Citycom clinches £450,000 Caretech deal

Citycom clinches £450,000 Caretech deal

Vodafone Gold Partner Citycom has won a major deal to provide and manage 750 mobile and data connections for healthcare company Caretech Holdings.

Citycom won the 30-month bespoke contract in the face of fierce competition from rival bidders including a major mobile network.

The contract sees Citycom provide Aim-listed Caretech with a range of services including Citycom’s Platinum Club Enterprise support services.

Wahid Cockar, Caretech’s IT head, said Citycom stood out from the competition by showing a good understanding of the business, offering Platinum Club services and by cutting telecoms costs by 32%.

The £450,000 deal is the latest in a number of wins since Citycom’s launch in October last year following a management buyout at unified comms provider Savincom, led by its co-founder Vinod Kakkar.

The buyout saw Kakkar take on 3,500 of Savincom’s 7,000 mobile connections, leaving his co-founder and brother Sahil Kakkar to head up Savincom. Citycom’s fixed-line business continues to operate as a joint venture with Savincom.

Speaking to Mobile Vinod Kakkar said the split was amicable. He said: ‘It was about us wanting to run our own businesses and we both felt it was the right time having launched Savincom ? ve years previously.’

Managing director Kakkar said Citycom, which is based in the City of London, operates on a distinctly different business model from Savincom.

He explained: ‘It is very much focused on managing clientele based in the City of London and very focused on the insurance, financial, legal and healthcare industries as well as the designer fashion industry.’

Citycom offers unified comms services via its partnerships with Vodafone, O2, EE, BT, Gamma and Maas360. It has also launched the Platinum Club, which offers members three levels of bespoke services.

Business is brisk with Citycom adding 20 accounts to its existing base of 80 accounts and another 2,000 mobile connections to the original base of 3,500 since launch.

Citycom’s annual turnover is running at £1.9m with Kakkar confidently predicting 19% net profit margin on current performance. The Platinum Club is also growing quickly with 100% of new and repeat clients subscribing to the service.

Kakkar said: ‘We have had an amazing two quarters and we are hoping to maintain that momentum as we move forward with our key focus on companies that are ideally listed on the Stock Exchange.’

Looking to the future Kakkar said the company is aiming to increase the number of clients taking more than one product from 20% to 50% and raise connections to 10,000 by October 2015.

Kakkar said Citycom has already identified over 1,000 opportunities ‘just a very short distance from our office'.


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