Nov 082012


What Obama Victory means for business of BPO

The results of the one of the greatest shows on earth the US presidential elections are out and the US and the rest of the world is celebrating the return of President Obama for next 4 years. We are also happy about the same and hope that in this term he will bring the change that he promised in his first term.

Why do we say that let us read on.

When President Obama was elected the first time he was looked as the breath of fresh air some body with great ideas and potential who will not only revive the US economy but also work towards world peace. The highly respected Nobel prize was awarded to him before even completing one year in office. Most of the people were surprised about the same including President Obama himself. But soon the pressure of day-to-day politics and the need to keep the average Joe engaged took over and on more than one occasion President Obama acted as a politician rather than a statesman he truly is.
As this is not a political blog but one that restricts its scope to the business of BPO we will talk about the impact of this victory on the business of BPO.

Now this is no secret that many a times President Obama has openly talked about his dislike for outsourcing jobs to countries like India. While the people in outsourcing may not like it, this is the most natural thing he was supposed to say, after all no matter what he is elected by people of
USA and not of India. He may have more fans in India by sheer numbers than in any other country in the world but the fact is we do not have a vote for his election the US citizens have this right and they have shown the second time that they believe his is the man they believe who will give them a better life.

Ok I digress again. Coming back.

We sincerely believe that a lot of rhetoric against outsourcing could be an outcome of political compulsions to counter the challenger Romney and the very fact that he had to face the electoral again for his second term. Now with no third term in place there is a high chance that President Obama will focus on some of the more important issues that he may want tackle than to worry about the business of BPO. Let us not forget while it remains a sensitive issue it may not be on a very high priority list of President Obama as he worries about more pressing issues like healthcare reforms, the war on terror, a widening fiscal deficit and now with no reason to go back to public for a third term he no longer have to give populist slogans and can focus on actions where he can deliver.

Does this mean he will forget outsourcing… well we don’t think so, but we do feel it may not be on a very high priority must do today kind of list. But what he really wants to do will emerge in next few weeks when he announces his real action items. He will definitely create more jobs for US citizens in the US government but that should not impact the business of BPO. One thing we should keep in mind is that big business in US is not a fan of President Obama and a 250 point fall in the NYSE on announcement of his getting a second term is a clear indication that big business does not considers him to be an ally.

Let us keep our fingers crossed and celebrate at this time return of a truly Charismatic leader whom not just America but the rest of the world also looks up to.

 November 8, 2012  Posted by at 1:15 AM Business of BpO Tagged with: ,  Comments Off on Obama victory the road ahead for business of BPO
Nov 062012


Q: Which outsourcing company in India has most Valuable employees?

Mr. Narayanmurthy the legendary founder of Infosys once mentioned that his employees are his biggest asset. This is very true in the IT and BPO business as the maximum investment and the only revenue source an IT or a BPO company has it are its employees. Even product companies need employees to develop and market products. For any outsourcing company in India or anywhere the success depends on how much revenue each employee is generating and  how many of them are revenue generating as a ratio of total employees.

In this post we will examine which BPO companies have the best assets i.e. employees by virtue of producing highest income for their company. The three companies that we will compare in alphabetical order are

  • EXL
  • Genpact
  • WNS

Genpact, WNS and EXL are 3 of the top 3rd party BPO companies that are based out of India but listed in US. While Genpact and WNS are listed on NYSE, EXL is listed on NASDAQ. The three companies are bell weather of outsourcing business and pioneers in the outsourcing business. We are not including Convergys in the same as though listed; India is still not its largest location headcount wise. While the other three have more than 75% of their workforce out of India and are led by people of Indian origin.

We compared the financial result of the top 3 listed BPO companies from India. Please note we are saying from India and not in India, due to which we have excluded Firstsource. Also the results of Firstsource for the last quarter are yet to be declared so we are excluding it, but may update this article at a future date.

We working on the data of these three companies and will present the same to you tomorrow. In the mean time would you like to guess which companies employees have highest revenue per annum? Per hour? Let me give some revenue numbers to you to start the comparisons

Annual revenue of Genpact is 1.8 billion dollars and both EXL and WNS are in the range of 420 million dollars. But revenue is only the begining point we will go a little deep and analyse the numbers with respect to employee contribution. This will be our starting point and in the next post we will examine following

  • No of employees
  • $/hr achieved by doing some reverse calculations
  • Attrition and its impact

Find out which companies employees have maximum revenue on an annual as well as per hour basis and what it means for others. In the mean time how about doing some research on your own. All data that we are  using has been taken from publicly available information from the respective website or press release of the three companies.

 November 6, 2012  Posted by at 11:04 AM Business of BpO, Case Study Tagged with: , , , ,  Comments Off on Which Outsourcing company in India has most Valuable Employees?