eClerx's US client files for bankruptcy

eClerx Services, a listed knowledge process outsourcing (KPO) firm, said that its US-based client, with an outstanding receivable worth $1 million (around Rs 4.5 crore), has filed for bankruptcy under Chapter 11 in a New York court. However, the name of the client was not disclosed.

eClerx earned around 13 per cent of its annual revenues from this client, which is also one of its top five customers in terms of revenues.

“These are unforeseen events and we do not see any further impact from other clients. We are in talks with both the seller and the purchaser, as the seller has mentioned our name in the list of critical services supplier. The situation will be clear in a week,” said P D Mundhra, executive director, eClerx Services.

The firm said that certain operations of its client, including some that were supported by the company, were to be acquired by a competitor, who is also a customer of eClerx. However, Mundhra feels that this will not adversely impact the business. “We have exposure to three main sectors — manufacturing and retail, travel and leisure, and financial services. The first two verticals contribute more than 50 per cent to our revenues and financial services the rest,” he added.