Tech Mahindra Business Services Group (BSG) ? formerly known as Mahindra Satyam BPO ? is trying to reinvent itself to retain its appeal among clients despite the global macroeconomic scenario remaining uncertain. By deepening its focus on new markets and adopting new business models it is trying to weather the difficult business environment. However, in an exclusive interview to FE?s BV Mahalakshmi, Tech Mahindra BSG CEO Vijay Rangineni accepted that the addition of new customers is taking a long time. Edited excerpts:
How does the deal pipeline look for your BPO business?
The first wave of outsourcing was driven largely by delivering cost efficiencies and productivity. The subsequent focus was on greater breadth and having a global delivery capability. We believe that in the new manifestation, the key drivers will centre around value-enhanced end-to-end solutions and having a shared vision with the customer on driving transformation and enterprise-wide cost efficiency. BSG consists of three key pillars ? BPO, services and consulting. Leveraging best practices gleaned from over two decades of Mahindra Satyam?s experience, BSG offers an array of innovative service offerings. Currently, we have multiple on-going projects in line with our strategy of providing verticalised services to telecom, manufacturing, pharma and BFSI areas.
Do you see any pressure in customer retention, addition of new clients or pricing?
We are experiencing significant amount of activity in the pharma and BFSI sectors. While we are not experiencing pricing pressure from the existing customers, addition of new customers is taking longer sales cycle, based on the current economic challenges.
Going forward, how do you see outsourcing evolving?
We are moving towards providing higher level of activities in the value chain and are also supporting our customers to introduce new products/features as part of their product/services area. The services that we deliver in the telecom, pharma, travel and BFSI areas are fairly complex and integral to our customers? core operations.
Will the BPO vertical take a hit for the next few quarters? What would be the nature of work once the merger happens with the parent company?
In the BPO vertical, we are seeing increased flow from the existing customers and do not see any issues there. We are making significant investments in the verticalised services and will be able to offer complete end-to-end solutions to make our services more integral with our customers? operations. We have already embarked upon realising the synergies of the combined structure and moving towards that direction.
How many new centres, like the one in Manila, have been set up? What is the nature of investment and client profile?
Mahindra Satyam and Tech Mahindra BSG are focusing on having a very diverse geographic coverage. Together, we have delivery centres in India, Malaysia, the Philippines, Ireland, seven new locations in Africa and the US. We are currently conducting a slew of employee engagement programmes such as ?Global Talent Exchange? for our associates. The aim of these programmes is to recognise and reward outstanding performers by providing an opportunity to grow and build experience.
The associates selected under this programme also learn different business practices and replicate best practices in the home country for improved efficiency.
These programmes are delivered from our global delivery centres such as from the Philippines and Africa. While I cannot comment on the nature of investments, what I can definitely say is we are here to grow.
