Q: We are seeing some state governments coming forward with favorable policies for setting up BPOs. What is your view on this?
A: We are glad that the State governments are proactively taking steps to further the growth of the BPO industry. All steps in this direction are welcome as they not only help BPO service providers but also domestic buyer organizations to align their outsourcing model to the unique needs of the Indian marketplace.

Q: What has been your approach on expansion in the domestic market?
A: We have a model called ‘Connect India’, under which we create hubs in tier 1 and 2 cities connected to smaller centers as ‘spokes’ in neighboring tier 3 and 4 towns to form a mesh for a decentralized but integrated BPO service delivery system. We have four centres in Chennai, Baroda, Aurangabad and Kolkata that act as hubs for their respective regions and now we are in the process of rolling ‘spokes’ that connect to these hubs. We recently launched two delivery centers at Ranchi and Kolkota. The Ranchi center acts as a spoke for the eastern region working with the Kolkata hub. The two centers are currently focused on servicing telecom clients in regional languages such as Hindi, Bengali, Oriya, Assamese and Khasi. We are continuously evaluating new locations to set up more such centers.

Q: Do you think rural areas can provide the infrastructure required for setting up BPO centers? Are you likely to find the right skills there?
A: I agree that basic infrastructure challenges are there in rural areas. But for voluminous voice-based processes, the key requirement is of an employee with knowledge of the local language and this need is met in these markets. We are also exploring options to tap the potential of rural BPOs under our ‘Connect India’ initiative.

Q: What is your view on the emerging BPO opportunities in the A-Pac region? What are your plans to boost your business in this region?
A: We see huge potential in the Asia Pacific region and are working on growing the business in this market. Currently our focus is to expand the existing Philippines operations. We employ around 400 people, which we plan to scale up to 3,000 in the next couple of years. We also have plans to establish a new unit beyond our existing Manila facility. By the financial year-end, we expect our headcount in Manila to grow to 1,000.
The A-Pac region will continue to dominate in the outsourcing landscape for voice as well as non-voice business process outsourcing. With established markets such as India and the Philippines, and emerging destinations such as Malaysia, China, and in the foreseeable future Vietnam, Asia Pacific region is set to play a substantial role in the outsourcing industry.

Q: How do you think the Indian BPO market has evolved in the last few years?
A: The Indian BPO industry is moving to a new level of maturity. Its growth based on voice will no longer be at the galloping rates we saw in last 4-5 years. The outsourcer is now keen to look at even more ways to control costs and leverage offshore capabilities in knowledge-based processes. This is a major shift from the trends of the last few years. Another key trend is domestic companies seeking to acquire agility and nimbleness and thus being more aggressive about outsourcing. This opens up tremendous opportunities for our vast hinterland in terms of employment, livelihood, infrastructure and technology.
Outsourced services that grew for years in different industries are continuing to do well. Most of the low-hanging fruit has already been taken up. Outsourcing service providers thus have a unique opportunity to dive deeper into the core processes of their clients and move up the value chain.