Most large-cap IT firms may be battling global headwinds and shrinking client budgets. But their BPO counterparts seem to have found a way to keep business steady in these uncertain times, reports CNBC-TV18’s Sunanda Jayaseelan on the BPOs' strategy
While parent Infosys bears the brunt of clients slashing budgets, Infosys BPO is posting strong performance with a sequential revenue increase of 28% last quarter which was one of its best quarters in the past two years.
So what's the secret? Well, the company's focus on innovation is driving growth and the management hopes to sustain it by adding more near-shore or onsite centres.
Infosys BPO at the moment has six centres in India and twelve centres overseas with 20% of its total workforce based overseas. However, 30% of its overall revenues are from centres outside India.
This global delivery model, the management explains, is helping win more value-added clients and higher-value work.
Swami Swaminathan MD and CEO, Infosys BPO, says, "Clients are beginning to see a lot more value in a BPO from transactional to transformational. Next year they will build from where they are today."
India's largest BPO Genpact too is adopting a similar strategy. It added a new delivery centre in Texas during the quarter and says that this geographic expansion, both organic and inorganic, will help showcase and leverage it's domain capabilities.
But while Infosys and Genpact have mapped out their expansion plans, Wipro BPO has different priorities. The company, which actually saw a dip in revenue in FY12 says it has won some key clients recently and would rather focus on ramping those for now. Also watch the accompanying video
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