Question-and-Answer Session
Operator
(Operator Instructions). Our first question today comes from Ed Caso with Wachovia.
Ed Caso - Wachovia
Good evening. Ed Caso, Wachovia. I was wondering if you can give us an update on your BPO business, pricing turnover tone of business?
Suresh Senapaty
This is Suresh responding here. Let me just give you a broad perspective in terms of some new initiatives that we've taken on our BPO business. We've really got the BPO business and the IT business working much closer together and, therefore, creating quite a few BPO-IT-type of opportunities, or integrated BPO-IT type of opportunities. Our focus has been to drive transaction processing business as against voice business and there has been substantial movement so far as that is concerned.
While the BPO business in terms of revenue may not look exciting in context of the growth that we have had across some of the other service lines, but in terms of order booking it has been fairly healthy. We finalized quite a few, specifically for fairly substantial BPO deals, which are transaction processing deals this quarter and the order booking has been significantly ahead of what we achieved last year, despite this year being much more economically challenged.
Ed Caso - Wachovia
I noticed that your number of active clients has trended down similar to the other two firms that have reported already. Is there a movement to sort of send your customer base to just the better customers?
Suresh Senapaty
I think we've added as many as 31 new customers this quarter. There has also been customer attrition, but that is not attrition in context, that means more attrition in context of our finishing projects with customers or completing our projects with customers and really that is it. Most of the customer attrition has been in the context of projects that we were executing having being completed.
Azim Premji
Was your about BPO?
Ed Caso - Wachovia
No, it's more general than that. Last two quick questions. The impact of Nortel in the quarter and the impact of the Gallagher acquisition on revenue?
Azim Premji
Sorry. Could you repeat the question, please?
Ed Caso - Wachovia
I'm looking for the impact that the bankruptcy of Nortel may have had in the FQ3 or FQ4, and the impact that the Gallagher acquisition had for revenues in FQ3.
Azim Premji
Right. As far as the first item is concerned, based on discussions that we had with the customers, the bulk of the revenue run rate that we have with them continues to hold good going forward. However, so far as the receivables, as per the date of filing is concerned, there is some uncertainty in terms of how that is to be dealt with, because they have filed Chapter 11 so far as the US is concerned and their restructuring plans so far as Canada is concerned, and many other entities, nothing has been filed. From that perspective, there is a little bit of uncertainty.
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