September 9, 2011: Pure BPO firms are considering strategies for long run survival.
Companies which are into pure process outsourcing are looking forward to adopt new strategies to make the company stronger while stepping into IT services in the future. In the past three months the BPO sector particularly in India has witness many innovations and strategic decision. We have also seen companies growing themselves rapidly in an organic manner.
Now the BPO sector in India is giving more importance on inorganic growth. They are targeting acquisition of foreign companies to make them well equipped in particular areas. The acquisition strategy is pursued to make the company strong in every domain. To deliver perfect business solutions and IT services the companies require highly skilled and experienced work force which is easily available while acquisition.
The Indian giant in Business process Outsourcing (BPO), Genpact has recently taken a step to acquire US based company at 550 million dollar. Genpact authorities’ feels that business dealings are always risky and thus we should be more conscious in delivering the best services to the clients. And to make the client satisfied the company require high profiled work force with immense experience and potential to deliver quality services. Genpact finds it much easier to acquire some firm which has enough skilled employees specialized in the particular domain which Genpact is eyeing at. At this point of time the company is focusing on enhancing the finance and accounting service provide by them.
Genpact is just an example there are many other Indian as well as outside firms which is focusing on adopting acquisition as a strategy for tapping skilled employees and to expand as well.
Acquiring an existing firm is a much better option as the acquiring companies need not spend much time in setting up a firm from the base. The acquiring company will get land, building, infrastructure and skilled work force at once. Moreover they need not require investing extra capital and time to train the employees as per requirement. Hurdles in setting new organization, hunting workforce and providing training for them to make them well versed is minimized with acquisition.
Even giants in the BPO sector such as TCS are struggling for better workforce. Attrition rate is increasing and less committed employees are also an issue faced by most of the firms in the industry.
As technology and innovation changes the requirement of client also changes. As far as a service providers are considered the basic priority is to keep its clients satisfied. Adopting strategies such as acquisitions and joint venture will enhance the outsourcing firms to deliver perfect solution and skilled employees.