Infosys Bpo Promises Better Results In Next Fiscal
Tuesday, March 8th, 2011
The BPO unit of Infosys Technologies, India’s leading software and services exporter, expects a nearly 20 per cent growth in revenues in the next fiscal, driven by the banking, financial services and insurance (BFSI) sector.
D. Swaminathan, chief executive and managing director of Infosys BPO, told reporters in Bangalore that he was bullish on the BFSI segment, especially with the easing of the global economic crisis. He expects operating margins of 20 to 22 per cent in the next fiscal.
Established in 2002, Infosys BPO focuses on integrated end-to-end outsourcing; it operates in India, the Czech Republic, China, the Philippines, Poland, Mexico, USA and Brazil. The unit employs nearly 20,000 people has ended the last fiscal with revenues of $352.1 million.
According to Swaminathan, the company plans to hire 8,000 people next year, which would stabilise the 25 to 30 per cent attrition rate. It would also add about 500 seats in Poland and the Czech Republic as part of its growth strategy. Source
According to a research report by the consulting firm Dun & Bradstreet Indian IT-BPO industry is expected to adopt the inorganic growth route in order to widen their service offerings and enter new geographical markets. It is expected that several third party and captive BPO units are likely to increasingly acquire small size companies to ramp up their revenue, clients acquisition, expand business segments and enhance geographical reach. “Consolidation will also be driven by international M&A deals, propelled by robustness of the Indian players,” the report said.
India is considered the BPO powerhouse of the world. Of the top ten BPO destinations in the world, there are as many as six Indian cities. A study conducted by Global Services has ranked the cities based on skills and scalability, savings, business environment, operational environment, business risk and quality of life in these cities. Cost still plays a significant factor in choosing a location, says the study.
BPO major Genpact today said it has entered into a three-year agreement with IT products distributor firm Ingram Micro to provide an end-to-end IT service desk for infrastructure and application support services.
Buoyed by the infrastructure and talent pool available in and around Gandhinagar, Patni Computer Systems Limited, leading global IT services provider is planning to move all its new BPO business to MindSpace Special Economic Zone (SEZ) in Gujarat. So far the company’s BPO business used to run from its Noida SEZ even as Patni Computer launched its offshore development centre (ODC) at the MindSpace SEZ in Gandhinagar.
Tata Consultancy Services (TCS) has become the second-largest insurance business process outsourcing (BPO) provider in the UK, after winning two deals worth £250 million (around Rs1,800 crore). UK-based Capita is the number one player in this space.
Shimoga, the home town of chief minister BS Yeddyurappa and BJP state unit president KS Eshwarappa, is set to become a business process outsourcing (BPO) hub soon.
India’s first Business Process Outsourcing (BPO) facility in jail will become a reality with the Andhra Pradesh government Wednesday giving its nod to the proposal. As part of jail reforms and to provide income generating opportunities to prisoners, the government decided to allow private industry including BPOs to set up their units in prisons.




