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Customer management outsourcer Firstsource has delivered strong growth for FY25, reaching a significant milestone of $1bn annualised revenue run-rate. The RP-Sanjiv Goenka Group company posted impressive Q4 results with revenues of $250m, up 29.4% YoY, while full-year revenues climbed 25.9% to $944m.
The firm's ‘UnBPO’ approach (as we have described here) looks like it is hitting the mark, shifting from traditional cost-saving outsourcing to a tech-driven, outcome-focused partnership model. This strategy has helped secure 14 large deals in FY25 – including their largest-ever healthcare deal – and attracted 43 new logos. Cut through the marketing spiel and it looks like a proposition increasingly based on process delivery by Gen and Agentic AI-based solutions with a new commercial wrapper.
Particularly noteworthy is their Agentic AI Studio initiative, which breaks down work into specialised tasks executed by AI-driven agents, helping redefine workflows. This emphasis on AI integration is complemented by substantial investment in training and talent development, with over 200,000 ‘digital learning hours’ delivered across GenAI, automation and domain-specific skills.
The UK remains Firstsource’s second largest market (after the US) with a business operating across a range of clients in the Media (e.g. Sky), Financial Services, Utilities and Retail sectors. A quick crunch of this morning’s numbers gives us an estimate that the business is worth close to £233m per annum in revenue which would represent growth of 8% in the UK – good going given the market conditions and pressure of commoditisation.
Looking ahead, Firstsource has issued bullish guidance for FY26, projecting 12-15% constant currency revenue growth with operating margins between 11.25-12%. This suggests their pivot towards AI-enabled transformation services is resonating with clients looking to reimagine operations in an increasingly digital and automated landscape.
Posted by: Marc Hardwick at 09:23
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CXM