Indian BPOs try following the IT industry management model

Indian BPO firms are completely in a transition stage. The competition within the industry demands the BPO firms to try out different policies related to management. BPO firms have realized the fact that being under a brand name of a larger IT Services companies will not bring them higher growth. With a view to drive in more business, certain changes within the management structure have to be made in. Some of the top BPO firms like Genpact and EXL are planning to implement a management model followed by different IT firms. The main highlights of this new management model include channelizing the internal operations in to different industry verticals.

As domain knowledge is very important in a BPO industry, these firms expect to achieve more knowledge in this area through implementing this management structure. The general operations are specifically divided as per the different verticals and domain experts will be leading each of these verticals. Business Development is the main idea behind implementation of this management structure. According to the new structure, domain experts will be the sales heads for each vertical. They can manage and deal with the industry clients better. It is expected that sooner or later all the BPOs will be following the same structure.

Key Highlights with regard to implementation of IT Industry management model by Indian BPOs is as follows –

  • EXL services a $360 million BPO have identified Banking and Financial services, Travel and Transportation, Utilities etc as some of the key verticals. Finance is identified as a horizontal function which involves multiple verticals. Each and every vertical will have specific sales team associated with it. The various sales teams located in India and other offshore locations will coordinate with the specific delivery teams. The back end operations teams will directly report to Chief Operating officer at EXL. The sales team should report to Executive Vice president – Global Client Services in US.
  • As per the industry reports, Genpact occupies the third largest position in the Indian BPO industry with revenues reaching a figure of $1.6 billion in 2011. IT Services firm Headstrong had been acquired by Genpact very recently. This company also followed a complex management structure as that of EXL services. As part of their initiatives towards business development, the company plans to follow a similar structure by appointing separate experts for different verticals. Genpact has appointed separate geographical heads for each vertical. The company divided its business into three main verticals that Asia Business, India Business and Europe Business.
  • WNS Global Services is a $369 million company which offers outsourcing services to 200 plus clients worldwide. This is the first company which has introduced a vertical realignment plan for the sales and back end operations.

The implementation of IT industry management model can be regarded as a bold step aiming towards higher business growth especially when BPO firms are increasingly facing competition from IT companies. The need for domain experts for understanding the client needs in each vertical cannot be ignored. IT industry management model is very important in this kind of business where in the companies deal with top global clients who look for higher domain knowledge.




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