EFY Times  
Friday, April 25, 2014

 
GO
 
 

BPO Industry Should Move To Tier II Cities: Infosys
 
Home >> Infotech >> Interviews
 
BPO Industry Should Move To Tier II Cities: Infosys  
 
If a company could set up an outsourcing operation in a place like Assam or Guwahati, people would not want to move out. This will help in curbing attrition and bring more stability in the industry.    
Rate this news:  (3 Votes)
Friday, May 11, 2012 It's time for the BPO industry to move to Tier II and Tier III cities to bring stability to its operations and avoid high rate of attrition, opines Narayan Sampath, associate vice president of India business, Infosys BPO. In an exclusive chat with EFYTimes.com, Sampath asserted on the need for the expansion of BPO industry in Tier II and Tier III cities.

Outsourcing has become a need for companies in foreign nations. But companies in India still restrict themselves when it comes to outsourcing. Do you see this as a retarding situation for the industry?

Yes, there is very little that Indian companies have done with respect to outsourcing. But I see it as a market opportunity. There are areas of work that can be outsourced by Indian companies and I see huge potential in it. There is immense amount of growth opportunity in the Indian market.

Infosys, BPO, BPO industry in India, Infosys BPO BPO Forum 2012, India BPO companies, Indian BPO industry, BPOs in Tier II towns, Rural BPOs in India, Rural BPOs, Attrition in BPO industry




Do you think we have adopted the right kind of growth model in the past ten years?

We have grown back on the outsourcing necessity that existed in the West, where cost pressures lead to definite push towards outsourcing. It was the cost arbitrage that led to the initiatives of outsourcing. So if an American, or an Australian company did that, it was because they had severe pressures on cost and Indian outsourcing providers offered to do the same job at one-third of the price as compared to what they were getting otherwise. Indian companies have taken a ride on that and that's how the business has grown and it has leapfrogged in this period of time. To that extent, I think I cannot find fault in sensing an opportunity and growing with that.

Having gone to this distance, I think the time has come for this model to be adapted in India. For one, Indian companies have gone global, therefore, they are also looking for greater efficiency in their business processes. When you are small and you are operating in a local environment and uncompetitive environment, then probably Indian companies cannot afford to overlook internal costs and back office cost. But, now having gone global and facing intense competition from international markets, there is every reason why they should start looking at this option. I think it is imperative for Indian providers to cater to the domestic market.

There was international pressure that drove our growth initially but now there is Indian economy also which has come into play. Companies like Airtel consider outsourcing as one of their major needs to grow in the current competitive environment. Does that give the desired boost to the Indian BPO industry?

Very much. There are companies that know the importance of outsourcing but those are just a handful of them. Today when we speak to clients, they are not very sure as to why they should outsource. Their learning process has started but it needs to accelerate over time. We are dependent on our clients. When we make our clients do well, that is when we will grow. The clients have a certain business need and that can be serviced very rapidly. For instance, an Indian company wants to grow abroad. They are acquiring a company in an overseas market and have to set up a shop. Now they should be focusing on growing the market and settling down in a new country and looking after opportunities of growing business in that country. In that kind of a scenario, if a BPO service provider can quickly provide a back office that can scale up and provide the best practices, they would instantly get going. Otherwise setting up shop in a new country or a new environment is difficult. Similarly, multi-national companies are coming and setting up shops in India. They would be new to this country, alien to the procedures and processes that exist. In this environment, if a BPO service provider can provide services that can make the company have a speedy start, take away the worries out of the CEOs, so that they can focus on their main business while the back office engine that is driving that organisation is taken care of by service providers like us, they would be very happy. Therefore, these opportunities provide a lot of growth potential in the country.

When we look at the top BPO companies in India, they are all the ones that have integrations with IT companies like Infosys, Wipro, iGate, etc. But pure BPO companies are really not able to scale up to that level where such integrated companies have reached. Do you think BPO companies need to integrate with IT companies to grow further?

