LONDON, Sept 25 U.S. firm ServiceSource
International said it would expand in Britain to meet
demand from corporate customers who use its services to generate
more revenue from existing clients.
The group helps companies, mainly in the technology sector
such as Adobe Systems, AT&T and Verizon, to manage service
contract renewals, an area of business often neglected,
according to European managing director Martin Moran.
But tough European markets were encouraging firms to fight
harder to keep the customers they had already won, he said.
"It's a more competitive environment, in terms of people not
buying technology in the same way they used to," he said in an
"The closure cycles are longer, the discounting is deeper
and the competitive pressures are stronger."
ServiceSource uses data analytics to track and optimise the
renewals process for its customers.
It launched its first application in the cloud - whereby
data and services are accessed via the Internet - on Tuesday,
which Moran said would give increased flexibility.
The group employs 360 people in Dublin, Ireland, and 160 in
Liverpool in north-west England. He said it would take on
another 100 people in Liverpool before Christmas to help meet
Shares in ServiceSource, which is based in San Francisco and
which listed on Nasdaq in March 2011, fell as much as 30 percent
at the start of August after the company forecast third-quarter
results below analysts' expectations.
They have since partly recovered, but Moran said the group
could do more to explain its business strategy to investors.
"I'm not sure the financial markets quite understand that
our business is about long-term investment with our customers,"
"We share the risk, but over the term of the contract we
take a lot of the risk upfront. That's probably something we
need to articulate better."