Desperately Seeking Buyers: Call Centres In Distress
The Financial Express,  May 07, 2003

The party is over for several call centre start-ups that mushroomed all over the country in the last couple of years. Call centres including Minerva, Renasonic, Flex, Rico, Cybizcall, iEnergiser, eContactPerson, DSS Mobile Communications and Paras CallTech are a few that are not in good shape. Most are desperately searching for buyers and the irony is that there aren’t too many takers.

While eFE has managed to confirm the status of those named above, according to QAI (formerly known as Quality Assurance Institute), there are close to 150 to 200 call centres — of a total of around 300 — in the country that are finding it hard to survive.

Minerva Telelink Limited was established in 1999 and according to the last official information available, it was operating 350 seats with 400 people.

When contacted by eFE, an employee informed that the company had shut down its call centre operations. According to sources, the company’s management is trying to sell its infrastructure.

Another call centre with close to 250 seats and 200 people, Flex Contact Centers (a division of FCL Technologies & Products Ltd) is yet another centre that has temporarily shut down its operations.

“The centre has been temporarily shut down and we are aggressively looking for buyers to sell out our facility. We are also trying to engage in discussions with US-based companies,” Flex vice president (corporate affairs) Atul Mehrotra told eFE.

QAI’s IT-enabled services (ITES) head Umesh Vyas adds, “Unfortunately, there is nobody interested in buying mere infrastructure as the interest is in buying out customers and new business.”

iEnergiser, a Noida-based call centre, is also exploring possibilities for a consolidation. “We have had some discussions with US-based companies that are looking at both captive and third-party centres,” iEnergiser vice president (finance) Adarsh Agarwal said.

Renasonic e-Solutions Ltd CEO was not reachable for comments. Its centre numbers have been temporarily disconnected.

Renasonic had employed over 300 people for its 120 seats, according to National Association of Software and Service Companies (Nasscom) directory on ITES companies.

“Unlike the business process outsourcing (BPO) companies that can manage with a small team of even 25 people, call centres need large teams and enough cash for marketing. Small call centres (below 300 seats) with weak monetary support are in trouble,” a Nasscom official said.

Size and lack of monetary support was indeed the reason for eContactPerson (50 seats) to temporarily shut down its operations, according to its chief operating officer Shailesh Kumar.

DSS Mobile Comm-unications, which ventured out into the call centre business after losing out in the paging business, has also slammed the brakes on its international call centre. “We are not doing well in the international call center business and are working out revival strategies,” DSS Mobile Communications Ltd managing director Pravin Kumar said.

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