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HCL BPO, as part of its focus on organic and inorganic growth in the country and overseas during FY08, plans to set up a new delivery centre in Hyderabad in early 2008. The centre will initially be a 1,000seater facility, and is expected to undertake voicebased outsourcing services in retail and financial services and other verticals.
President and Chief Operating Officer N Ranjit told this website s newspaperthat HCL BPO planned to tap tier II cities for new delivery centres in the next fiscal.
On the inorganic route, HCL BPO is bidding for two to three companies in the UK and the US and is expected to acquire one of them in the transaction process area in FY08. By 2010, the UK and the US are expected to account for 45 percent of the company s revenue, Ranjit said.
Last fiscal HCL BPO posted revenue of US dollar184.1 million. Seventyfive percent of the company s revenue comes from voicebased services, 25 percent from transaction outsourcing like insurance claims, HR outsourcing and 5 percent from knowledge process outsourcing KPO including mortgage and legal conveyancing.
The focus in the next two years will be on scaling up knowledgebased services with 10 to 15 percent of the revenue coming from KPO services, 50 percent contributed by voicebased outsourcing and the balance from transaction processes, said Ranjit about the shift in focus. With voicebased outsourcing getting commoditised, the value addition in this service is not very high and the customer is also not sticky about any outsourcing company. Margins in KPOs are high. While rates of US dollar10 to 12 per hour per person for outsourcing work in BPOs is normal, KPO services can go up to US dollar 42 per hour per person.
As part of its initiative to support customers in Dutch, German and French, HCL BPO is setting up BPO centres in Poland for client support in Germany, in South Africa for outsourcing services to the UK and Holland, and in Morocco for French outsourcing. The centres are expected to be operational by June 2008.
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