Allowed | Data and call centres for government activities. (Image: Moneycontrol)
Hinduja Global Solutions (HGS), the business process management services arm of Hinduja Group, is betting big on the e-commerce sector in India as a sector that will drive business growth for the company. While banking and insurance is being touted as the next biggest sector for the company, regulatory norms prescribe that a lot of activities in these sectors cannot be outsourced.
In an interaction with Moneycontrol, Partha DeSarkar, Chief Executive Officer, Hinduja Global Solutions said that their aim is to create a bigger footprint near the US through a near-shore presence.
“The company is already present in Jamaica and is looking to further expand in the Latin American market. We are of the belief that we have a good scope to offer Spanish language support from the near-shore facility for the Hispanic community in the US,” said DeSarkar.
The company is bullish on India as a market, even though the India domestic market has faced some volatility in the telecom sector which has led to pressure on volumes.
Srinivas Palakodeti, Chief Financial Officer, HGS said that that in terms of India domestic market, they are trying to re-balance the portfolio and focus on consumer-led, non-telecom businesses.
When it comes to the banking and insurance sector, both the Reserve Bank of India (RBI) as well as Insurance Regulatory and Development Authority of India (IRDAI) have barred Indian entities from outsourcing core activities to outside players.
DeSarkar said, “We will be able to bring best practices from other markets if we are allowed to get business from banking and insurance players in India. Unfortunately, the regulatory regime has not been conducive to this.”
Regulators like IRDAI have been clear about not letting data from Indian insurers to be outsourced due to privacy concerns since it will be stored in a cloud server abroad.
In terms of the global business, DeSarkar said that apart from Latin America and the Caribbean Islands, South Africa and East Africa are also attractive markets. “In South East Asia, we have done a recce in Vietnam but have not taken a decision to enter the market yet,” he added.
In its results for the quarter ended September 2017 declared recently, HGS posted a 42.5 percent rise in consolidated net profit at Rs 53.4 crore for the September quarter, backed by broad-based demand across verticals and geographies including the US and the Philippines. DeSarkar said that the revenue growth which averages around 10-11 percent could be a little lower this year.