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Tuesday, Sep 17, 2002

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Digital's TSCC expects break-even by next June

Vishwanath Kulkarni
Abhrajit Gangopadhyay


DIGITAL Globalsoft's initiative in the IT enabled services space - Technical Support Contact Centre (TSCC) - is expected to report a break-even by the June quarter of the financial year 2003-04, according to Mr Prashant Shankaran, head, TSCC.

"Normally contact centres take about five to six quarters to report a break-even. However, we expect to break-even a little earlier, that is in our fourth quarter of operations, in the April-June quarter of next fiscal," Mr Shankaran told Business Line.

TSCC started its operations in June. Currently, the centre employs 140 representatives and Digital has projected a headcount of 500 by June next year.

In terms of operations, TSCC is handling about two to three different processes for Digital's parent Hewlett Packard. "We are in the pilot stage and once we settle on that, we expect to ramp up the operations and enhance volumes with HP," Mr Sankaran said.

TSCC is also engaged with several of the other clients of Digital. It also plans to actively target the external clients over the next few quarters, he said. TSCC's operations have moved from PCs to handhelds and servers, Mr Sankaran said.

Analysts feel that "strong parentage" offers greater visibility for external clients. Moreover, there are several business initiatives to be tapped within the HP-Compaq business. Margins in the technical support in hand-held and servers are "almost as high as vanilla software development" which would help Digital report a steady growth over the years, as it ramp ups in TSCC operations, they added.

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