HOVS banks on cross-selling

When HOV Services (HOVS) acquired US-based Lason, four times larger than itself, industry experts were sceptical. They said integration would pose a problem. The company management, however, maintains that the integration is progressing smoothly.

The acquisition provided the company access to a pool of clients. As a strategy, HOVS is concentrating on generating revenues from 350 top clients by upscaling and cross-selling services.

Sunil Rajadhyaksha, executive director, HOV Services said: "Our sales team has been given a target of tracking these clients and generating at least $3.5 million revenue from each account."

Lason has brought with it a large client base, enhanced offerings and management capabilities. A key point in the HOVS revenue model is the cross-selling strategy which it will try to sell Lason's clients.

HOVS said it can leverage and cross-sell the combined offerings of both the entities to an existing client base of around 3,000. This strategy should be a growth driver for the company, according to PINC Research analysts.

In the quarter ended September 30, 2007, the company earned $1.7 million by upscaling and cross-selling services to existing four clients. "We have 12 service offerings, and currently most of the customers are using about one or two offerings. We have a huge opportunity to grow," says Rajadhyaksha.

The company's expansion plans are also on the track. It has over 12,000 employees globally, and is planning to increase its China operations. From the current base of 1,200-1,500, it plans to ramp it up to 6,000 by 2009-2010.

The company has 8,500 people in India "" 2,000 spread in the US, Canada and Mexico. The company also intends to set up a centre in the Philippines and expand its Mexico operations.

Sunil Rajadhyaksha said: "The expansion of China operations is more from the customer side, who want to mitigate geopolitical risk. Whereas, Mexico will give us Spanish language capability and serve as a near-shore centre."

In India Rajadhyaksha intends to expand into tier II and III cities.