‘Third-party BPOs are more efficient than captive ones’

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: for using the software. Even the time involved for the tool to play out across different levels is not considerable, which makes it very convenient for users.

How crucial is technology to BPO companies’ value equation?

The overriding trend I see among BPOs is to provide value to their customers. Cost cutting is no longer the objective. To be able to provide value, BPOs need technology. And our experience with them tells us that the software we provide in the area of business process management can help them create a competitive advantage for themselves. This way, providing value to customers becomes easy.

Do you feel that technology can replace people? Some BPOs are attempting to do this.

Product processes do not require people. It can be automated so that the intervention of people is not needed. But there are tasks that require people. There’s no question of ruling them out in such case. In my opinion, it’s not possible for people participation to be eliminated altogether. I think it would be erroneous to think so.

Typically, what are the challenges that BPO companies face today?

For the Indian BPOs, appreciation of the rupee against the dollar is a cause for concern. Another big challenge has to do with people.

Finding the right people with the right skill sets is not easy. Technology can play a crucial role here. For instance, with a tool like ours, the information and functionalities required to perform a task is delivered to the user.

This brings down the need for training beyond a point. Secondly, the tool can identify what task requires what kind of skill set and who is capable of doing it. In other words, it automates the delivery of the right task to the right individual with the right information.

What are your views on the ongoing debate with respect to the efficiency of captive BPOs versus third-party BPOs?

I tend to agree with the point that third-party BPOs are efficient than captive units. But if captive units can become as good as third-party BPOs then I don’t see why their operations cannot extend beyond the internal tasks they undertake. Take Genpact, for instance. It was a captive unit.