Call centre company debuts on AltX

Call centre operator Dialogue Group is set to debut on the Alternative Exchange (AltX) in September, a move that has been welcomed by the bourse.

Group CEO Jason Drew says the listing is a natural progression in the group`s development. "The capital raised will go towards organic growth through funding a further site and towards acquisitions to accommodate rising demand."

Acquisitions on the cards include the buy-out of a client site in Johannesburg, with capacity for 1 000 new agents. The new site and acquisition will more than double Dialogue`s agent capacity, he says.

JSE and AltX GM for marketing and business development Noah Greenhill was enthusiastic about the impending listing. "Dialogue presented to the committee one of the most comprehensive and promising business plans we have reviewed.

"We look forward to it joining AltX in light of its achievements to date and strong growth prospects enhanced by favourable South African economic conditions."

Drew attributes the group`s growth over the past three years to a combination of factors. "Local companies are increasingly outsourcing their call centre function to cut overheads and focus on core business, while international players are seeking lower cost destinations, such as SA, that nonetheless offer a quality service."

Dialogue is SA`s second largest operator after Dimension Data`s Merchants, he adds, and to date, only 2% of South African companies` in-house call centres has been outsourced. "Based on research, should Dialogue win only one of every 20 future contracts for which it tenders, this could represent R450 million turnover annually."

The group intends splitting its future income model so that 60% is earned from local outsourcing and the balance from international contracts (offshoring).

Dialogue believes it is "well positioned to capitalise on increasing offshoring in light of SA`s cost advantage, technology and cultural affiliation with the UK and US".