The Hindu Business Line : CompuCredit, Allsec expand ties

(From right) Mr Adi Saravanan, Founder-President, Allsec Technologies; Mr Ramamoorthy Jagadish, CEO; and Mr K. K. Srinivasan, Chief Credit Officer, CompuCredit, at a press conference in Chennai on Friday. - - Shaju John

Chennai , June 11

THE US-based CompuCredit Corporation has extended its relationship with Allsec Technologies Ltd to manage consumer loan portfolios.

Allsec would continue to provide contact centre services to Compucredit, and this is expected to bring in a minimum revenue of $30 million (about Rs 130 crore) to Allsec in the next three years.

In addition, both firms would jointly offer various financial services to third party firms in the US and the UK to manage loan portfolios, said an Allsec official. The business opportunity for Allsec from this was yet to be analysed, the official said.

CompuCredit also has an option to take a 20 per cent stake in Allsec provided the business from the extended relationship is about $60 million (about Rs 270 crore) in the next three years, said Mr Jagadish Ramamoorthi, Chief Executive Officer of Allsec.

CompuCredit would bring in its expertise in analysis and management of client portfolios while Allsec's strength was in delivering contact centre services, he said.

The Nasdaq-listed CompuCredit is an IT-driven provider and direct marketer of branded credit cards. It has total assets - both performing and non-performing - of about $6 billion. The Chennai-based Allsec is a contact centre and business process outsourcing service provider. Allsec has been providing its services to CompuCredit for the last three years.

Talking to newspersons here today, Mr Ramamoorthi said that both firms would create a new platform to manage consumer loan portfolios by bringing analytics, telemarketing, portfolio management, customer service and collections. This would create an integrated approach to manage a customer through the complete credit card cycle, he said.

Allsec now employs about 500 people for CompuCredit, and this would grow, he said. An agent would make about 15 calls an hour to CompuCredit customers in the US, he added.

Mr K.K. Srinivasan, Chief Credit Officer, CompuCredit, said that by outsourcing services from Allsec, the company could get cost would be 40 per cent to 50 per cent cheaper than getting similar services done in the US. The combined offering would be a good opportunity for any client with a large retail credit portfolio, he said.

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