NYSE-listed WNS Global Services has ventured into the Indian market for rendering third-party back-office services for domestic customers, a top company official said. “We won three contracts with India-based companies this past quarter. I have previously discussed our focus on growing the domestic India business. This is one of the fastest growing economies in the world and an area where I see significant opportunity,” the Chief Executive Officer, Mr Keshav Murugesh, said in a conference call with international investors today.
The company is in the process of establishing centres dedicated to Indian customers in Pune and Gurgaon, he added. Till recently, WNS worked only on processes off-shored from the US, the UK, Europe and other overseas geographies. This was a strategic call taken by the previous management, headed by the former CEO, Mr Neeraj Bhargava, under the belief that margin structures in domestic deals were not viable.Though things have not change much on the margins front, volumes in the domestic business are much higher, analysts say. WNS provides services such as finance and accounting, research and accounting, and legal process outsourcing to companies in the travel, retail and insurance domains. Buoyed by new client additions and a strong British pound, WNS has reported a five-fold rise in net income for the quarter ended March 30 to $5.2 million from $1 million reported in the same quarter a year ago.
Net income surges
Revenue for the period under review increased by 1.2 per cent to $159.5 million ($157.6 million). “Thanks to some of the positive indicators that we are coming across, clients are now more aggressive in looking at themes related to outsourcing and off-shoring especially in sectors like healthcare, travel, retail and insurance,” said Mr Murugesh. Attrition, at 43 per cent continues to remain a challenge for the company. Adjusted net income for the full year ended March 31 stood at $44.9 million against $50.7 million reported in the previous fiscal. Revenues increased by 5.8 per cent to $616.3 million