Cork-based group SWS has entered the British market for outsourcing services in a drive to increase its revenues fivefold to €100 million in the period to 2010-2012. Its outsourcing unit was separated from its renewable energy unit after a €110 million takeover, led by private equity firm Ion Equity in 2006.
With revenues last year of €20 million, it is seeking outsourcing contracts from the British operations of Irish companies and from British groups with annual revenues of €500 million-€5 billion.
Britain is the world's second-largest outsourcing market after the US, said Jim Costello, chief of the outsourcing unit. Rival British firms such as Capita, Xansa and Xchange typically target FTSE 100 groups, he said. SWS will target organisations in the FTSE 250 group.
"We've grown from 35 up to 350 people in three to four years. We've grown revenues from €2.5-€3 million to €20 million in the same period. We're looking at €100 million in the next three to five years," Mr Costello said.
In the same period, SWS aims to increase its staff to 1,000. Some 450-500 will be employed at its offices in Clonakilty and Bandon and the remainder will be employed internationally.
SWS opened an office in Lodz, Poland, last year and it plans to employ 150 people there by the end of 2008. Mr Costello said it also plans to open offices in India, China or the Philippines. Ion owns 51 per cent of the outsourcing division. Management and staff own about 24 per cent, a stake that can increase according to incentive plans, and Anglo Irish Bank owns the remainder.
While outsourcing groups work to a net profit margin of some 10 per cent, the comparable margin at SWS is believed to be in excess of that. This suggests the unit made profits of over €2 million last year. Clients include Bank of Ireland, Independent News & Media, O2, Kerry Group, Topaz Energy, the Personal Injuries Assessment Board, the Department of Agriculture and Food and An Bord Bia.
SWS believes its approach distinguishes it from rivals, who replicate the same corporate structure in a cheaper market. Its offering includes document management, shared services, human resources management services and customer services.
