NEW YORK, NY--(Marketwired - Sep 25, 2013) - Telecorp Inc.
(PINKSHEETS: TLNUF), a leading developer of affordable,
state-of-the-art Customer Relationship Management (CRM) and client
contact software solutions, is pleased to announce the following
article, Telecorp: A disruptive force in making in SaaS CRM
space.
Software as a service (SaaS) is rapidly evolving as a viable
alternative to the old approach of distributed computing. Although
the concept is not new, it has taken up sharply in recent year with
technology biggies such as Amazon and Google offering their key
products on this model. According to technology research firm
Gartner, global SaaS revenues are projected to zoom to $40.5
billion by 2014, nearly three times from $13.1 billion in 2009.
Within the overarching framework, one segment that is witnessing
strong growth is the customer relationship management (CRM)
software. SaaS already accounts more than 25 percent of the CRM
software market and continues to grow at a robust CAGR of 17.4
percent, amounting to $3.8 billion in 2013 (Gartner forecasts).
Focus on fragmented market
More than half of this market is dominated by market leaders
SAP, Oracle, Salesforce.com and Microsoft which typically target
large corporations. However, a significant chunk of 44 percent
remains with unorganized players. These small players usually cater
to the tier two customers -- small- and medium-sized businesses
(SMBs). This is the easiest pie to target and there are many
players vying to get a slice of the market by focusing on this
unorganized section. However, one startup standing out in the crowd
is Canada based Telecorp Inc which is listed on stock markets in
the United States and Germany. Unlike other startups, Telecorp
righteously boasts of products which can cater to industries as
varied as Financial Institutions, Insurance Companies, Brokers; Car
Dealerships; Pharmacies, Hospitals & Clinics.
Comprehensive suite of products
Like most other competing offerings in the market, Telecorp's
solution offers communication tools to enable staff to talk to
clients. What makes it different from its competitors is the
comprehensive suite of products with industry specific variations
which can work as a single entity or can be customized to suit
requirements of individual clients. Its core products include a
telemarketing and messaging tool; an on-demand communication system
that delivers voice messages, surveys, appointment reminders,
e-mails, faxes, and text messages; a feature-rich VoIP-based web
conferencing software; and a staffing management software for
temporary and permanent staffing. These four products are the
building blocks for the company's CRM portfolio which can take the
form of up to 14 applications depending on clients' requirements.
While this may not be the most sophisticated suite of products, it
is nothing short of an accomplishment considering the fact that
Telecorp is a startup.
Telecorp's success looks more assured when considering the
pricing structure of its competitors. For example, Go to Meeting --
one of Telecorp's competitors in the online web conferencing space
-- has monthly plans starting from $49 while Telecorp charges less
than $15 per month for a similar service. Further research
indicates Telecorp's products cost nearly 30 percent less including
service than the competition. In fact, it is one of the very few
companies offering guaranteed results during trial period. The
company's easily deployable products promise to increase
performance by 30 to 50 percent while reducing expenses through
automation.
Telecorp may be starting from scratch but its plans and
technology clearly indicate its ambitions of making it in the big
league. Telecorp's systems are designed to handle 7,500 users even
for a single enterprise license. Scalability is, thus, a highlight
of Telecorp's products. Currently, the company is fine tuning its
software but has already signed up over thousand customers ahead of
the commercial launch in January 2014. Once the core modules are
ready, the company will be in a position to compete effectively
with larger competitors. This scalability also means the company
might not need to make large acquisitions to compete with industry
stalwarts.
Generally, smaller companies focus on specific industries for
deep penetration among clients. This allows better understanding of
a given industry but leaves the company with a narrow focus. On the
other hand, Telecorp's wider range of target industries readies it
for a fast growth in initial years. The company aims to win 2
percent of the global market over the next five years and looking
at its competitive products, it should not be a stretch but
Telecorp has set a conservative cumulative revenue goal of $110
million over the next five years. Driving the profitability will be
scalable business model which promises to deliver annual operating
profit of $28 million in 2018.
In line with the targets, Telecorp is working aggressively on
debugging and finishing software development which is expected to
be completed by December 2013. Rapid increase in manpower through
aggressive staffing and acquisitions is a key aspect of this growth
strategy. Important among these acquisitions would be an
application developer in India and a web development company in
Indonesia which have been identified. Needless to say, offshore
software development in India and Indonesia will allow companies to
operate profitably. In addition, the company plans to acquire two
call centers in Philippines and Panama although specific details in
this regard will be disclosed in October 2013. In fact, it has
earmarked $1 million for acquisitions in its five year plan.
Management holds the key
Finally, a word on Telecorp's management. As they say, a chain
is only as strong as its weakest link, management is one of the
most important factors responsible for a company's success or
failure. Fortunately, Telecorp is led by industry veteran Mr. Paul
Phillips who brings more than 25 years of leadership experience in
the telecommunications industry to the table. Mr. Phillips has
received various awards in recognition of his contribution to the
cable television and broadcasting industry. Apart from Mr.
Phillips, Telecorp has a leadership team with a wealth of
experience and success in service and information technology
industries which includes Mr. Jose Fernandez and Mr. Tom Ambeau.
Both executives are widely respected for their industry experience
and knowledge and have served on senior positions in successful
companies.
Although it is still to be seen how the strategy is implemented,
the company's approach of an offering an all in one solution, which
none of its competitors offer, represents a major external
opportunity. The company has competitive products and a capable
management in place. If Telecorp can deliver on the lines of its
growth roadmap, it is not difficult to see the company achieving
its goal of winning 2 percent market share by 2018.