E4e eyes $100-m revenue by 2007

Priya Padmanabhan

BANGALORE: Hitching its future growth on its business model of Services-on-tap, Bangalore-based IT services company e4e Inc is hoping to close in revenues of $100 million by the end of 2007.

Sridhar Mitta, founder, CTO and MD, e4e Inc., was confident of touching this milestone given the current revenue rate of $60 million. “When we started the company in 2000, we decided that we would take half the time that Wipro and Infosys took to reach the $100 million mark. These companies did it in fifteen years and we will do it in 7.5 years.”

Once this goal is achieved, the company would go public, said Mitta. He said that the “Services-on-tap” model that the company articulated four years ago is now yielding results. “It took us four years to internalize this approach and now we have introduced this concept in mortgage and technical support services.”

Explaining the model, Mitta said that Services-on-tap works similar to the Software-as-a-service model that is catching up as a revenue model for many companies. Contrary to the conventional dollar per hour model that is the norm in the industry, e4e has started offering on-demand services depending on the success of transactions or the number of processes required by customers.

“For example, we have an mortgage processing engagement with a financial major, which pays us depending on the success rate of customers signing up for loans,” said Mitta. What e4e has done is to “productize” micro-services such as customer acquisition, document verification and various processes.

In some cases, the company is also helping customers make revenues out of processing operations like support services. The company recently developed a chat based “chat-based” support program for Symantec that delivered both customer support and also transformed support services that were cost centers to new revenue channels.

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