Firstsource Solutions Ltd is exploring the possibility of setting up centres in France, Germany and Spain as a part of its organic growth plans. Talking to FE on the sidelines of Nasscom’s India Leadership Forum-2008, Ananda Mukerji, MD & CEO of Firstsource said, ?We are looking at expanding in Europe and other places. However, we are yet to decide on that.?
US and UK contributes 59.4% and 30% respectively to the company?s revenue and 10.5% comes from the Indian market.
Mukherji also said that he expects BFSI to perform well in the fourth quarter compared to?the third quarter this fiscal. Firstsource saw a hit in its margins in Q3 due to emerging challenges in the collections business as a result of deteriorating credit environment in the US.
?There is pressure in some parts of business especially the banking space in the US and the collections market is witnessing stress there,? said Mukherji.
The collections business, a part of the BFSI segment, contributes 14% to the revenue of the firm. While the downturn is expected to be around 9%, the company sees this segment as a business opportunity in the mid-term period.
According to analysts, Firstsource Q3 results were lower than expected, with the sluggish growth in the collections business leading to flat growth in the revenue business.
When asked whether Firstsource employees will also witness a fall in the wage hike next fiscal, Mukherji replied, ?The industry will witness a marginal fall. However, we are yet to decide on that.?