The strong rupee and new foreign competition is hurting BPOs focused on exporting their services. But domestic rates are going up. Time to take a call

Dialing Home

Indranil Chakraborty

Posted: Monday, Sep 24, 2007 at 0000 hrs IST
Updated: Monday, Sep 24, 2007 at 0103 hrs IST


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The country’s top BPO enterprises have realised that business in India will help them optimise their operational efficiency and cash on the business opportunities in a number of ways.

“From the same centre, we can serve Indian customers in the day shift and North American customers in the night shift. Also, as the Indian business is going global, with experience in international outsourcing business, large Indian BPO companies can start serving their global operations from hubs in India,” says V AnandKumar.

Regarding domestic business opportunities, Rajdeep Sahrawat, vice-president of Nasscom, feels that as customer service becomes the key factor for companies to retain clients, there is a need to have specialists who would provide quality customer relationship management.

“Here comes the synergy. Gone are those days for Indian companies where they could tell their customers, ‘take it or leave it’. The need to outsource back office management to retain existing customers is driving the Indian domestic BPO business,” says Sahrawat.

Take the case of Firstsource Solutions, a leading Indian BPO. Today, one third of its 15,000 employees are serving five companies operating in India in the areas of financial services (primarily banks) and telecom operators.

Sinha of Firstsource Solutions says that Indian companies have realised that they would lose their focus once they start doing everything. “So companies have started outsourcing their back office work and there lies the opportunity,” says Sinha.

According to a Nasscom-IDC study on domestic ITeS-BPO market done some time back, customer care and sales and marketing contributed around Rs 3,394 crore and Rs 1,776 crore respectively in 2006, out of the total domestic revenue of Rs 6,608 crore. The study points out that the Indian market is driven by voice-based services with customer care and sales and marketing activity accounting for about 70% of the total.

V AnandKumar of WiproBPO says that as more and more Indian companies join the outsourcing bandwagon and demand for good quality service increases, the BPO companies have to explore new opportunities in smaller cities.

“More and more of us will go to the second and third tier cities. For telemarketing one does not need to know English, local language is enough and these services can be done from smaller cities where there is no cost pressure,” says Kumar....

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