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Attrition remains rampant at Firstsource in Q3 (ended 31 December), with some 55% of people leaving its offshore centres in India and the Philippines during the period. This compares to a similarly eye-watering 50% in Q2 (see Firstsource inches forwards despite rampant attrition). Fortunately, onshore and domestic attrition were both down at 35% (vs. 48% in Q2) and 77% (vs. 94% in Q2) respectively.
As a result, headcount now stands 2% lower yoy at 26,688. Firstsource has been on a much needed recruitment drive, adding net 1,759 FTEs in Q3. 700 of these were transferred across from Barclaycard in November 2010 under its recently announced BPO contract (see Firstsource confirms Barclaycard contract).
As for the numbers, Q3 results show a modest 5% yoy revenue growth to £69m, on a pre-tax margin of 8.4% (vs. 8.1% in Q309). The UK is a growing part of Firstsource’s business, and now accounts for 33% of revenue, up from 28% in Q309. CEO & MD Matthew Vallance expects better performance in Q4.
