Xansa sees increased Indian workload

Outsourcing company Xansa today reported a sharp jump in profits after its operations in India were used more by UK firms.

Profits rose from £6.7m (€9.85m) to £7.8m (€11.5m) as it secured additional contracts and transferred increasing workloads to the sub-continent.

The lower cost of the work meant its revenues decreased by 7.2% year-on-year to £175.9m (€259m) in the six months to October 31, but this was more than offset by improved margins, which grew from 5.6% to 7.2%.

In its interim report Xansa said it had “migrated a significant volume” of existing work abroad in the last 12 months.

The workforce at its three sites in central and southern India have increased by 20% since April to 3,383 and there are plans to expand further as chairman Bill Alexander said its Indian arm was becoming “increasingly important” to potential clients.

Today Xansa announced a new contract worth at least £10m (€14.7m) to outsource the back office duties of Surrey and Sussex Strategic Health Authority to Asia and last week it took on a similar five-year contract with Lloyds TSB.

The company, which employs 6,945 people in the UK, also works for the Metropolitan Police, the Foreign & Commonwealth Office and Peterborough City Council. It hopes to win more public contracts next year.

The company: “Simultaneously, we will continue the transition towards offshore delivery where the economic case for ourselves and our clients is clear.”