Correct. The cost arbitrage in the Indian market doesn't virtually exist. So you cannot substitute 100 FTEs of an Indian manufacturing company's financial accounting department by another 100 people and enhance efficiency. There has to be a certain process improvement which can come only with technology play. Otherwise we are not going to substitute person X by person Y and give benefits to the client as well. So it has become imperative for any company in this field to become adaptable to technology, to bring in technology related solutions, bring about platforms that will accelerate productivity, gains, etc. Yes, I think it is important.

Infosys has been a pioneer in adopting the non-linear growth model. Non-linear model is supposed to be an ideal one for the BPO companies but there are just a handful of companies that have been able to do so. What do you think are the hindrances in adoption of non-linear growth model?

I think one of the reasons is that the enabling of business processes through IT has picked up in the past 20 years. Both large and small companies have adopted IT. They have implemented ERP systems. So in such cases, as a BPO service provider, if we make a platform, it has to complement the existing system. It cannot throw away the older systems. So to that extent, the growth has been a bit slower because you cannot sell a value proposition against something which has already been invested into. People have gone through a lot of pain and have put in so much of effort to get that previous process to speed. So from that point of view, the solutions that we create, have to complement the IT solutions or the platforms that already exist. To an extent, our success has been in identifying that area, which complements the platform that is already available. Our effort is not to destroy or take away the investment that the client has made but to work with them and make those work. So I think we can identify such areas to get the non-linear growth model accelerated.

Infosys always promotes BPOs in Tier II and Tier III cities and of course the concept of rural BPOs. What are you plans of expansion in Tier II and Tier II cities in FY13?

We have five centres in India- Gurgaon, Jaipur, Pune, Bengaluru and Chennai. We operate from these large cities. Regarding the rural BPOs, any of these will not be run by Infosys. We foray in these areas through partnerships because partners bring in the type of administrative and managerial skills required to run a rural BPO. Given our size and scale, it would be impossible for us to set up shops across Indian and run them. So we have partnered with two firms and we are working through them to take the BPO jobs to rural markets. These two are Bengaluru-based companies, but they have centres across India. The concept is still in its nascent stages and it needs to grow because we need to gain acceptance of the clients to move jobs there because finally for the clients it doesn't matter where the job is delivered from. They just need to conform to the highest standards of quality, reliability, safety and security. It's a growing and an emerging model for us.

What kind of growth do you see for rural BPOs and the ones in Tier II and Tier III cities in India?

Not many companies can opt for such models as they may not have much choice. As we grow in the Tier I cities, there is hardly any space left. We are hunting for the same talent, attrition is bothering every player. So if we have a shop in Bengaluru, we are brining jobs from say US and migrating labour from Assam or Guwahati to come and work in Bengaluru. So I see it as an inefficient model. Cities are becoming costly, infrastructure is getting difficult to get and by displacing people from their natural habitat, they are causing more stress to both people and system and it is leading to attrition. There is a lot of instability in the system, in the lives of the people, in operations, customer delivery because of these rapid changes that are happening in the people front. So, given all that, it is imperative for the companies to start looking at options of taking jobs to the places where people live. For instance, we are in Bengaluru. If a company could set up an outsourcing operation in a place like Assam or Guwahati, people would not want to move out. This will help in curbing attrition and bring more stability in the industry.

Diksha  P Gupta, EFYTIMES News Network


Print Email Post Comment  (1)
(Total Views: 3948)
 
Share
 
 

1 Comments

sandeep   682 days ago

good move
Reply  
 
Infotech News
   
Corning, The Gorilla Glass 3 Maker, Now Eyes Indian Companies
RS Components Joins Hands With PR Electronics To Deliver High-Precision Signal Conditioning Devices
Artesyn Embedded Technologies Launches SharpCaster Accelerator To Simplify, Speed And Save When Deploying Broadcast Video
Achieve High Energy-Measurement Accuracy With Highly Integrated Single-Phase Metering SoC
Canon Now Eyes India's Security-Camera Market
 
 
 
     
     
