SOURCE: Telecorp Inc.

September 25, 2013 17:04 ET

Telecorp: A Disruptive Force in Making in SaaS CRM Space

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.

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