DealNet Capital Corp (CNSX:DLS) says it launched services this week for the $10 million contract it recently signed with a major provincial goverment client. Shares surged more than 10 per cent today, to 16 cents.
The company's business process outsourcing subsidiary, OC Communications Group (OCCGI), won the 10-year contract to provide call center support to a government services organization in August. The Toronto headquartered-company had been planning and training for the opportunity for almost a year, according to a company statement released Wednesday.
With support commencing on the first day of October this year, the program is expected to run until at least September 2024, DealNet said.
"OCCGI has been providing extensive Business Process Outsourcing services to other Ontario public services entities out of our Toronto center for almost five years and we are pleased to be able to leverage that experience to successfully launch another major and long term client," said president and CEO of OCCGI, and COO of DealNet, Michael Hilmer, in the release.
The BPO unit provides inbound customer service in English and French from its Toronto-based location. The program is transitioning from another vendor that had provided support for the goverment organization for the previous 10 years. "OCCGI won the business based on our proven track record, and our deep relationships in this competitive vertical," Hilmer said.
This contract is not even the most recent win for OCCGI, having scored last month another $10 million contract with a U.S. based Fortune 500 financial services client.
The BPO unit has been bringing home the bacon for DealNet. Aside from the two $10 million contract wins, it also signed a three-year contract of up to $3 million. That’s $23 million in recurring revenue from inking multiple long term contracts with significant brands, all of this on top of the existing backlog.
DealNet’s focus on recurring income doesn’t stop with OCCGI. In fact, coming down the line is DealNet’s next business, One Dealer, set for a “massive” launch this month. One Dealer will provide a host of financing and other services to heating, ventilation and air conditioning (HVAC) dealers and their customers, underpinned by the controls and processes of OCCGI to serve its own consumer financing customers.