Firstsource Solutions, a business process services (BPS) company and part of the Rs 90,000 crore RP-Sanjiv Goenka Group, is setting up an office in Melbourne that will employ 500 people in the Australian metropolis as the firm is looking to expand its margins — but will still create 3 jobs in India for each person it employs in Australia.
“We are changing the mix of onshore-offshore. Earlier, we were very heavily skewed in terms of most of our businesses being onshore. If we shift that ratio and we are successfully beginning to do that, that in itself changes the margin profile,” Sanjiv Goenka, chairman of the RPSG group, told Moneycontrol in an interview.
“It's about how do we grow the company so that by 2028 we can increase our bottom line by two and a half times,” he added.
Towards that end, Firstsource is spreading itself out geographically across countries like the UK, the US and South Africa, as well trying to eke out a larger share of its customers’ wallets.
“There are building blocks in place. We have a team that's driving the monitoring of each of these building blocks. So, it's about growing the business, growing margins and at the same time adding value to the customer,” said Goenka.
“As a service provider, it's about what your client needs and how you can add value to your client. Today, the buzzword is Generative AI… Of our 50 top business clients, we've had limited wallet share. Now, if we take that up to 8% or 10%, which is very doable, that in itself means an additional business of $550 million,” he added.
The retail-to-technology services conglomerate is also optimistic that the US Fed’s 50 basis point rate cut will help ease costs on its balance sheet.
“That's a good step. It helps us in certain segments of our business, for example, the mortgage business,” said Goenka.
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