     
Press Release
     
Conveyor Systems Market Worth $6,268.3 ...
Phone2Action Announces New Advisory ...
Global System-On-Chip (SOC) Test ...
Protein Expression Market Worth ...
LED Light Bars - Global Strategic ...
Data Center Fabric Market Worth $15.14 ...
Inertial Navigation System Market Worth ...
Altera Announces First Quarter Results
Actions Semiconductor Files Annual ...
RFMW Offers 15W GaN Transistor – DC To ...
Steve Simmerman Senior Vice President ...
Sungale Changes Its Internet TV Box’s ...
Computer Troubleshooters Is Scheduled ...
American Megatrends Partners With Envoy ...
Valuelabs Features Product Engineering ...
Tango Networks Granted 25th Patent
Beyerdynamic Presents The T 51 i – The ...
Beyerdynamic Upgrades Its DTX/MMX ...
Almost Half Of SMBs Will Switch To ...
LogMeIn Debuts Enterprise Version Of ...
Agilent Technologies Strengthens ...
Opera Coast For iPhone, Now Out In The ...
Nimbuzz Offers 100 Minutes Of ...
New Release Xara Web Designer 10 ...
Embedded Vision Alliance Announces ...
 
LSI Nytro Flash Accelerator Cards Help ...
JOT M10 Functional Test Solution Wins ...
Electronics Industry Big Winner At IPC ...
Averna Announces Early Adopter Program ...
Truecaller Delights Tata DOCOMO Users ...
Mindtree And IGD Launch Inaugural ...
Over 69 Per Cent Of Targeted Attacks In ...
Network18 Along With Microsoft Launches ...
Exar Offers Wide Frequency Universal ...
Pitney Bowes Partners With INRIX To ...
IMImobile Builds Windows “Up At The O2” ...
FineLine Prototyping Acquired By Proto ...
Proto Labs, Inc. Launches New Additive ...
Isola Group Using Motorola WLAN ...
WeChat’s New Real Time Location Sharing ...
Orange Business Services Helps Haier ...
Nokia Asha Touch Phones Receive New ...
Milagrow Launches India’s Most Powerful ...
SAPPHIRE SHIPS R9 295X2 And R9 295X2 OC ...
Samsung Galaxy Tab 4 Available In U.S. ...
Toshiba And National Science Teachers ...
Amazon And HBO Ink Exclusive Multi-Year ...
Research And Markets: Global Radio ...
Hitachi Solutions Canada Again Named As ...
Buck Converter From Diodes Incorporated ...
     
     
     
     
     
Most popular
 
Features
6 Disk Cloning Tools For Linux Users!
Cloning your disk helps in protecting the data on it through replication....
12 Log File Viewers and Analysers To Know!
Here's how you can make sense of your computer's logs!...
7 Super Useful Application Servers For Developers
Building your own application? Here's something that you would appreate....
Smartphone Review: Gionee Elife E7
With the right marketing pitch, Gionee could end up eating into the market of companies like Micromax, while also affecting sales of brands like Samsu...
10 Open Source Video Editing Tools For Amateurs And Professionals
Are you a Linux user? Want to make first class videos? Here are the tools!...
9 Small Footprint Web Browsers For Linux Users
While all of these work on Linux, many of them are also cross platform tools....
Password Cracking Anyone? Here Are 10 Tools To Help You!
It takes only a hacker to pinpoint the loopholes in a well-structured program....
8 Of The Very Best Encryption Tools To Secure Your Network
Encrypting and decrypting data are common phenomena utilised by people to protect their digital communication. Here are some handy tools....
Are You A SysAdmin? Keep These 10 Tools At Hand!
Being a sysadmin has its share of joys, however, challenges abound in this digital world! ...
Here Are 8 Awesome Books On Exploitation And Vulnerability Research
Keeping just the right books at hand is perhaps one of the better moves on the part of an ethical hacking, then there's the hacking of course!...
The Top 10 Application Security Books For You!
The following books will teach you how to preserve and protect the sanctity of your applications all the while giving you useful information about eth...
6 Packet Sniffing Tools For Ethical Hackers!
Keeping your network secure requires a lot of tools. The packet sniffing tools are amongst those that are most important....
Here Are 18 Proxy Websites To Access Blocked Websites
Go on and surf some blocked websites......
12 Instant Messaging Clients For Linux Users!
Want to chat with your friends? Use these IMs!...
7 Cryptography Books That'll Answer All Your Questions!
If you want to learn to break ciphers, encryptions or codes, well, look no further... ...
 
