The existing Indian BPO
industry is very nascent and clear future trends are emerging. Although
the industry is very dynamic and is dependent on multiple factors like
the fate of various bills in the US and UK government, economic
recession etc. it is likely that the industry would continue to grow at
50-60% annually. NASSCOM predicts that there would be at least 8 BPO
companies with revenue in excess of $ 100 million by 2005. The industry
is undergoing a paradigm shift and following trends are emerging.
The future model is
'solution delivery'based and provides significant value enhancement
on a consistent basis. It will adopt a solution delivery strategy as
opposed to just a service-delivery one, and is based on four key
parameters: adding value to offshore process, adopting business
process management approach with operational transparency, customer
value-driven commercial models and delivering value for the complete
Hughes BPO Services
Vertically focused niche players: Today the industry is horizontally
focused and there is very little re-engineering capability, services
provided are platform based and little value addition is done. Most
of the players are surviving on cost arbitrage and this is not a
sustainable differentiator. The future would see the industry taking
a vertical approach where niche players with extensive domain
knowledge would emerge and dominate that industry.
Focus to shift on
Back office:India's true potential lies in back office and not much
in call center and back office opportunity represents around 90% of
the total BPO opportunity as per Gartner. Although, 60% - 80% of the
existing 400 BPO players in India are today focused on call center
the shift is imminent. Back office offers several advantages like
increasing the shift utilization, manageable attrition, lower
capital investment etc.
Fixed Price model to
get prominence: Today most of the deals in India are on a time and
material basis where in the payment is made on FTE/Hr. basis.
However, the future would see the emergence of fixed price model
where-in Price per transaction, price per customer would be the
pricing model. This is already an established phenomenon in the
developed countries and provides an incentive to the service
provider to improve productivity.
Amalendu has more than 5 years of experience with leading companies like
Hughes, Siemens and Patni. For the last three years he is in the Call
Center and BPO industry and working in various areas like corporate
strategy, business development etc. His current engagement is with
Hughes BPO Services in the call center division of Hughes Software
Systems as Business Development Manager. Amalendu holds a PGDBM
(equivalent to MBA) from Xavier Institute of Management, Bhubaneswar and
is an Electrical Engineer from Jadavpur University.
About Hughes BPO:
HNS, a unit of Hughes, is a provider of broadband satellite network
solutions for businesses and consumers, with over 400,000 systems
installed in more than 85 countries. With the opening of the Indian
economy in the early nineties, Hughes was attracted by the long-term
potential of outsourcing software development and chose to set up a
subsidiary in India to supplement HNS' R&D efforts.
HSS began its operations
in New Delhi with a team of about 20 professionals and was initially
focused on developing software solutions in the areas of VSAT-based
networks for voice and data, cellular wireless telephony, packet
switching and multi-protocol routing. Within three years, HSS grew to
240 professionals and in 1995, shifted to its present campus to a New
Delhi suburb. Today, over 2500 professionals work on cutting edge
technologies at six state-of-the-art facilities.