Xansa, Profits, Revenues, Offshoring, India

Xansa's profits up, but revenues fall due to offshoring

05 Dec 2005 | (News)

While Xansa grew its net profit by 8.8% to £6.2m ($10.7m) in the six months to October 31, 2005, it suffered a 7.2% drop in revenue to £175.9m ($304.7m). The company blamed the fall on the transition of private sector work from the UK to Indian delivery centers.

Based in Reading, UK, Xansa’s Indian headcount grew to 3,383 in the first half of the year, equivalent to 51.3% of the company’s total workforce. Xansa currently has a capacity of 3,400 seats, which it is planning to increase to over 4,000 by the end of 2006. In the six months to October, revenue serviced by Xansa’s Indian operations increased by 16.1% to £36.1m ($62.5m).

Despite the fall in total revenue, Xansa’s Government business unit succeeded in growing its revenue by 31% to £26.7m ($46.2m). The segment also added a number of new clients during the six-month period, including the Metropolitan Police, the Foreign and Commonwealth Office, Peterborough city council, and Cornwall county council.

Xansa reported that its finance and accounting joint venture with the UK Department of Health, NHS Shared Business Services, was performing ahead of initial expectations. At the end of October, 100 of the 663 National Health Service trusts were using the operation’s services, or were about to transfer their processes over to NHS SBS.

According to Bill Alexander, Xansa Chairman, "The company has delivered a solid performance in line with the objectives set out at the start of the year. This has been achieved against a backdrop of planned transition as our India business becomes increasingly important to our existing and potential clients. We have continued to drive growth in the public sector and our joint venture with the Department of Health is showing good progress."

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