  View All
Dialogue
 
HTC Is Strong And There Are No Plans Of Sale Now Or In Future, Says HTC's Senior Director-Marketing
Atithya Amaresh from EFYTimes had an exclusive chat with Sirpa H. Ikola, senior director, Marketing, South Asia, HTC about its devices and its plans w...
“Cloud And Hybrid Hosting Are The Way To Go!”
Diksha P Gupta from Open Source For You spoke to Anil Chandaliya, chief network administrator, ESDS, about how customers can play safe while dealing w...
"Linux Interoperability Has Been Enabled Through Work Across Microsoft"
Diksha P Gupta from the OSFY team spoke to Dr K Y Srinivasan, principal architect at Microsoft, about how the company is moving ahead on the open trac...
"For Modern Day Tablets And Smartphones, Android Has Become A Default"
Diksha P Gupta from EFYTimes.com spoke to Indrajit Sabharwal, managing director, Simmtronics Semiconductors Ltd, about the compan...
"Torvalds' Blunt, Harsh Criticism Helps Open Source Grow"
Steve Ballmer called Linux 'cancer, which attached itself... to everything it touches,' in 2001 and oh-so-rightly. ...
   
  View All
Videos
 
First Look: LG Optimus G
The phone sports a high-end display and comes powered by a powerful processor. ...
Create QR-Codes For Free
TEC-IT releases the freeware QR-Code Studio to provide a quick and convenient way of QR code creation for every application scenario....
DoT Secretary Shares Plans For Growth Of Telecom Sector
M.F. Farooqui has recently taken charge as secretary, Department of Telecom....
Hands-On: Sony Xperia Z
Xperia Z is Sony's first entrant model in the big-screen smartphone category. ...
Hands On: Videocon A30 Smartphone
Videocon, the consumer electronics company which is known for its refrigerators, washing machine and air-conditioner has unveiled its Android-based sm...
   
View All
   
 
MWC 2014
 
MWC 2014: Tablet Lets People Feel Textures On Its Screen
Now feel what you see on your tablet, by way of ultrasonic waves....
MWC 2014: 4K Android Tablet Games To Kill Consoles, iPad
Tablet makers like Samsung want to beat the iPad by making 4K tabs. ...
MWC 2014: This Vodafone Backpack Helps Get Network In Disaster Situations
Two engineers of Vodafone New Zealand displayed the "mini" mobile network by Vodafone substructure in a backpack. ...
MWC 2014: Wilocity Chipset To Bring 'Lightening' Speed To Mobile Phones
Wilocity has developed a WiGig chipset for mobile phones that will bring lightning-fast wireless capability ...
MWC 2014: Samsung Introduces Octacore, Hexacore Chipsets
The Korean giant, Samsung unveiled two new octacore and hexacore chipsets at MWC 2014, in Barcelona. The company previously used Exynos 5 Octa 5410 ch...
MWC 2014: Alcatel Unveils PIXI 7 Tablet With Android 4.4
Alcatel arrived at the MWC 2014 with yet another low cost Android tablet, priced at $110 ...
MWC 2014: LG F70 Unveiled With Android 4.4
LG announced the new LTE-enabled Android smartphone, LG F70, at MWC 2014 in Barcelona. ...
   
View All
   
 
Events
 
19th Consumer Electronic Imaging Fair To Be Held On ...

View All
   
   
 
 

home archives contact us advertise with us
           
Magazines Portals Directories Events News Verticals Educational Institute  
Electronics for You
Open Source for You
Facts for You
Electronics Bazaar
electronicsforu.com
efytimes.com
bpotimes.com
linuxforu.com
Electronics Annual Guide
EFY EXPO
EFY Awards
EduTech Expo
OSIDAYS Expo
Electronics
Infotech
Linux & Open Source
Consumer Electronics
Science & Technology
BPO
EFY Techcenter 
 
 
© Copyright 2014 EFY Enterprises Pvt. Ltd.
All rights reserved. Reproduction in whole or in part in any form or medium without written permission is prohibited.
Usage of the content from the web site is subject to Terms and Conditions