eTelecare eyes 70% net income growth this year

Business process outsourcing firm eTelecare Global Solutions Inc. is eyeing a net income of $20.8 million this year, or an increase of more than 70 percent over the $12 million reported in 2006, on the back of a growing clientele.

In a briefing following the listing of the company’s shares on the stock exchange yesterday, eTelecare chief financial officer Michael Dodson said revenues are also expected to grow to as much as $256 million from only $195 million the previous year.

Dodson said the group expects a 35-percent growth in revenues year-on-year. “We see the growth continuing, especially as we expand our operations,” Dodson said.

Formed in 1999, eTelecare Global focuses on the complex, voice-based segment of customer-care services. It provides a range of services, including technical support, customer service, sales and customer retention from both onshore and offshore locations.

The company, whose shares are traded on the Nasdaq, listed by way of introduction on the local bourse. This listing process does not involve a public offering of securities.

Dodson said the company is looking to add 500 seats within the last quarter of the year in addition to the 600 more in America Online (AOL) which should bring the total number of the group’s seats in the Philippines to more than 8,800 by yearend.

eTelecare acquired AOL’s local unit in September. With this acquisition, eTelecare is planning to hire 1,000 more people.

As of end-December last year, eTelecare had 21 clients and about 9,800 employees, 6,800 of which are based in the Philippines and 3,000 in the US.

eTelecare operates a total of 13 contact center facilities in the Philippines and United States. Existing sites within the country are in Makati City, Quezon City, Muntinlupa City, Quezon City, Cebu and the latest in Mandaluyong City.

In the US, eTelecare has seven centers – three in Arizona, two in North Dakota, one in South Dakota and one in New Mexico.

In order to strengthen its position in the BPO market and sustain its growth, eTelecare is keen on penetrating some of its smaller target industries such as travel, cable, healthcare and Internet.

eTelecare’s commitment to the Philippines began in 2000 when it established its first contact center in Makati City and became one of the first Philippine-based companies to provide voice-based BPO services to the US market.

In 2004, eTelecare became one of the first Philippine-based companies to offer a multi-shore business model when it acquired Arizona-based Phase 2 Solutions, a leading US BPO provider.