, the Pune-based BPO company HOV Services is expected to outdo its revenues guidance of Rs 1,300-1,500 crore for FY09 by 10-25 per cent as revenues from cross-selling kick in, feel industry analysts. LASON is three times its size in transaction valued at $148 million.

HOV Services has become the largest publicly-listed BPO in India after acquiring Lason on February 28. Subsequently, in a revenue guidance to its shareholders, the company had indicated revenues growth of 50 per cent year-on-year (y-o-y) in FY07 to over Rs 200 crore. The performa consolidated revenues of the two companies combined will be in excess of $200 million.

With the acquisition, the company has now become an end-to-end solutions provider offering transaction entry, analytics, decision making and support. "We have already got indications from two large telecom companies, a healthcare company, two retailer and a banking company for cross selling opportunities," said Sunil Rajadhyaksha, executive director, HOV Services.

The company's clients include more than 50 per cent of the FORTUNE 100 companies and over 4,000 active customers in the North American marketplace.

"The revenues from cross-selling would start coming in from May this year," said Rajadhyaksha. "It would be difficult to hazard a guess on the increase in our revenues guidance at this juncture," he said when asked about the impact of cross-selling on its revenues guidance. The company houses a total of 11,000 people with 1,200 people in China, 250 people in Mexico, 1,800 people in the US and a majority 8,000 people in India spread across Pune and Chennai.

It plans to further expand its global foot print.

"We will establish a presence in Australia and UK in the coming quarter and thereafter in Hong Kong and Kuwait in six months," said a company official.